Evaluate Hoover's Views regarding the relationship between the government and business. Context?- Fall of 1928: Impending Crash and Depression:
Evaluate Hoover's Views regarding the relationship between the government and business. Context?- Fall of 1928: Impending Crash and Depression:
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Evaluate Hoover's Views regarding the relationship between the government and business.
Context?- Fall of 1928:
Impending Crash and Depression:
![Our government to succeed in business would need to become in effect a despotism. There at once
begins the destruction of self-government.....
It is a false liberalism that interprets itself into the government operation of commercial business. Every
step of bureaucratizing of the business of our country poisons the very roots of liberalism that is
political equality, free speech, free assembly, free press and equality of opportunity. It is not the road to
more liberty, but to less liberty. Liberalism should not be striving to spread bureaucracy but striving to
set bounds to it....
Liberalism is a force truly of the spirit, a force proceeding from the deep realization that economic
freedom cannot be sacrificed if political freedom is to be preserved. [An expansion of the governmentís
role in the business world] would cramp and cripple the mental and spiritual energies of our people. It
would extinguish equality and opportunity. It would dry up the spirit of liberty and progress... For a
hundred and fifty years liberalism has found its true spirit in the American system, not in the European
systems.
I do not wish to be misunderstood..... I am defining general policy.... I have already stated that where the
government is engaged in public works for purposes of flood control, of navigation, of irrigation, of
scientific research or national defense.... it will at times necessarily produce power or commodities as a
by-product.
Nor do I wish to be misinterpreted as believing that the United States is a free-for-all and
devil-take-the-hindmost. The very essence of equality of opportunity and of American individualism is
that there shall be no domination by any group or [monopoly] in this republic.... It is no system of
laissez faire....
I have witnessed not only at home but abroad the many failures of government in business. I have seen
its tyrannies, its injustices, its destructions of self-government, its undermining of the very instincts
which carry our people forward to progress. I have witnessed the lack of advance, the lowered standards
of living, the depressed spirits of people working under such a system....
And what has been the result of the American system? Our country has become the land of opportunity
to those born without inheritance, not merely because of the wealth of its resources and industry but
because of this freedom of initiative and enterprise. Russia has natural resources equal to ours..... But she
has not had the blessings of one hundred and fifty years of our form of government and our social
system.
By adherence to the principles of decentralized self-government, ordered liberty, equal opportunity, and
freedom to the individual, our American experiment in human welfare has yielded a degree of well-being
unparalleled in the world. It has come nearer to the abolition of poverty, to the abolition of fear of want,
than humanity has ever reached before. Progress of the past seven years is proof of it.....
The greatness of America has grown out of a political and social system and a method of [a lack of
governmental] control of economic forces distinctly its own our American system which has carried
this great experiment in human welfare farther than ever before in history..... And I again repeat that the
departure from our American system... will jeopardize the very liberty and freedom of our people, and
will destroy equality of opportunity not only to ourselves, but to our children.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F976488b3-bedd-4108-828a-ec138a75898e%2F8c3de665-4eb1-4b4a-88ba-6ec90b1d9a34%2Fxk5mm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Our government to succeed in business would need to become in effect a despotism. There at once
begins the destruction of self-government.....
It is a false liberalism that interprets itself into the government operation of commercial business. Every
step of bureaucratizing of the business of our country poisons the very roots of liberalism that is
political equality, free speech, free assembly, free press and equality of opportunity. It is not the road to
more liberty, but to less liberty. Liberalism should not be striving to spread bureaucracy but striving to
set bounds to it....
Liberalism is a force truly of the spirit, a force proceeding from the deep realization that economic
freedom cannot be sacrificed if political freedom is to be preserved. [An expansion of the governmentís
role in the business world] would cramp and cripple the mental and spiritual energies of our people. It
would extinguish equality and opportunity. It would dry up the spirit of liberty and progress... For a
hundred and fifty years liberalism has found its true spirit in the American system, not in the European
systems.
I do not wish to be misunderstood..... I am defining general policy.... I have already stated that where the
government is engaged in public works for purposes of flood control, of navigation, of irrigation, of
scientific research or national defense.... it will at times necessarily produce power or commodities as a
by-product.
Nor do I wish to be misinterpreted as believing that the United States is a free-for-all and
devil-take-the-hindmost. The very essence of equality of opportunity and of American individualism is
that there shall be no domination by any group or [monopoly] in this republic.... It is no system of
laissez faire....
I have witnessed not only at home but abroad the many failures of government in business. I have seen
its tyrannies, its injustices, its destructions of self-government, its undermining of the very instincts
which carry our people forward to progress. I have witnessed the lack of advance, the lowered standards
of living, the depressed spirits of people working under such a system....
And what has been the result of the American system? Our country has become the land of opportunity
to those born without inheritance, not merely because of the wealth of its resources and industry but
because of this freedom of initiative and enterprise. Russia has natural resources equal to ours..... But she
has not had the blessings of one hundred and fifty years of our form of government and our social
system.
By adherence to the principles of decentralized self-government, ordered liberty, equal opportunity, and
freedom to the individual, our American experiment in human welfare has yielded a degree of well-being
unparalleled in the world. It has come nearer to the abolition of poverty, to the abolition of fear of want,
than humanity has ever reached before. Progress of the past seven years is proof of it.....
