No, it is false that the music industry shrank during the 1970s since few people were interested in disco, since in fact the exact opposite happened: Many people were wildly interested in disco so the music industry boomed.
Resistance fighters from the Warsaw ghetto rose up against the Nazis in 1943, which led to the Nazis liquidating the ghetto.
It reduced their overall size and increased their PTSD, then called 'battle fatigue. The reduced population stimulated the "Baby boom".