President Herbert Hoover In the Election of 1928, the Republican nominated the Secretary of Commerce, Hoover. He has never run for any political campaigns before and relied on his outstanding career as an engineer & professional administrator. He promised voters that his vision of individualism and cooperative endeavor would promote prosperity and banish poverty from US. He won by 58% of the votes. In 1927, US experienced downturn in the economy which resulted in the Great Depression in 1930’s. Hoover blamed the severity of the American depression on the international economic situation, and his analysis had considerable merit. He insisted that the Great Depression will be over. He adopted a two-prong strategy. Reflecting his ideology of voluntarism and his reliance, as secretary of commerce, on the business community, the president turned first to corporate leaders. He asked business executives to maintain wages & production levels and to work with the government to rebuild America’s confidence in the capitalist economic system, none of which produced economic recovery during his term. He turned to government action. Soon after the stock market crash, he won cuts in federal taxes in an attempt to boost private spending and corporate investment, and he called on state and local governments to increase capital expenditures on public works. Hoover had responded to the national emergency with government action on an unprecedented scale. But the nation’s needs were also unprecedented, and Hoover’s programs failed to meet them. Reconstruction Finance Corporation (RFC) Hoover’s most innovative program continued under the New Deal, which the Congress approved in January 1932. It was modeled on the War Finance Corporation of WWI and similarly gave the federal government a crucial role in the economic life of US. To stimulate economic activity, the RFC provided federal loans to railroads, financial institutions, banks, and insurance companies. The loans were nearly all repaid.
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This note was uploaded on 11/14/2011 for the course HIST 121 taught by Professor - during the Spring '10 term at Diablo Valley College.