Herbert Hoover
Herbert Hoover was elected president of the United States in 1928. From the start President Hover (Hoover) believed that the government should have no say in the lives of Americans and that they should live on their own efforts known as rugged individualism. He ignored the gap of the poor and rich widening and was under the misconception that America was prospering, he stated: "We in america today are nearer to the final triumph over poverty than ever before in the history of any land. the poorhouse is vanishing from among us". Since he was elected, many things did not go in favor of America. Banks had failed and Americans had lost 140 billion dollars of their saved money. Un-employment was at its peak, 50% of Americans were either unemployed or under employed. Hoover stated, "I do not believe that the power and duty of the general government ought to be extended to the relief of individual suffering.... The lesson should be constantly enforced that though the people support the government, the government should not support the people". The Federal Reserve also took a turn for the worst, at a time when interest rates should have been lowered they were being raised. Tariffs were being introduced that were increasing the taxes on goods imported from other countries. This had a negative effect leading to a 50% drop on imports and exports to further hurt the economy. After all of the failed attempts Hoover started to support many government programs to save the economy and the banks. One of the biggest examples would be Reconstruction Finance Corporation (RFC) which provided emergency loans from governments to big businesses, banks and insurance companies. Throughout the Great Depression Hoover stood by his view that the government shouldn't be involved with the peoples affairs, he said "Economic depression cannot be cured by the legislative action or executive pronouncement. Economic wounds must be healed by the action of the cells of the economic body, the producers and consumers them selves".