This picture is an image of the cover of the book "Love and Economics" This book talks about why the Laissez-Faire did not work.
This picture is an image of the cover of the book "Love and Economics" This book talks about why the Laissez-Faire did not work.
Here is another image of a front cover of a book about the Laissez-Faire. It talks about the consequenses that happened economically, past and present, at the end of the Laissez-Faire.
Here is another image of a front cover of a book about the Laissez-Faire. It talks about the consequenses that happened economically, past and present, at the end of the Laissez-Faire.

The Hoover Administration*


Laissez-faire:



If government wishes to alleviate, rather than aggravate, a depression, its only valid course is laissez-faire- to leave the economy alone. The laissez-faire is a French term meaning “let do”, it broadly implies “let it be”, or “leave it alone”. It is a traditional policy in American depressions even before 1929. The laissez-faire describes and environment in which transactions between private parties are free from state intervention, including restrictive regulations, taxes, tariffs an enforced monopolies. Hoover, from the very start of the depression, set his course unerringly toward the violation of all the laissez-faire canons. He left office with the economy at the depths of and unprecedented depression with no recovery in sight. Some even say that the laissez-faire produced the Great Depression in 1929. The laissez-faire is also and economic policy allowed for rapid industrialization to take place without government regulation, and marketplace competition suffered a result.


Approaches toward combating the great depression:



The Hoover Administration had many different approaches toward combating the depression. Including relief for poor and relief for business. It was also proved to be well-meaning, but highly ineffective. It was kind of like Roosevelt’s New Deal, it failed tragically and left a huge dent in the society economically.

RELIEF FOR POOR:

President Herbert Hoover believed in private charity to relieve the suffering of the poor. Those beliefs led him to oppose government relief programs. He didn’t want people to know that the government could bail people out of bankruptcy. But the amount of numbers of homeless citizens got too overwhelming for Hoover. He finally set up the Public Works Program. That finally didn’t go over too well because the program was not ambitious enough to reverse the economic downturn.

RELIEF FOR BUSINESS:

Hoover had always had a conservative view of government intervention. Because of these views, he opposed direct aid for the business decline following the crash of the stock market in 1929. He thought that it would be best if businesses helped each other pull them out of the Great Depression. After that theory didn’t work, Hoover formed the Reconstruction Finance Corporation.

"The Hoover Administration." Southern Illinois University. Southern Illinois University, 18 Sep 2011. Web. 20 Sep 2011. <http://www.museum.siu.edu/museum_classroom_grant/Museum_Explorers/school_pages/bourbonnais/page2.htm>.

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