I know the biggest stories at the top of the news are mostly about actual, alleged and potential political scandals. I get that. There may be some more coming even today but, in just a moment, we will talk to the great Jim Jordan, chairman of the House Judiciary Committee, who presided over the House Oversight deposition of Hunter Biden BFF Devon Archer.
Chockful of breaking news, and more to come, but we are a business show – and I do want to sneak in one other thought. That is: tomorrow, August 2, is the 100th anniversary of the swearing in of President Calvin Coolidge. Now, for most of you, I know you’re not exactly shaking down your spine all the way into your socks at hearing this news, but among supply-siders like me, Coolidge is a hero, as was Warren Harding, who was elected in 1920 and passed away earlier in 1923.
AMERICANS’ DWINDLING ‘EXCESS’ PANDEMIC SAVINGS COULD HURT CHANCES OF US ECONOMY’S SOFT LANDING
Why do we venerate Harding and Coolidge? Because they cut tax rates repeatedly, from roughly 80% to 25%. They launched the Roaring Twenties where for nearly a decade the American economy grew at 5% or better coming out of the vicious depression of 1920-1921. The Dow Jones rose 500% and, incidentally, not only did the Roaring Twenties occur after a vicious depression, but they occurred after the awful Spanish flu pandemic of 1918-1919 and of course after World War I from 1914 to 1918.
The famed Harding-Coolidge tax cuts were driven by Treasury Secretary Andrew W. Mellon, the world-famous entrepreneur and banker from Pittsburgh, Pennsylvania. The Roaring Twenties were not only a phenomenal economic success. They were also one of the greatest periods of American ingenuity, inventiveness and technological advance.
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They were also a fabulous period of art and literature. Remember Scott Fitzgerald, Ernest Hemingway and Thomas Wolfe? Finally, while Harding, Coolidge and Mellon were slashing tax rates, tax revenues soared.
Really, the first modern manifestation of the Laffer curve. So, pardon me for injecting this wonderful, fabulous, optimistic, economically brilliant period of American history before we descend back into political scandals. Just saying, folks! Keep the faith. Faith is the spirit.
This article is adapted from Larry Kudlow’s opening commentary on the August 1, 2023, edition of “Kudlow.”