Was Warren Harding the Worst Ever?
The nation mourned when President Warren Harding died in August 1923. Despite being popular at the time of his death, historians have generally rated him as one of the worst U.S. presidents of all time. But is he truly deserving of such low rankings?
Harding was elected president in 1920. World War I had just ended, and Americans were tired of both foreign entanglements and the Progressive idealism of outgoing President Woodrow Wilson. Harding seemed to be a refreshing replacement who would return the U.S. to “normalcy” by reigning in big government both at home and abroad.
Ending the Depression
When Harding took office in March 1921, the U.S. was suffering from an economic depression that had been mainly caused by military demobilization and deindustrialization following the war. Prices were high, wages were low, and unemployment was widespread.
Future presidents that were faced with similar crises (i.e., Herbert Hoover, Franklin Roosevelt, Richard Nixon, George W. Bush, Barack Obama) responded by increasing government control of the economy. But Harding took the opposite approach and as a result, the depression was over so quickly that few history books even mention it.
Harding’s Treasury secretary, Andrew Mellon, studied the federal progressive tax system and concluded that higher taxes on the wealthy actually produced less revenue because the wealthy tended to hide their money from taxation. When taxes were lowered, taxpayers were more willing to pay their share. Thus, Harding approved massive cuts for all tax brackets, including lowering the top bracket from 75 to 25 percent. In addition, government spending was cut nearly 50 percent.
These tax and spending cuts returned capital to the private sector, which was used by businesses to invest and expand, which led to more job creation. Prices went down, wages went up, and unemployment became scarce. And as Mellon had theorized, the cuts actually yielded more tax revenue to the government. Within five years, tax revenue nearly tripled and the national debt was cut by one-third. This helped to spark the greatest economic explosion in U.S. history now known as the “Roaring Twenties.”
Progressive Tendencies
While Harding sought to return constitutional restraint to the federal government in terms of the economy, he tended to carry on the tradition of former Progressive presidents Woodrow Wilson and Theodore Roosevelt regarding domestic affairs. For instance, Harding approved one of the first welfare programs in U.S. history. Doctors were required to provide medical attention to pregnant women and preventive care to children. Many argued that this was an unconstitutional intrusion on an issue that belonged to the states.
Harding urged increased federal intervention in agriculture. He signed several bills into law that restricted meatpacking practices, expanded farmers’ credit to secure federal loans, and exempted farm cooperatives from antitrust legislation. These laws only made the farming depression worse by encouraging farmers to take out loans and expand at a time when there was already too much supply to meet demand. This led to even further government involvement and regulation in farming that continues to this day.
Harding also urged increased federal regulation of the fledgling aviation and radio industries. Under Commerce Secretary Herbert Hoover, many regulations were implemented without congressional approval, which was an unconstitutional transfer of power from the legislative to the executive branch of government. Most industrialists agreed to cooperate with the often costly government regulations for the “public good.”
As a Republican, Harding toed the party line by favoring tariffs (i.e., taxes) on imported goods to protect American industry from foreign competition. In 1922, he approved the highest tariff increases in U.S. history. Many foreign trading partners retaliated with high rates of their own. These tariffs harmed U.S. agriculture by making it harder for struggling farmers to export their goods. It also harmed consumers by keeping foreign goods out of U.S. markets, thus diminishing choice and competition. High tariffs have been considered a major contributing factor to the “Wall Street Crash” of 1929.
American Non-Interventionism
Critics have accused Harding of supporting American “isolationism” from foreign affairs, which helped allow tyrants to rise to power in other countries, ultimately leading to World War II. However, Harding played a key role in disarming the world powers and staving off war for another generation.
In support of naval disarmament, Harding assembled a conference of foreign delegates in Washington. Six treaties and 12 resolutions were approved at the Washington Naval Conference, which helped to keep peace through the ‘20s. These agreements were terminated in the ‘30s when they were violated by the military buildup of Germany, Italy, and Japan.
Harding also implemented a non-interventionist policy in Latin America. Under the four previous presidents, the U.S. had increasingly involved itself in the affairs of Latin American countries. Harding saw the resentment this caused among the people of the region and sought to change it. His administration’s biggest accomplishment in this realm was negotiating a treaty to pay Colombia for land used (and some argued stolen) by the U.S. to build the Panama Canal.
The Scandals
Historians often point to the scandals within the Harding administration as evidence of inept leadership. Harding often rewarded friends and campaign contributors with lucrative government jobs, and while these foolish appointments led to many scandals, there is no evidence that Harding himself was involved in any illegal activity.
The head of the Veterans’ Bureau, Charles Forbes, allegedly defrauded taxpayers of $225 million by increasing hospital construction costs beyond their true value and pocketing the difference. Forbes also took numerous bribes to sell hospital supplies at low rates. Harding demanded Forbes’s resignation upon learning of these scandals; Forbes eventually went to prison and his legal counsel committed suicide.
Harding’s Interior Secretary, Albert Fall, became the first cabinet official ever sentenced to prison. Fall had leased federal oil reserves in Elk Hills, California and Teapot Dome, Wyoming to private companies in exchange for $400,000 in bribes. This became known as the Teapot Dome scandal, one of the largest political scandals of the 20th century.
Harding’s Justice Department accepted bribes from bootleggers, conducted unauthorized searches and seizures against political enemies, tapped phones, and screened mail belonging to members of Congress. Albert D. Lasker, chairman of the U.S. Shipping Board, resigned in disgrace when it was revealed he had sold U.S. ships to private companies for as low as $30 per ton when the going rate was at least $250 per ton. Thomas W. Miller, head of the Office of Alien Property, was convicted of taking bribes.
Like Bill Clinton, Harding was involved in numerous extramarital affairs. He had a 15-year affair with Carrie Phillips that ended in 1920 when Republican operatives sent Phillips overseas to prevent the relationship from going public prior to the election. Harding was also alleged to have had an affair with Nan Britton, who claimed that he had fathered her child. However, many have since questioned her credibility.
Death and Legacy
By August 1923, Harding’s popularity was fading as the scandals were beginning to come to light. He embarked on a westward “Voyage of Understanding,” delivering speeches and explaining his policies. After becoming the first president to visit Alaska, Harding suddenly died in a San Francisco hotel room on August 2.
Harding had been in poor health and most likely had coronary disease. The cause of death was probably a heart attack, but his wife refused to allow an autopsy, leading to gossip that she had poisoned him due to his infidelities. There is no tangible evidence of this allegation. After a funeral procession back to Washington, where Harding lay in state, his body was entombed in his hometown of Marion, Ohio.
Harding was neither a great leader nor a great man, but in many ways he was not the terrible president that many historians have claimed. He presided over the quickest economic recovery from a depression in history through deregulation, lower taxes, and reduced government spending. He did increase government intervention in various parts of the private sector, but his overall commitment to limited government helped generate prosperity throughout America in the 1920s.
Though many label him an “isolationist,” Harding initiated unprecedented international conferences that limited armaments and improved U.S. relations with Latin America. There were many accomplishments in the administration of Warren G. Harding, but he will forever be remembered, and perhaps rightfully so, as one who presided over vast corruption and scandal that diminished the people’s faith in their government.
