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157-740: During the 1928 presidential campaign Herbert Hoover supported the Eighteenth Amendment to the United States Constitution (which had introduced nationwide alcohol prohibition) but he recognized that evasion of the law was widespread and that prohibition had fueled the growth of organized crime . Commission members included Henry W. Anderson , Newton D. Baker , Ada Comstock , William Irwin Grubb , William S. Kenyon , Monte M. Lemann, Frank J. Loesch , Kenneth Mackintosh, Paul John McCormick , and Dean Roscoe Pound of

314-748: A Quaker family in West Branch, Iowa , Hoover grew up in Oregon . He was one of the first graduates of the new Stanford University in 1895. Hoover took a position with a London-based mining company working in Australia and China. He rapidly became a wealthy mining engineer. In 1914, the outbreak of World War I , he organized and headed the Commission for Relief in Belgium, an international relief organization that provided food to occupied Belgium . When

471-634: A deflationary spiral started in 1931. Farmers faced a worse outlook; declining crop prices and a Great Plains drought crippled their economic outlook. At its peak, the Great Depression saw nearly 10% of all Great Plains farms change hands despite federal assistance. At first, the decline in the U.S. economy was the factor that triggered economic downturns in most other countries due to a decline in trade, capital movement, and global business confidence. Then, internal weaknesses or strengths in each country made conditions worse or better. For example,

628-418: A silver standard , almost avoided the depression entirely. The connection between leaving the gold standard as a strong predictor of that country's severity of its depression and the length of time of its recovery has been shown to be consistent for dozens of countries, including developing countries . This partly explains why the experience and length of the depression differed between regions and states around

785-626: A "third alternative" between "unrestrained capitalism" and socialism , which was becoming increasingly popular in Europe. Hoover sought to foster a balance among labor, capital, and the government, and for this, he has been variously labeled a corporatist or an associationalist . A high priority was economic diplomacy, including promoting the growth of exports, as well as protection against monopolistic practices of foreign governments, especially regarding rubber and coffee. Hoover demanded, and received, authority to coordinate economic affairs throughout

942-497: A London-based independent mining consultant and financier. Though he had risen to prominence as a geologist and mine operator, Hoover focused much of his attention on raising money, restructuring corporate organizations, and financing new ventures. He specialized in rejuvenating troubled mining operations, taking a share of the profits in exchange for his technical and financial expertise. Hoover thought of himself and his associates as "engineering doctors to sick concerns", and he earned

1099-433: A classmate named Lou Henry , though his financial situation precluded marriage at that time. The daughter of a banker from Monterey, California , Lou Henry decided to study geology at Stanford after attending a lecture delivered by John C. Branner . Immediately after earning a promotion in 1898, Hoover cabled Lou Henry, asking her to marry him. After she cabled back her acceptance of the proposal, Hoover briefly returned to

1256-626: A columnist for the New York World , summarized his opinion of the commission's report with this poem: Prohibition is an awful flop. We like it. It can't stop what it's meant to stop. We like it. It's left a trail of graft and slime It don't prohibit worth a dime It's filled our land with vice and crime, Nevertheless, we're for it. In the November 1931 issue of the New Masses , graphic artist Jacob Burck published

1413-597: A contender in the 1920 presidential election. Hoover's wartime push for higher taxes, criticism of Attorney General A. Mitchell Palmer 's actions during the First Red Scare , and his advocacy for measures such as the minimum wage , forty-eight-hour workweek, and elimination of child labor made him appealing to progressives of both parties. Despite his service in the Democratic administration of Woodrow Wilson, Hoover had never been closely affiliated with either

1570-539: A critical food situation; Hoover estimated that as many as 400 million people faced the possibility of starvation. The United States Food Administration became the American Relief Administration (ARA), and Hoover was charged with providing food to Central and Eastern Europe. In addition to providing relief, the ARA rebuilt infrastructure in an effort to rejuvenate the economy of Europe. Throughout

1727-548: A former privately run bank, bearing no relation to the U.S. government (not to be confused with the Federal Reserve ). Unable to pay out to all of its creditors, the bank failed. Among the 608 American banks that closed in November and December 1930, the Bank of United States accounted for a third of the total $ 550 million deposits lost and, with its closure, bank failures reached a critical mass. In an initial response to

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1884-453: A future presidential bid throughout the 1920s, but he carefully avoided alienating Coolidge, who possibly could have run for another term in the 1928 presidential election . Along with the rest of the nation, he was surprised when Coolidge announced in August 1927 that he would not seek another term. With the impending retirement of Coolidge, Hoover immediately emerged as the front-runner for

2041-467: A greater reduction in credit. On 5 April 1933, President Roosevelt signed Executive Order 6102 making the private ownership of gold certificates , coins and bullion illegal, reducing the pressure on Federal Reserve gold. British economist John Maynard Keynes argued in The General Theory of Employment, Interest and Money that lower aggregate expenditures in the economy contributed to

2198-586: A huge crowd that he would continue the policies of the Harding and Coolidge administrations. The Democrats nominated New York governor Al Smith , who became the first Catholic major party nominee for president. Hoover submitted his resignation as Commerce Secretary on July 7, but Coolidge kept him on until August 21 to wind up pending business. Hoover centered his campaign around the Republican record of peace and prosperity, as well as his own reputation as

2355-545: A large property on the remote north coast of Santa Cruz County. The Theodore J. Hoover Natural Preserve is now part of Big Basin State Park . World War I broke out in August 1914, pitting Germany and its allies against France and its allies. The German Schlieffen plan was to achieve a quick victory by marching through neutral Belgium to envelop the French Army east of Paris. The maneuver failed to reach Paris but

2512-640: A mine scout for a year, Hoover was hired by Bewick, Moreing & Co. ("Bewick"), a London-based company that operated gold mines in Western Australia . He first went to Coolgardie , then the center of the Eastern Goldfields , which was actually in Western Australia , receiving a $ 5,000 salary (equivalent to $ 183,120 in 2023). Conditions were harsh in the goldfields; Hoover described the Coolgardie and Murchison rangelands on

2669-493: A model Uniform Vehicle Code for adoption by the states and a Model Municipal Traffic Ordinance for adoption by cities. Both were widely influential, promoting greater uniformity between jurisdictions and tending to promote the automobile's priority in city streets. Phillips Payson O'Brien argues that Hoover had a Britain problem. He had spent so many years living in Britain and Australia, as an employee of British companies, there

2826-600: A modern industrial city handled shortages of money and resources. Often they updated strategies their mothers used when they were growing up in poor families. Cheap foods were used, such as soups, beans and noodles. They purchased the cheapest cuts of meat—sometimes even horse meat—and recycled the Sunday roast into sandwiches and soups. They sewed and patched clothing, traded with their neighbors for outgrown items, and made do with colder homes. New furniture and appliances were postponed until better days. Many women also worked outside

2983-402: A monetary contraction first-hand were forced to join the deflationary policy since higher interest rates in countries that performed a deflationary policy led to a gold outflow in countries with lower interest rates. Under the gold standard's price–specie flow mechanism , countries that lost gold but nevertheless wanted to maintain the gold standard had to permit their money supply to decrease and

