In the 1932 presidential election, Herbert Hoover was defeated, ending a long era of conservative leadership in the United States. By this time, Americans had grown tired of Hoover, viewing him as overly serious, resistant to change, too friendly with business leaders, and insufficiently attentive to ordinary workers. The Great Depression had intensified public frustration, and most voters turned to Franklin D. Roosevelt and the Democratic Party. Roosevelt won 42 out of 48 states, and the Democrats secured commanding majorities in both the House and Senate.

Hoover’s conservative approach limited his use of federal power to alleviate the economic crisis. He trusted the market’s natural mechanisms and feared the side effects of government intervention. As the Depression worsened, the public demanded action, making Roosevelt’s victory almost inevitable.

Before studying U.S. history in depth, many—including the author—assumed Hoover was incompetent and weak, while Roosevelt was a savior who immediately reversed the nation’s economic decline. Historical research shows the reality was far more nuanced. Hoover was not powerless; he worked tirelessly to address the crisis. His reluctance to provide large-scale federal aid stemmed from his principles, not negligence.

Hoover’s Policies During the Depression

Hoover’s approach was based on voluntary cooperation between government and private enterprise, a core American value. Before his presidency, he promoted public-private partnerships to achieve sustainable growth. During the early Depression, he rejected Secretary of Treasury Andrew Mellon’s advice to “let the economy fix itself” but still adhered to a laissez-faire philosophy, aiming to stabilize the economy without fostering dependency. He collaborated with businesses, promoted voluntary measures, and accelerated federal construction projects. Only toward the end of his term did he begin supporting more direct legislative action.

He famously said, “Economic downturns cannot be cured by legislation or executive action.” Many conservatives agreed, but millions of struggling Americans felt neglected. Hoover and Congress did pass the Federal Home Loan Bank Act to stimulate housing construction, but the measures were limited and late.

Before the Depression, Mellon proposed large tax cuts, reducing the top income rate from 73% to 24%. After incomes fell sharply, the low rates created severe federal deficits. In 1932, Congress passed a new tax law, raising rates across the board: top income taxes returned to 63%, property taxes doubled, and corporate taxes rose 15%. Hoover also encouraged investigation and reform of the New York Stock Exchange.

In 1932, Hoover’s administration attempted a last-ditch effort to rescue the economy through emergency relief and public works funding. The Reconstruction Finance Corporation (RFC) was established to provide government-backed loans to financial institutions, railroads, and farmers. Critics accused Hoover of centralizing power and expanding government spending. Roosevelt, campaigning for president, attacked Hoover for excessive taxation, government debt, trade barriers, and overreach.

Despite criticisms, Hoover’s interventions were modest compared with Roosevelt’s later New Deal. Hoover consistently emphasized that relief should primarily be a local responsibility. New Deal supporters later acknowledged that much of Roosevelt’s programs were extensions of policies first initiated by Hoover.

Hoover’s Legacy

Hoover’s cautious, conservative approach contrasted sharply with Roosevelt’s flamboyant, activist style—reflecting their different backgrounds. Hoover came from a poor family, dedicated to charity, careful and methodical; Roosevelt grew up wealthy, adventurous, and adept at creating dramatic impact.

Internationally, Hoover displayed foresight, warning against entanglements that could strengthen communist regimes, a stance later validated by history.

After leaving the presidency, Hoover continued to assist government efforts and charity work. He was also an engineer, professor, and prolific writer. He lived to 90, passing away in 1964, honored by a state funeral for his lifetime of service.

Hoover’s “failure” in 1932 was not due to incompetence but rather the unavoidable political and economic forces of the Great Depression, which made him the scapegoat for a crisis no president could have quickly resolved.