Herbert Hoover was a widely respected figure. People admired his rise from poverty to success and trusted his judgment.

Hoover was born in 1874 on a farm in Iowa. His father, a poor metalworker, died when Hoover was six, and his mother passed away four years later. Young Hoover went to live with his uncle in Oregon, who supported him through Stanford University. There, Hoover displayed extraordinary talent in mathematics and majored in geology.

After graduation, Hoover worked in mines and later became an engineer abroad. By the age of 40, he had accumulated over a million dollars. After World War I, he organized relief efforts for famine-stricken Europe, earning widespread praise. He later served with distinction as Secretary of Commerce under President Harding and helped Mississippi flood victims in 1927. Known for his diligence and integrity, Hoover successfully completed multiple public service projects.

1929 Stock Market Crash

In 1928, Hoover was elected president with 58% of the vote. Calm, conservative, and capable, he inspired confidence that he could guide the U.S. economy. Americans shared this confidence, and the stock market soared. Prices skyrocketed—stocks doubled, then tripled in value—and many people became instant millionaires.

However, economists grew concerned about the bubble. Hoover urged stock exchanges to maintain fair practices and approved raising interbank lending rates. By early September 1929, stock indices reached 18-month highs. Companies like Westinghouse, Anaconda Copper, and Union Carbide saw their stock prices triple. Life seemed like a dream—but such dreams rarely last.

By mid-September, the market plateaued and slowly fell. On October 24, “Black Thursday,” stocks plunged sharply. Millions lost their jobs, and the U.S. entered its worst economic crisis ever: the Great Depression.

Although Hoover was not responsible for causing the Depression, he bore the responsibility of leading the nation through it. Over the next three years, U.S. GDP nearly halved, personal wealth evaporated, and unemployment surged from 3% to 25%. Fear and hardship spread across the country.

Hoover’s Response

Many blamed Hoover for not doing enough. In fact, he implemented measures to stabilize the economy, but opposed large-scale federal relief, fearing excessive government spending. Hoover believed, “Economic downturns cannot be cured by legislation or executive action.” While many conservative Americans agreed, millions of unemployed and starving citizens strongly disagreed.

Hoover convened business leaders at the White House, urging them not to cut wages. He encouraged banks to provide loans to businesses and pushed Congress to lower personal income taxes. He sought to stabilize agricultural prices and urged citizens to help neighbors in need.

However, Hoover refused to provide direct relief to the hungry or unemployed, believing that federal handouts were not the government’s responsibility. He established committees to study employment issues but avoided programs that would create widespread government jobs. His conservative philosophy emphasized private initiative over federal intervention, leaving millions to struggle on their own.