Journal of Aviation/Aerospace Education & Research Volume 10 Number 3 JAAER Spring 2001 Article 1 Spring 2001 Aviation, Herbert Hoover and His “American Plan” Randy Johnson Follow this and additional works at: https://commons.erau.edu/jaaer Scholarly Commons Citation Johnson, R. (2001). Aviation, Herbert Hoover and His “American Plan”. Journal of Aviation/Aerospace Education & Research, 10(3). https://doi.org/10.15394/jaaer.2001.1279 This Article is brought to you for free and open access by the Journals at Scholarly Commons. It has been accepted for inclusion in Journal of Aviation/Aerospace Education & Research by an authorized administrator of Scholarly Commons. For more information, please contact [email protected]. Johnson: Aviation, Herbert Hoover and His “American Plan” Published by Scholarly Commons, 2001 1 Journal of Aviation/Aerospace Education & Research, Vol. 10, No. 3 [2001], Art. 1 Aviation, Herben Hoover and His "American Plan" as the American Grocer's Association praised his work. the White House. Harding offered Hoover his choice of Afier the war, Wilson appointed him head ofthe American being either Secretary of Interior or Commerce. Hoover Relief Association tasked to distribute food to 370 million requested he be nominated for the then-less-significant i Europeans. Hoover accomplished this task as he had the Department ofcommerce. Hoover understood the potential j others, with great success. The nation was taking note and Commerce possessed for fulfilling an important role in i i his popularity was rising. Both parties were calling for him what he termed the "reconstruction and development" of ! to run for the presidency in 1920, but Hoover, a the nation, despite the Department's "inbred bureaucracy." : Republican, was never active in politics (fig. 1). "I hadbeen His purpose became one of establishing the efficacy of what so nonpartisan during the war, both in word and in deed, had become the administrative home for nine fragmented that I had no standing in either political party,'" Hoover bureaus lacking common goals and direction. Former wrote. Secretary ofcommerce Oscar Straus told him that the work Hoover had intended to settle down in California where of the Department required but two hours a day. "Putting . he '%oped to renew association with a great lady and two the fish to bed at night and turning on the lights aroundthe r. highly satisfactory boys."' His plans were to turn out coast were possibly the major concepts of the office," he differently. was told.6 The Republican victory of 1920 sent Warren Harding to i Page 36 JAAER. ~pr~ng2001 1 https://commons.erau.edu/jaaer/vol10/iss3/1 DOI: https://doi.org/10.15394/jaaer.2001.1279 2 Johnson: Aviation, Herbert Hoover and His “American Plan” Aviation, Herberf Hoover and His "American Plan" wisdom and ability todecide the economic fate ofthemany, Economic conditions following World War I had created thereby creating social classes such as those found in unemployment, housing shortages, and wasted production Europe. Hoover disdained the notion that labor and capacity. Hoover believed govemment had the ability, in management should be considered social classes and that cooperation with its citizenry, to expedite and promote labor was no more than a "commodity." Instead heviewed economic recovery; he also believed Commerce was the both labor and management as "producers," believing that proper administrative department for such a task? both management and labor should work together for the Hoover accepted the post only on the condition that he benefit of all. His work included a crusade to ban child would be given a "voice on all important economic policies labor and the twelve-hour workday as well as to ensure of the administration,'" even those involving other labor was guaranteed the right to collective bargaining. departments withim the cabinet. Hoover critic Walter American Individualism embodied cooperation, self- Liggett"' noted during the 6rst year of his secretariat that regulation, a mutual purpose of responsibility and "service "Hoover is Secretary of Commerce and assistant secretary to our fellow^."'^ of everything else."" SeQ&uy Hoover began his newjob, Correcting the movement toward autocracy required as National Bureau of Standards (NBS) historian Rexmond governmental rdaint of industry in the form of law and Cochrane described him, "determined to recover the regulation. Hoover sought balance. The individual must be Nation, singlehandedly [sic] ifnecessary, from its wartime given oppormnity to rise to his potential, but business must splurge, its consequent depletion of resources, and the be regulated to insure fair competition and obviate market general economic demoralization into which it had domination16."Regulation toprevent domination andunfair pl~nged."'