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The Mellon Plan - Andrew Mellon
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Mellon Plan Facts for kids: Fast Fact Sheet
Fast, fun facts and Frequently Asked Questions (FAQ's)
about the Mellon Plan.
What was the Mellon Plan? The Mellon
Plan was a package of economic legislation
passed by Congress in 1924 advocating high
tariffs and cuts in government spending and
corporate taxes.
Who was Andrew Mellon? Andrew
Mellon (1855–1937) was a highly successful
and extremely wealthy banker and
industrialist who was first appointed the
United States Secretary of the Treasury by
President Harding.
What did the Mellon Plan do? The Mellon
Plan introduced policies which reduced taxes
on the wealthy and the corporations and
businesses in America that encouraged growth
and led to the boom in stock market
investments.
When was Andrew Mellon Secretary of the
Treasury?
Andrew Mellon was the United States
Secretary of the Treasury for nearly 11
years from March 4, 1921 to February 12,
1932.
Andrew Mellon as Secretary of the
Treasury:
Andrew Mellon served as Secretary of the
Treasury during the Republican
administrations of Warren G. Harding
(1921–1923), Calvin Coolidge (1923–1929) and
Herbert Hoover (1929–1933).
Mellon Plan
Facts for kids
The following fact
sheet contains interesting facts and information on Mellon Plan
for kids.
Facts
about the Mellon Plan for kids
Mellon Plan Fact 1:
Andrew Mellon was a
multi-millionaire, an industrialist and banker and one
of the wealthiest people in the United States of
America.
Mellon Plan Fact
2: He was appointed Secretary of the
Treasury by new President Warren G. Harding in 1921.
Mellon Plan Fact 3:
Andrew Mellon went on to serve as Secretary of
the Treasury for during the Republican administrations of President
Calvin Coolidge (1923–1929), and President Herbert Hoover
(1929–1933).
Mellon Plan Fact 4:
He was the mastermind behind the economic
policies of the United States during the 1920's which included the
1926 Mellon Plan.
Mellon Plan Fact 5:
His overall strategy was to apply business
principles to the administration of the Treasury to which end he
created the Bureau of the Budget and the General Accounting Office
in the government.
Mellon Plan Fact 6:
The Bureau of the Budget was
established in 1921 as a part of the Department of the
Treasury by the Budget and Accounting Act of 1921. The
purpose of the Bureau of the Budget was to prepare the
federal budget and to supervise its administration in
executive branch agencies
Mellon Plan Fact 7:
The General Accounting Office was
established by the Budget and Accounting Act of 1921.
The purpose of the General Accounting Office was to
track government spending.
Mellon Plan Fact 8:
His financial strategy formed the
basis of the Mellon Plan was to lower taxes to free up
money that could be then be invested in business to
create jobs and improve the economy ensuring financial
prosperity.
Mellon Plan Fact
9: The goals of the plan were to:
● To cut Taxes
● To reduce the Government's
debt
● To balance the Federal budget
Mellon Plan Fact
10: The Plan was proposed in 1924 as a
program designed to lower tax rates. The plan called for
limiting federal budget expenditures and using surpluses
to reduce the debt.
Mellon Plan Fact 11:
The Mellon Plan became the Revenue Act of 1924.
Mellon Plan Fact 12:
By cutting government spending and reducing the
interest paid on the WW1 government debt. Between 1921 and 1929 the
plan reduced the nation's debt by $7 billion .
Continued...
Facts
about the Mellon Plan for kids
Facts
about the Mellon Plan for kids
The following fact
sheet continues with facts about Mellon Plan for kids.
Facts
about Mellon Plan for kids
Fact
10: The Plan was proposed in 1924 as a
program designed to lower tax rates. The plan called for
limiting federal budget expenditures and using surpluses
to reduce the debt.
Fact 11:
The Mellon Plan became the
Revenue Act of 1924.
Fact 12:
By cutting government spending and reducing the
interest paid on the WW1 government debt. Between 1921 and 1929 the
plan reduced the nation's debt by $7 billion .
Fact 13:
He was called "the greatest Secretary of the
Treasury since Alexander Hamilton." and became a candidate for
president in 1927 but lost the Republican nomination to Herbert
Hoover.
Fact 14:
Applying the strategy of supply-side
economics, based on the belief that changes in marginal
tax rates influenced economic activity, the Congress
dramatically reduced tax rates.
● In 1920 the majority of tax
payers paid 4% federal income tax and wealthy Americans paid 73%
federal income tax
● By 1928 the majority of tax
payers were paying ½% federal income tax and wealthy Americans had their
income tax reduced to 25%
Fact 15:
People had more money available and
in the exuberance and period of prosperity in the
Roaring Twenties led many people to invest, and
over-invest, in the booming stock market.
Fact 15:
The tax laws were designed to put
more money into the hands of the consumers by lowering
the federal income tax. This contributed to the rampant
spending trend of consumers, which in turn led to over
production of goods. Refer to the
Economic Boom of the 1920's and
Consumerism in the 1920's.
Fact 16:
The
1929 Wall Street Crash hit the
nation. Andrew Mellon's reputation was badly damaged as
he, together with President Hoover and President
Coolidge, was blamed for the financial disaster.
Facts
about Mellon Plan for kids
Facts
about
Mellon Plan for kids
For visitors interested in the financial history of
the United States refer to the following articles:
Mellon Plan for kids - President Warren Harding Video
The article on the Mellon Plan provides detailed facts and a summary of one of the important events during his presidential term in office. The following
Warren Harding video will
give you additional important facts and dates about the political events experienced by the 29th American President whose presidency spanned from March 4, 1921 to August 2, 1923.
Mellon Plan & the United States
Secretary of the Treasury
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Interesting Facts about Mellon Plan for kids and schools
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Facts about the Plan and
the United States Secretary of the Treasury
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The Mellon Plan, a major event in US history
● Short
Facts about Mellon Plan for kids and schools
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Fast facts about the United States Secretary of the
Treasury
● Interesting and important facts and
information
● Warren Harding Presidency and
the Mellon Plan for schools,
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