Before you read this article, make sure you read the last article in this series about Warren G. Harding.
I didn’t pay a lot of attention in history class. Between the ages of 5-15, I didn’t understand why I should care about dead people. Presidents are cool and all, but how is knowing about Calvin Coolidge going to help me now?
I now realize that history often repeats itself. It’s a cliche quote that holds true.
Because of this, I’m going to dig up some interesting economic facts from the Presidency of Calvin Coolidge.
Disclaimer: Remember, I have no agenda. I’m still unsure as to whether I’ll vote for Mitt Romney, President Obama (or neither). I wasn’t sure what I would find when I asked ifRepublicans or Democrats Were Better at Reducing Unemployment. I’m simply looking for trends so that I can make an informed decision when I cast my vote.
Calvin Coolidge took over the Presidency when Warren G. Harding passed away in 1923. He was elected to office the following year but decided not to continue in 1928. As a quiet man, I can’t imagine he loved the spotlight.
The Interesting Stuff
President Coolidge believed in a smaller government (the same thought I’ve always had). He was able to chip away at the federal debt while also reducing taxes for almost everyone.
ONLY THE TOP 2% OF TAXPAYERS PAID FEDERAL INCOME TAX
How about that for a crazy stat?
Supply-side economics led to nearly a decade of growth known as the “Roaring Twenties.” A combination of lower marginal tax rates and less regulation allows more flexibility among business and spurs economic growth.
A big player in Calvin’s advisory was Secretary of the Treasury, Andrew Mellon. Mr. Mellon strongly believed that taxes should be lower and fewer people should have to pay them.
Interestingly, Andrew Mellon was the 3rd wealthiest American at the time sitting only behind John D. Rockefeller and Henry Ford.
Readers: Begin thinking about this question…will a reduction in taxes and less regulation spark our next period of economic growth OR is this ideology what got us in this mess in the first place?