Market analysts still frequently examine the causes of the Great Depression. The significant securities exchange modification that took place in October 1929 resulted in a staggering decline in wealth as well as a severe loss of confidence among businesses and consumers. It is difficult to blame Hoover’s organization because it happened so long after his founding. Similar to how the enormous financial costs of WWI, which effectively bankrupted most European nations, limited governments’ ability to respond to the desired drop in a satisfactory manner. Therefore, it is probably fair to state that Hoover and his organization are not responsible for a large portion of what led to or failed to prevent the Great Depression.
If Hoover were to be held accountable for anything, it would be for his ultimately weakening response to the negative effects of the Depression. He held onto the free-market belief that, in the long run, the economy will correct itself freely for a very long period. This mostly “hands off” strategy failed to address the shocking loss of certainty throughout the economy. Additionally, Hoover signed the Smoot-Hawley Tariff Act into law in an ill-fated attempt to balance the federal budget, which led to an enormous decline in international trade. He also agreed to raise taxes on homes, businesses, and checks.
Hoover’s administration launched numerous open works programs, many of which were continued and expanded as a key component of Roosevelt’s New Deal. Hoover had no interest in the Great Depression’s ill effects. However, it is accurate to say that due to his background in business and personal convictions, he was unsuited to effectively negotiate during a financial crisis as severe as the Great Depression.