Woodrow Wilson was referring to the liberal idea of the

Question

Woodrow Wilson was referring to the liberal idea of the economic market when he said that the free enterprise system is the most efficient economic system. Maximum freedom means maximum productiveness; our “openness” is to be the measure of our stability. Fascination with this ideal has made Americans defy the  “Old World”  categories of settled possessiveness versus unsettling deprivation, the cupidity of retention versus the cupidity of seizure, a “status quo” defended or attacked. The United States, it was believed, had no status quo ante. Our only “station” was the turning of a stationary wheel, spinning faster and faster. We did not base our system on property but opportunity—which meant we based it not on stability but on mobility. The more things changed, that is, the more rapidly the wheel turned, the steadier we would be.

The conventional picture of class politics is composed of the Haves, who want a stability to keep what they have, and the Have-Nots, who want a touch of instability and change in which to scramble for the things they have not. But Americans imagined a condition in which speculators, self-makers, runners are always using the new opportunities given by our land. These economic leaders (front-runners) would thus be mainly agents of change. The nonstarters were considered the ones who wanted stability, a  strong referee  to give them some position in the race, a regulative hand to calm manic speculation; an authority that can call things to a halt, begin things again from compensatorily staggered “starting lines.”

“Reform”  in America has been sterile because it can imagine no change except through the extension of this metaphor of a race, wider inclusion of competitors,  “a piece of the action,”  as it were, for the disenfranchised. There is no attempt to call off the race. Since our only stability is change, America seems not to honor the quiet work that achieves social interdependence and stability. There is, in our legends, no heroism of the office clerk, no stable industrial work force of the people who actually make the system work. There is no pride in being an employee (Wilson asked for a return to the time when everyone was an employer). There has been no boasting about our social workers—they are merely signs of the system’s failure, of opportunity denied or not taken, of things to be eliminated. We have no pride in our growing interdependence, in the fact that our system can serve others, that we are able to help those in need; empty boasts from the past make us ashamed of our present achievements, make us try to forget or deny them, move away from them. There is no honor but in the Wonderland race we must all run, all trying to win, none winning in the end (for there is no end).   1 
 1. The primary purpose of the passage is to

(A) criticize the inflexibility of American economic mythology
(B) contrast “Old World” and “New World” economic ideologies
(C) challenge the integrity of traditional political leaders
(D) champion those Americans whom the author deems to be neglected
(E) suggest a substitute for the traditional metaphor of a race

2 
 2. According to the passage, “Old World” values were based on

(A) ability
(B) property
(C) family connections
(D) guild hierarchies
(E) education

3 
 3. In the context of the author’s discussion of regulating change, which of the following could be most probably regarded as a “strong referee” in the United States?

(A) A school principal
(B) A political theorist
(C) A federal court judge
(D) A social worker
(E) A government inspector

4 
 4. The author sets off the word “Reform” with quotation marks in order to

(A) emphasize its departure from the concept of settled possessiveness
(B) show his support for a systematic program of change
(C) underscore the flexibility and even amorphousness of United States society
(D) indicate that the term was one of Wilson’s favorites
(E) assert that reform in the United States has not been fundamental

5 
 5. It can be inferred from the passage that the author most probably thinks that giving the disenfranchised “a piece of the action” is

(A) a compassionate, if misdirected, legislative measure
(B) an example of Americans’ resistance to profound social change
(C) an innovative program for genuine social reform
(D) a monument to the efforts of industrial reformers
(E) a surprisingly “Old World” remedy for social ills

6 
 6. Which of the following metaphors could the author most appropriately use to summarize his own assessment of the American economic system 
(A) A windmill
(B) A waterfall
(C) A treadmill
(D) A gyroscope
(E) A bellows

7 
 7. It can be inferred from the passage that Woodrow Wilson’s ideas about the economic market

(A) encouraged those who “make the system work”
(B) perpetuated traditional legends about America
(C) revealed the prejudices of a man born wealthy
(D) foreshadowed the stock market crash of 1929
(E) began a tradition of presidential proclamations on economics

8 
 8. The passage contains information that would answer which of the following questions?

I.  What techniques have industrialists used to manipulate a free market?
 II.  In what ways are “New World” and “Old World” economic policies similar?
 III.  Has economic policy in the United States tended to reward independent action?