3140-671: A reputation as a "doctor of sick mines". He made investments on every continent and had offices in San Francisco; London; New York City; Paris; Petrograd ; and Mandalay , British Burma . By 1914, Hoover was a very wealthy man, with an estimated personal fortune of $ 4 million (equivalent to $ 121.67 million in 2023). Hoover co-founded the Zinc Corporation to extract zinc near the Australian city of Broken Hill , New South Wales . The Zinc Corporation developed

3297-555: A separate mine in the Altai Mountains that, according to Hoover, "developed probably the greatest and richest single body of ore known in the world". In his spare time, Hoover wrote. His lectures at Columbia and Stanford universities were published in 1909 as Principles of Mining , which became a standard textbook. The book reflects his move towards progressive ideals, as Hoover came to endorse eight-hour workdays and organized labor . Hoover became deeply interested in

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3454-567: A serious issue in the 1930s. Support for increasing welfare programs during the depression included a focus on women in the family. The Conseil Supérieur de la Natalité campaigned for provisions enacted in the Code de la Famille (1939) that increased state assistance to families with children and required employers to protect the jobs of fathers, even if they were immigrants. In rural and small-town areas, women expanded their operation of vegetable gardens to include as much food production as possible. In

3611-480: A small cadre of Labour, but the vast majority of Labour leaders denounced MacDonald as a traitor for leading the new government. Britain went off the gold standard , and suffered relatively less than other major countries in the Great Depression. In the 1931 British election, the Labour Party was virtually destroyed, leaving MacDonald as prime minister for a largely Conservative coalition. In most countries of

3768-713: A standstill agreement froze Germany's foreign liabilities for six months. Germany received emergency funding from private banks in New York as well as the Bank of International Settlements and the Bank of England. The funding only slowed the process. Industrial failures began in Germany, a major bank closed in July and a two-day holiday for all German banks was declared. Business failures were more frequent in July, and spread to Romania and Hungary. The crisis continued to get worse in Germany, bringing political upheaval that finally led to

3925-653: A successful engineer and public official. Averse to giving political speeches, Hoover largely stayed out of the fray and left the campaigning to Curtis and other Republicans. Smith was more charismatic and gregarious than Hoover, but his campaign was damaged by anti-Catholicism and his overt opposition to Prohibition. Hoover had never been a strong proponent of Prohibition, but he accepted the Republican Party's plank in favor of it and issued an ambivalent statement calling Prohibition "a great social and economic experiment, noble in motive and far-reaching in purpose". In

4082-777: A unique, gigantic achievement, worthy of the greatest glory, which will long remain in the memory of millions of Russians whom you have saved from death". In 1919, Hoover established the Hoover War Collection at Stanford University. He donated all the files of the Commission for Relief in Belgium, the U.S. Food Administration, and the American Relief Administration, and pledged $ 50,000 as an endowment (equivalent to $ 878,695 in 2023). Scholars were sent to Europe to collect pamphlets, society publications, government documents, newspapers, posters, proclamations, and other ephemeral materials related to

4239-658: Is a consensus that the Federal Reserve System should have cut short the process of monetary deflation and banking collapse, by expanding the money supply and acting as lender of last resort . If they had done this, the economic downturn would have been far less severe and much shorter. Modern mainstream economists see the reasons in Insufficient spending, the money supply reduction, and debt on margin led to falling prices and further bankruptcies ( Irving Fisher 's debt deflation). The monetarist explanation

4396-493: Is supported by the contrast in how the crisis progressed in, e.g., Britain, Argentina and Brazil, all of which devalued their currencies early and returned to normal patterns of growth relatively rapidly and countries which stuck to the gold standard , such as France or Belgium. Frantic attempts by individual countries to shore up their economies through protectionist policies – such as the 1930 U.S. Smoot–Hawley Tariff Act and retaliatory tariffs in other countries – exacerbated

4553-539: The 1932 election , Hoover was defeated by Franklin D. Roosevelt , who from 1933 pursued a series of " New Deal " policies and programs to provide relief and create jobs, including the Civilian Conservation Corps , Federal Emergency Relief Administration , Tennessee Valley Authority , and Works Progress Administration . Historians disagree on the effects of the New Deal, with some claiming that

4710-517: The 1932 presidential election . Hoover's retirement was over 31 years long, one of the longest presidential retirements. He authored numerous works and became increasingly conservative in retirement. He strongly criticized Roosevelt's foreign policy and the New Deal . In the 1940s and 1950s, public opinion of Hoover improved, largely due to his service in various assignments for Presidents Harry S. Truman and Dwight D. Eisenhower , including chairing

4867-595: The Depression of 1920–21 , he convinced Harding to assemble a presidential commission on unemployment, which encouraged local governments to engage in countercyclical infrastructure spending. He endorsed much of Mellon's tax reduction program but favored a more progressive tax system and opposed the treasury secretary's efforts to eliminate the estate tax . Between 1923 and 1929, the number of families with radios grew from 300,000 to 10 million, and Hoover's tenure as Secretary of Commerce heavily influenced radio use in

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5024-480: The Great Mississippi Flood of 1927 . He won the Republican nomination in the 1928 presidential election and defeated Democratic candidate Al Smith in a landslide. In 1929, Hoover assumed the presidency. However, during his first year in office, the stock market crashed , signaling the onset of the Great Depression, which dominated Hoover's presidency until its end. His response to the depression

5181-582: The New York Bank of United States – which produced panic and widespread runs on local banks, and the Federal Reserve sat idly by while banks collapsed. Friedman and Schwartz argued that, if the Fed had provided emergency lending to these key banks, or simply bought government bonds on the open market to provide liquidity and increase the quantity of money after the key banks fell, all the rest of

5338-720: The North Sea forty times to meet with German authorities and persuade them to allow food shipments. He also convinced British Chancellor of the Exchequer David Lloyd George to allow individuals to send money to the people of Belgium, thereby lessening workload of the CRB. At the request of the French government, the CRB began delivering supplies to the people of German-occupied Northern France in 1915. American diplomat Walter Page described Hoover as "probably

5495-612: The Paris Peace Conference , Hoover served as a close adviser to President Wilson, and he largely shared Wilson's goals of establishing the League of Nations , settling borders on the basis of self-determination , and refraining from inflicting a harsh punishment on the defeated Central Powers. The following year, the famed British economist John Maynard Keynes wrote in The Economic Consequences of

5652-632: The United States Geological Survey ; these experiences convinced Hoover to pursue a career as a mining geologist. When Hoover graduated from Stanford in 1895, the country was in the midst of the Panic of 1893 and he initially struggled to find a job. He worked in various low-level mining jobs in the Sierra Nevada Mountains until persuading prominent mining engineer Louis Janin to hire him. After working as

5809-539: The coming to power of Hitler's Nazi regime in January 1933. The world financial crisis now began to overwhelm Britain; investors around the world started withdrawing their gold from London at the rate of £2.5 million per day. Credits of £25 million each from the Bank of France and the Federal Reserve Bank of New York and an issue of £15 million fiduciary note slowed, but did not reverse,

5966-611: The froth flotation process to extract zinc from lead-silver ore and operated the world's first selective ore differential flotation plant. Hoover worked with the Burma Corporation, a British firm that produced silver, lead, and zinc in large quantities at the Namtu Bawdwin Mine . He also helped increase copper production in Kyshtym , Russia , through the use of pyritic smelting. He also agreed to manage

