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In just
three years a whole decade of economic growth was wiped out. The first three waves of
bank failures began in the fall of 1930. While bank failures were common in the 1920s,
many more banks failed in the 1930s, and, unlike in the 1920s, there was a large decline in
the money supply. Made fearful by the huge number of banks that failed, surviving banks
cut back on their lending, and the public reduced their bank balances...
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Between 1929 and
1933, the nation's money supply declined by over 25 percent.
The federal government also contributed to the gap between the rich and
middle-class. The Roaring Twenties was an era dominated by Republican presidents:
Warren Harding (1920-1923), Calvin Coolidge (1923-1929) and Herbert Hoover
(1929-1933)...
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