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I have... instituted systematic, voluntary measures of cooperation with the business institutions and with State and municipal authorities to make certain that fundamental businesses of the country shall continue as usual, that wages and therefore consuming power shall not be reduced, and that a special effort shall be made to expand construction work in order to assist in equalizing other deficits in employment... I am convinced that through these measures we have reestablished confidence. Wages should remain stable. A very large degree of industrial unemployment and suffering which would otherwise have occurred has been prevented. Agricultural prices have reflected the returning confidence. The measures taken must be vigorously pursued until normal conditions are restored.

Herbert Hoover#3

EconomyPolicyBusinessEmploymentCooperation

About this quote

What does it mean?
Hoover outlines voluntary cooperation measures with businesses and authorities to stabilize wages, employment, and construction during economic hardship, aiming to restore confidence.
In plain terms
Working together with businesses helped keep jobs and wages stable.
What can you take from it?
Voluntary cooperation can stabilize the economy during crises.

Where it applies

  • economic policy making
  • crisis management
  • business-government relations

Putting it to work

  • encourage business cooperation
  • maintain wage stability
  • restore confidence

Questions to consider

  • How effective is voluntary policy?
  • What stabilizes an economy?

Another view

Voluntary measures may lack the enforcement needed for full recovery.

More from Herbert Hoover

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  3. Nor are liberal ideals alone sufficient: Ours is a practical people, to whom ideals furnish the theory of political action, upon which they want not only firm …

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