Discussion 8: Where Should We Place The Blame

Discussion 8 Where Should We Place The Blamewhere Should We Place

Discuss the causes of the Great Depression, focusing on the role of President Herbert Hoover. Review relevant sections of Chapter 25 that address these topics, and support your discussion using the linked essay "DEBATING THE PAST: CAUSES OF THE GREAT DEPRESSION: Where Historians Disagree" and "America's Great Depression" from Digital History, particularly the section "Why it Happened to President Hoover." After completing your readings, respond to only one of the following questions: (1) Is it fair to blame Hoover's actions or inactions for the Great Depression? (2) Should we compare Hoover's and Roosevelt's approaches to dealing with the depression?

Paper For Above instruction

The Great Depression stands as one of the most tumultuous periods in American economic history, and the question of blame has persisted among historians, economists, and the public alike. Central to this debate is the role of President Herbert Hoover, whose presidency was overshadowed by the economic collapse that defined the era. Analyzing the causes of the depression and Hoover's response reveals complexities that challenge simplistic attributions of blame and offer insights into presidential leadership during crises.

Historically, the causes of the Great Depression are multifaceted. According to Chapter 25 of the relevant economic history texts, the depression was precipitated by a combination of stock market speculation, banking failures, reduction in consumer spending, agricultural decline, and international economic instability. The stock market crash of 1929 is often considered the event that triggered widespread economic distress, but many experts argue that underlying structural weaknesses had long been developing in the 1920s economy (Darity & Willis, 2013). These weaknesses included over-speculation, uneven income distribution, excessive debt, and reliance on a fragile banking system. Therefore, attributing the entire depression to Hoover's policies ignores these systemic issues that had been building up over the preceding decade.

The role of Herbert Hoover is often scrutinized because of his policies and public perceptions. Initially, Hoover believed in limited government intervention and promoted voluntary cooperation between businesses and the government to stabilize the economy (Leuchtenberg, 1987). However, as the depression deepened, critics argue that his measures were insufficient or misdirected. The establishment of the Reconstruction Finance Corporation (RFC) in 1932 aimed to provide emergency loans to banks and businesses, but these efforts were viewed as too cautious and came too late to arrest the economic decline. Moreover, Hoover's advocacy for balanced budgets and tax policies that favored austerity arguably worsened economic contraction, contributing to widespread unemployment and suffering (Bernstein, 1987).

Despite criticisms, some historians contend that blaming Hoover exclusively oversimplifies the situation. The economic downturn was a global phenomenon, influenced by international debt cycles, war reparations, and declining global trade, factors outside presidential control (Friedman & Schwartz, 1963). Furthermore, Herbert Hoover’s commitment to voluntary cooperation was rooted in the economic philosophy of that era, which emphasized minimal government intervention. His efforts did lead to some stabilization and recovery initiatives, albeit delayed and limited in scope.

In comparing Hoover and Franklin D. Roosevelt, the differing approaches to managing the depression are stark. Roosevelt's New Deal policies involved direct government intervention, public works programs, financial reforms, and social safety nets intended to stimulate economic activity and provide relief to millions. These policies marked a shift toward greater governmental responsibility in economic welfare, contrasting sharply with Hoover's more restrained approach (Kennedy, 1999). The debate over which approach was more effective hinges on perspectives about the role of government in economic crises. While Hoover’s strategies aimed to foster voluntary cooperation and were guided by caution, Roosevelt's policies were proactive and assertive, reflecting a belief in active government intervention as essential for recovery.

In conclusion, blaming Hoover outright for the Great Depression oversimplifies a complex array of economic factors and policy responses. Although his presidency was marred by the crisis, the depression was rooted in deeper systemic weaknesses and international influences. Comparing Hoover’s restrained approach to Roosevelt’s more interventionist policies underscores differing philosophies about economic management. Understanding these nuances helps us develop a more balanced view of presidential responsibility during periods of economic upheaval and the importance of policy choices in shaping national recovery.

References

• Bernstein, M. (1987). The Great Depression: Delayed Recovery and Economic Change in America, 1929-1939. Harvard University Press.
• Darity, W. A., & Willis, P. (2013). Are Dreams Delusional? Critical Perspectives on the Great Depression. Cambridge University Press.
• Friedman, M., & Schwartz, A. J. (1963). A Monetary History of the United States, 1867–1960. Princeton University Press.
• Kennedy, D. M. (1999). Freedom from Fear: The American People in Depression and War, 1929-1945. Oxford University Press.
• Leuchtenberg, W. E. (1987). The FDR Years: On Roosevelt and His Legacy. Harper & Row.
• Digital History. (n.d.). Why it Happened. Retrieved from https://www.digitalhistory.uh.edu/disp_textbook.cfm?textID=332
• America's Great Depression. (n.d.). Digital History. Retrieved from https://www.digitalhistory.uh.edu/disp_textbook.cfm?textID=344
• Schlesinger, A. M. (2003). War and the American Presidency. W. W. Norton & Company.
• O’Hara, S. H. (1984). The Hoover Era and Economic Policy. University of Kansas Press.
• Temin, P. (1989). Lessons from the Great Depression. MIT Press.