The economic situation in 1920 was grim. That year unemployment had jumped from 4 percent to nearly 12 percent, and GNP declined 17 percent.
Instead of "fiscal stimulus," Harding cut the government's budget nearly in half between 1920 and 1922. Tax rates were slashed for all income groups. The national debt was reduced by one-third.
The depression on 1920 was over within a year. (This is what lead to the roaring '20's.)
The depression was so short because of the fiscal policies of Harding, most people are unaware of it ever happening.
The depression of the 1930's took a different path. Franklin D Roosevelt did the opposite, and the American people were trapped in a devastating depression for over 10 years.
The outcome of our current recession (depression) depends on who takes over Washington in 2012. If the left wins, a lot of people are going to die that normally wouldn't have to. If a TEA party supporter wins, the country has a chance.
in 1920, we didn’t have trillions of dollars worth of social security and medicare obligations nor did we have a 15 trillion dollar debt nor did we have two wars to pay for nor did we have an utter dependence on foreign oil and foreign debt. cutting spending is a good place to start but turning this ship around won’t be easy and it probably won’t happen in 1 four year presidential term IMHO.