6123-506: The history of science , and he was especially drawn to the De re metallica , an influential 16th century work on mining and metallurgy by Georgius Agricola . In 1912, Hoover and his wife published the first English translation of De re metallica . Hoover also joined the board of trustees at Stanford, and led a successful campaign to appoint John Branner as the university's president. During his senior year at Stanford, Hoover became smitten with

6280-404: The labour movement of the Australian miners. During his time with the mining company, Hoover became opposed to measures such as a minimum wage and workers' compensation , feeling that they were unfair to owners. Hoover's work impressed his employers, and in 1898 he was promoted to junior partner. An open feud developed between Hoover and his boss, Ernest Williams, but Bewick's leaders defused

6437-474: The stock market , which resulted in growing wealth inequality . Banks were subject to minimal regulation under laissez-faire economic policies, resulting in loose lending and widespread debt. By 1929, declining spending had led to reductions in manufacturing output and rising unemployment . Share values continued to rise until the Wall Street crash, after which the slide continued for three years, which

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6594-501: The 1928 Electoral College and impacted the presidential election. Defunct Newspapers Journals TV channels Websites Other Economics Gun rights Identity politics Great Depression The Great Depression was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty; drastic reductions in liquidity , industrial production, and trade; and widespread bank and business failures around

6751-413: The 1928 Republican nomination, and he quickly put together a strong campaign team led by Hubert Work , Will H. Hays , and Reed Smoot . Coolidge was unwilling to anoint Hoover as his successor; on one occasion he remarked that, "for six years that man has given me unsolicited advice—all of it bad". Despite his lukewarm feelings towards Hoover, Coolidge had no desire to split the party by publicly opposing

6908-447: The 1937 recession that interrupted it). The common view among most economists is that Roosevelt's New Deal policies either caused or accelerated the recovery, although his policies were never aggressive enough to bring the economy completely out of recession. Some economists have also called attention to the positive effects from expectations of reflation and rising nominal interest rates that Roosevelt's words and actions portended. It

7065-747: The Allied Powers, preventing their collapse and earning Hoover great acclaim. As head of the Food Administration, Hoover gained a following in the United States, especially among progressives who saw in Hoover an expert administrator and symbol of efficiency. He was elected to the American Philosophical Society during his tenure. World War I came to an end in November 1918, but Europe continued to face

7222-559: The Bolsheviks and feared the possibility of a protracted U.S. involvement. The Russian famine of 1921–22 claimed six million people, but the intervention of the ARA likely saved millions of lives. When asked if he was not helping Bolshevism by providing relief, Hoover stated, "twenty million people are starving. Whatever their politics, they shall be fed!" Reflecting the gratitude of many Europeans, in July 1922, Soviet author Maxim Gorky told Hoover that "your help will enter history as

7379-705: The British crisis. The financial crisis now caused a major political crisis in Britain in August 1931. With deficits mounting, the bankers demanded a balanced budget; the divided cabinet of Prime Minister Ramsay MacDonald's Labour government agreed; it proposed to raise taxes, cut spending, and most controversially, to cut unemployment benefits 20%. The attack on welfare was unacceptable to the Labour movement. MacDonald wanted to resign, but King George V insisted he remain and form an all-party coalition " National Government ". The Conservative and Liberals parties signed on, along with

7536-651: The British refused to lift their blockade of German-occupied Belgium unless the U.S. government supervised Belgian food imports as a neutral party in the war. With the cooperation of the Wilson administration and the CNSA , a Belgian relief organization, Hoover established the Commission for Relief in Belgium (CRB). The CRB obtained and imported millions of tons of foodstuffs for the CNSA to distribute, and helped ensure that

7693-620: The Chinese government, the director of the Chinese Engineering and Mining Company agreed to establish a new Sino-British venture with Bewick. After they established effective control over the new Chinese mining company, Hoover became the operating partner in late 1901. In this role, Hoover continually traveled the world on behalf of Bewick, visiting mines operated by the company on different continents. Beginning in December 1902,

7850-546: The Democrats or the Republicans . He initially sought to avoid committing to any party in the 1920 election, hoping that either of the two major parties would draft him for president at their national conventions. In March 1920, he changed strategy and declared himself a Republican; he was motivated in large part by the belief that the Democrats had little chance of winning. Despite his national renown, Hoover's service in

8007-530: The Depression. Businessmen ignored the mounting national debt and heavy new taxes, redoubling their efforts for greater output to take advantage of generous government contracts. During World War I many countries suspended their gold standard in varying ways. There was high inflation from WWI, and in the 1920s in the Weimar Republic , Austria , and throughout Europe. In the late 1920s there

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8164-521: The Dow returning to 294 (pre-depression levels) in April 1930, before steadily declining for years, to a low of 41 in 1932. At the beginning, governments and businesses spent more in the first half of 1930 than in the corresponding period of the previous year. On the other hand, consumers, many of whom suffered severe losses in the stock market the previous year, cut expenditures by 10%. In addition, beginning in

8321-489: The Federal Reserve did not act to limit the decline of the money supply was the gold standard . At that time, the amount of credit the Federal Reserve could issue was limited by the Federal Reserve Act , which required 40% gold backing of Federal Reserve Notes issued. By the late 1920s, the Federal Reserve had almost hit the limit of allowable credit that could be backed by the gold in its possession. This credit

8478-506: The German army did not appropriate the food. Private donations and government grants supplied the majority of its $ 11-million-a-month budget, and the CRB became a veritable independent republic of relief, with its own flag, navy, factories, mills, and railroads. Hoover worked 14-hour days from London, administering the distribution of over two million tons of food to nine million war victims. In an early form of shuttle diplomacy , he crossed

8635-551: The Germans did control nearly all of Belgium for the entire war. Hoover and other London-based American businessmen established a committee to organize the return of the roughly 100,000 Americans stranded in Europe. Hoover was appointed as the committee's chairman and, with the assent of Congress and the Wilson administration , took charge of the distribution of relief to Americans in Europe. Hoover later stated, "I did not realize it at

8792-442: The Great Depression is right, or the traditional Keynesian explanation that a fall in autonomous spending, particularly investment, is the primary explanation for the onset of the Great Depression. Today there is also significant academic support for the debt deflation theory and the expectations hypothesis that – building on the monetary explanation of Milton Friedman and Anna Schwartz – add non-monetary explanations. There

8949-642: The Great Depression. According to the U.S. Senate website, the Smoot–Hawley Tariff Act is among the most catastrophic acts in congressional history. Many economists have argued that the sharp decline in international trade after 1930 helped to worsen the depression, especially for countries significantly dependent on foreign trade. Most historians and economists blame the Act for worsening the depression by seriously reducing international trade and causing retaliatory tariffs in other countries. While foreign trade

9106-511: The Harding administration. Hoover envisioned the Commerce Department as the hub of the nation's growth and stability. His experience mobilizing the war-time economy convinced him that the federal government could promote efficiency by eliminating waste, increasing production, encouraging the adoption of data-based practices, investing in infrastructure, and conserving natural resources. Contemporaries described Hoover's approach as

