What caused the depression within a depression? Some people think that the excessive price increases by monopolies could bring on a recession. However, the new depression was not brought on by monopoly businesses arbitrarily increasing prices. In fact, two different primary sources that were jointly response for this contraction: the actions of the Federal Reserve System. On the other hand, the tax on undistributed corporate profits helped bring on the depression. But Roosevelt did not favor this retreat on taxation but could not veto it successfully and it became law without his signature. As a result, the recovery from 1937 to 1938 depression within a depression was slow because business was reluctant to invest, expand, and undertake potentially
