Posted on 02/14/2009 2:44:49 AM PST by Halfmanhalfamazing
Never heard of it? That's not surprising - it didn't last long. The 20's were roaring, not greatly depressing. Yet virtually none of the American population knows that the nation's economy actually took a worse hit in 1920 than it did at any point during the Great Depression.
Federal spending was cut from $6.3 billion in 1920 to $5 billion in 1921 and $3.2 billion in 1922. Federal taxes fell from $6.6 billion in 1920 to $5.5 billion in 1921 and $4 billion in 1922. Harding's policies started a trend. The low point for federal taxes was reached in 1924; for federal spending, in1925. The federal government paid off debt, which had been $24.2 billion in 1920, and it continued to decline until 1930.
With Harding's tax and spending cuts and relatively non-interventionist economic policy, GNP rebounded to $74.1 billion in 1922. The number of unemployed fell to 2.8 million— a reported 6.7 percent of the labor force— in 1922. So, just a year and a half after Harding became president, the Roaring Twenties were underway. The unemployment rate continued to decline, reaching an extraordinary low of 1.8 percent in 1926. Since then, the unemployment rate has been lower only once in wartime (1944), and never in peacetime.
The worst economic crash since we started keeping most relevant records didn't happen during the Great Depression. It happened in 1920. Yet America was back on its feet in less than two years, while the next crunch was dragged out for a decade. The free markets have proven beyond a shadow of a doubt that they grow faster than planned economies - why on earth wouldn't they fix themselves faster, too?
History books have many, many great things in them for us to place our eyes upon. This is one of them.
I find it somewhat ironic that GWB was both Harding as well as Hoover. But Obama seriously wants to be FDR. That's incredibly dangerous.
Agreed that tax cuts work. But as long as business leaders like the Caterpillar CEO are supporting big spending bills like the “Stimulus” with intentions of sending big tax dollars to foreign plants, we won’t be seeing any real tax cuts. ...only lots of worthless tax credits in big spending bills like the so-called Stimulus.
Prepare for either continuing deflation with a possible default (if we don’t resume heavy borrowing and buying), or a terrible inflationary period. And either way, some extreme foreign relations problems will be likely. The unbalanced global game has nearly met its end.
The media always omits something.
Never knew that. This is great information. Of course dopey leftists will never believe it or try it. I’m already seeing evidence of an underground economy cranking up. The federal beast will be starved for tax revenue.
May you live in interesting times...
Good reason to buy a John Deere, Kubota, or Bobcat. Never, NEVER support your enemies.
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I find it somewhat ironic that GWB was both Harding as well as Hoover. But Obama seriously wants to be FDR. That’s incredibly dangerous.
Both FDR and Lincoln had War legacies unlike any previous presidencies. At least where broadness of conflict and number of dead and wounded were concerned.
At least in those conflicts the country survived.
I’m glad you’ve found it informative/useful.
I’d bet many conservatives around here don’t know about this.
Now I must consult the master ping list to see who all applies.
Based on history an intelligent, good-intentioned president would have chosen this path. However, we have neither as communism was chosen for the masses.
Ping the pings your pings:
Where applicable.
America, the right way.
Tax reform.(though it’s more tax history, but it’s good info either way)
and Operation Spread the Truth
It won’t last long. The outcry from the public is massive against what our government does. From Amnesty to the Stimulus to the bailouts to all kinds of other things.
Despite what the media wants to tell us with it’s flawed polling data.
bttt
With ACORN & the 2010 census being mangaed by Rahmbo, all future elections will be fixed so only the rats win. This will eventually mean total control of Supreme Court and eliminating ALL opposing thought & speech with expanded "hate" crimes.
Revolution is the ONLY option.
He also joins JFK and Oba Mao as the only sitting senators to be elected president in the last 100 years. This trio share the same naive views of theoretical governance which led to a host of bad appointments.
The saving grace of both Harding and JFK is that they understood the importance of sound fiscal policy and the limitations of government power.
We are now socialists.
Never before or since has such a supply of 500, 1000's and 10,000 notes every been printed.
What? The economy boomed under Harding? But isn’t he supposed to be one of the worst presidents ever?
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