Harding’s policy response was to get government out of the way and let free markets make the necessary adjustments. He induced Congress to slash federal spending by 40 percent in two years and lower the top marginal tax rate from 73 percent to 56 percent (on its way down to 25 percent under his successor, Calvin Coolidge). Demonstrating the fallacy of the Keynesian dogma that government should increase spending and deficits to cure recessions, the Harding spending cuts yielded large surpluses (used to pay down World War I indebtedness), and yet, by 1922, GDP was rising and unemployment falling, plummeting to a minuscule 2.4 percent by 1923. Maybe Harding wasn’t the best judge of character, but his economic program was arguably the most successful of any president in the 20th century. A “terrible” president? Absurd.
Another example of historical revisionism, progressive-style, involves Herbert Hoover. Today’s students are routinely taught that Hoover was the last of the “laissez faire” presidents. Last year, progressives produced a “take back the American dream” special edition of “The Big Picture,” during which the host denigrated the alleged laissez faire trio of Harding, Coolidge, and Hoover, contrasting them with the great economic savior, Franklin Roosevelt. Part of the error is simple partisan bias—i.e., Republicans are bad and Democrats are good—but party aside, Hoover should have been lumped with FDR, not with his two predecessors. Harding and Coolidge truly were sympathetic to free markets. Hoover was not. He disdained and distrusted the laissez faire philosophy, and was almost as much of an interventionist as Roosevelt. Indeed, FDR’s own advisers recorded in their memoirs that the true originator of the New Deal was Hoover. It is political propaganda, not historical verisimilitude, which paints Hoover as a clone of his predecessors rather than of his successor.
The lesson is clear: If those who understood and approved of Reagan’s policies fail to reiterate Reagan’s beliefs and policies, Reagan’s progressive opponents will distort his history, and he eventually will be as misunderstood as Harding and Hoover are today.
The progressive war against historical accuracy should concern all American citizens. When those in power mutilate truth, the welfare of the people is at risk. Think of what all the illiberal movements—whether fascist, socialist, communist, environmentalist, or progressive—have in common. All exalt state power at the expense of the individual rights of liberty, property, and ultimately life itself. In the effort to attain that power, they also commit depredations on truth, as George Orwell warned in “1984.” Watch to see how often Team Obama employs the Big Lie technique in attempting to revise Reagan’s record.
Whether we agree or disagree with what Ronald Reagan did, we shouldn’t let anyone lie about it. Falsehood is the enemy of human progress.
In Honor of His 103rd Birthday, Here Are The 20 Best Quotes From The Late, Great Milton Friedman | John Hawkins