Herbert Hoover believed in limited government, and this belief influenced his reaction to the Great Depression. When the stock market first crashed, he assured Americans that everything would be okay. He said that “Any lack of confidence in the economic future or the strength of businesses in the United States is foolish.” He held on to this belief and a year later told Americans that “The worst is behind us.” When he finally started taking action, the small steps he did take were not enough to assist the economy.

Based on his belief of limited government, Hoover refused to give handouts, believing they would destroy the work ethic of Americans. Instead he called for American businesses to volunteer and asked them to keep their workers employed with steady wages. He requested that Americans tighten their belts and make do in the spirit of "rugged individualism."

Hoover met with industrialists, utility companies, and railroad executives and urged them to maintain wages for their workers. From these meetings came promises for construction projects that would create billions of dollars’ worth of work. Under Hoover’s persuasion, Congress also passed a $160 million tax cut with the goal of aiding American incomes.

When these initial steps didn’t provide enough assistance, Hoover realized some government interaction may be necessary. He created an organization to provide assistance for relief agencies, and he urged the wealthy to make donations that would benefit the poor. However, these still were not enough. Most of the charity aid was too small and most of the programs were too specific that not many people could benefit.

He was pushed by Congress for a stronger government intervention, but he vetoed their proposals. Since things were not getting any better, Hoover finally relaxed his views on government assistance in 1932. He created the Reconstruction Finance Corporation, which set aside taxpayer money to aid financial institutions. He also signed the Emergency Relief and Construction Act, which gave the Reconstruction Finance Corporation permission to go farther than financial institutions and gave over a billion dollars to the states that was to be spent on projects for local work.

Through all of these actions, there was still no direct relief to the people who needed it. As a result, Hoover lost his reelection and is known as one of the most unpopular presidents. Americans never blamed him for causing the Great Depression, but they were angry at what they believe was his refusal to help those who needed it.