Recalling the forgotten depression of 1920

by editor on July 11, 2011

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.

warren-g-harding

Warren G. Harding may have been corrupt, but he knew how to end a depression and how to pose for a photo

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

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40 Comments on "Recalling the forgotten depression of 1920"

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Darkitec
Guest

Our current spender and chief, keeps talking about jobs like they are something the government can buy, the way someone else would buy a loaf of bread at the grocery store. Unlike Obama, the previous president’s understood that the government can’t confiscate or print enough money to buy everyone a job. Government will create jobs when it creates a business friendly climate, through the reduction of taxes, and regulations that will inspire people and companies to spend more money to create new businesses, services or products, then will require new employees so that everyone can make more of the democrats favorite villain “profits”.

danybhoy
Member

You must know something about liberal/progressive types when it comes to just about anything, & it’s whythey can’t understand this story…

The never understand that what they are doing is wrong, they just believe they have’nt done enough of it yet…

You look at FDR’s actions during the Great Drepression, you look at the Great Sociey Programs that we continue to fund(why, I don’t know), you look at your own school district who are always asking for more money(in the form of property tax increases)but the test scores are trending down, & just look at the current morons in charge at The White House. The Porkulus/Stimulus bill, QE1, QE2, & they want QE3(which basically is the legal counterfitting our currency, making the value of the US dollar worth less)& they want to raise the Debt Ceiling to increase spending(is it a debt limit if you always raise it when you reach it?). They don’t get it, they never will, & they don’t care. I heard Alan Colmes the last time I saw him on with O’Reilly, claiming we did’nt do enough yet. I caught Chris Matthews say the same thing at the end of his show the other day, & they all believe that. These people, from the Ivy league “educated” ecominists from Paul Krugman on down, have no idea what makes an economy work, & it’s no accident. When people, like Krugman, or Obama’s former economic advisor Chistina “Big Sexy” Romer, who fled the Obama regime to go back to teaching at UC Berkley to teach kids her idea of economics works. They insure the next generation has no idea about what makes an economy work successfully, & it’s not by accident. That is 1 of the biggest reasons we continually have to fight these dumbasses for as long as we have, & will have to decades into the future.

RockingHorseGuy
Member

“Big Sexy?”

danybhoy
Member

Yeah, “Big Sexy”. What? Did you think I was gonna put that label Janet Napolitano?

kb
Member

Presstitutes! LOVE IT!

KimmyQueen
Guest

Sometimes when I see Obama I get all gangsta and sing the chorus to this little ditty: http://www.youtube.com/watch?v=TRMKrwQ_7iM (“Move B*tch”) This is a censored video (if you want the uncensored it is on youtube, but I think you get the point). Sometimes I go old school: “I’m gonna knock you out, mama said knock you out…” (http://www.youtube.com/watch?v=vimZj8HW0Kg)

YT
Member

Netflix has a PBS special about the 1921 famine in Russia available to stream. Recommend everyone check it out.

Synopsis: Bolshevik’s come to power….seize and redistribute grain wealth…children begin to starve…..Hoover (not president at the time) organizes US agricultural aid….communists infiltrade field offices and divert food to political favorites….hilarity* ensues!

*hilarious in a gallows humor sort of way. Millions died. Photos of citizens looked like the auchwitz ones from WWII.

perlcat
Member

…and giving the world a new word: “Democide” — the killing of a citizenry through intent or incompetence.

PsychoDad
Guest

Also called the “Holdomor” — Ukrainian for “Holocaust.”

Sidekick
Member

YT, I was a Russian Studies major and spent the summer of 1983 in the USSR. As a result, I am probably more anti-socialist/communist/left wing than anyone on this board unless they came from such a place.. I rarely say over the top things here but I can tell you that no system ever devised by man is more soul crushing and dehumanizing than what the Far Left serves up. Over seven million died during that famine and it was not due to drought, or soil erosion or any other natural disaster. It was do to the redistribution of labor and food and the people suffered greatly for it. Oh and that is just the famine, the USSR also suffered through 25 million dead as a result of Stalin’s purges.

When I hear POTUS talk about government solutions to everything it just about drives me insane. He is no better than the fossils who inhabited the Kremlin for 73 years. Was that last line over the top?

drb
Member

central planning has always failed. May as well call it planned chaos.

Buck O'Fama
Guest

I worked with a number of Russian immigrants in the early 90s. Nobody hated communism more than they. They hated communism almost as much as Obama hates tax cuts. Or cutting spending. Or working.

