If you're seeing this message, it means we're having trouble loading external resources on our website.

If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked.

## US history

### Unit 7: Lesson 4

The Great Depression

# The presidency of Herbert Hoover

AP.USH:
KC‑7.1.I.C (KC)
,
Unit 7: Learning Objective J
,
WXT (Theme)
When Herbert Hoover took office in 1929, he had no idea that the Great Depression was imminent.

## Overview

• Herbert Hoover was the 31st president of the United States. He served one term, from 1929 to 1933.
• Before becoming president, Hoover directed relief efforts to supply war-torn Europe and Russia during and after the First World War.
• After the 1929 stock market crash, the Hoover administration attempted to mitigate the negative effects of the Great Depression but was unable to significantly improve the economy.

## The early life of Herbert Hoover

Herbert Clark Hoover was born in 1874 in Iowa, and was the first US president to have been born west of the Mississippi River. He worked as a mining engineer and an independent mining consultant, traveling the world and building a sizable personal fortune.start superscript, 1, end superscript When World War I broke out, Hoover became active in humanitarian work, and chaired the Commission for Relief in Belgium, which provided relief to that country as it faced a food crisis brought on by the German invasion in 1914.squared He also served as the director of the American Relief Administration, which was formed in 1919 and supplied relief to war-torn Europe and Russia.cubed
Photograph of Herbert Hoover.
Herbert Hoover. Image courtesy Wikimedia Commons.
During the First World War, President Woodrow Wilson appointed Hoover head of the US Food Administration, which sought to reduce consumption and avoid wartime food rationing. Hoover went on to serve as Secretary of Commerce in the administration of Warren G. Harding.

## The presidency of Herbert Hoover

Hoover won the Republican nomination in the 1928 presidential election after Republican President Calvin Coolidge announced that he would not be running for reelection. Hoover campaigned on Coolidge’s legacy of economic prosperity, pledging to support business, improve the quality of life of the nation’s farmers, and conduct a relatively isolationist foreign policy. Hoover was ambivalent about Prohibition, referring to it as a “great social and economic experiment,” but failing to back it wholeheartedly.start superscript, 4, end superscript Hoover won the election in a landslide against his Democratic opponent.
Once in office, Hoover sought to reform the nation’s regulatory system. He was not an advocate of a laissez-faire economy, but instead encouraged the voluntary cooperation of the federal government and big business. At Hoover’s direction, the Internal Revenue Service and the Justice Department prosecuted gangsters, including Al Capone, for tax evasion. Hoover considered himself a progressive, and this was reflected in some of his administration’s policies, including the reorganization of the Bureau of Indian Affairs, the organization of the Federal Bureau of Prisons, the closing of tax loopholes for the wealthiest Americans, the expansion of national park lands, and the strengthening of protections for labor.
Hoover’s most notable foreign policy achievements were in Latin America. His administration laid the groundwork for what became the Good Neighbor Policy under Hoover's successor Franklin D. Roosevelt. The Good Neighbor policy explicitly disavowed military interventionism in hemispheric relations. Hoover himself embarked upon a goodwill tour in Latin America, traveling to ten countries and delivering pledges to reduce US political and military interference in the domestic affairs of Latin American countries. Hoover also successfully mediated a dispute between Chile and Peru over land.

## Hoover and the Great Depression

In 1929, the stock market crash catalyzed the onset of the Great Depression.start superscript, 5, end superscript Though Hoover has gained a reputation for dithering in the face of economic peril, his administration actually pursued measures that helped lay the basis for Roosevelt’s New Deal. Hoover launched a massive public works program, part of which included funding for construction of the Hoover Dam on the Colorado River. His administration implemented stronger protections for labor and substantially increased federal subsidies for agriculture.start superscript, 6, end superscript Hoover also played a key role in passing the Glass-Steagall Act of 1932, which limited the activities of commercial banks in an attempt to stabilize the banking sector.
Photograph of the Hoover Dam under construction.
Photograph of the Hoover Dam under construction. Image credit: Wikimedia Commons
However, many of these policies were not immediately effective, and some of the administration’s actions actually worsened the effects of the depression. The Smoot-Hawley Tariff Act, for instance, which Hoover signed reluctantly, raised tariffs on thousands of imported goods and initiated a trade war between the United States and Europe, thereby exacerbating the global economic downturn.start superscript, 7, end superscript
Although Hoover ran for reelection in 1932, his inability to mitigate the negative economic consequences of the Great Depression had made him widely unpopular. He lost the election to Democrat Franklin D. Roosevelt.

