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On March 4, 1921, Very Progressive President Woodrow Wilson relinquished the office of the presidency to Ohio Senator Warren G. Harding. The state of the union was poor, very poor. "With the exception of Lincoln, probably no president in our national history has taken office with as pressing a burden of unresolved questions." Those were the words of the Nation of February 1921. The national economy was in the depths of a depression with an unemployment rate of 20% after a runaway inflation.
On April 12,1921, President Harding went before a contentious Congress and presented his program for economic recovery which he called "A Return to Normalcy". Harding's normalcy program consisted of the following measures.
1) A call for a national budget program (which was vetoed by his predecessor).
2) National debt reduction
3) Tax reduction
4) An emergency tariff to protect American industry and farm commodities.
5) Farm relief legislation (farm bankruptcies were up 20% from 1914).
6) Immigration restrictions to protect American jobs.
President Harding pushed hard for his program and got it passed by Congress in 1921. By late 1922, the economy began to turn around. Harding did not live to see it, but his normalcy program proved to be the foundation that Coolidge prosperity was built on. Harding's successor, Calvin Coolidge had the wisdom to stay the course and build on Harding's program. The American people were the beneficiaries of the unprecedented prosperity of the 1920's. Unemployment was pared from its high in 1921 of 20% to an average of 3.3% for the remainder of the decade. The misery index which is a combination of unemployment and inflation had its sharpest decline in U.S. history under President Harding. The Gross National Product averaged 7% from 1924 to 1929. Wages, profits, and productivity all made substantial gains during the 1920's. Harding slashed federal spending by two billion from Wilson's last year and Coolidge maintained that spending level of 3.3 billion per year for the rest of the decade. The Harding-Coolidge tax cuts produced increased revenue that went to cut the national debt left by Wilson by one-third.
On March 4, 1921, Very Progressive President Woodrow Wilson relinquished the office of the presidency to Ohio Senator Warren G. Harding. The state of the union was poor, very poor. "With the exception of Lincoln, probably no president in our national history has taken office with as pressing a burden of unresolved questions." Those were the words of the Nation of February 1921. The national economy was in the depths of a depression with an unemployment rate of 20% after a runaway inflation.
On April 12,1921, President Harding went before a contentious Congress and presented his program for economic recovery which he called "A Return to Normalcy". Harding's normalcy program consisted of the following measures.
1) A call for a national budget program (which was vetoed by his predecessor).
2) National debt reduction
3) Tax reduction
4) An emergency tariff to protect American industry and farm commodities.
5) Farm relief legislation (farm bankruptcies were up 20% from 1914).
6) Immigration restrictions to protect American jobs.
President Harding pushed hard for his program and got it passed by Congress in 1921. By late 1922, the economy began to turn around. Harding did not live to see it, but his normalcy program proved to be the foundation that Coolidge prosperity was built on. Harding's successor, Calvin Coolidge had the wisdom to stay the course and build on Harding's program. The American people were the beneficiaries of the unprecedented prosperity of the 1920's. Unemployment was pared from its high in 1921 of 20% to an average of 3.3% for the remainder of the decade. The misery index which is a combination of unemployment and inflation had its sharpest decline in U.S. history under President Harding. The Gross National Product averaged 7% from 1924 to 1929. Wages, profits, and productivity all made substantial gains during the 1920's. Harding slashed federal spending by two billion from Wilson's last year and Coolidge maintained that spending level of 3.3 billion per year for the rest of the decade. The Harding-Coolidge tax cuts produced increased revenue that went to cut the national debt left by Wilson by one-third.
Too bad every President since just hasn't been able to catch on. That was back when America was still a free market, capitalist republic. Today? Let's see,
#1-Sure they will call for a balanced budget, but never deliver.
#2-Can't reduce debt if your printing presses are at full steam, making more and more worthless greenbacks.
#3-Hey we can drean can't we?
#4 &5-Subsidies, tariffs, and Big Farms today are part of the corporate problem.
#6----yeah right, one side would be labeled racist and the other would lose votes. Ain't gonna happen.
Liberal Economist and critic of Obama's policies says this:
"...But if they won’t say it, I will: if job-creating government spending has failed to bring down unemployment in the Obama era, it’s not because it doesn’t work; it’s because it wasn’t tried. "
Liberal Economist and critic of Obama's policies says this:
"...But if they won’t say it, I will: if job-creating government spending has failed to bring down unemployment in the Obama era, it’s not because it doesn’t work; it’s because it wasn’t tried. "
I can't believe there are liberals that don't understand why they are getting booted and shunned.
Perfect example: Deception tactics are no longer effective. The people are not as dumb as you paint them to be.
I can't believe there are liberals that don't understand why they are getting booted and shunned.
Perfect example: Deception tactics are no longer effective. The people are not as dumb as you paint them to be.
Paul Krugman is from the school of thought that worked during Great Depression, FDR -style government work programs. When enough Americans are foreclosed and jobless, there will be an outcry for government work programs. I am hoping that it will not come to a Great Depression, but Obama has to do what has to be done if it comes to that, and has to do enough now to curtail it. That the Tea Party does not care about their fellow Americans is besides the point.
Paul Krugman is from the school of thought that worked during Great Depression, FDR -style government work programs.
There is a reason for it being called the Great Depression. You have found the reason!!
What was so different in the Great drawn out Depression Hoover caused and FDR perpetuated and a much worse crash of 1920 that Wilson caused, with Harding and Coolidge getting us out in less than 18 months?
Come on, tell me!
Good find on this link, as the nuanced complexities of macro economics make my head spin. For every three analyst, there seems to be four opinions on what is the best course of action.
Its a big help to see the various different conditions and what worked in their time as a reasonable guide of where we are today.
There is a reason for it being called the Great Depression. You have found the reason!!
What was so different in the Great drawn out Depression Hoover caused and FDR perpetuated and a much worse crash of 1920 that Wilson caused, with Harding and Coolidge getting us out in less than 18 months?
Come on, tell me!
She can't tell you, it would require more than one line of mindless drivel. Plus she would have to admit that the lack of government manipulation is what worked, not more intervention. That just ain't her thing. I'm proud of her for finding three lines to put up earlier, but nonsense is nonsense, regardless of its length.
Were any of those past recessions caused by lax regulations as far as them contributing to their recession? Our current recession has the issue of regulations playing a big part in it.
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