Wednesday, August 17, 2011

Why do people believe that Hoover followed a "do nothing" policy?

Hoover was all about intervention. Coolidge remarked once that Hoover had offered him unsolicited economic advice on several occasions, all of it bad. A do nothing approach would have been preferable to what he did. The crash of 1929 wasn't the direct cause of the Great Depression. The Bank Runs may have contributed more to the collapse of the economy. Hoover's intervention may have sparked those Bank Runs to begin with. Had he done nothing perhaps the market would have bounced back, and the Great Depression would have been just another recession.

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