Federal Government Should Return to Harding-Coolidge Era Fiscal Conservatism to Address Current Debt Crisis
Source: https://www.facebook.com/americanspectator/. "Governor DeSantis Offers a Reminder on Fiscal Conservatism | The American Spectator | USA News and Politics." May 4, 2026. spectator.org
The Gist
The author argues that today's massive government debt problem can be solved by copying what Presidents Harding and Coolidge did in the 1920s - they actually cut government spending in half and paid down debt while the economy boomed. He says modern politicians wrongly think this is impossible, but these presidents proved it works.
Conclusion
Modern policymakers should adopt the fiscal conservative approach of Presidents Harding and Coolidge to address today's mounting national debt and spending problems
Premises
- The current national debt of $39 trillion (exceeding 100% of GDP) with projected deficits approaching $4 trillion demonstrates a severe federal spending problem
- Presidents Harding and Coolidge successfully reduced federal spending from $6.3 billion in 1920 to $2.96 billion by 1929 while cutting the national debt from $24 billion to $16.9 billion
- The Harding-Coolidge approach included institutional reforms like the Budget and Accounting Act of 1921 and systematic spending reduction meetings that created accountability
- Their fiscal conservatism produced positive economic outcomes including budget surpluses, reduced tax rates (from 70% to 25% top rate), and one of the largest economic expansions in American history
- Fiscal conservatism aligns with constitutional principles of limited government, as both presidents governed as 'constitutionalists' who viewed government extravagance as contrary to constitutional teachings
- Current belief that addressing spending is impossible and that we can only 'grow our way out' is false, as economic growth has not kept pace with government spending levels
Assumptions
- Historical economic conditions and government structures from the 1920s are comparable to today's circumstances
- The economic expansion of the 1920s was primarily caused by fiscal conservatism rather than other factors
- Reducing government spending will lead to economic growth rather than economic contraction
- Constitutional principles require limited government spending
- Political feasibility of dramatic spending cuts exists in the current political environment