Final answer:
Herbert Hoover was opposed to direct governmental aid, preferring a minimal government approach and promoting individualism as a response to the Great Depression. Later, under pressure, he created the Reconstruction Finance Corporation and supported public works, but these measures were inadequate and too delayed to effectively address the crisis.
Step-by-step explanation:
President Herbert Hoover held fast to his belief in American individualism during the onset of the Great Depression, which dictated a minimalistic approach to government intervention in the economy. This philosophy shaped his policies and response to the economic crisis. Hoover was against direct relief or "handouts," as he saw them, preferring to call upon a spirit of volunteerism among businesses and for Americans to persevere through tough times on their own.
However, faced with the deepening crisis, Hoover did implement some measures such as public works programs and tax cuts, and he established the Reconstruction Finance Corporation (RFC) to grant loans to businesses. These steps, while a deviation from his usual approach, were seen as too little, too late, and did not offer direct assistance to the suffering population. His administration's response was criticized for being inadequate given the magnitude of the economic turmoil.
Hoover's legacy is marred by his stubborn adherence to his belief in rugged individualism and limited government intervention, which many believe contributed to the severity and length of the Great Depression. Despite some later efforts to mitigate the situation, his policies ultimately led to a desperate public seeking more direct and significant intervention, which was a factor in his electoral defeat in 1932.