President Hoover's approach toward the economy was much more interventionist than Calvin Coolidge's. Hoover believed in using government intervention to stimulate the economy and help those affected by the Great Depression. He proposed a number of programs, such as the Reconstruction Finance Corporation, to provide loans to businesses and the Federal Home Loan Bank to help homeowners. Coolidge, on the other hand, was a proponent of laissez-faire economics and believed that the government should not interfere in the economy. He believed that the economy should be left to the free market and that government intervention would only make matters worse.
