Andrew Mellon, one of the richest men in America in the 1920s, served as Treasury secretary under three presidents. He used his government position to lower taxes for the wealthy, influence banking policy and support big businesses – including some he owned himself – while the American economy soared after World War I.
Mellon believed the American economy worked best when the government stayed out of the way. Many people at the time agreed, celebrating the Roaring Twenties as a period of strong growth. But problems were brewing. Large companies were gaining power, financial speculation was on the rise and income inequality was growing. After the stock market crashed in 1929, the U.S. economy collapsed. Mellon refused to support relief for the unemployed, holding on to the belief that the government should not interfere.
A century later, business leaders like Elon Musk have asserted their influence over economic policies. Mellon’s story helps explain how economic power became concentrated in the hands of a few, and why the role of government in regulating business is still debated today.
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