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The Trickle Down theory was a Herbert Hoover (his words) plan and we all know how that worked out

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NNN0LHI Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Oct-12-08 10:32 AM
Original message
The Trickle Down theory was a Herbert Hoover (his words) plan and we all know how that worked out
http://ap.grolier.com/article?assetid=0205570-00

Hoover, Herbert

Hoover, Herbert (1874-1964), 31st president of the United States. He gained prominence in four major careers: engineering, international relief work, government and politics, and reform of governmental bureaucracy. Although Hoover spent 30 years in public service, the highest point of his public career, his presidency, was dominated by the Depression and proved a bitter disappointment.

Herbert Clark Hoover was born in West Branch, Iowa, on Aug. 10, 1874. He was the second of three children in a family descended from a long line of Quakers. His father, Jesse Clark Hoover, a village blacksmith, died of typhoid fever when Herbert was six years old. Less than three years later, his mother, Huldah Minthorn Hoover, died of pneumonia. In 1884 he went to Newberg, Oreg., to live with an uncle, Henry John Minthorn, a country doctor interested in education. There Herbert attended a Quaker academy his uncle helped direct. In 1888, Dr. Minthorn moved to Salem, Oreg., where Hoover worked in his land settlement business as an office boy and attended night school. Then, at 17, Hoover entered Stanford University as a special student. He showed a marked aptitude for mathematics and geology, graduating with a degree in engineering in May 1895. snip

The Depression.

Hoover's administration, like that of Martin Van Buren almost a century earlier, was dominated by one developmentan economic depression. The disastrous slump that began when the stock market crashed on Oct. 29, 1929, left from 12 to 14 million Americans unemployed before the end of Hoover's term. In the 1930 congressional elections the weak Democratic minority in the House of Representatives became a majority, and the Republican majority in the Senate dwindled to a plurality of one.

Hoover believed that aid to the hungry and the deserving unemployed should come from local governments in the states and counties, not from the federal government. Yet he recommended and Congress appropriated funds for huge public works. On Hoover's recommendation, Congress established the Reconstruction Finance Corporation, approved Jan. 22, 1932, with an initial working capital of $500 million. It tried to provide indirect relief to the unemployed by lending insurance companies, banks, farm organizations, railroads, and state, county, and city governments money to stimulate economic activity and employment. His opponents criticized him for this "trickle down" theory, based on the idea that if the government aided big business at the top of the nation's financial structure, business would then create more jobs and relieve unemployment at the bottom. Yet, he inaugurated a new policy of government assistance to those in need in time of economic crisis, though not directly to the masses of unemployed.

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Tashca Donating Member (935 posts) Send PM | Profile | Ignore Sun Oct-12-08 11:19 AM
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1. Origins of trickle down?
Are you presenting this as the origins of trickle down theory?

Or as way to show we have learned nothing with our last trickle down bailout??
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