The Harding Way

[Kevin_Kennedy]

When Barack Obama urged passage of his so-called stimulus measure in February, he claimed that only bold government action would prevent the economy from slipping into a deep depression. In making that argument, he was only repeating the conventional wisdom, according to which markets are not self-correcting—except in the very long run—and state intervention is necessary to revive economic activity.

Economic theory can tell us why these claims are incorrect and why, in fact, even the appearance of prosperity that those measures can produce causes still greater damage and leads to a more severe correction in the long run. But we can also refer to the testimony of history. In particular, the depression of 1920-21, which most people have never heard of, is an example of the resumption of prosperity in the absence of government stimulus, indeed in the face of its very opposite. If economies cannot turn around without these interventions, then what happened in this instance should not have been possible. But it was.

The American Conservative -- The Harding Way

 

[Old Rocks]

That you believe Harding to be a great President is quite telling.

 

[Kevin_Kennedy]

This article was not written by me and therefore is not a valid interpretation of my opinion of Warren Harding. I did, however, believe it to be an interesting article on the recession of 1920. The title was the author's choice, not mine.