(A) I only
(B) II only
(C) III only
(D) I and II only
(E) II and III only

9 
 9. Which of the following best expresses the author’s main point?

(A) Americans’ pride in their jobs continues to give them stamina today.
(B) The absence of a status quo ante has undermined United States economic structure.
(C) The free enterprise system has been only a useless concept in the United States.
(D) The myth of the American free enterprise system is seriously flawed.
(E) Fascination with the ideal of “openness” has made Americans a progressive people.

GMATNinjaTwo · Accepted Answer

VKat

The author is trying to say that reform in America has been sterile (ie unproductive) because there was never any attempt to change the fundamental system that had taken hold in America, a system that the author compares to a race. There may have been attempts to modify or improve the  rules  of the race, but there was never an "attempt to call off the race" entirely. In other words, changing the rules of the race (ie modifying the existing system) would not result in significant change or reform; in order to achieve real, substantial change, there would have to be an attempt to call off the race (ie embrace an entirely different system). The latter would constitute "fundamental" reform, whereas the former constitutes only superficial reform; thus, "reform" is placed in quotes to assert that the changes to the rules of the race have resulted in superficial reform but not fundamental reform.

GMATNinja · Answer

As described in the  Ultimate RC Guide for Beginners , it helps to get engaged and think about the PURPOSE of each paragraph. You might not understand all of the details in the first paragraph, but force yourself to think about WHY it is there. What is the author trying to accomplish?

I might not get everything the author says, but I see that he/she is comparing two drastically different things. The "Old World" economics are described by words/phrases such as settled possessiveness, cupidity of retention, a 'status quo' defended, property, haves and have-nots, non-starters, stability, and authority. Meanwhile, the "liberal idea of the economic market" in America is described with words/phrases such as unsettling deprivation, cupidity of seizure, 'status quo' attacked, a wheel spinning faster and faster, opportunity (not property), and mobility (not stability), with speculators/self-starters/runners being economic leaders and agents of change.

These comparisons are not all clear to me, but instead of trying to muscle my way through the facts (the  what ), let me think about the purpose (the  why ) of the first paragraph. The author is clearly trying to compare the "settled" and "stable" state of "Old World" economics to the instability and hectic nature of the free enterprise system in America. In other words, the first paragraph compares the highly-regulated and manipulated race of the Old World to the hectic and scrambled race of the free enterprise system.

The purpose of the second paragraph is to explain how things like reform, serving others, and helping those in need have been hindered because America can't let go of the "race". American legends glorify the race and those that run it but not those who quietly keep the system working and create social interdependence and stability. I might not understand all of the details of the second paragraph, but I see that the author is explaining problems with America's economic "racing".

Next, ask yourself, "What was the purpose of the entire passage?" Again, the point is to get engaged and think about what you are reading. Trying to think about WHY everything is there is more important than understanding all of the details.

See if that helps you tackle questions 7 and 9!

To post additional questions not already addressed in this thread, feel free to use the  request verbal experts' reply  button. Try to be as specific as possible and to let us know your thoughts so far. Thanks, and welcome to GMAT Club!!

GMATNinja · Answer

Question 5 (+ full passage breakdown)

As with most questions, this one relies on a strong grasp of the passage’s overall purpose. So although this question is about one particular line, let’s begin by thinking about the purpose of each paragraph, and how it relates to the quote about “a piece of the action.” (Side note: feel free to check out our  Ultimate RC Guide for Beginners  for more on reading for purpose).

Let's take a look at the first paragraph:
 
 America sees its economic system as based on  opportunity and mobility . 
 America sees the "Old World" system as based on  property and stability .

Now the second paragraph:
 
 America sees "Haves" as  "agents of change."  
 America sees "Have-Nots" as wanting  "stability, a strong referee  to give them some position in the race."

And finally the third paragraph: 
 
 Reform in America has been ineffective (or "sterile") because its efforts at reform are limited by its view of its economic system as a "race". 
 One  example  of a "sterile" or ineffective reforms is including more people in the race, so they get a  "piece of the action."  
 America would never "call off the race," meaning it would never enact a more extreme reform. 
 Because of America's views of its economic system, the race never ends and no one wins.  
 