9263-561: The Harvard Law School. Pioneering American criminologist August Vollmer wrote portions of the report. From 1929 to 1930, Alger Hiss worked in legal research for the general counsel of the "Wickersham Committee" (as William L. Marbury, Jr. described it in a 1935 letter, in which he sought the support of U.S. Senator George L. P. Radcliffe for the appointment of Alger Hiss to the U.S. Solicitor General 's office). The Commission focused its investigations almost entirely on

9420-584: The Home Modernizing Bureau. He worked with bankers and the savings and loan industry to promote the new long-term home mortgage, which dramatically stimulated home construction. Other accomplishments included winning the agreement of U.S. Steel to adopt an eight-hour workday, and the fostering of the Colorado River Compact , a water rights compact among Southwestern states . The Great Mississippi Flood of 1927 broke

9577-430: The Hoovers began living in the United States, maintaining homes in Stanford, California , and Washington, D.C. Hoover's great-grandaughter (through Allan) is conservative political commentator, strategist, media personality and author Margaret Hoover . Hoover's elder brother Theodore also studied mining engineering at Stanford, and returned there to become dean of the engineering school. In retirement, Theodore bought

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9734-414: The New Deal prolonged the Great Depression, as they argue that National Industrial Recovery Act of 1933 and National Labor Relations Act of 1935 restricted competition and established price fixing. John Maynard Keynes did not think that the New Deal under Roosevelt single-handedly ended the Great Depression: "It is, it seems, politically impossible for a capitalistic democracy to organize expenditure on

9891-481: The Peace that if Hoover's realism, "knowledge, magnanimity and disinterestedness" had found wider play in the councils of Paris, the world would have had "the Good Peace". After U.S. government funding for the ARA expired in mid-1919, Hoover transformed the ARA into a private organization, raising millions of dollars from private donors. He also established the European Children's Fund, which provided relief to fifteen million children across fourteen countries. Despite

10048-417: The Republican nomination in the 1920 U.S. presidential election . Hoover served as the secretary of commerce under Presidents Warren G. Harding and Calvin Coolidge . Hoover was an unusually active and visible Cabinet member, becoming known as "Secretary of Commerce and Under-Secretary of all other departments." He was influential in the development of air travel and radio. Hoover led the federal response to

10205-418: The Senate and from radio station owners. Hoover was also influential in the early development of air travel, and he sought to create a thriving private industry boosted by indirect government subsidies. He encouraged the development of emergency landing fields, required all runways to be equipped with lights and radio beams, and encouraged farmers to make use of planes for crop dusting . He also established

10362-421: The Senate. Hoover would serve as Secretary of Commerce from 1921 to 1928, serving under Harding and, after Harding's death in 1923, President Calvin Coolidge . While some of the most prominent members of the Harding administration, including Attorney General Harry M. Daugherty and Secretary of Interior Albert B. Fall , were implicated in major scandals , Hoover emerged largely unscathed from investigations into

10519-426: The South, Hoover and the national party pursued a " lily-white " strategy, removing black Republicans from leadership positions in an attempt to curry favor with white Southerners. Hoover maintained polling leads throughout the 1928 campaign, and he decisively defeated Smith on election day, taking 58 percent of the popular vote and 444 of the 531 electoral votes. Historians agree that Hoover's national reputation and

10676-491: The U.K. economy, which experienced an economic downturn throughout most of the late 1920s, was less severely impacted by the shock of the depression than the U.S. By contrast, the German economy saw a similar decline in industrial output as that observed in the U.S. Some economic historians attribute the differences in the rates of recovery and relative severity of the economic decline to whether particular countries had been able to effectively devaluate their currencies or not. This

10833-414: The U.S. entered the war in 1917, President Woodrow Wilson appointed Hoover to lead the Food Administration. He became famous as his country's "food czar". After the war, Hoover led the American Relief Administration , which provided food to the starving millions in Central and Eastern Europe, especially Russia. Hoover's wartime service made him a favorite of many progressives , and he unsuccessfully sought

10990-435: The U.S. unemployment rate down below 10%. World War II had a dramatic effect on many parts of the American economy. Government-financed capital spending accounted for only 5% of the annual U.S. investment in industrial capital in 1940; by 1943, the government accounted for 67% of U.S. capital investment. The massive war spending doubled economic growth rates, either masking the effects of the Depression or essentially ending

11147-541: The United States for their wedding. They would remain married until Lou Henry Hoover's death in 1944. Hoover was the first president to be a widower since Woodrow Wilson . Though his Quaker upbringing strongly influenced his career, Hoover rarely attended Quaker meetings during his adult life. Hoover and his wife had two children: Herbert Hoover Jr. (born in 1903) and Allan Henry Hoover (born in 1907). The Hoover family began living in London in 1902, though they frequently traveled as part of Hoover's career. After 1916,

11304-622: The United States, agricultural organizations sponsored programs to teach housewives how to optimize their gardens and to raise poultry for meat and eggs. Rural women made feed sack dresses and other items for themselves and their families and homes from feed sacks. In American cities, African American women quiltmakers enlarged their activities, promoted collaboration, and trained neophytes. Quilts were created for practical use from various inexpensive materials and increased social interaction for women and promoted camaraderie and personal fulfillment. Oral history provides evidence for how housewives in

11461-543: The United States, remained on the gold standard into 1932 or 1933, while a few countries in the so-called "gold bloc", led by France and including Poland, Belgium and Switzerland, stayed on the standard until 1935–36. According to later analysis, the earliness with which a country left the gold standard reliably predicted its economic recovery. For example, The UK and Scandinavia, which left the gold standard in 1931, recovered much earlier than France and Belgium, which remained on gold much longer. Countries such as China, which had

11618-500: The United States. In the early and mid-1920s, Hoover's radio conferences played a key role in the organization, development, and regulation of radio broadcasting . Hoover also helped pass the Radio Act of 1927 , which allowed the government to intervene and abolish radio stations that were deemed "non-useful" to the public. Hoover's attempts at regulating radio were not supported by all congressmen, and he received much opposition from

11775-581: The Wilson administration had alienated farmers and the conservative Old Guard of the GOP , and his presidential candidacy fizzled out after his defeat in the California primary by favorite son Hiram Johnson . At the 1920 Republican National Convention , Warren G. Harding emerged as a compromise candidate after the convention became deadlocked between supporters of Johnson, Leonard Wood , and Frank Orren Lowden . Hoover backed Harding's successful campaign in

11932-404: The age of 34 of a sudden heart attack. Hoover's mother died in 1884 of typhoid , leaving Hoover, his older brother, Theodore, and his younger sister, May, as orphans. Hoover lived the next 18 months with his uncle Allen Hoover at a nearby farm. In November 1885, Hoover was sent to Newberg, Oregon , to live with his uncle John Minthorn, a Quaker physician and businessman whose own son had died

12089-577: The age of thirteen to become an office assistant for his uncle's real estate office (Oregon Land Company) in Salem, Oregon . Though he did not attend high school, Hoover learned bookkeeping, typing, and mathematics at a night school. Hoover was a member of the inaugural "Pioneer Class" of Stanford University , entering in 1891 despite failing all the entrance exams except mathematics. During his freshman year, he switched his major from mechanical engineering to geology after working for John Casper Branner ,

