Tag: Calvin Coolidge

Herbert Hoover Was No Penny Pincher

In a story regarding federal budget cuts, the Washington Post reports: 

‘One of the last presidents to balance the budget was Herbert Hoover,’ [Rep. Peter] King added darkly, referring to the penny-pinching Republican blamed for deepening the Great Depression.

What a loaded and inaccurate statement! 

I just finished the fine new biography Coolidge by Amity Shlaes. Hoover plays a major part in the book as a long-time cabinet member of President Coolidge and his successor in the White House. Coolidge was about as frugal a president as we’ve had, and he dreaded that he would be followed by big-spender Hoover, who he knew would probably unravel his years of hard work at budget restraint. 

Coolidge fought against many new spending plans pushed in Congress, including flood control projects, farm subsidies, and higher veteran’s benefits. But Hoover worked behind the scenes during the Coolidge years to boost flood control spending. And when he became president, Hoover sadly gave into the farm lobbies and launched the first major subsidy schemes. 

In 1929 Hoover signed the Agricultural Marketing Act, which created the Federal Farm Board to subsidize agricultural cooperatives. I’ve noted that the scheme turned into a $500 million boondoggle, harming consumers and disrupting markets. 

As president, Coolidge worked long and hard to cut the federal budget to $3 billion and hold it at about that level from 1923 to 1929. But when he was president, Hoover jacked up the budget from $3.1 billion in 1929 to $4.7 billion in 1932. 

Shlaes concludes that Hoover “spent like a Democrat. But that spending hadn’t been enough to ensure even Hoover’s own reelection.” And contrary to the implication of the Washington Post, neither did Hoover’s big spending alleviate the Great Depression.

Are Spending Cuts Good Politics?

Grover Cleveland says “yes.”

Calvin Coolidge says “yes.”

Chris Edwards says “yes.” From Downsizing the Federal Government: 

Another myth is that policymakers cannot make budget cuts without a backlash from voters. Yet reform efforts in the 1990s did not lead to a voter rebuke. In 1996, the Republicans were denounced viciously when they were reforming welfare. But they stuck together and succeeded, and today the achievement is widely hailed. Also in the 1990s, the Republicans proposed reductions to many sensitive programs including Medicare, Medicaid, education, housing, and farm subsidies. In their budget plan for 1996, House Republicans voted to abolish more than 200 programs including whole departments and agencies. 

The Republicans who led on these reforms were not thrown out of office, despite many of them being specifically targeted for defeat in 1996. The most hardcore budget cutters in the 104th Congress were freshmen who were reelected with larger vote margins than they had received in 1994. They included John Shadegg and Matt Salmon of Arizona, Joe Scarborough of Florida, David McIntosh and Mark Souder of Indiana, Steve Largent and Tom Coburn of Oklahoma, Mark Sanford of South Carolina, Van Hilleary of Tennessee, and Mark Neumann of Wisconsin. Indeed, many budget-cutting Republican freshman got reelected in districts that went for Bill Clinton on the presidential ticket in 1996. The high-profile leader of the House budget cutters, John Kasich (R-Ohio), consistently won reelection throughout the 1990s with two-to-one margins. In sum, cutting the budget can be good politics when done in a serious and up-front manner. 

All-Consuming Politics

Today POLITICO Arena asks:

Is Mississippi Gov. Haley Barbour’s announcement today that he will not seek the Republican presidential nomination in 2012, and the reason he gave for his decision, the right call?

My response:

Gov. Barbour’s explanation for why he will not seek the 2012 Republican presidential nomination – because a candidate today “is embracing a ten-year commitment to an all-consuming effort, to the virtual exclusion of all else,” and he cannot make such a commitment – is not only refreshingly candid but points to a much deeper problem.

We are moving inexorably not simply to news but to politics 24/7/365. And what better example than our current part-time president who, with no primary challenger in sight, is already on the campaign trail (did he ever leave it?), when the election is 19 months away. Some of us are old enough to remember when elected officials served – and ran for office or reelection only around election time.

Part of the reason for the change is the need today for vast amounts of campaign cash. But the deeper reason, I submit, is because politics has taken over so much of life. When government was more limited, and we didn’t look to it to provide our every need and want, those who “governed” didn’t feel such a need to cater to us – and we had better things to do anyway than obsess over politics. Calvin Coolidge took naps in the White House – in his pajamas! Imagine that today.

Can You Name the Greatest President of the Past 100 Years?

It’s tempting to say that Ronald Reagan was the best U.S. president of the past century, and I’ve certainly demonstrated my man-crush on the Gipper. But there is some real competition. I had the pleasure yesterday of hearing Amity Shlaes of the Council on Foreign Relations make the case for Calvin Coolidge at the Mont Pelerin Society Meeting in Australia.

I dug around online and found an article Amity wrote for Forbes that highlights some of the attributes of “Silent Cal” that she mentioned in her speech. As you can see, she makes a persuasive case.

… the Coolidge style of government, which included much refraining, took great strength and yielded superior results. …Coolidge and Mellon tightened and pulled [income tax rates] multiple times, eventually getting the top rate down to 25%, a level that hasn’t been seen since. Mellon argued that lower rates could actually bring in greater revenues because they removed disincentives to work. Government, he said, should operate like a railroad, charging a price for freight that “the traffic will bear.” Coolidge’s commitment to low taxes came from his concept of property rights. He viewed heavy taxation as the legalization of expropriation. “I want taxes to be less, that the people may have more,” he once said. In fact, Coolidge disapproved of any government intervention that eroded the bond of the contract. …More than once Coolidge vetoed what would later be called farm allotment–the government purchase of commodities to reduce supply and drive up prices. …Today our government has moved so far from Coolidge’s tenets that it’s difficult to imagine such policies being emulated.

But if you don’t want to believe Amity, here’s Coolidge in his own words. This video is historically significant since it is the first film (with sound) of an American President. The real value, however, is in the words that are being said.