Historical Perspective: President Herbert Hoover

The study of President Hoover is very relevant for today. While he was probably not the first person you thought about today when you awoke, it is worthy to spend a few minutes thinking about his pitfalls in light of our current global woes.

Herbert Hoover was the 31st American President and entered with a sterling track record of both competence and confidence. He was an engineer with a strong will for principle that served him well as commerce secretary during the ‘roaring 20’s.’

Americans seemed confident with their choice for president to take us further into the “new civilization” - as President Hoover vocalized in his first speech. In this same speech, however, he also spoke words that would come back to haunt him - “In no nation are the fruits of accomplishment more secure.” The people roared to applause at the time. It was only natural as industry skyrocketed and employment was at an all-time low of 3 percent. The stock market continued to rise in the first months of Hoover’s administration, a sign of confidence in their new pragmatic leader.

That was March 1929. A short seven months later would usher in one of the worst financial crisis observed to date. In October 1929 the market had become the market of fear. During “Black Tuesday,” October 29, $30 billion in securities had vanished.

Here is the lesson learned from President Herbert Hoover…

Of all the presidential candidates of his time, Hoover was probably the best suited to manage what befell our country. Yet, his response to the crisis, his communication to the masses and his strategic decision-making were severely lacking.

The problem was that he used rhetoric and a non-chalent attitude to make people believe the severe decline was a short-term glitch. This demeanor would last for several months as people maintained their confidence in the historical competence of the new leader. In May 1930 he stated, “We have passed the worst, and with continued effort we shall rapidly recover.” He had no idea that he had over ten more years of a depression that would ravage a nation.

Hoover was so principled in his actions that he kept the same economic plan and mindset he had when he first took office. He was not adept enough to change his plans in order to meet the new challenge head on. Thus, he allowed millions of American’s to suffer because of his lack of change.

The biggest problem for the President was his inability to empathize or relate to the sufferings of millions of Americans. His communication style was stiff, mechanical and harsh. He gained the nickname “The Great Scrooge” and fed that image at every press conference. In fact, in 1931 after 1/4 of American farmers had lost their entire livelihoods, the people named homeless areas “Hooverville’s.”

Along with his horrific public relations came some poor strategic decisions that would normally be effective in a normal economy. In a severe depression, however, they become the wrong medicine for the wrong time.

Thus, President Hoover finished his first term with poor results, a complete loss of confidence and a growing cynicism in the great office of president. President Hoover, with all of his principles and historical confidence, helped usher in a new era of leadership under FDR.

President Hoover’s legacy could have been tremendous as he had the competence in business principles to extend the roaring 20’s. Instead, he failed miserably to connect with the people and work in the trenches to solve problems. If he had simply communicated with clarity and with speed and resolve, we may not have the term today which he coined: the “depression.”

It is easy to judge historically as we observe the passage of time. However, each of us has our own responsibility to the perspective of the past. Have we responded appropriately within our families and organizations to the woes of our continued economic malaise? Are we connecting appropriately to our people?

Never forget, Perspective is our friend. Use it wisely.

Posted on July 05, 2009 in Historical Leaders