12246-505: The agency leadership— Alonzo E. Taylor (technical abilities), Robert Taft (political associations), Gifford Pinchot (agricultural influence), and Julius Barnes (business acumen). World War I had created a global food crisis that dramatically increased food prices and caused food riots and starvation in the countries at war. Hoover's chief goal as food czar was to provide supplies to the Allied Powers, but he also sought to stabilize domestic prices and to prevent domestic shortages. Under

12403-600: The amount of crude oil spilled during extraction and shipping. He promoted international trade by opening overseas offices to advise businessmen. Hoover was especially eager to promote Hollywood films overseas. His "Own Your Own Home" campaign was a collaboration to promote ownership of single-family dwellings, with groups such as the Better Houses in America movement, the Architects' Small House Service Bureau, and

12560-543: The banks and levees of the lower Mississippi River in early 1927, resulting in the flooding of millions of acres and leaving 1.5 million people displaced from their homes. Although disaster response did not fall under the duties of the Commerce Department , the governors of six states along the Mississippi River specifically asked President Coolidge to appoint Hoover to coordinate the response to

12717-460: The banks would not have fallen after the large ones did, and the money supply would not have fallen as far and as fast as it did. With significantly less money to go around, businesses could not get new loans and could not even get their old loans renewed, forcing many to stop investing. This interpretation blames the Federal Reserve for inaction, especially the New York branch . One reason why

12874-465: The behavior of housewives. The common view among economic historians is that the Great Depression ended with the advent of World War II . Many economists believe that government spending on the war caused or at least accelerated recovery from the Great Depression, though some consider that it did not play a very large role in the recovery, though it did help in reducing unemployment. The rearmament policies leading up to World War II helped stimulate

13031-466: The booming economy, combined with deep splits in the Democratic Party over religion and Prohibition, guaranteed his landslide victory. Hoover's appeal to Southern white voters succeeded in cracking the " Solid South ", and he won five Southern states. Hoover's victory was positively received by newspapers; one wrote that Hoover would "drive so forcefully at the tasks now before the nation that

13188-714: The broad powers granted by the Food and Fuel Control Act , the Food Administration supervised food production throughout the United States, and the administration made use of its authority to buy, import, store, and sell food. Determined to avoid rationing, Hoover established set days for people to avoid eating specified foods and save them for soldiers' rations: meatless Mondays , wheatless Wednesdays, and "when in doubt, eat potatoes". These policies were dubbed "Hooverizing" by government publicists, in spite of Hoover's continual orders that publicity should not mention him by name. The Food Administration shipped 23 million metric tons of food to

13345-431: The cartoon "I-I B-b-eg Your Pardon..." depicting a mortified Wickersham, holding his Wickersham report, while he looks on as a capitalist violates liberty. Herbert Hoover Herbert Clark Hoover (August 10, 1874 – October 20, 1964) was the 31st president of the United States , serving from 1929 to 1933. A wealthy mining engineer before his presidency, Hoover led the wartime Commission for Relief in Belgium and

13502-427: The chairman of Stanford's geology department. During his sophomore year, Sam Collins proposed founding, Romero Hall Boarding Club , the first student cooperative boarding house at Romero Hall, for "sociability and economy", which Hoover and William Foster Hidden co-founded. Hoover was a mediocre student, and he spent much of his time working in various part-time jobs or participating in campus activities. Though he

13659-462: The collapse in global trade, contributing to the depression. By 1933, the economic decline pushed world trade to one third of its level compared to four years earlier. While the precise causes for the occurrence of the Great depression are disputed and can be traced to both global and national phenomena, its immediate origins are most conveniently examined in the context of the U.S. economy, from which

13816-563: The company faced mounting legal and financial issues after one of the partners admitted to having fraudulently sold stock in a mine. More issues arose in 1904 after the British government formed two separate royal commissions to investigate Bewick's labor practices and financial dealings in Western Australia. After the company lost a lawsuit Hoover began looking for a way to get out of the partnership, and he sold his shares in mid-1908. After leaving Bewick, Moreing, Hoover worked as

13973-412: The conferences grew and soon embraced motor vehicle standards, rules of the road, and urban traffic control. He left the invited interest groups to negotiate agreements among themselves, which were then presented for adoption by states and localities. Because automotive trade associations were the best organized, many of the positions taken by the conferences reflected their interests. The conferences issued

14130-475: The crash was a mere symptom of more general economic trends of the time, which had already been underway in the late 1920s. A contrasting set of views, which rose to prominence in the later part of the 20th century, ascribes a more prominent role to failures of monetary policy . According to those authors, while general economic trends can explain the emergence of the downturn, they fail to account for its severity and longevity; they argue that these were caused by

14287-625: The crisis, the U.S. Congress passed the Smoot–Hawley Tariff Act on 17 June 1930. The Act was ostensibly aimed at protecting the American economy from foreign competition by imposing high tariffs on foreign imports. The consensus view among economists and economic historians (including Keynesians , Monetarists and Austrian economists ) is that the passage of the Smoot–Hawley Tariff had, in fact, achieved an opposite effect to what

14444-633: The decade. The Depression had devastating economic effects on both wealthy and poor countries: all experienced drops in personal income , prices ( deflation ), tax revenues, and profits. International trade fell by more than 50%, and unemployment in some countries rose as high as 33%. Cities around the world , especially those dependent on heavy industry , were heavily affected. Construction virtually halted in many countries, and farming communities and rural areas suffered as crop prices fell by up to 60%. Faced with plummeting demand and few job alternatives, areas dependent on primary sector industries suffered

14601-408: The depression. Not all governments enforced the same measures of protectionism. Some countries raised tariffs drastically and enforced severe restrictions on foreign exchange transactions, while other countries reduced "trade and exchange restrictions only marginally": The gold standard was the primary transmission mechanism of the Great Depression. Even countries that did not face bank failures and

14758-435: The domestic price level to decline ( deflation ). There is also consensus that protectionist policies, and primarily the passage of the Smoot–Hawley Tariff Act , helped to exacerbate, or even cause the Great Depression. Some economic studies have indicated that the rigidities of the gold standard not only spread the downturn worldwide, but also suspended gold convertibility (devaluing the currency in gold terms) that did

14915-402: The drop in demand. Monetarists believe that the Great Depression started as an ordinary recession, but the shrinking of the money supply greatly exacerbated the economic situation, causing a recession to descend into the Great Depression. Economists and economic historians are almost evenly split as to whether the traditional monetary explanation that monetary forces were the primary cause of

15072-427: The economies of Europe in 1937–1939. By 1937, unemployment in Britain had fallen to 1.5 million. The mobilization of manpower following the outbreak of war in 1939 ended unemployment. The American mobilization for World War II at the end of 1941 moved approximately ten million people out of the civilian labor force and into the war. This finally eliminated the last effects from the Great Depression and brought

15229-701: The edge of the Great Victoria Desert as a land of "black flies, red dust and white heat". Hoover traveled constantly across the Outback to evaluate and manage the company's mines. He convinced Bewick to purchase the Sons of Gwalia gold mine, which proved to be one of the most successful mines in the region. Partly due to Hoover's efforts, the company eventually controlled approximately 50 percent of gold production in Western Australia . Hoover brought in many Italian immigrants to cut costs and counter