~ ~ractices,yet preserving rightful initiative, are in keeping The Role of Government in Business with our social foundations."" Secretary The new moved quickly, implementing reforms An essential component of the associative state required based on his concept of an "American System:' or what a synthesis of "institutional" self-regulation, national Ellis Hawley termed Hoover's philosophy of an oversight and planning. Hoover believed in the importance "Associative State."" His "American System" favored a of individual creativity and private initiative, and it was small government that worked with groups of associations, this individualism that stimulated new industries. or "associationalism," to bring about emomic efficiency Historically, as industries founded in individualism began through cooperation and national planning. Hoover's to mature, they affected the national economy in a political thiiing during his term of office would redefine '%aphazard" way. Haphazard development created waste between the relationship government, American business and disrupted the economy. Waste contributed to the and foreign trade. At its core lay "American 'booms and slumps" inherent in the business cycle an4 Individualism," a Hooverian philosophical viewpoint that with it, unemployment and bankruptcies. At the point perceived the United States to be unique among nations. where such industries interfered with tiee competition on It springs i?om something infinitely more a national scale, regulation was required. Government, enduring; it springs tom the one source through oversight, conferences and industrial self- of human progress--that each individual regulation, would maintain a climate of competition, effect shallbegiven the chance and stimulation an increase in efficiency, reduce wasteand conserve limited for development of the best with which resources. It would also mitigate the effects ofthe business he has been endowed in heart and mind; cycle. Hoover preached the proper place for this it is the sole source of progress; it is coordiiation rested withii theFederal Government, but not American individualism." a government whose sole purpose was purely regulatory. Hoover believed that the United States had begun a Instead, it would also be one of word'iation and transition toward a monopolistic and autocratic economic cooperation-peration between trade associations, state during the late nineteenth century. U~estrained industries and labor. In other words, it should be a individualism, coupled with Adam Smith's theory of govemmentthat recognizesthesuperiority ofindividualism capitalism, and the laissez faire policies of the Federal while cooperating with and regulating business and government had created this climate. Autocracy, to Hoover, indushy. The results of this synergistic relationship would implied that only a few in society were endowed with the Page 37 Published by Scholarly Commons, 2001 3 Journal of Aviation/Aerospace Education & Research, Vol. 10, No. 3 [2001], Art. 1 Aviation, Herbert Hoover and His "American Plan" produce an ever-higher standard of living for its citi~ens'~. conferences. The purpose, accord'ig to historian Joan Hoff "There, however, arises a time when this haphazard Wilson, was more than problem-solving, it was also "a i development must be coordinated in order secure its best publicity tool, designed to dramatize cooperative results to the nation as a whole,"19 he told an audience of individualism and associationalism.'" Hoover, the 1u % miniig engineers in 1920. consummate engineer, with the aid of his advisory t Nationalizing industry was not his goal, nor did he committees, analyzed the causes of problems and sought believe that direct control or operation of business should solutions." ! be placed in the hands of bureaucrats. Even though the Hoover accomplished his stated objective oftransforming railroads had been nationalized during the war, he the Department of Commerce kom an ineffective, advocated oversight be speedily returned to the owners. disjointed mix of bureaus into a consequential force for Under his swetariat he was able to report to the President economic growth and technological leadership in the in 1926 that the railroads had increased in eEciency, United States. Associationalism and American profits and rolling stock. Later he wrote that the benefit Individualism guided his policy decisions, and total enjoyed by the nation, which resulted &om this immersion in the work of Commerce secured their "elimination of waste," was attributable, in part, to his implementation. Even Hoover critic Liggett was forced to policy of co~peration.~~ admit that the Secretary was not only creative, but also The Purpose of Bureaucracy remarkably capable