"We were challenged with a peace-time choice between the American system of rugged individualism and a European philosophy of diametrically opposed doctrines — doctrines of paternalism and state socialism. The acceptance of these ideas would have meant the destruction of self-government through centralization... it would have meant the undermining of the individual initiative and enterprise." — Herbert Hoover, campaign speech, October 1928
Which factor most directly undermined the optimism Hoover expressed in 1928?
- A
The fall of the gold standard in Britain in 1925
- B
Soviet entry into World War I
- C
Federal nationalization of railroads under Wilson
- Dcheck_circle
The 1929 stock market crash and ensuing wave of bank failures
Explanation
The October 1929 crash exposed speculation, weak banking, and overproduction, triggering the Great Depression.