@Raoul_Luke doesn't mind stretching the truth a bit....Harding was not president in 1920. He took office in 1921 and the recession was over about 4 months later...long before any of his actions took place. The cut in government spending was largely done by Wilson's administration and took place in 1919 and 1920.Several european countries responded in similar ways to the 2007 crisis and their economies stagnated while the U.S. pulled ahead.