15. Hoover opposed federal intervention via direct aid to individuals
Herbert Hoover was a noted philanthropist long before he was elected President. He also gained experience in disaster relief, in Central Europe following World War I, and in the United States following the Great Mississippi Flood in 1927. Hoover recognized the need for the federal government to come to the aid of the states and local communities, and moved to act on that need by early 1932. But he refused to yield to the urgings of members of both political parties and provide financial aid directly to Americans. He argued that to do so would undermine American morale, destroy the work ethic, and encourage Americans to enjoy idleness.
Instead, Hoover favored the organization of volunteer groups and boards to distribute federal largesse on a local level, through the creation of public works projects. He continued throughout his administration to urge the railroads and utility companies to develop infrastructure, partially funded through federal support and tax reductions. Hoover argued that the 1920s economic boom erupted when banks and individuals spent money they did not yet have through speculation, and the federal government doing the same thing – deficit spending – would create an even worse downturn in the economy. His volunteerism required the increase in taxes which led to the disastrous tax increases in 1932, which placed an ever-greater burden on the common man, and little in the way of relief.