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Hoovers approach to solving America's problems were the same as the two Republican Presidents before him. He believed that hard work and supporting big business would trickle through and solve America's problems, hence non-intervention was born. The main idea of non-intervention was to pump money into big business –"the waterfall technique".This failed because Hoover thought the depression would soon be over and he didn't pump enough money into big business resulting in smaller business failing and the common worker not being able to find work. When Hoover discovered that non-intervention didn't work he put his hopes into "voluntarism".
His idea of voluntarism was to persuade big business to deal with the economic crisis without being forced to by the government. Hoover summoned business leaders to the White House and made them promise to maintain employment and not cut wages. Hoover saw unemployment as a local issue and created municipal and state government work projects. He established the emergency committee for unemployment to co-ordinate voluntary relief agencies and convinced the nations largest bankers to establish the National Credit Corporation from 1930-1931. He cut taxes by up to two thirds. By 1931 he had increased government spending to $2.2 billion. Although this was effective in solving some of America's problems, it meant that America had to borrow money from other countries and started to go into debt.
The reasons Hoover established his Voluntarism strategy was to deal with the rising unemployment and mass poverty within America. When unemployment kept on rising and large businesses broke their pledges and cut wages it was fair to say voluntarism had failed dismally. Most of Hoovers charities and relief programs had failed and by 1932 relief payments were cut and in some states suspended altogether.
By 1932 the Republican Party had already lost 8 senate seats…

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