Final answer:
President Hoover incorporated elements of the trickle-down theory of economics in his efforts to combat the Great Depression, though his measures, such as the public works programs and the establishment of the RFC, were considered limited and insufficient in providing direct relief to the American people.
Step-by-step explanation:
President Hoover, while often associated with a do-nothing presidency, actually took on some policies that were promoted by his Secretary of the Treasury, Andrew Mellon. Despite criticisms of his handling of the Great Depression, Hoover did not strictly adhere to a laissez-faire approach to economics. Instead, he utilized elements of the trickle-down theory of economics, which posits that benefits for the wealthy and for large corporations will trickle down to everyone else.
Hoover expanded public works programs and pushed for tax cuts in an attempt to stimulate business, but he notably avoided direct federal welfare payments and other forms of direct aid to the poor, reflecting his beliefs against creating a dependence on government support. His actions included the establishment of the Reconstruction Finance Corporation (RFC), which was intended to provide emergency loans to banks, insurance companies, and other institutions in the hopes of restoring confidence in the financial system and to stimulate economic growth. Nevertheless, the measures were considered too limited, and much of the public felt Hoover's response to the economic crisis wasn't sufficient.
His economic policy differed from the Keynesian emphasis on government spending to directly increase consumption, adopted by his successor Franklin D. Roosevelt with the New Deal programs. While Hoover made some attempts to use its powers to alleviate the crisis, his efforts did not translate into the direct relief or support that Roosevelt's programs later provided.