TEAEAC: President Harding and President Coolidge set conservative government policy that allowed a return to Pre-Progressive Era Big Business by aiding the growth of business. "Mellon's idea of product economic policy was to support legislation that advanced business interests." Basically, Harding and Coolidge wanted Big Business in this time period to thrive, so Harding appointed Andrew Mellon as Secretary of the Treasury, which Mellon's idea would make it happen, because of Mellon's idea Congress had reduced spending from a wartime high of $18 billion to $3 billion. "Harding signed a bill raising protective tariff rates by about 25 percent." The tax on imports made it easier for American producers to sell goods at home, with this Harding favored a return to a more traditional laissesz-faire appoach, which he and Mellon worked on to reduce government regulation of business. Finally, by aiding the growth of business President Harding and President Coolidge could set conservative government policies that would allow a return to Pre-Progressive Era Big Business.
Farm relief legislation: Farm relief act that never actually became a law but it was to pay a subsidy to American agriculture by raising the domestic prices of farm products. According to the bill, a federal agency would be created to support and protect domestic farm prices by attempting to maintain price levels that existed before the First World War. By purchasing surpluses and selling them overseas, the federal government would take losses that would be paid for through fees against farm producers. This act was made by McNary-Haugen. Farmers at this time were going bankrupt, which was about 20% of them; also the reason this was happening was because of the prices. America was being affected because since the farmers were going bankrupt, they were losing money, while big businesses with farm products were gaining money.
Tax cuts: As Treasury Secretary, Mellon pushed through a series of large tax cuts for the wealthy, freeing huge sums of capital for reinvestment's in the booming stock market. Secretary Mellon knew that high tax rates caused the tax base to contract and that lower rates would boost economic growth. Further, that is what Mellon did, he lowered the tax rates because he knew if he did that there would be economic growth; also a lot of money would come in. Since, Mellon used the idea of tax cuts, stock market business were thriving. America was affected by this economic policy, on a positive note because tax rates were lowed and not only that stock markets money was being increased and stock markets were thriving.