S. Hutchinson
Guest

Every time Obama shows up on TV now I turn the sound down and play one of Reagan’s speeches. It’s the only way I can keep myself from turning the TV off completely…

RockingHorseGuy
Member

You say “turning off the TV completely” as if it were a bad thing.

hisham
Guest

Warren G. Harding is one of my more favored presidents. He gets a lot of bad press in the lib joournals and annals of libtard rewritten history, but all the same, he didn’t carry water for the “We’ve got to do something stupid right now of the world will turn to shit” crowd.

perlcat
Member

He was a really good president — unfortunately, there was so much money floating around from his returning the nation from the socialist economy that his administration couldn’t resist getting their finger in the pot.

Looking at it after all these years, though, I’d say that a mere fifty new billionaires being made on government graft from whacking out 90% of our government would be cheaper than the sorry-assed excuse of a government we have now. I’d just consider them a form of lottery winner.

You could tell Harding was a good president — he was against racism, lynchings, and socialism. Therefore, the press that returned from Soviet Russia with all kinds of ideas for our ‘betterment’ called him illiterate.

deepthinker
Member

How dare you point out the fact that cutting taxes worked back in the 1920s. Do you not realize that lord barry and company have all the answers and we should ignore the history of the past and only follow that of lord barry and the liberal loonies.

There is no need to check the histroy books, the liberals and loonies all say that was in a simpler time.

Cut my taxes and that of those who can and will create jobs and just watch the Benjamins start rolling in. It works every time it’s tried. Even JFK knew this and that is why he cut the tax rates when he came into office.

drb
Member

No, cutting taxes is only half of the equation. You have to cut government spending too.

jukin
Guest

“No, cutting taxes is only half of the equation. You have to cut government spending too.”

B-I-N-G-O!!!!!

It was the cutting of government that did it. Cutting taxes without cutting government will not do the trick. Cutting government without cutting taxes will still get the job done.

brm
Member

“No, cutting taxes is only half of the equation. You have to cut government spending too.”

But, but, but, that’s RAAAACIST!!!

drb
Member

no, it’s heartlessnessism or something like that 😉

jukin
Guest

The communist democrat party leaders and the MSM (BIRM) tell us how there is nothing more to try. The donks and Obaozo will never look at, much less implement, what has actually worked in the past.

Kip Hooker
Member

Excellent article! It is a source of fantastic consternation everytime I hear the argument that our economic woes were caused by “deregulation” and “greedy capitalism”. There hasn’t been a free market in this country in nearly an hundred years.

Possibly of interest here is some video of Thomas Woods tackling the subject. Forwarning . . . it is long.

http://www.youtube.com/watch?v=czcUmnsprQI

Progressive Hemrrhoid
Member
Progressive Hemrrhoid

Harding in his defense, didn’t have Soros pulling the strings. Odumbo, is too stupid to even be a good puppet.

CO2Insanity
Admin

Tell it to POTUS, I mean DUFUS, I mean DUMBO

Joe Redfield
Member

This is related to another historical myth; that Hoover did nothing after the Crash of ’29. In fact, he increased government spending and borrowing to unprecedented levels, but of course the prehistoric Vast Right Wing Conspiracy prevented these policies from working, or something. Roosevelt piled everything higher and deeper, and the rest, as they say, is history.

YT
Member

Well, “they” say he raised interest rates or something when it was actually people losing faith in the gubernment’s around the world and piling into private assets. Thats why the market bounced back shortly after for a while. Interestingly enough, the whole thing was triggered over in europe due to debt.

Sound familiar at all?

redabogado
Member

Don’t forget the millions of stimulus funds spent on ensuring meth-heads illegally purchased guns and sold them to Mexican assassins and drug cartel members to kill countless other Mexicans and two Federal Law Enforcement agents. Thank you Eric Holder, probably the worse AG in the history of the US. Both he and Obango, making history together.

hologram5
Member

This would be the way out if we weren’t living in “Bizzaro” world. This current potus is about the biggest maroon I’ve ever had the displeasure of listening to…

Sailingbum
Member

I suggest not listening period..

Vic
Member

Keith: NO! I do not believe he is a moron. I think he’s getting EXACTLY what he, and the progressives want. They do not want the US to be a super power. They want us to be another third world country. soros, who’s hobbies include destroying country’s currencies, and living standards, is teamed up with obomie-the-commie, and they are doing exactly what they and the progressive/liberals want to do. obomie is a Constitutional professor who violates it on a daily basis.
What I see as another major problem i if Baenor caves into obomie, and allows tax increases. Then the voted in droves in the 2010 elections, will become disenchanted and join the new third party Tea Party, and allow obomie in for another four years. I do not believe the country can survive that.

