The Approach of Herbert Hoover to the Great Depression

What was Hoover's approach to the Great Depression?

In order to combat the Great Depression, what did President Herbert Hoover advocate for?

Approach of Herbert Hoover to the Great Depression

President Herbert Hoover's approach to the Great Depression involved advocating for a partnership between the public and private sectors. He pleaded with corporations, banks, and the government to work together for the nation's best interests. Hoover signed laws for public works initiatives and higher government spending as the downturn deepened.

During the Great Depression, President Herbert Hoover believed in collaboration between the public and private sectors as a way to alleviate the economic crisis. He encouraged companies to continue hiring employees and refrain from lowering wages despite declining profits, aiming to kickstart economic recovery.

Hoover also established the National Credit Corporation in 1931 in an attempt to revive failing banks by encouraging lending between them. However, this strategy proved ineffective due to high risks and a lack of return on investment in the private sector.

Despite his efforts, the unemployment rate continued to rise as the Great Depression persisted, highlighting the challenges faced by Hoover's approach during one of the most challenging economic periods in American history.