When Harding was elected president, World War I had just ended and Americans were tired of both foreign entanglements and the Progressive idealism of outgoing President Woodrow Wilson. Harding seemed like a refreshing replacement who would return the U.S. to "normalcy" by reigning in big government both at home and abroad.
Harding and the Depression
By the time Harding took office in March 1921, the U.S. was in an economic depression mainly due to military demobilization and deindustrialization after the war. Prices were high, wages were low, and unemployment was widespread. Americans were also burdened by high taxes enacted during the war that were not lowered when the war ended.
Harding’s Treasury secretary, Andrew Mellon, concluded that higher taxes actually generated less government revenue because those with wealth have the means to hide their money from taxation. Thus, Harding approved massive tax cuts on all brackets, including lowering the top bracket from 75 to 25 percent. In addition, government spending was cut by nearly 50 percent.
These cuts returned capital to the private sector, which was used to invest and expand businesses, which in turn led to more job creation. Prices went down, wages went up, and unemployment became scarce. Within five years, government tax revenue tripled and the national debt was cut by one-third, even with substantial tax cuts. This helped to spark the greatest economic explosion in U.S. history, now known as the "Roaring Twenties."
Harding and Progressivism
While Harding sought to return constitutional restraint to the federal government in terms of the economy, he tended to carry on some of the Progressive policies of former presidents Woodrow Wilson and Theodore Roosevelt regarding domestic affairs.
For instance, Harding approved one of the first welfare programs in U.S. history, requiring doctors to provide medical attention to pregnant women and preventive care to children. Harding also increased federal intervention in agriculture by increasing regulations on meatpacking, extending farmers’ credit to secure loans, and exempting farm cooperatives from antitrust laws.
Moreover, Harding urged increased federal regulation of the fledgling aviation and radio industries. Under Commerce Secretary Herbert Hoover, many regulations were implemented without congressional consent, which was an unconstitutional transfer of power from the legislative to the executive branch of government. Nevertheless, most industrialists agreed to cooperate with the new rules for the "public good."
As a Republican, Harding adhered to party tradition by favoring tariffs (i.e., taxes) on imported goods to protect U.S. industry from foreign competition. In 1922, he approved the highest tariff increases in history, and many foreign trading partners retaliated with high rates against U.S. imports. High tariffs have been considered a major contributing factor to the "Wall Street Crash" of 1929.
Harding’s Scandals
Historians often point to the scandals in Harding’s administration as evidence of inept leadership. Harding often rewarded friends and campaign donors with lucrative government contracts, and while these foolish actions led to scandals, there is no evidence that Harding himself was involved in any illegal activity.
The Veterans’ Bureau chief defrauded taxpayers by overestimating hospital construction costs and pocketing the difference. The Interior secretary leased federal oil fields to private companies in exchange for bribes. This became known as the Teapot Dome scandal, one of the largest political scandals of the 20th century.
Harding’s Justice Department took bribes from bootleggers and illegally investigated political enemies. And Harding himself was involved in numerous extramarital affairs, including allegations from Nan Britton that Harding had fathered her child.
Harding’s Death
By August 1923, the scandals were coming to light and Harding’s popularity was fading. He responded by embarking on a western tour to deliver speeches explaining his policies to voters. He died suddenly in a San Francisco hotel room on August 2.
Having been in poor health, Harding most likely died of a heart attack. However, his wife refused to allow an autopsy, leading to gossip that she had poisoned him due to his infidelities. No credible evidence of this allegation has been produced. After a funeral procession back to Washington, where Harding lay in state, his body was entombed in his hometown of Marion, Ohio.
Harding was neither a great leader nor a great man, but he presided over the quickest economic recovery from a depression in history. However, Harding will most likely continue to be remembered as one who presided over vast corruption and scandal that diminished the people’s faith in their government.
Sources
Schweikart, Larry and Allen, Michael: A Patriot’s History of the United States (New York, NY: Penguin Group, 2004)
Wallechinsky, David and Wallace, Irving: The People’s Almanac (Garden City, NY: Doubleday & Co., Inc., 1975)
Woods Jr., Thomas: The Politically Incorrect Guide to American History (Washington, DC: Regnery Publishing, Inc., 2008)
Walter Coffey - Walter Coffey is a freelance writer who resides in Houston, Texas. Walter has written several works of historical fiction and non-fiction, ...
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