Why does this page look this way?
It appears that you are using either an older, classic Web browser or a hand-held device that allows you to view our content but may not work with every feature of our site. If you are using an older browser, please upgrade for the best experience.
![]()
Home |
Site Index |
FAQs |
Contact |
RSS
|
Podcast
Navigation
home > by publication type > op-eds > Herbert Hoover's Ghost Haunts Markets, Democrats
| Author: | Amity Shlaes, Senior Fellow for Economic History |
|---|
March 19, 2008
Bloomberg.com
No question, Bear Stearns Cos. evokes the crash of 1929 and the Great Depression that followed it. Politicians are already making analogies to Herbert Hoover, the demon of that period, and Franklin Roosevelt, the angel.
On March 16, Senator Charles Schumer of New York said on television: “We’re in the most serious economic problem we’ve been in a very long time—much worse than 2001. The president’s hands-off attitude is reminiscent of Herbert Hoover in 1929 and 1930.”
Within 24 hours, Representative Rahm Emanuel, an Illinois Democrat, was weighing in with his own 1930s comparison. Roosevelt had pulled a country out of Depression and united it; President George W. Bush was doing the opposite, he said.
You get the picture: Bush is like Hoover, the do-nothing. Democrats are like Roosevelt, the activist.
It’s worthwhile to go back to that Depression period to see what people actually did or didn’t do and who resembles whom. The reality differs from the cartoon.
Come October 1929, and the first big drops in the Dow, President Hoover pleaded for market confidence. “We are undoubtedly in a plane of prosperity, and we wish to hang on to prosperity,” he told the New York Times.
On March 14, Bush made a similar pitch before the Economic Club of New York: “We’re a resilient economy, and I believe that the ingenuity and resolve of the American people is what helps us deal with these issues.” So far, so Hoover-ish.
Housing Bailout Anyone?
![]()
In Termites in the Trading System, Jagdish Bhagwati reveals how the rapid spread of preferential trade agreements endangers the world trading system.
America Between the Wars explores how the decisions and debates of the years between the fall of the Berlin Wall and the collapse of the Twin Towers shaped the events, arguments, and politics of the world we live in today.
In The Fall and Rise of the Islamic State, Noah Feldman tells the story behind the increasingly popular call for the establishment of the sharia—the law of the traditional Islamic state—in the modern Muslim world.
Complete list of CFR Books.
![]()
![]()
This report argues that the United States must lead with domestic action on climate change and proposes a U.S. negotiating strategy for a global UN climate agreement that includes commitments from all major economies, while also promoting a less formal Partnership for Climate Cooperation that would focus the world's largest emitters on implementing aggressive emissions reductions.
This Task Force report examines changes in Latin America and in U.S. influence there, while taking account of the region's enduring importance to the United States. The Task Force offers an agenda for U.S. policy toward Latin America and identifies four critical areas that should provide the basis of a new U.S. approach.
About Independent Task Forces at the Council.
![]()
By Region | By Issue | By Publication Type | The Think Tank | For The Media | For Educators | About CFR
Home | Site Index | FAQ | Contact | RSS | Podcast
Copyright 2008 by the Council on Foreign Relations. All Rights Reserved.

