Andrew Mellon and the Economy of the 1920s | Retro Report

Andrew 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.

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.