How did hover respond to the Great Depression?

Answer 1

Similar to the economic crises of 2008, President Hoover took office immediately after the crash of 29. Hoover responded to the economic downturn very much like the current SEC and Federal Reserve response. While loath to interfere with markets, Hoover sought to support the banking system by offering funding to businesses in exchange for collateral, and began public works programs. The lengths Hoover took were obscured by the incredible lengths taken by the FDR administration (Roosevelt). Public works programs in this era had an incredible impact on a generation who relied upon soup lines for survival. It should be noted that Hoover's Secretary of State (Mellon) was famous for arguing that the 'free market' should sort itself out - and that the government should 'do nothing.' Hoover disagreed with Mellon on the approach that should be taken to resolve the Great Depression, and the disagreement eventually led to a rift. "Mellon continued as secretary of the Treasury under President Herbert Hoover. Mellon interpreted the Great Depression of 1929 as a natural phenomenon and favored deflation; he was critical of public works and pursued a traditional policy of economy. In early 1930 Mellon observed, "I see nothing in the present situation that is either menacing or warrants pessimism." However, a combination of criticism of his tax policy and the Depression itself eventuated in his resignation. Hoover persuaded him to accept an appointment as ambassador to Great Britain in 1932."