## What do you think?

Did Hoover’s early career effectively prepare him for the presidency? Why or why not?
What were Hoover’s greatest accomplishments as president? What were his most consequential shortcomings?
How would you characterize the Hoover administration’s response to the Great Depression?

## Want to join the conversation?

• How would Hoover's presidency been different had he been able to help mitigate the effects of the Great Depression?
• Could you support your position with some data as to how this would have worked, since it seems he pretty much continued Coolidge's approach for the first couple of years after the October 1929 stock market crash?
• "Though Hoover has gained a reputation for dithering in the face of economic peril, his administration actually pursued measures that helped lay the basis for Roosevelt’s New Deal."

My understanding of this period of history relays otherwise. That in fact Hoover and the Federal Reserve's counterproductive-to-growth economic policies were horrible in their consequence. Had laissez-faire policy been maintained, and the Federal Reserve never been formed, there might have never been a call for, and certainly not any need for the "New Deal." Periods of economic contraction and expansion occurred throughout all of U.S. history, however only THIS recession happened post-Fed, and the Federal reserve had no idea what to do. It is a shame, because it would seem as if now, our reading of history skews the facts into portraying the New Deal as a redeeming force, or other force for good, when in fact it was born out of faulty policy, and it's programs (E.g. Social Security) continue to harm people all across America.
• I am also a Social Security recipient, and I paid into the system for about 45 years. The SS taxes I paid supported the elderly of past generations who could live their old age without fear of starving. Now I'm 75 years old, and Social Security is my major source of monthly income. My home isn't fancy, but I know I can eat decent food and have a roof over my head. I can think of some painless fixes that could be made by Congress to ensure that SS is there for future generations, but Congress seems to have other ideas. That's a shame.
• So, people are blaming Hoover for the Great Depression. It sounds like they were also blaming Coolidge. Were they just pointing fingers at anyone that could have done anything that spurred on the great depression?
• I agree. I believe that Hoover and Coolidge are unfairly blamed for the Great Depression. They were actually very well liked up until that point for spurring the economic growth that came to be so synonymous with the Roaring '20s. They were largely in support of free-market principles and pro-business, allowing for quality of life to rise greatly. Really, I think that they get no credit for what they did well and get blamed for the stock market crash, something that is pretty much random.
• Why did he build the Hoover Dam in the first place? what was it's goal? And how could he not see that millions lost their homes and were blaming it on him?
(1 vote)
• It was built to control floods, provide irrigation water and produce hydroelectric power.One can hardly say that millions lost their homes because of the dam's construction, since that part of the Colorado River watershed was sparsely populated at the time.
• Is the Hoover Dam still operational?
• It continues to hold back the Colorado River, and the powerhouse continues to produce electricity. So, I guess it still operates
• If tariffs caused a trade war, then it caused further damage to the economy, is that is why jobs were lost and the depression grew deeper? Or is that the ball (depression) was sliding down the hillside and just kept growing until millions were out of work?

Is it true then that by placing tariffs we bought less of their goods, put their workers out of a job and the same happened here? Now if we give them our jobs, we don't make the products, how does that help us?
(1 vote)
• The world economy thrives on trade in both directions. If we buy foreign products, that enables their people to buy our products, and prices are kept down both directions. Once tariff's are put in place, we can only buy our own products, which are likely overpriced, and only if we have jobs in order to purchase anything.

During the Great Depression, so many people were out of work that they couldn't pay for what was produced, and then those workers were out of a job and they couldn't buy anything either. There was a run on the banks who didn't have enough cash on hand to meet depositor withdrawals and the banks collapsed, and more folks couldn't buy anything. Tariffs are not the answer to creating jobs.
• What did President Hoover think was the best methods to end the Great Depression?