So basically, the statement about giving the disenfranchised a  "piece of the action"  is an example of an ineffective reform which America might enact. Let's now take a look at the question itself.

It can be inferred from the passage that the author most probably thinks that giving the disenfranchised “a piece of the action” is
 
The idea of being misdirected catches my eye, since we know the author thinks giving the disenfranchised “a piece of the action” is an example America’s failed effort at reform. But is it a legislative measure? Well, we don’t get any specifics about these reforms, so we have no basis to consider them “legislative measures.” But is it compassionate? I doubt it. The author clearly has some negative views of America’s economic system (“There is no honor in the Wonderland race we must all run...”), so compassionate doesn’t fit very well.

(A) is out.

Right off the bat, I like that this identifies the statement as an  example . Based on our reading, the purpose of the statement “a piece of the action” was to give an  example  of why America’s efforts at reform are sterile, so that makes sense. What about “resistance to profound social change?” Well, the passage says these efforts at reform are like allowing more people to compete in the race, as opposed to calling off the race. In other words, they are small efforts at reform that ultimately fail. And because these reforms fail, America is unable to produce “profound social change.”

Okay, so far so good. But what about the word profound? Well, America is willing to allow more competitors in the race, but not to call off the race. So while it makes small changes, it is unable to make large changes. So the word profound makes sense as well.

Let’s hold on to (B).

Uh, no. The whole point is that this is an example of failed reform. Eliminate (C).

Again, the quote is an example of how America’s views of its economic system cause it to fail at social reform. So it’s not a positive testament (i.e. a monument) to reformers of any kind. (D) is out.

Okay, a “remedy for social ills” catches my ear. This is an example of a reform to America’s economic system, which is arguably a “remedy for social ills,” so that isn’t terrible.

But is it an “Old World” remedy? Well, the quote was an example of America’s effort at reform. And if we go back to the first paragraph, we see that America’s views of its economic system ( mobility and opportunity ) were contrasted to the Old World views ( stability and property ). So really, this answer choice has it backwards. It’s not an Old World remedy, but an example of a  typical American remedy . Eliminate (E).

So we are left with (B) as the answer to question 5.

Hope that helps!

nitya34 · Answer

Btw, whats difference between "primary purpose" and "main point"?

rs2010 · Answer

Difference between Primary purpose and Main point is same as difference between Primary purpose and Main idea i.e.

Primary purpose of message says  why  author has written the passage.

The answers will start with "To..." most of the times. And try identifying what kind of passage it is: explanatory, comparative or argumentative to know whether the author's primary purpose is to "outline", "evaluate", "compare", etc. while main point is superset of 2-3 option.

nitya34 · Answer

6. Which of the following metaphors could the author most appropriately use to summarize his own assessment of the American economic system (lines 35-60)? 
 
(A) A windmill
(B) A waterfall
(C) A treadmill
(D) A gyroscope
(E) A bellows

I opted for treadmill because "its in continuously running" mode resembling "American economic system "
check the last line--#60
 "There is no honor but in the Wonderland race we must all run, all trying to win, none winning in the end (for there is no end)." 
sent PM to you,pls check,icandy

Carcass · Answer

2 - “Old World” categories of settled possessiveness versus unsettling deprivation, the cupidity of retention versus the cupidity of seizure , a “status quo” defended or attacked - hence property 3 - a strong referee to give them some position in the race, a regulative hand to calm manic speculation; an authority that can call things to a halt, begin things again from compensatorily staggered “starting lines.” - hence a judge 6 - see the answer of nytia34 7 - if the main point of the passage is "criticize the inflexibility of American economic mythology" hence we still believe in "traditional legends about America" the myth resist to date 8 - only the third we find it in the passage hope this help you

VKat · Answer

In question 2, could you please explain how "property" can be the answer, from which sentences, we can conclude this.

For question 4, could you please explain the meaning of first few lines of second para as in first line of it, it has been written as " reform has left america sterile" but after few lines, it has been mentioned as " america seems not to honor the stability".so got confused between positive and negative trend, what to choose and how to choose?

piyush1995 · Answer

I found the language of the passage really complex and highly convoluted. The more questions I answered, I feel the less I actually understood the passage. I request someone to summarize the passage with special emphasis on question 7 and 9.

