<P> Thomas Woods, a proponent of the Austrian School, argues that President Harding's laissez - faire economic policies during the 1920--21 recession, combined with a coordinated aggressive policy of rapid government downsizing, had a direct influence on the rapid and widespread private - sector recovery . Woods argued that, as there were massive distortions in private markets due to government economic influence related to demands of World War I, an equally massive correction to the distortions needed to occur as quickly as possible to realign investment and consumption with the new peace - time economic environment . </P> <P> In his 2011 article based on recent research, Daniel Kuehn, a proponent of Keynesian economics, questions many of the assertions Woods makes about the 1920--21 recession . Kuehn notes the following: </P> <Ul> <Li> the most substantial downsizing of government was attributable to the Wilson administration, and occurred well before the onset of the 1920--21 recession . </Li> <Li> the Harding administration raised revenues in 1921 by expanding the tax base considerably at the same time that it lowered rates . </Li> <Li> Woods underemphasizes the role the monetary stimulus played in reviving the depressed economy and that, since the 1920--21 recession was not characterized by a deficiency in aggregate demand, fiscal stimulus was unwarranted . </Li> </Ul> <Li> the most substantial downsizing of government was attributable to the Wilson administration, and occurred well before the onset of the 1920--21 recession . </Li>

What was the cause of the brief recession in the united states in 1918 and 1919 (5 points)