Despite an undeserved, fallacious, but enduring reputation as a do-nothing who simply accepted the Depression as an unpleasant fact of economic life that simply must be endured, President Hoover
did try to end the Great Depression and, in fact, probably did more to deal with it than any preceding president had ever done in time of economic catastrophe.
Hoover applied a conservative business-oriented approach that stressed voluntary efforts by Americans rather than governmental interference in the economy. What he tried was unsuccessful and sometimes poorly handled and out of this grew his public reputation.
Having taken at least partial credit for the economic boom of the Twenties when he campaigned for the presidency in 1928, Hoover had trouble personally accepting the end of the boom or fathoming just how bad the crash and Depression would be. He, however, was not alone in this. Hoover initially felt that the Depression was a temporary aberration in the economic cycle caused more by psychological fears than economic realities. Therefore, President Hoover responded to the crash of the stock market and the beginning of the Depression by counseling confidence....as long as Americans didn't let panic cause them to take intemperate and unwarranted action, the country would witness a brief and limited recession and then resume its economic boom. Confidence was the key.
The President waged a campaign to convince businessmen to keep wages up so that consumption levels would not decline. This approach was less than successful. While businessmen maintained wage levels temporarily, they cut back on the number of their employees because of dropping consumption levels. Hoover also failed in his confidence campaign to convince consumers to keep purchasing. Seeing other workers laid off and fearing for their own future, laborers cut back on purchases thus guaranteeing further layoffs.
Hoover's confidence campaign, while well intentioned, simply did not work. The economy continued its downward spiral - workers cut back on consumption, more workers were laid off, workers cut back further on consumption, etc., etc.
In order to understand Hoover's long-term reaction to and efforts to end the Great Depression, one must understand Hoover's idea of "Progressivism" - with which he consciously identified. President Hoover felt that while government intervention in the private sector was sometimes necessary in the modern industrial era, such intervention should be kept to an absolute minimum. This philosophy was a curious cross between the "old" and the "new". As Robert McElvaine puts it: "What Herbert Hoover was grappling with was one of the fundamental problems of the twentieth century: how to apply our Jeffersonian heritage in a highly concentrated, urban industrial setting". "His ideal remained people ruling themselves, through voluntary cooperation".
President Hoover felt the key to economic recovery was restoring the confidence of the business community in the economy of the United States. Only if businessmen reinvested their capital in the economy would the country be able to recover. Therefore, he pursued for three plus years a conservative business-oriented approach to recovery.
austincc.edu/lpatrick/his2341/tragic.html