TheRzS · Answer

Hi  GMATNinja ,

7. It can be inferred from the passage that Woodrow Wilson’s ideas about the economic market
(A) encouraged those who “make the system work” (lines 45-46)
(B) perpetuated traditional legends about America
(C) revealed the prejudices of a man born wealthy
(D) foreshadowed the stock market crash of 1929
(E) began a tradition of presidential proclamations on economics

Initially i picked C for Q7, but in the second passage:

"....There is no pride in being an employee  (Wilson asked for a return to the time when everyone was an employer) .... "
hence the Ans 
(B) perpetuated traditional legends about America.

Please let me know if my reasoning is correct.

Thanks and regadrs

GMATNinjaTwo · Answer

That's right! The sentence you highlighted, along with the preceding sentence ("There is, in our legends, no heroism of the office clerk, no stable industrial work force of the people who actually make the system work.") indicate that (B) is the best answer.

So we are looking for someone who acts as a "regulative hand"--an authority that can call things to a halt. This would accurately describe a judge in a courtroom because the judge can regulate the trial, give orders to the attorneys/witnesses/jury/observers, decide when there will be breaks, and, sometimes, end the trial altogether.

However, I'll admit that this isn't a great question, and I don't think you'd see something like this on the GMAT. This is not an official passage, so I wouldn't worry too much about this question!

Arpitkumar · Answer

By Far one of the toughest passages that I have come across , didn't understand a thing in the passage .
Left reading the passage half way in between as I realized it was a waste of time coz I was not registering anything.

Obviously , Questions took more time.
Took 15 minutes to complete the passage , though got 2 Questions incorrect.( including the one with Treadmill as the asnwer option )

GMATNinja  , any thoughts on the strategy used for such tough passages ?

GMATNinja · Answer

That strategy won't get you very far, unfortunately. If you don't take the time to fully understand the structure and purpose of the passage, it's going to be really hard to be accurate with the questions -- and virtually possible to be efficient. If your goal is an elite score, you have no choice but to understand the passage thoroughly before you tackle the questions. (For more thoughts on how to approach RC in general, check out  this post .)

To be fair, though, this passage is TOUGH. And it's also an LSAT passage, which tend to be tougher than those on the GMAT. So it certainly isn't a sign of the apocalypse if you struggled on it, but in a perfect world, we don't want you to abandon passages unless you have absolutely no other choice. And maybe that was the case here, but fight to avoid making that a habit.

I hope this helps!

Skywalker18 · Answer

GMATGuruNY's  explanations

On my first reading, I try only to get the big idea of each paragraph and the tone and the purpose of the passage:

Paragraph 1: 
In America the old view of ownership is less important; each person can make his own opportunity.

Paragraph 2: 
Criticizes how America focuses not enough on interdependence and too much on competition.

When I'm asked about something specific in the passage, I take the following steps:

1. Find in the passage the window that will contain the answer (usually about 5 lines above to 5 lines below what the question is asking about). 
2. Read carefully. 
3. Try to answer the question in my own words -- before I look at the answer choices. 
4. Look for the answer choice that best matches the way I answered the question for myself.

Most of the correct answers should support the author's view: that America focuses too much on competition. So let's get some points!

1. The primary purpose of the passage is to. To criticize America for being too focused on competition.

(A) criticize the inflexibility of American economic mythology. - Correct
(B) contrast “Old World” and “New World” economic ideologies 
(C) challenge the integrity of traditional political leaders 
(D) champion those Americans whom the author deems to be neglected 
(E) suggest a substitute for the traditional metaphor of a race

2. According to the passage, “Old World” values were based on: ownership

(A) ability 
(B) property = ownership 
(C) family connections 
(D) guild hierarchies 
(E) education

3. In the context of the author’s discussion of regulating change, which of the following could be most probably regarded as a “strong referee” in the United States?

(A) A school principal
(B) A political theorist
(C) A federal court judge
(D) A social worker
(E) A government inspector

(A) A school principal 
(B) A political theorist 
(C) A federal court judge Closest to the description above. 
(D) A social worker 
(E) A government inspector

4. The author sets off the word “Reform” (line 35) with quotation marks in order to: Reform is "sterile". No "attempt to call off the race". We refuse to change our ways.