15386-425: The end of his eight years as president will find us looking back on an era of prodigious achievement". Hoover's detractors wondered why he did not do anything to reapportion congress after the 1920 United States census which saw an increase in urban and immigrant populations. The 1920 census was the first and only decennial census where the results were not used to reapportion Congress, which ultimately influenced

15543-576: The end of the month. A large sell-off of stocks began in mid-October. Finally, on 24 October, Black Thursday , the American stock market crashed 11% at the opening bell. Actions to stabilize the market failed, and on 28 October, Black Monday, the market crashed another 12%. The panic peaked the next day on Black Tuesday, when the market saw another 11% drop. Thousands of investors were ruined, and billions of dollars had been lost; many stocks could not be sold at any price. The market recovered 12% on Wednesday but by then significant damage had been done. Though

15700-500: The explanations of the Keynesians and monetarists. The consensus among demand-driven theories is that a large-scale loss of confidence led to a sudden reduction in consumption and investment spending. Once panic and deflation set in, many people believed they could avoid further losses by keeping clear of the markets. Holding money became profitable as prices dropped lower and a given amount of money bought ever more goods, exacerbating

15857-470: The federal government's power to inspect planes and license pilots, setting a precedent for the later Federal Aviation Administration . As Commerce Secretary, Hoover hosted national conferences on street traffic collectively known as the National Conference on Street and Highway Safety. Hoover's chief objective was to address the growing casualty toll of traffic accidents , but the scope of

16014-503: The few women in the labor force, layoffs were less common in the white-collar jobs and they were typically found in light manufacturing work. However, there was a widespread demand to limit families to one paid job, so that wives might lose employment if their husband was employed. Across Britain, there was a tendency for married women to join the labor force, competing for part-time jobs especially. In France, very slow population growth, especially in comparison to Germany continued to be

16171-505: The first week of June, 540 million in the second, and 150 million in two days, 19–20 June. Collapse was at hand. U.S. President Herbert Hoover called for a moratorium on payment of war reparations . This angered Paris, which depended on a steady flow of German payments, but it slowed the crisis down, and the moratorium was agreed to in July 1931. An International conference in London later in July produced no agreements but on 19 August

16328-434: The flood crisis, by 1928, Hoover had begun to overshadow President Coolidge himself. Though Hoover received wide acclaim for his role in the crisis, he ordered the suppression of reports of mistreatment of African Americans in refugee camps . He did so with the cooperation of black American leader Robert Russa Moton , who was promised unprecedented influence once Hoover became president. Hoover quietly gathered support for

16485-463: The flood. Believing that disaster response was not the domain of the federal government, Coolidge initially refused to become involved, but he eventually acceded to political pressure and appointed Hoover to chair a special committee to help the region. Hoover established over one hundred tent cities and a fleet of more than six hundred vessels and raised $ 17 million (equivalent to $ 298.18 million in 2023). In large part due to his leadership during

16642-521: The general election, and he began laying the groundwork for a future presidential run by building a base of strong supporters in the Republican Party. After his election as president in 1920, Harding rewarded Hoover for his support, offering to appoint him as either Secretary of the Interior or Secretary of Commerce . Secretary of Commerce was considered a minor Cabinet post, with limited and vaguely defined responsibilities, but Hoover decided to accept

16799-606: The government tried to reshape private household consumption under the Four-Year Plan of 1936 to achieve German economic self-sufficiency. The Nazi women's organizations, other propaganda agencies and the authorities all attempted to shape such consumption as economic self-sufficiency was needed to prepare for and to sustain the coming war. The organizations, propaganda agencies and authorities employed slogans that called up traditional values of thrift and healthy living. However, these efforts were only partly successful in changing

16956-434: The government. He created many sub-departments and committees, overseeing and regulating everything from manufacturing statistics to air travel . In some instances, he "seized" control of responsibilities from other Cabinet departments when he deemed that they were not carrying out their responsibilities well; some began referring to him as the "Secretary of Commerce and Under-Secretary of all other departments". In response to

17113-519: The home, or took boarders, did laundry for trade or cash, and did sewing for neighbors in exchange for something they could offer. Extended families used mutual aid—extra food, spare rooms, repair-work, cash loans—to help cousins and in-laws. In Japan, official government policy was deflationary and the opposite of Keynesian spending. Consequently, the government launched a campaign across the country to induce households to reduce their consumption, focusing attention on spending by housewives. In Germany,

17270-508: The influential Hoover Commission . Critical assessments of his presidency by historians and political scientists generally rank him as a significantly below-average president, although Hoover has received praise for his actions as a humanitarian and public official. Herbert Clark Hoover was born on August 10, 1874, in West Branch, Iowa . His father, Jesse Hoover, was a blacksmith and farm implement store owner of German, Swiss, and English ancestry. Hoover's mother, Hulda Randall Minthorn,

17427-527: The initial crisis spread to the rest of the world. In the aftermath of World War I , the Roaring Twenties brought considerable wealth to the United States and Western Europe. Initially, the year 1929 dawned with good economic prospects: despite a minor crash on 25 March 1929, the market seemed to gradually improve through September. Stock prices began to slump in September, and were volatile at

17584-563: The lack of an adequate response to the crises of liquidity that followed the initial economic shock of 1929 and the subsequent bank failures accompanied by a general collapse of the financial markets. After the Wall Street Crash of 1929 , when the Dow Jones Industrial Average dropped from 381 to 198 over the course of two months, optimism persisted for some time. The stock market rose in early 1930, with

17741-564: The lot of the Chinese worker, seeking to end the practice of imposing long-term servitude contracts and to institute reforms for workers based on merit. The Boxer Rebellion broke out shortly after the Hoovers arrived in China, trapping them and numerous other foreign nationals until a multi-national military force defeated Boxer forces in the Battle of Tientsin . Fearing the imminent collapse of

17898-465: The market entered a period of recovery from 14 November until 17 April 1930, the general situation had been a prolonged slump. From 17 April 1930 until 8 July 1932, the market continued to lose 89% of its value. Despite the crash, the worst of the crisis did not reverberate around the world until after 1929. The crisis hit panic levels again in December 1930, with a bank run on the Bank of United States ,

18055-414: The mid-1930s, a severe drought ravaged the agricultural heartland of the U.S. Interest rates dropped to low levels by mid-1930, but expected deflation and the continuing reluctance of people to borrow meant that consumer spending and investment remained low. By May 1930, automobile sales declined to below the levels of 1928. Prices, in general, began to decline, although wages held steady in 1930. Then

18212-427: The moment, but on August 3, 1914, my career was over forever. I was on the slippery road of public life." By early October 1914, Hoover's organization had distributed relief to at least 40,000 Americans. The German invasion of Belgium in August 1914 set off a food crisis in Belgium, which relied heavily on food imports. The Germans refused to take responsibility for feeding Belgian citizens in captured territory, and

18369-423: The monetary base and by not injecting liquidity into the banking system to prevent it from crumbling, the Federal Reserve passively watched the transformation of a normal recession into the Great Depression. Friedman and Schwartz argued that the downward turn in the economy, starting with the stock market crash, would merely have been an ordinary recession if the Federal Reserve had taken aggressive action. This view

