One of the worst stock market crashes and deepest recessions in our history occurred after WWI, starting during the last months of the Wilson Administration and extending into the Harding years. Harding’s Secretary of Commerce, Herbert Hoover, urged government sponsored construction and other projects, paying for them with financing provided by government bonds, meaning debt or expropriation of future earnings.
Harding disagreed & instead lowered taxes and decreased regulations. Voila, within 18 months, the recession had corrected.
Hoover was an engineer, by schooling, and was likely a technocrat. Harding died and was succeeded by Calvin Coolidge who set about paying off the national debt, that because of Democrat Wilson’s War to Make the World Safe for Democracy, had soared to a staggering $4 billion. By the time Coolidge left office, it was down to $2 billion. Continue reading