President Hoover and the Great Depression
Associationalism to Limited Intervention

“Economic depression cannot be cured by legislative action or executive statements. Economic wounds must be healed by the action of the cells of the economic body – the producers and consumers themselves.  Recovery can be speeded and its effects aided by cooperative action.  That cooperation requires that every individual should maintain faith and courage. Everyone should be self-reliant. Each and every one of us should search for methods or improving our business or service. The vast majority whose income is not affective should not hoard out of fear, but should pursue their normal living and recreations. Each should seek to assist neighbors who may be less fortunate. Each industry should assist its own employees. Each community and each state should assume its full responsibility for organization and relief of distress with that distress with that sturdiness and independence that built a great nation”

Adapted from Hoover’s  message to Congress, December 1, 1930

“ We have been passing through one of those great economic downturns which periodically bring hardhsip and suffering upon our people.  While the crash took place six months ago, I am convinced we have passed the worst. With continued effort we shall rapidly recover. There is one certainty in the future of the a people with resources, intelligence, and character of the people of the United States – that is, prosperity”

Adapted from Hoover speech before the United States Chamber of Commerce, May 1, 1930

“We cannot restore economic stability in the nation by continuing to drain so large a part of private effort into the hands of the government.  Removing money from the people reduces production and consumption and slows recovery of employment.  We cannot hide our heads in the sand by borrowing to cover current government expenses.  For thus we drain the wealth of the country into public bonds and take it away from industry and commerce. A dominant national necessity is to reduce the expenses of all our governments. This is not only the need, but is the universal demand”

Adapted from a speech by Herbert Hoover  to a Governor’s conference, April 27, 1932

“ Government action by spending can bring about increased purchasing power for all the people. This will lead to greater business activity, reduced unemployment, and gradual restoration of national income. When this is done, and not before, the government can balance its budget. We must provide adequate purchasing power so the people can buy goods we are able to produce.  The government can gather the resources of the nation for the benefit of its people.  An essential part of the program to end the Depression is for the government to supply $1 billion for public works.”

Adapted from the testimony of Marriner Eccies before the Senate Finance Committee, Feb. 24, 1933