18526-502: The most to make recovery possible. Every major currency left the gold standard during the Great Depression. The UK was the first to do so. Facing speculative attacks on the pound and depleting gold reserves , in September 1931 the Bank of England ceased exchanging pound notes for gold and the pound was floated on foreign exchange markets. Japan and the Scandinavian countries followed in 1931. Other countries, such as Italy and

18683-427: The most. The outbreak of World War II in 1939 ended the Depression, as it stimulated factory production, providing jobs for women as militaries absorbed large numbers of young, unemployed men. The precise causes for the Great Depression are disputed. One set of historians, for example, focuses on non-monetary economic causes. Among these, some regard the Wall Street crash itself as the main cause; others consider that

18840-472: The mud" when he repeatedly got trapped in the mud crossing the unpaved street. Herbert's family figured prominently in the town's public prayer life, due almost entirely to mother Hulda's role in the church. As a child, Hoover consistently attended schools, but he did little reading on his own aside from the Bible. Hoover's father, noted by the local paper for his "pleasant, sunshiny disposition", died in 1880 at

18997-455: The nation's food needs during the war. Hoover had hoped to join the administration in some capacity since at least 1916, and he obtained the position after lobbying several members of Congress and Wilson's confidant, Edward M. House . Earning the appellation of "food czar", Hoover recruited a volunteer force of hundreds of thousands of women and deployed propaganda in movie theaters, schools, and churches. He carefully selected men to assist in

19154-582: The need to balance the national budget and was unwilling to implement expensive welfare spending . In 1930, Hoover signed the Smoot–Hawley Tariff Act , which taxed imports with the intention of encouraging buyers to purchase American products, which worsened the Depression because foreign governments retaliated with tariffs on American exports. In 1932, Hoover established the Reconstruction Finance Corporation , which offered loans to businesses and support to local governments. In

19311-401: The only man living who has privately (i.e., without holding office) negotiated understandings with the British, French, German, Dutch, and Belgian governments". War upon Germany was declared in April 1917, and American food was essential to Allied victory. With the U.S. mobilizing for war, President Wilson appointed Hoover to head the U.S. Food Administration , which was charged with ensuring

19468-586: The opposition of Senator Henry Cabot Lodge and other Republicans, Hoover provided aid to the defeated German nation after the war, as well as relief to famine -stricken Russian Soviet Federative Socialist Republic . Hoover condemned the Bolsheviks but warned President Wilson against an intervention in the Russian Civil War , as he viewed the White Russian forces as little better than

19625-483: The physical volume of exports fall, but also the prices fell by about 1 ⁄ 3 as written. Hardest hit were farm commodities such as wheat, cotton, tobacco, and lumber. Governments around the world took various steps into spending less money on foreign goods such as: "imposing tariffs, import quotas, and exchange controls". These restrictions triggered much tension among countries that had large amounts of bilateral trade, causing major export-import reductions during

19782-404: The police for their "general failure... to detect and arrest criminals guilty of the many murders, spectacular bank, payroll and other holdups and sensational robberies with guns." Monte M. Lemann was the only commission member who refused to sign the report, issuing a separate opinion, where he concluded that there was "no alternative but repeal of the [Eighteenth] Amendment." Franklin P. Adams ,

19939-480: The policies prolonged the Depression instead of shortening it. Between 1929 and 1932, worldwide gross domestic product (GDP) fell by an estimated 15%; in the U.S., the Depression resulted in a 30% contraction in GDP. Recovery varied greatly around the world. Some economies, such as the U.S., Germany and Japan started to recover by the mid-1930s; others, like France, did not return to pre-shock growth rates until later in

20096-406: The political situation in Europe. In their book, A Monetary History of the United States , Milton Friedman and Anna J. Schwartz also attributed the recovery to monetary factors, and contended that it was much slowed by poor management of money by the Federal Reserve System . Chairman of the Federal Reserve (2006–2014) Ben Bernanke agreed that monetary factors played important roles both in

20253-399: The popular Commerce Secretary's candidacy. Many wary Republican leaders cast about for an alternative candidate, such as Treasury Secretary Andrew Mellon or former secretary of state Charles Evans Hughes . However, Hughes and Mellon declined to run, and other potential contenders like Frank Orren Lowden and Vice President Charles G. Dawes failed to garner widespread support. Hoover won

20410-476: The position. Hoover's progressive stances, continuing support for the League of Nations , and recent conversion to the Republican Party aroused opposition to his appointment from many Senate Republicans . To overcome this opposition, Harding paired Hoover's nomination with that of conservative favorite Andrew Mellon as Secretary of the Treasury , and the nominations of both Hoover and Mellon were confirmed by

20567-418: The presidential nomination on the first ballot of the 1928 Republican National Convention . Convention delegates considered re-nominating Vice President Charles Dawes to be Hoover's running mate , but Coolidge, who hated Dawes, remarked that this would be "a personal affront" to him. The convention instead selected Senator Charles Curtis of Kansas. Hoover accepted the nomination at Stanford Stadium , telling

20724-434: The scale necessary to make the grand experiments which would prove my case—except in war conditions." According to Christina Romer , the money supply growth caused by huge international gold inflows was a crucial source of the recovery of the United States economy, and that the economy showed little sign of self-correction. The gold inflows were partly due to devaluation of the U.S. dollar and partly due to deterioration of

20881-641: The situation by offering Hoover a compelling position in China . Upon arriving in China, Hoover developed gold mines near Tianjin on behalf of Bewick and the Chinese-owned Chinese Engineering and Mining Company . He became deeply interested in Chinese history , but gave up on learning the language to a fluent level . He publicly warned that Chinese workers were inefficient and racially inferior. He made recommendations to improve

21038-587: The states, corruption in police ranks, local politics and problems in every community that attempted to enforce prohibition laws. August Vollmer was the primary author of the commission's final report, commonly known as the Wickersham Report , which was released on January 7, 1931. It documented the widespread evasion of Prohibition and its negative effects on American society and recommended much more aggressive and extensive law enforcement to enforce compliance with anti-alcohol laws. The report castigated

21195-475: The supply. Their plan was to drastically cut back on output from British Malaya , which had the effect of tripling rubber prices. Hoover energetically gave a series of speeches and interviews denouncing the monopolistic practice and demanding that it be ended. The American State Department wanted no such crisis and compromised the issue in 1926. By then Hoover had solved his image problem, and during his 1928 campaign he successfully squelched attacks that alleged he

21352-667: The war and the revolutions that followed it. The collection was renamed the Hoover War Library in 1922 and is now known as the Hoover Institution Library and Archives . During the post-war period, Hoover also served as the president of the Federated American Engineering Societies. Hoover had been little known among the American public before 1914, but his service in the Wilson administration established him as

21509-564: The widespread violations of national alcohol prohibition to study and recommend changes to the Eighteenth Amendment and to observe police practices in the states. They observed police interrogation tactics and reported that "the inflicting of pain, physical or mental, to extract confessions or statements... is widespread throughout the country." They released a second report in 1931 that supported Prohibition but found contempt among average Americans and unworkable enforcement across

21666-414: The world's troubles, such as famine in Belgium, as well as specific American problems which he had solved as food commissioner during the world war. The third solution to was to fall back on that old tactic of twisting the British tail. He employed that solution in 1925–1926 in the worldwide rubber crisis. The American auto industry consumed 70% of the world's output, but British investors controlled much of

