Warren Harding and the Forgotten Depression of 1920 (Let's learn from history)

Campaign for Liberty ^ | 2009 | Thomas E. Woods Jr.

[RatsDawg]

bookmark, read later

[YankeeReb]

Bump for later. Soetoro should read and heed.

[La Enchiladita]

Interesting. So there was a Depression prior to the Great Depression? There was also a post-Civil War depression... 1863 or so...?? The economy has cycles.

[La Enchiladita]

Printing out now to read at leisure.

[SeekAndFind]

So there was a Depression prior to the Great Depression?

Yes there was with one huge difference --- one administration did the right thing ( essentially letting the free market work itself out, which ushered in the roaring 20's ) while the later two ( Hoover and FDR ) INTERVENED, thus exacerbating the recession ( thus ushering in the great depression ). He who does not learn from history is condemned to repeat it. Which of the two previous policies should we learn from ? Our response has a direct bearing on our economy.

[fieldmarshaldj]

*ping*

[Just mythoughts]

bttt

[okie01]

while the later two ( Hoover and FDR ) INTERVENED, thus exacerbating the recession ( thus ushering in the great depression ).

Had it not been for Hoover and FDR (who followed Hoover's policies), there would've been no Great Depression.

Instead, the reference would be to The Panic of 1929.

"Panics" occurred about every twenty years during the 1800's -- e.g., The Panics of 1819, 1837, 1857, 1873, 1893, 1907, etc. The government made no move to "fix" any of them. And, as a consequence, they generally repaired themselves within a year.

What is so hard about this...???

[research99]

What the 1920/1921 article suggests, would require so radical a restructuring of the social safety net funded by the feds, that if enacted now it would cause massive poverty and social instability.

This is based on the large proportion of GDP that the federal budget now represents, which dwarfs that in 1920.

Think of a 50% cut in all entitlement programs, the military, and so on. Is a cut of that size even possible here today?

[Clintonfatigued]

A posting I did on Warren Harding covered some of this, though not with the same amount of detain on his economic policies.

[who_would_fardels_bear]

In the essay he mentions that it was not the war spending of WWII that got us out of the depression, but something else.

He neglects to mention what that is.

Do you have any ideas about this? I would be interested.

[Clintonfatigued]

“He who does not learn from history is condemned to repeat it.”

Sometimes, people learn the wrong lessons from history.

[Neil E. Wright]

bump for later reading

[SeekAndFind]

Think of a 50% cut in all entitlement programs, the military, and so on. Is a cut of that size even possible here today?

We don't even need to take that drastic an action. How about :

1) NOT ENACTING THIS STUPID, COSTLY AND HUMONGOUS HEALTHCARE BILL

2) BURYING CAP AND TRADE ( KILL IT ).

3) MAKING PERMANENT THE BUSH TAX CUT.

4) MAKING PERMANENT THE TOTAL ELIMINATION OF THE DEATH TAX.

5) CUTTING CORPORATE TAX RATES TO MAKE IT COMPETITIVE WITH OTHER COUNTRIES.

1,2, 3,4,5 and SOLVES ONE HUGE PROBLEM --- BUSINESS UNCERTAINTY. BUSINESS CANNOT FUNCTION AND PLAN WELL WHEN THEY DON'T KNOW WHAT CONGRESS WILL DO IN TERMS OF TAXES.

6) INCREASING THE FEDERAL BUDGET BY THE RATE OF INFLATION ONLY.

7) Kill all pending legislation to nationalize any industry whatsoever, so that business isn't afraid to put capital at risk.

7)ALLOW THE BUILDING OF Build Nuclear Plants - creating jobs and providing cheap energy (one of 4 critical components of the economy).

8) DRILL DRILL DRILL.

9) Reduce business taxes. Certainly do not increase business taxes as proposed in the House health bill.

10) Eliminate renewable energy mandates.

11) STOP THE BAILOUTS.

LET's START WITH THESE. THEY'RE CLOSER TO THE SPIRIT OF 1920 than 1929.

[SeekAndFind]

A posting I did on Warren Harding covered some of this

I hasten to mention that Warren Harding's administration was one of the most corrupt in the history of this Republic. Which goes to show that even a corrupt administration need not do damage to the nation as long as it enacts the right policies.

[Lurker]

Is a cut of that size even possible here today?

It's not only possible but it's going to happen one way or the other.

[SubMareener]

The 1920 Depression was the one that my Grandfather used to talk about as tough. He kept his best machinist on as a janitor. (No union rules to screw things up.) By the time the “Great Depression” came along, he had worked his bending machine factory in Kalamazoo back from the brink. They were making dies for Jig Saw puzzles, so they did quite well from then on.

[southernnorthcarolina]

A good writeup, but it should be remembered that Harding did not assume office until March, 1921. If the recovery from the 1920-21 depression was in progress as of August, 1921, some six months into Harding’s administration, I would have to question how much credit he is due.

[reluctantwarrior]

bttt