I’ve given quite a bit of attention to U.S. Senate candidate Dr. Eric Wargotz of late, but there’s others in the race – I’m particularly interested in finding out more about former Delegate Carmen Amedori.
But the other day I received my first “Rutledge Report” in my mailbox and one passage jumped out at me:
In (the) 1920s President Harding faced unemployment numbers doubling from 2.1 million to 4.9 million, excessive governmental interference in the market creating a 24% plunging gross national product, and $25B national debt. By taking a hard stance, he reduced government spending in half, cut taxes, and watched unemployment numbers drop to a low of 1.8% in 1926. (Not-So-Great Depression by Jim Powell.)
Today we face similar problems the country faced at the beginning of Harding’s administration. Unfortunately Congress continues to pass legislation creating more government jobs, increasing the national debt and the burden on tax payers. Businesses have frozen plans for growth because the uncertainty of future costs of hiring an individual.
We need to follow Harding’s example. To create jobs and reduce unemployment we must take two simultaneous steps NOW: cut taxes and cut government spending! We can kick-start the economy by abolishing the capital gains tax and the inheritance tax. This will keep the money in the hands of the consumers and businesses giving them the freedom to choose their own path forward. A simultaneous cut in government spending, and not just a freeze, will free-up revenue to pay off the ever growing national debt.
The road ahead is tough and Americans do not back down from challenges! Now is the time for action – cut taxes and cut spending. Place into office candidates willing to lead Americans down the tough road. We can and will get through this together.
While I admire the Senatorial candidate giving a little love to one of my home state’s native sons, perhaps he needs a little bit better research. President Harding died in 1923, so Calvin Coolidge became President. Coolidge served out the remainder of Harding’s term and won election in his own right in 1924, pounding Democrat John Davis and Progressive Party candidate Robert LaFollette by securing over 54% of the vote. (This was back when the colors were proper too as this electoral map shows.)
Anyway, those policies began by Harding were continued by “Silent Cal” and some of this prescription could be enacted today. The biggest difference, though, is that the federal government of Harding’s era didn’t have nearly the entitlements our modern day government has – these Republicans has no Social Security, Medicare, or Medicaid to deal with (let alone legions of regulators in a number of agencies.) The Washington of the 1920’s was still a sleepy Southern town.
But we can and should cut spending and taxes. The Americans of the roaring ’20’s enjoyed great economic prosperity, at least until the stock market crash in 1929 (essentially, a price bubble similar to that in real estate or dot-com stocks.) What turned a simple market correction into a depression, though, was enacting the steep Smoot-Hawley Tariff in 1930.
The current set of economic doldrums can be traced in part to a different sort of government intervention and lack of oversight as Democrats prevented a probe of Fannie Mae and Freddie Mac several years ago. Once the housing bubble burst, our financial house of cards tumbled down and government overspending has been of little help in resolving the problem.
So why not harken back to Harding for solutions? Just stay away from influence-peddling (as in the Teapot Dome scandal) and things could be all right.