Andrew Mellon - Part 1
Andrew Mellon - funny name, great guy! Mellon believed that high taxes increased the cost of living. Nothing clever there, eh? However, as Treasury Secretary, he acted to cut public debt. As the debt reduced, so did the interest that had to be paid on it, thus saving the Government more money each year. As the Governments debts and interest bill went down, he could cut taxes. Tricky eh?
When Mellon became Secetary, the cost of running Government the previous year (Fiscal Year 1920) was US$6.5bn. The Government also had fixed expenses and obligations maturing in the following 2.5 years of US$7.5bn. At the end of his first three years as Secretary, the annual budget was reduced to US$3.5bn. Furthermore, he reduced the public debt from almost US$26bn to US$16bn in 1930.
Less debt.....less taxes or to put it another way;
Less taxes.....less Government - & who doesnt want that?
Comments
"Less taxes.....less Government - & who doesnt want that?"
Silly pudding. All the suckers on the welfare teat and the powerful bureaucrats and their vast empires of bossy nellys. Never mind the politicians who get to be seen distributing largesse.
And I'm not even counting the NGO's, the Quango's, the bloody socialists, the various control boards and government owned or controled corporations...
The whole pestiferous lot.
Posted by: Fred | December 13, 2005 3:50 PM
FDR put an end to all this small government silliness once and for all.
Posted by: John K | December 13, 2005 6:59 PM