It's not so much a fall off than the fact that around 1900 people really started to settle on the West Coast. Hollywood was just a village in 1905 after all. And then in the 1940s many people moved to the West Coast because World War II made working there (as well as East Coast) very very feasible. Certainly there are a dozen more reasons tho.
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Look up unemployment by state in the great depression 😢