Contrary to “Distorians,” Herbert Hoover did not Favor Laissez-Faire

 The article discusses myths surrounding Herbert Hoover’s role during the Great Depression, particularly the belief that he endorsed laissez-faire economic policies. The content argues that these misconceptions persist not because they are true, but due to motivations from modern historians.

1. Common Historical Myths: The article states that American history is filled with myths, such as George Washington chopping down a cherry tree and Abraham Lincoln's role in ending slavery.

2. Hoover's Economic Beliefs: It is commonly believed that Hoover supported laissez-faire economics and assumed that the economy would self-correct without government intervention. However, this view is challenged by various authors who highlight Hoover’s active role in economic intervention.

3. Hoover’s Interventions During the Depression: Instead of doing nothing during the economic downturn following the 1929 stock market crash, Hoover implemented several policies similar to those of his successor, Franklin D. Roosevelt. These included:

• The Smoot-Hawley Tariff to protect agriculture.

• An understanding to maintain wage levels despite falling prices.

• Increasing tax rates to balance the federal budget.

• Establishing the Reconstruction Finance Corporation to support failing businesses.

4. Misinterpretation of Hoover’s Actions: The article argues that historians mischaracterize Hoover as a staunch proponent of laissez-faire, neglecting his numerous interventions that contributed to prolonging the Great Depression.

5. Contrasting Economic Recovery: The article mentions that other economic downturns, like the one in 1920–1921, saw quick recoveries without government intervention, suggesting Hoover's actions may have hindered recovery during the Great Depression.

6. Perception of Hoover: The portrayal of Hoover as an ineffective leader became a convenient narrative for promoting Roosevelt's New Deal, overshadowing Hoover's actual policy initiatives.

7. Historians’ Bias: The article criticizes modern historians for adhering to outdated narratives about Hoover's laissez-faire stance, which serves their political agendas rather than presenting a truthful account of history.

The piece concludes that the myth of Herbert Hoover as a supporter of laissez-faire economics is untrue. Instead, it notes that he took significant and interventionist actions during the Great Depression, which ultimately obstructed economic recovery. This misconception remains prevalent due to the biases of modern historians who perpetuate this narrative for political reasons.

https://mises.org/mises-wire/contrary-distorians-herbert-hoover-did-not-favor-laissez-faire