Vic
Member

Keith: NO! I do not believe he is a moron. I think he’s getting EXACTLY what he, and the progressives want. They do not want the US to be a super power. They want us to be another third world country. soros, who’s hobbies include destroying country’s currencies, and living standards, is teamed up with obomie-the-commie, and they are doing exactly what they and the progressive/liberals want to do. obomie is a Constitutional professor who violates it on a daily basis.
What I see as another major problem is if Baenor caves in to obomie, and allows tax increases. Then the conservatives who voted in droves in the 2010 elections, will become disenchanted and join the new third party Tea Party, and allow obomie in for another four years. I do not believe the country can survive that.

Vic
Member

Keith: NO! I do not believe he is a moron. I think he’s getting EXACTLY what he, and the progressives want. They do not want the US to be a super power. They want us to be another third world country. soros, who’s hobbies include destroying country’s currencies, and living standards, is teamed up with obomie-the-commie, and they are doing exactly what they and the progressive/liberals want to do. obomie is a Constitutional professor who violates it on a daily basis.
What I see as another major problem is if Baenor caves in to obomie, and allows tax increases. Then the conservatives who voted in droves in the 2010 elections, will become disenchanted and join the new third party Tea Party, and allow obomie in for another four years. I do not believe the country can survive that.

Vic
Member

Sorry guys. I was trying to correct typos in this, and really screwed up.

hisham
Guest

Vic, the Tea Party is not a party, it is a political movement made up of millions upon millions of regular Americans, across the political spectrum, (except progressive, brainless, Oblivia type libtards) who are sick and tired of run away government spending and ever-increasing taxes to cover leftist government Bernie Madoff style Ponzi spending and entitlement schemes. We won’t be jumping ship, we’ll just make the bilge rats walk the plank!

Vic
Member

Hisham, I do know that the Tea Party isn’t a party. What scares me, is if the RINOs in WA manage to cave into the Jerk-off-in-Chief, enough Tea Partiers will be completely disgusted with them, and start a third party, diluting the Repubs, to a point we’re stuck with obomie-the-commie for four more years. What ever happens, we do NOT want him back.
What we’re going to do about soros, I’m not quite sure…

hisham
Guest

No, I think the strategy is to kick the RINO’s out of office, if we can, and double down on our support for constitutional conservatives…trust me, there are plenty of them out there, we just have to go help find them. Nobody wants a Ross Perot style theird party to syphon votes off. We need to stay focused and resolute in the face of an implacable foe, we cannot afford to blink and if Rep. Boehner and Sen. McConnel aren’t up to the task we need to show them the door! “Trust but verify” is what President Reagan always said about the enemy and we must do no less. If the House and Senate RINO’s want to play footsies with the enemy and that is what Obama and his cronies are, enemies, then we need to flood their offices, phones, e-mails, and post offices with either support or threats, whatever they’ll respond too to keep them focused and on target. These guys are like little toddlers that need constant supervision. They don’t control us…yet, and we need to put them in their place, yank them up by the short hairs, slap ’em around, whatever it takes!

Vic
Member

Hisham, I completely agree with everything you said, with one exception. I wonder how many of us, there are. Where I’m going is a few weeks back, everybody was back patting each other over the fact that FNC was killing the competition’s ass. (I think FNC is pretty lame, but there isn’t much else out there) My point was that the liberal news channels were dividing up their pack over five or six channels, and the non counted broadcast channels. Lib/progressives have owned the media, the entertainment industry, and education for decades. And they’re now seeing the reaps of what they’ve sewn. Glenn Beck further opened my eyes with stuff that you and I should have gotten in school, but didn’t. (If you didn’t watch him, there is an unofficial site called www(DOT)watchglennbeck(DOT)com where you can stream his programs via YTube.) I have no interest in this site beyond watching the programs there. The Weimar Republic(was that right?) did EXACTLY what obomie is doing NOW. And they paid for it. We will have to be very diligent if we are to get the country back.

RockingHorseGuy
Member

So, if I understand you correctly, hisham, what you’re saying we need to do is TAKE OVER the Republican Party, and make it into a true opposition party to the Democrats. And I’m behind that 100%.

Vic
Member

I agree RHG. BUT let’s think before we leap. Right now we have the worst president of my lifetime, and likely the entire life of the country. (I’m just starting to learn about Woodrow Wilson, my public education forgot to tell me about him). We’ve had some stinkers, like Clinton, and even Dimmy Cahtah, who must be the happiest guy in the world, as he is no longer known as the worst president of the current generation. We MUST rid ourselves of the Jerk-off-in-chief. Then we plan this out, and send the RINOs packing. A year and a half of harvesting the Tea Partiers, and even if we get another limp wienie like McCain’t, we can live with him. We then have two years before a minor election, and four before a major one.

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