The conclusion is that "many prominent economists of that time sided with those policymakers", implying that the economists, like the 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." How do we arrive at that conclusion?
- The agencies created under the New Deal were designed to administer financial relief to the country DURING an economic depression.
- AFTER the economic depression ("in the decades following the depression"), economists and policymakers were more concerned with the amount of power those agencies had given to the federal government than with the administration of financial relief... why?
- If the agencies administering financial relief are useful in preventing an economic depression, we wouldn't expect the economists to want to discontinue those agencies.
- However, if those agencies are only useful in helping to end an economic depression and not necessarily in preventing a new economic depression, then the economists' desire to discontinue those agencies AFTER the depression makes sense.
(A) According to this statement, FURTHER expansion of federal authority would increase the risk of another economic depression. This answer choice is tempting because we know that the economists feared another recession. But the policymakers and economists wanted to DISCONTINUE many of the New Deal agencies, not just prevent further expansion of federal authority. Choice (A) does not explain why the economists want to REDUCE the level of federal authority, so we can eliminate (A).
(B) We are told that the policymakers and economists wanted to discontinue many of the New Deal agencies AFTER the economic depression, not during the depression. If the agencies administering financial relief are useful in
preventing an economic depression, we wouldn't expect the economists to want to discontinue those agencies. However, choice (B) tells us that those agencies were designed only to provide financial relief (i.e. DURING an economic depression), not to maintain economic stability (i.e. AFTER an economic depression). This statement explains the economists' point of view, so let's hang on to choice (B).
(C) This statement tells us how "most americans" felt but does not explain the point of view of the economists, so choice (C) can be eliminated.
(D) The power and authority of the government agencies exceeded the limits defined when those agencies were created, but is that necessarily a bad thing? This information only tells us that the power of those agencies expanded but does not explain WHY economists grew uncomfortable with that expansion of power. Furthermore, choice (D) does not explain why the economists would want to get rid of agencies that are seemingly designed to combat economic depressions. We can eliminate choice (D)
(E) This choice explains why the
policymakers wanted to discontinue the New Deal agencies, but it does not explain why the
economists wanted to do so. Choice (E) can be eliminated.
Choice (B) is the best answer.