(A) emphasize its departure from the concept of settled possessiveness 
(B) show his support for a systematic program of change 
(C) underscore the flexibility and even amorphousness of United States society 
(D) indicate that the term was one of Wilson’s favorites 
(E) assert that reform in the United States has not been fundamental - Correct

5. It can be inferred from the passage that the author most probably thinks that giving the disenfranchised “a piece 
of the action” (line 38) is: A bad idea. We should be more willing to "call off the race".

(A) a compassionate, if misdirected, legislative measure - Correct
(B) an example of Americans’ resistance to profound social change 
(C) an innovative program for genuine social reform 
(D) a monument to the efforts of industrial reformers 
(E) a surprisingly “Old World” remedy for social ills

6. Which of the following metaphors could the author most appropriately use to summarize his own assessment of the American economic system (lines 35-60)? It's a race.

(A) A windmill 
(B) A waterfall 
(C) A treadmill - Correct
(D) A gyroscope 
(E) A bellows

7. It can be inferred from the passage that Woodrow Wilson’s ideas about the economic market

(A) encouraged those who “make the system work”
(B) perpetuated traditional legends about America
(C) revealed the prejudices of a man born wealthy
(D) foreshadowed the stock market crash of 1929
(E) began a tradition of presidential proclamations on economics

(A) encouraged those who “make the system work” (lines 45-46) 
(B) perpetuated traditional legends about America - Correct
(C) revealed the prejudices of a man born wealthy 
(D) foreshadowed the stock market crash of 1929 
(E) began a tradition of presidential proclamations on economics

8. The passage contains information that would answer which of the following questions? Gotta check each one.

I. What techniques have industrialists used to manipulate a free market? Not discussed. Eliminate A and D. 
II. In what ways are “New World” and “Old World” economic policies similar? Passage says they're different. Eliminate B and E. The correct answer is C. 
III. Has economic policy in the United States tended to reward independent action? No need to check this since we already determined the correct answer, but the passage criticizes America for focusing too much on competition and not enough on interdependence.

(A) I only 
(B) II only 
(C) III only 
(D) I and II only 
(E) II and III only

9. Which of the following best expresses the author’s main point?  Critical of America for focusing too much on competition. 
 
(A) Americans’ pride in their jobs continues to give them stamina today. 
(B) The absence of a status quo ante has undermined United States economic structure. 
(C) The free enterprise system has been only a useless concept in the United States. Too strong. 
(D) The myth of the American free enterprise system is seriously flawed. Better. 
(E) Fascination with the ideal of “openness” has made Americans a progressive people.

Ron's  thought on this passage-

dcummins · Answer

Passage Map: Looks to be some sort of speech actually, but anyway.
P1: To describe the economic system as open and free, then dive deeper into how the US economic system's class politics - composed of those who want to keep what they have and those who want change

P2: Discuss the lack of change in the US and the failure of the system to recognise those silent workers.

Question 1 - Main Idea  
A - Correct. The author generally criticises the rigidity of the structure of the economy by discussing the idea of a free system but then pointing out many failures of that system in P2.
B is incorrect. No 'New World' elements are discussed. The second passage really turns into a critique.
C is incorrect. Where are political leaders discussed?
D - the author discusses the fact that "America seems not to honor the quiet work that achieves social interdependence" and then goes on to give examples of those who quietly achieve social interdependence, but I wouldn't say he is advocating FOR these people specifically, he discusses them as evidence that the system is rigid and has failed to recognise these people.
E - No. This is far too specific to warrant two passages on.

Question 2 - Detail  
This is a bit more tricky and nearly got me.
The "old world" is mentioned in P1. 
We are first told that American defied (went against) the values of the Old world. Then we are told that "The old world categories OF settled possessiveness versus unsettling deprivation.." are basically rigid categories and that "We (Americans presumably) did not base the system (in defiance) on property but on opportunity".

Thus the answer is B

Question 3 - Detail Inference  
Information is contained at the end of P1. Basically a "strong referee" is someone with authority who can make the final decision that each party must follow. The only role in this list that has any such authority is (C).

