Remember the depression that started in 1920? Unlikely, as it didn’t last long. The downturn was brief because there weren’t a bunch of “smart” people like FDR and Obama “fixing” things, just some dope named Harding who cut spending and got out of the way.
The Ludwig Von Mises Institute retrieves the story from the memory hole:
The economic situation in 1920 was grim. By that year unemployment had jumped from 4 percent to nearly 12 percent, and GNP declined 17 percent … Secretary of Commerce Herbert Hoover — falsely characterized as a supporter of laissez-faire economics — urged President Harding to consider an array of interventions to turn the economy around. Hoover was ignored.
Instead of “fiscal stimulus,” Harding cut the government’s budget nearly in half between 1920 and 1922. The rest of Harding’s approach was equally laissez-faire. Tax rates were slashed for all income groups. The national debt was reduced by one-third.
The Federal Reserve was reserved, cooking up none of the useless alphabet soups today’s Fed concocts with annoying regularity. The result of all this inaction?
By the late summer of 1921, signs of recovery were already visible. The following year, unemployment was back down to 6.7 percent and it was only 2.4 percent by 1923.
No stupid road signs, no Botox-addled crones screeching about “jobs”, no hi-speed trains to Whoville and no trillion dollars worth of toilet paper – just the “tired old way of doing things” Obama and his presstitutes despise.
But if Warren Harding were president, we’d all have jobs by now.
– Written by Bonfire of the Absurdities
Source: Ludwig Von Mises Institute