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Recession
Recession began in January. The highest marginal tax rate was 73 percent (for those earning more than $1 million.) Nearly 70 percent of federal revenue came from income taxes. -
Warren Harding
1921 - Warren Harding (R) became President. The recession ended in July without any intervention. The corporate tax rate rose from 10 percent to 12.5 percent. The Emergency Immigration Act restricted the number of immigrants to 3 percent of the 1910 U.S. population. -
Top Tax Rate
Harding reduced the top tax rate to 58 percent. -
End of Recession
Recession ended in July. Air Force created.Top tax rate raised to 46 percent. -
Beginning of Mild Recession
A mild recession began in October. The corporate tax rate increased to 13.5 percent. Robert Goddard invented the liquid propulsion rocket, creating a U.S. advantage in defense. More than two million farmers moved to the cities, but only one million city folk moved to the rural areas. (Source: "Farming Exodus," 1920-30.com) -
End of Recession
The recession ended in November after the Federal Reserve lowered the discount rate from 4 percent to 3.5 percent in September. Charles Lindbergh flew solo from New York to Paris on May 20-21. (Source: "Then and Now: Fed Policy Actions During the Great Depression and Great Recession," Federal Reserve Bank of St. Louis," November 2001.) -
Herbert Hoover becomes President
Herbert Hoover (R) became President. He lowered the top income tax rate to 24 percent, and the top corporate tax rate to 12 percent. The Great Depression began in August, as the economy started shrinking. In September, the stock market reached its peak. It crashed on October 24th. During those same months, the Graf Zeppelin completed the first round-the-world flight.