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Responding to a PM...

Quote:
Hi GmatNinja,

I am not satisfied with the explanation to OA:B

As per your explanation, Economists sided with policy makers because those "many agencies" were established only to provide financial relief and they will do no good in preventing the recession. But, Economists would have considered that the agencies might still be helpful in providing financial relief if a new recession occurs. They would have ignored this point only if they had known, with certainty, that there are alternative methods that can avoid the recession. There is no clue for any such mention in the argument. So the benefits of having the agencies still outweigh their removal.

Consider a similar case, Lets say there was a bad epidemic, which killed many people and affected health of many . Immediately, Many new relief centers were established to treat the affected. Soon epidemic was gone and people recovered their health. After many years, health ministry realized that these relief centers are still running without any purpose and hence decided to shut them down. Disease control experts also seconded health ministry's decision though they feared that the epidemic may return again shortly.
So why would disease control experts second the decision of ministry to shut down relief centers unless experts are sure that there are other means to prevent the upcoming epidemic?
If they are not sure then it is always beneficial to continue the relief centers till they find an effective preventive means.

Am I correct?
Great question!

There might be some obvious benefits to keeping the agencies open rather than discontinuing them. But remember, we don't necessarily need a statement that PROVES that the agencies should be discontinued. Rather, we need a statement that "MOST LOGICALLY" explains why many prominent economists would have sided with the policymakers.

Choice (B) may not be a bulletproof reason for shutting down the agencies, but it certainly provides a logical explanation and completes the argument more logically than any of the other choices (perhaps those economists felt that the agency could easily be reopened if another recession were to occur).

We only need a logical explanation for why many (not all) prominent economists would have sided with the policymakers. Maybe the others would have agreed that the agencies should have been kept open in case another recession hits, but that possible scenario does not make choice (B) incorrect.
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i chose D because the passage stated that "policymakers grew uncomfortable with the amount of power that had been given to the federal government and sought to discontinue many of the agencies created under the New Deal"

so i would assume that the economists had sided with the policymakers' belief that the agencies had too much power, hence choice D

please correct me if i'm wrong? thx
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B because it talks about what would concern economists and not just the policymakers.
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sunkiss12116
i chose D because the passage stated that "policymakers grew uncomfortable with the amount of power that had been given to the federal government and sought to discontinue many of the agencies created under the New Deal"

so i would assume that the economists had sided with the policymakers' belief that the agencies had too much power, hence choice D

please correct me if i'm wrong? thx
(D) might explain why the economists would want to reduce the amount of power given to those agencies, but why would they want to discontinue those agencies if they fear economic depression?

We know that the policymakers grew uncomfortable with the amount of power that had been given to the federal government, but we cannot assume that the economists felt the same way. All we know about the economists is that they feared economic depression and that, despite that fear, they agreed that the agencies should be discontinued.

Again, (D) could explain why the economists would want to shrink the power and authority of those agencies down to their original amounts, but it does not explain why they would want to get rid of those agencies altogether.

(B) is a better answer.
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After reading the solutions, i am still not convinced with the explanation.

From the passage -
1) policymakers are worried about amount of power
2)therefore they wanted to discontinue them
3)Economists knew recession impending
4) Economists still sided with the policymakers, because...



(A) further expansion of federal authority would hinder economic growth and increase the risk of another economic depression.
Ok I get this explanation from gmatninja. They do not want further expansion, but can leave them as it is now.

(B) many agencies created under the New Deal were designed to provide financial relief, not to maintain economic stability.
This doesn't give the economist a reason to side with the policymakers. Economists are already fearing another recession as stated in the passage. Well it would be pretty silly to discontinue these agencies, then recession hits, then establish new agencies again.

(C) most Americans feared expansion of federal authority more than they feared another economic depression.
I agree with gmatninja here.

(D) the power and authority of many agencies created under the New Deal had expanded well beyond the limits defined in their respective agency charters.
And therefore, all the more reason that economists were uneasy about this, hence sided with policymakers. Economists know that recession is impending, they are uneasy about it still they sided with the policymakers against these agencies. Why? probably because they were going beyond the limits defined. There is a reason why limits are defined in the first place.

(E) most policymakers of that time considered federal regulation of the market to be an emergency measure that, as such, should only be temporary.
I agree with gmatninja here.
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GMATNinja, can you please explain how we can derive from the argument that economists want to prevent another recession to happen in the future?
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GMATNinja, can you please explain how we can derive from the argument that economists want to prevent another recession to happen in the future?
As you suggest, this question requires us to consider the "prominent economists" mentioned in the passage. In the last sentence, we learn these prominent economists "feared another economic depression." Since they feared another economic depression, we can conclude they wanted to prevent it from happening.

The correct answer should explain why these economists wanted to discontinue the agencies created under Roosevelt's New Deal, despite the fact that they "feared another economic depression."

So here's (B) again:

Quote:
(B) many agencies created under the New Deal were designed to provide financial relief, not to maintain economic stability.
This tells us that the agencies were NOT meant to maintain economic stability. Since the economists were concerned about economic stability (i.e. they feared another depression), this answer choice would explain why they wanted to discontinue the agencies. So (B) is correct.

I hope that helps!
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