21823-476: The world, recovery from the Great Depression began in 1933. In the U.S., recovery began in early 1933, but the U.S. did not return to 1929 GNP for over a decade and still had an unemployment rate of about 15% in 1940, albeit down from the high of 25% in 1933. There is no consensus among economists regarding the motive force for the U.S. economic expansion that continued through most of the Roosevelt years (and

21980-673: The world. The financial crisis escalated out of control in mid-1931, starting with the collapse of the Credit Anstalt in Vienna in May. This put heavy pressure on Germany, which was already in political turmoil. With the rise in violence of National Socialist ('Nazi') and Communist movements, as well as investor nervousness at harsh government financial policies, investors withdrew their short-term money from Germany as confidence spiraled downward. The Reichsbank lost 150 million marks in

22137-493: The world. The economic contagion began in 1929 in the United States , the largest economy in the world, with the devastating Wall Street stock market crash of October 1929 often considered the beginning of the Depression. The Depression was preceded by a period of industrial growth and social development known as the " Roaring Twenties ". Much of the profit generated by the boom was invested in speculation , such as on

22294-778: The worldwide economic decline and eventual recovery. Bernanke also saw a strong role for institutional factors, particularly the rebuilding and restructuring of the financial system, and pointed out that the Depression should be examined in an international perspective. Women's primary role was as housewives; without a steady flow of family income, their work became much harder in dealing with food and clothing and medical care. Birthrates fell everywhere, as children were postponed until families could financially support them. The average birthrate for 14 major countries fell 12% from 19.3 births per thousand population in 1930, to 17.0 in 1935. In Canada, half of Roman Catholic women defied Church teachings and used contraception to postpone births. Among

22451-519: The year before. The Minthorn household was considered cultured and educational, and imparted a strong work ethic. Much like West Branch, Newberg was a frontier town settled largely by Midwestern Quakers. Minthorn ensured that Hoover received an education, but Hoover disliked the many chores assigned to him and often resented Minthorn. One observer described Hoover as "an orphan [who] seemed to be neglected in many ways". Hoover attended Friends Pacific Academy (now George Fox University ), but dropped out at

22608-409: Was a risk that he would be labeled a British tool. There were three solutions, all of which he tried in close collaboration with the media, which greatly admired him. First came the image of the dispassionate scientist, emotionally uninvolved but always committed to finding and implementing the best possible solution. The second solution was to gain the reputation of a humanitarian, deeply concerned with

22765-658: Was a scramble to deflate prices to get the gold standard's conversation rates back on track to pre-WWI levels, by causing deflation and high unemployment through monetary policy. In 1933 FDR signed Executive Order 6102 and in 1934 signed the Gold Reserve Act . The two classic competing economic theories of the Great Depression are the Keynesian (demand-driven) and the Monetarist explanation. There are also various heterodox theories that downplay or reject

22922-478: Was a small part of overall economic activity in the U.S. and was concentrated in a few businesses like farming, it was a much larger factor in many other countries. The average ad valorem (value based) rate of duties on dutiable imports for 1921–1925 was 25.9% but under the new tariff it jumped to 50% during 1931–1935. In dollar terms, American exports declined over the next four years from about $ 5.2 billion in 1929 to $ 1.7 billion in 1933; so, not only did

23079-500: Was accompanied by a loss of confidence in the financial system. By 1933, the U.S. unemployment rate had risen to 25 percent, about one-third of farmers had lost their land, and about half of the country's 25,000 banks had gone out of business. Many people, unable to pay mortgages or rent, became homeless and relied on begging or charities to feed themselves. The U.S. federal government initially did little to help. President Herbert Hoover , like many of his fellow Republicans , believed in

23236-474: Was endorsed in 2002 by Federal Reserve Governor Ben Bernanke in a speech honoring Friedman and Schwartz with this statement: Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression, you're right. We did it. We're very sorry. But thanks to you, we won't do it again. The Federal Reserve allowed some large public bank failures – particularly that of

23393-426: Was given by American economists Milton Friedman and Anna J. Schwartz . They argued that the Great Depression was caused by the banking crisis that caused one-third of all banks to vanish, a reduction of bank shareholder wealth and more importantly monetary contraction of 35%, which they called "The Great Contraction ". This caused a price drop of 33% ( deflation ). By not lowering interest rates, by not increasing

23550-500: Was in the form of Federal Reserve demand notes. A "promise of gold" is not as good as "gold in the hand", particularly when they only had enough gold to cover 40% of the Federal Reserve Notes outstanding. During the bank panics, a portion of those demand notes was redeemed for Federal Reserve gold. Since the Federal Reserve had hit its limit on allowable credit, any reduction in gold in its vaults had to be accompanied by

23707-485: Was initially shy among fellow students, Hoover won election as student treasurer and became known for his distaste for fraternities and sororities . He served as student manager of both the baseball and football teams , and helped organize the inaugural Big Game versus the University of California . During the summers before and after his senior year, Hoover interned under economic geologist Waldemar Lindgren of

23864-446: Was intended. It exacerbated the Great Depression by preventing economic recovery after domestic production recovered, hampering the volume of trade; still there is disagreement as to the precise extent of the Act's influence. In the popular view, the Smoot–Hawley Tariff was one of the leading causes of the depression. In a 1995 survey of American economic historians, two-thirds agreed that the Smoot–Hawley Tariff Act at least worsened

24021-469: Was raised in Norwich, Ontario , Canada, before moving to Iowa in 1859. Like most other citizens of West Branch, Jesse and Hulda were Quakers . Around age two "Bertie", as he was called during that time, contracted a serious bout of croup , and was momentarily thought to have died until resuscitated by his uncle, John Minthorn. As a young child he was often referred to by his father as "my little stick in

24178-588: Was the director of the U.S. Food Administration , followed by post-war relief of Europe. A member of the Republican Party , he served as the U.S. Secretary of Commerce from 1921 to 1928 before being elected president in 1928 . His presidency was dominated by the Great Depression , and his policies and methods to combat it were seen as lackluster. Amid his unpopularity, he decisively lost reelection to Franklin D. Roosevelt in 1932 . Born to

24335-470: Was the rollback of those same reflationary policies that led to the interruption of a recession beginning in late 1937. One contributing policy that reversed reflation was the Banking Act of 1935 , which effectively raised reserve requirements, causing a monetary contraction that helped to thwart the recovery. GDP returned to its upward trend in 1938. A revisionist view among some economists holds that

24492-624: Was too close to British interests. With the goal of encouraging wise business investments, Hoover made the Commerce Department a clearinghouse of information. He recruited numerous academics from various fields and tasked them with publishing reports on different aspects of the economy, including steel production and films. To eliminate waste, he encouraged standardization of products like automobile tires and baby bottle nipples. Other efforts at eliminating waste included reducing labor losses from trade disputes and seasonal fluctuations, reducing industrial losses from accident and injury, and reducing

24649-494: Was widely seen as lackluster and he scapegoated Mexican Americans for the economic crisis. Approximately one million Mexican Americans were forcibly "repatriated" to Mexico in a forced migration campaign known as the Mexican Repatriation even though a majority of them were born in the United States. In the midst of the Great Depression, he was decisively defeated by Democratic nominee Franklin D. Roosevelt in

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