Question

Why didn't Hoover believe in using the federal government to fight the effects of the Great Depression?

Answer 1

Hoover was an economic conservative, and did not believe in federal intervention in the natural cycles of the economy. It is worth noting that the thought the Depression would be much shorter than it turned out to be. He was also fearful of establishing a permanent situation in which the economy was dependent upon the government, especially with regard to welfare programs.

Hoover's fear was that the country would be permanently weaker if welfare programs were introduced, or if the federal government became overly involved in the banking system. Towards the end of his administration, as the Depression dragged on, Hoover conceded a bit on this point, and introduced some Federal lending programs to bail some financial institutions. The answer is A.