Final answer:
Herbert Hoover believed in 'laissez-faire' economics, which advocates for minimal government intervention in economic markets. This approach prevailed in the U.S. until the early 20th century and was challenged after the 1929 stock market crash when the government's role in the economy grew under Franklin D. Roosevelt's New Deal.
Step-by-step explanation:
Herbert Hoover believed in "laissez-faire" economics, which can be defined as the theory that economic markets should be free from government intervention. Proponents of laissez-faire argued that private markets, driven by supply and demand, would find their own equilibrium without the need for government-imposed regulations or controls. This approach was popular in the United States during the late 19th century but saw a decline in the early 20th century as monopolies began to form and government regulation became more prevalent to ensure competition and fair labor practices.
After the stock market crash of 1929 and the onset of the Great Depression, laissez-faire policies were increasingly seen as inadequate, leading to a greater acceptance of government intervention in the economy, as evidenced by Franklin D. Roosevelt's New Deal policies. Despite the historic view of Hoover as a staunch laissez-faire advocate, he did, in fact, implement several government interventions in an attempt to mitigate the effects of the Depression, although they were often deemed insufficient and too limited.