What was the effect of Hoover's "rugged individualism"?

Hoover was the president during the Great Depression. Because he believed in laissez faire (hands off economic policy) and rugged individualism, he thought that the government should not interfere with business. He thought that naturally, there is competition and the free market governed itself the best. Also, Hoover thought that farmers and citizens did not need or want help because they take pride in solving their own problems.

However after Black Tuesday in 1929, the stock markets crashed and 16 million shares of stocks were sold. Even then, Hoover kept stating that the economy will come back. He didn't pass regulations that will help the banks, bank accounts, stock markets, or businesses.

Instead, FDR (Franklin Delano Roosevelt) had to pass his New Deal, a collection of regulations that increased government control and stabilized the economy.

An example is the SEC, the Securities and Exchange Commission, where the government makes sure that no one rigs the stock market by finding out inside information. Since everyone that owns the stocks is supposed to own a part of the company, everyone should equally know inside information. Also, the AAA, the Agricultural Adjustment Administration, where the government payed farmers to leave a section of their farmland unseeded in order to lower production (lowering competition) and thereby raising prices so that the farmers can make a profit.