A - a principal has authority in the school, thats it. Incorrect
B - A political theorist simply passes commentary. No judgements. Incorrect.
C - Correct. A federal judge has the power to make such "strong" decisions across the federation.
D - A social worker is discussed in P2 and it is generally inferred that they are subordinate. Incorrect
E - A government inspector has no real authority. This answer tries to bait you by using the word "government". Incorrect

Question 5 - Inference  
This is mentioned in P2 sentence 1.
Giving competitors "a piece of the action" is described as a measure taken to maintain the way things work, but extend the system to new entrants and others - the disenfranchised.

A - Incorrect. I actually chose this as I thought the change stemmed from one centralised power that didn't need to extend itself to others, so only did so out of desire/ compassion. This is false as the "race" is run by everyone and its not clear whether others can extend it. Also "misdirected" implies that including others in a piece of the action is not the best idea - this is false.
B is correct because based on the above we know that Americans want to maintain the Race, so would merely extend the race to others out of desire not to profoundly change the race.
C - Incorrect. It's not innovative at all.
D - No... its not a tribute to anything.
E - Old world is rigid/ inflexible to change/ defined by possessiveness of property etc, so I can't see how giving away a piece of something is in line with Old world values. Incorrect

bM22 · Answer

4. The author sets off the word “Reform” with quotation marks in order to

(A) emphasize its departure from the concept of settled possessiveness
(B) show his support for a systematic program of change
(C) underscore the flexibility and even amorphousness of United States society
(D) indicate that the term was one of Wilson’s favorites
 (E) assert that reform in the United States has not been fundamental

Explanation: can be inferred from the lines: "“Reform” in America has been sterile because it can imagine no change except through the extension of this metaphor of a race, wider inclusion of competitors", implication being that reform in America is based on change and is not based on any basic rules or principles.

6. Which of the following metaphors could the author most appropriately use to summarize his own assessment of the American economic system

(A) A windmill
(B) A waterfall
 (C) A treadmill
 (D) A gyroscope
(E) A bellows

Explanation: I inferred author's assessment from the lines: " Our only “station” was the turning of a stationary wheel, spinning faster and faster.". Only a treadmill is analogous to what author's trying to say. Also, the author can be seen mentioning that it's a race, with only wider inclusion of competitors. C is the best answer.

7. It can be inferred from the passage that Woodrow Wilson’s ideas about the economic market

(A) encouraged those who “make the system work”
 (B) perpetuated traditional legends about America
 (C) revealed the prejudices of a man born wealthy
(D) foreshadowed the stock market crash of 1929
(E) began a tradition of presidential proclamations on economics

Explanation : can be inferred from the lines: "There is, in our legends, no heroism of the office clerk, no stable industrial work force of the people who actually make the system work. There is no pride in being an employee (Wilson asked for a return to the time when everyone was an employer). " , implies that Wilson himself believed that there was no pride in being an employee, thus he continued the traditional ideas about America.

Thanks.

BankerBro · Answer

GMATNinja

What is the difference between "Primary Purpose" (as asked in 1st question) and "Main Point" (as asked in 9th question) of the passage ?
Kindly explain in the context of this passage. How to differentiate between the two ?

BankerBro · Answer

Can anyone please help in explaining how the author is criticizing the American Idea of continuous change? Which lines in the passage actually signify that the author is criticizing? Where is that mentioned that the American idea is flawed?

GMATNinja · Answer

It’s probably not the best idea to get into comparing one question to another. We’re far better off taking each question (and each answer choice for that matter) individually and then going through a systematic process of elimination.

That being said, the primary purpose of the passage (Q1) is  why  the author wrote the passage, whereas the main point (Q9) is  what  the author has communicated by writing the passage. It’s a subtle distinction, and likely one of questionable value, but perhaps it’s helpful to think of it as two sides of the same coin. The primary purpose is  why  the author puts what he/she does into the passage (the author’s perspective), and the main point is  what  the reader is supposed to get out of the passage.

While the two concepts are different, they’re definitely related. This can be seen in the answers to questions 1 and 9. The author’s primary purpose is to “criticize the inflexibility of American economic mythology.” That’s  why  the author wrote this passage. But his/her main point is “the myth of the American free enterprise system is seriously flawed.” That’s  what  the author claims in order to criticize the American economic mythology.

I hope that helps!

Woodrow Wilson was referring to the liberal idea of the

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Woodrow Wilson was referring to the liberal idea of the

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