The Presidency of Warren G. Harding

Economic and Fiscal Policies of the Harding Administration

President Harding inherited an economy in recession and a federal budget that had ballooned during World War I. His administration's economic policies favored business interests and sought to reduce government intervention in the economy. The 1921 Budget and Accounting Act was a landmark reform that established the Bureau of the Budget and the General Accounting Office (now the Government Accountability Office), enhancing fiscal responsibility and oversight. These reforms, along with tax cuts enacted during his tenure, helped to reduce federal debt and were credited with contributing to the economic growth of the 1920s.

Harding's Agricultural and Social Policies

The Harding administration faced the challenge of supporting American farmers who were struggling with falling prices due to overproduction and reduced European demand after the war. Although Harding was against direct government intervention in purchasing surplus crops, he endorsed protective tariffs, such as the Emergency Tariff of 1921 and the Fordney-McCumber Tariff of 1922, to shield domestic agriculture. The Capper-Volstead Act of 1922 also allowed agricultural cooperatives to form without violating antitrust laws. In terms of social policy, the Emergency Quota Act of 1921 was passed, establishing immigration quotas that favored certain nationalities, reflecting the nativist attitudes prevalent at the time.

Foreign Policy and Disarmament Efforts

Harding's foreign policy aimed to foster international peace and avoid the entanglements of World War I. While the administration's approach was generally isolationist, it also engaged in significant disarmament efforts. The Washington Naval Conference of 1921-1922 led to the Five-Power Treaty, which limited naval construction among the world's major naval powers, and the Nine-Power Treaty, which sought to preserve China's sovereignty and ensure open trade. Secretary of State Charles Evans Hughes played a key role in these negotiations, reflecting the administration's balance between isolationism and selective engagement in world affairs.

Scandals and the Harding Administration's Legacy

The legacy of President Harding's administration is heavily influenced by the scandals that came to light after his death. The Teapot Dome scandal was the most notorious, involving the illegal leasing of federal oil reserves by Secretary of the Interior Albert B. Fall, who became the first Cabinet member to be imprisoned for crimes committed in office. Other scandals and allegations of Harding's personal misconduct, including extramarital affairs and violations of Prohibition, have contributed to a negative historical assessment of his presidency. Despite some policy successes, these scandals have dominated the narrative of Harding's time in office, leading to a complex and often critical legacy.