The greatness of America has grown out of a political and social system and a method of [a lack of
governmental] control of economic forces distinctly its own our American system which has carried
this great experiment in human welfare farther than ever before in history..... And I again repeat that the
departure from our American system... will jeopardize the very liberty and freedom of our people, and
will destroy equality of opportunity not only to ourselves, but to our children.
![Herbert Hoover, "Rugged Individualism" Campaign Speech (1928)
I intend.... to discuss some of those more fundamental principles upon which I believe the government of
the United States should be conducted.....
During one hundred and fifty years we have builded up a form of self government and a social system
which is peculiarly our own. It differs essentially from all others in the world. It is the American
system..... It is founded upon the conception that only through ordered liberty, freedom and equal
opportunity to the individual will his initiative and enterprise spur on the march of progress. And in our
insistence upon equality of opportunity has our system advanced beyond all the world.
During World War I] we necessarily turned to the government to solve every difficult economic
problem. The government having absorbed every energy of our people for war, there was no other
solution. For the preservation of the state the Federal Government became a centralized despotism
which undertook unprecedented responsibilities, assumed autocratic powers, and took over the business
of citizens. To a large degree, we regimented our whole people temporally into a socialistic state.
However justified in war time, if continued in peace-time it would destroy not only our American system
but with it our progress and freedom as well.
When the war closed, the most vital of issues both in our own country and around the world was
whether government should continue their wartime ownership and operation of many [instruments] of
production and distribution. We were challenged with a... choice between the American system of
rugged individualism and a European philosophy of diametrically opposed doctrines - doctrines of
paternalism and state socialism. The acceptance of these ideas would have meant the destruction of
self-government through centralization... [and] the undermining of the individual initiative and
enterprise through which our people have grown to unparalleled greatness.
The Republican Party [in the years after the war] resolutely turned its face away from these ideas and
war practices..... When the Republican Party came into full power it went at once resolutely back to our
fundamental conception of the state and the rights and responsibility of the individual. Thereby it
restored confidence and hope in the American people, it freed and stimulated enterprise, it restored the
government to a position as an umpire instead of a player in the economic game. For these reasons the
American people have gone forward in progress....
There is [in this election]... submitted to the American people a question of fundamental principle. That
is: shall we depart from the principles of our American political and economic system, upon which we
have advanced beyond all the rest of the world....
I would like to state to you the effect that... [an interference] of government in business would have
upon our system of self-government and our economic system. That effect would reach to the daily life
of every man and woman. It would impair the very basis of liberty and freedom.....
Let us first see the effect on self-government. When the Federal Government undertakes to go into
commercial business it must at once set up the organization and administration of that business, and it
immediately finds itself in a labyrinth..... Commercial business requires a concentration of responsibility.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F976488b3-bedd-4108-828a-ec138a75898e%2F8c3de665-4eb1-4b4a-88ba-6ec90b1d9a34%2Fp8fa888_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Herbert Hoover, "Rugged Individualism" Campaign Speech (1928)
I intend.... to discuss some of those more fundamental principles upon which I believe the government of
the United States should be conducted.....
During one hundred and fifty years we have builded up a form of self government and a social system
which is peculiarly our own. It differs essentially from all others in the world. It is the American
system..... It is founded upon the conception that only through ordered liberty, freedom and equal
opportunity to the individual will his initiative and enterprise spur on the march of progress. And in our
insistence upon equality of opportunity has our system advanced beyond all the world.
During World War I] we necessarily turned to the government to solve every difficult economic
problem. The government having absorbed every energy of our people for war, there was no other
solution. For the preservation of the state the Federal Government became a centralized despotism
which undertook unprecedented responsibilities, assumed autocratic powers, and took over the business
of citizens. To a large degree, we regimented our whole people temporally into a socialistic state.
However justified in war time, if continued in peace-time it would destroy not only our American system
but with it our progress and freedom as well.
When the war closed, the most vital of issues both in our own country and around the world was
whether government should continue their wartime ownership and operation of many [instruments] of
production and distribution. We were challenged with a... choice between the American system of
rugged individualism and a European philosophy of diametrically opposed doctrines - doctrines of
paternalism and state socialism. The acceptance of these ideas would have meant the destruction of
self-government through centralization... [and] the undermining of the individual initiative and
enterprise through which our people have grown to unparalleled greatness.
The Republican Party [in the years after the war] resolutely turned its face away from these ideas and
war practices..... When the Republican Party came into full power it went at once resolutely back to our
fundamental conception of the state and the rights and responsibility of the individual. Thereby it
restored confidence and hope in the American people, it freed and stimulated enterprise, it restored the
government to a position as an umpire instead of a player in the economic game. For these reasons the
American people have gone forward in progress....
There is [in this election]... submitted to the American people a question of fundamental principle. That
is: shall we depart from the principles of our American political and economic system, upon which we
have advanced beyond all the rest of the world....
I would like to state to you the effect that... [an interference] of government in business would have
upon our system of self-government and our economic system. That effect would reach to the daily life
of every man and woman. It would impair the very basis of liberty and freedom.....
Let us first see the effect on self-government. When the Federal Government undertakes to go into
commercial business it must at once set up the organization and administration of that business, and it
immediately finds itself in a labyrinth..... Commercial business requires a concentration of responsibility.
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