Coolidge, Calvin (Administration)

CALVIN COOLIDGE WAS one of the most unusual and misunderstood of all American presidents. Contrary to what one would expect from a successful politician, he spoke relatively little, earning the nickname “Silent Cal.” Most historians depict his administration as passive and accepting of the status quo. This is not quite the case. He came from a modest background. Coolidge was born in Plymouth, Vermont, on July 4, 1872, and went into law and politics. By 1919 he was the governor of Massachusetts.

He attracted national attention by using the state militia to suppress a police strike. In 1920 Coolidge became vice president under Warren G. Harding. Harding died on August 2, 1923. At this time Coolidge was back in Plymouth. In order to transfer power, Coolidge took the oath of office immediately. His father, who was a [Page 206]notary public, administered the oath late that evening. Coolidge gained popularity rapidly. The economic boom of the 1920s surely helped his public image. The policies of the Coolidge administration were similar to those of his predecessor.

Calvin Coolidge presided over a time of prosperity in the American economy, which was followed by the Great Depression.

During this time Coolidge signed two major tax cuts into law. The 1924 Revenue Act reduced the top tax rate from 46 percent to 25 percent and the bottom rate from 1.5 percent to 1.125 percent. The 1926 Revenue Act reduced income taxes further and reduced inheritance and excise taxes. Federal revenue grew during this period, and the national debt fell. Also the percentage share of the total tax burden borne by low-income Americans fell while this burden rose for high-income Americans.

Data on ownership of what were then new modern conveniences indicate that consumers did quite well during the Coolidge years. During the period of 1920–30, auto ownership went from 26 percent to 60 percent, washing machines from eight percent to 24 percent, vacuum cleaners from nine percent to 30 percent, electric lighting from 35 percent to 68 percent, radios from zero to 46 percent, and flush toilets from 20 percent to 51 percent. Perhaps the strongest evidence of prosperity during the Coolidge years comes from unemployment statistics. In 1923 unemployment was 3.2 percent. It went up to 5.5 percent in 1924, and then fell to four percent in 1925. Unemployment in 1926 was only 1.9 percent. At the end of his second term it was back up to 4.1 percent.

Of course this prosperity was not universal. Many farmers endured hard times during his presidency. Coolidge vetoed two farm relief acts, as he was opposed to federal intervention in such matters. Contrary to his reputation as an ardent supporter of free markets, Coolidge signed the Radio Act of 1927, which created the Federal Radio Commission (now known as the FCC). He also supported various labor-oriented policies as governor of Massachusetts. He endorsed protective tariffs and restricted immigration as a means toward the end of keeping wages and incomes high.

Some characterize Coolidge as an isolationist. While he favored “detachment from old world interests,” Coolidge thought it proper for the United States to help settle contentious issues in Europe and Asia. Two examples of this principle in action were the Dawes Plan and the Pact of Paris. The Dawes Plan sought to relieve the crisis that developed out of the impossible burden that the Treaty of Versailles placed on Germany. The Pact of Paris renounced war as an instrument of national policy.

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