17. Hoover at first earned praise for his response to the economic downturn
During the first 18 months of the depression, Hoover’s steps to mitigate the effects of the downturn focused on completing government projects such as dams and bridges, encouraging businesses to keep wages up, and preventing general panic. In 1930, The New York Times editorialized, “No one in his place could have done more. Very few of his predecessors could have done as much”. Both the government and major businesses spent more in the first six months of 1930 than in all of 1929. But consumers did not follow suit. Consumer spending dropped month after month after month. In late 1931, Hoover ordered the Farm Board to transfer surplus agricultural products to the Red Cross.
The transfer of agricultural surpluses, intended to be distributed to relief agencies across the country, did not produce much in the way of food. The poor harvests of preceding years continued in 1930 and worsened in 1931. In August, 1931, Hoover organized the President’s Organization on Unemployment Relief (POUR), intending to raise money for the unemployed through private donations. Still, Hoover opposed direct injection of federal capital via unemployment payments. By the end of 1931 Hoover was roundly criticized for his actions, viewed as failures, and for his inaction, viewed as callous disregard for the nation’s suffering citizens.