The Mellon Program Andrew Mellon – Hoover’s Secretary of the Treasury.

1. The Mellon Program Andrew Mellon – Hoover’s Secretary of the Treasury. Believed the government should apply business principles to its operations. 1. He cut government spending from $6.4 billion to $3 billion. 2. He refinanced $26 billion war debt to a lower interest rate. 3. He persuaded the Federal Reserve to lower its interest rate.

2. Supply Side Economics Also known as Trickle Down Economics The theory: High taxes reduce the money available for private investment and prevent business expansion. If taxes were lower, businesses and consumers would spend and invest their extra money, causing the economy to grow. With a growing economy, Americans would earn more money, and government would collect more taxes at a lower rate than if it kept rates high.

3. Cooperative Individualism • Hoover’s idea to promote economic growth by encouraging manufacturers to form their own trade organizations. • They would share information with the government and this would promote economic efficiency. • He also created other agencies to aid business: • Bureau of Foreign and Domestic Commerce • Bureau of Aviation • Federal Radio Commission

4. The Dawes Plan Americans favored Isolationism after WWI, but the US was now a world power and was economically connected to Europe. The Dawes plan would have US banks make loans to Germany that would help them make war reparations payments to the Allies. The Allies would then use the money to pay back war debts to US banks. It only helped the US

5. The Washington Conference Turn to page 649 in your textbook and copy the chart.

6. Kellog-Briand Pact Nonbinding agreement ratified by 62 nations to agree to abandon war and to settle all disputes by peaceful means. Do you think it worked?