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# QOTD: During the 1930s, Roosevelt’s New Deal

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QOTD: During the 1930s, Roosevelt’s New Deal  [#permalink]

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06 Jun 2017, 07:37
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Verbal Question of The Day: Day 27: Critical Reasoning

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Which of the following most logically completes the argument?

During the 1930s, Roosevelt’s New Deal expanded federal authority by creating several new government agencies designed to administer financial relief to the country, which had been devastated by the 1929 stock market crash and the ensuing economic depression. In the decades following the depression, however, 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. Although they feared another economic depression, many prominent economists of that time sided with those policymakers, since

(A) further expansion of federal authority would hinder economic growth and increase the risk of another economic depression.
(B) many agencies created under the New Deal were designed to provide financial relief, not to maintain economic stability.
(C) most Americans feared expansion of federal authority more than they feared another economic depression.
(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.
(E) most policymakers of that time considered federal regulation of the market to be an emergency measure that, as such, should only be temporary.

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QOTD: During the 1930s, Roosevelt’s New Deal  [#permalink]

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06 Jun 2017, 07:39
10
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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.
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##### General Discussion
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Re: QOTD: During the 1930s, Roosevelt’s New Deal  [#permalink]

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Updated on: 07 Jun 2017, 01:40
1

The agencies were created after the depression and their role was to relief the devastated economy, then it worked and the economy recovered. Afterward, since the new economic depression is expected to come, all the people need is to find a measure to keep the Economy stable and not to fall in the same path as it did in 1929; People should not wait till the economy gets devastated again and then give it some financial relief treatments like the agencies did in the past. Hence，the agencies had no added value to be continued and to deal with the coming depression. Therefore B.

I think in this question, we need to find a reason why the prominent Economists were on the side of the Policy makers / what they thought to decide to be on the same side with the policy makers. That's why E doesn't work.

(Edited several time due to my stupid English )

Originally posted by Labmalo on 06 Jun 2017, 19:40.
Last edited by Labmalo on 07 Jun 2017, 01:40, edited 5 times in total.
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Re: QOTD: During the 1930s, Roosevelt’s New Deal  [#permalink]

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06 Jun 2017, 21:39
Imo E

Tough choice between D and E

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Re: QOTD: During the 1930s, Roosevelt’s New Deal  [#permalink]

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07 Jun 2017, 05:51
Hatakekakashi wrote:
Labmalo wrote:

The agencies were created after the depression and their role was to relief the devastated economy, then it worked and the economy recovered. Afterward, since the new economic depression is expected to come, all the people need is to find a measure to keep the Economy stable and not to fall in the same path as it did in 1929; People should not wait till the economy gets devastated again and then give it some financial relief treatments like the agencies did in the past. Hence，the agencies had no added value to be continued and to deal with the coming depression. Therefore B.

I think in this question, we need to find a reason why the prominent Economists were on the side of the Policy makers / what they thought to decide to be on the same side with the policy makers. That's why E doesn't work.

(Edited several time due to my stupid English )

how'd you eliminate E/A?

This was my thinking:

Eliminated A because it's talking about FURTHER expansion of federal authority while the prompt is talking about the policies currently in place. As such, even if A is true, it does not address whether the policy now should be discontinued

Eliminated E because the conclusion of the stem is concerned regarding why prominent economists sided with the policymakers. E says most POLICYMAKERS believed federal regulations should be temporary. This does not address why Economist would agree them, especially if the economists were fearing another depression.

The only answer that works is B because it gives an answer why the economists would side with the policymakers despite fearing another depression (the policy doesn't actually maintain economic stability/wouldn't have an impact on economic depression)

Hope this helps!
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Re: QOTD: During the 1930s, Roosevelt’s New Deal  [#permalink]

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07 Jun 2017, 05:57
This is tricky one .. I must confess ... I marked option A. Awaiting OE !!!
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Re: QOTD: During the 1930s, Roosevelt’s New Deal  [#permalink]

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07 Jun 2017, 06:01
jwang516 wrote:
Hatakekakashi wrote:
Labmalo wrote:

The agencies were created after the depression and their role was to relief the devastated economy, then it worked and the economy recovered. Afterward, since the new economic depression is expected to come, all the people need is to find a measure to keep the Economy stable and not to fall in the same path as it did in 1929; People should not wait till the economy gets devastated again and then give it some financial relief treatments like the agencies did in the past. Hence，the agencies had no added value to be continued and to deal with the coming depression. Therefore B.

I think in this question, we need to find a reason why the prominent Economists were on the side of the Policy makers / what they thought to decide to be on the same side with the policy makers. That's why E doesn't work.

(Edited several time due to my stupid English )

how'd you eliminate E/A?

This was my thinking:

Eliminated A because it's talking about FURTHER expansion of federal authority while the prompt is talking about the policies currently in place. As such, even if A is true, it does not address whether the policy now should be discontinued

Eliminated E because the conclusion of the stem is concerned regarding why prominent economists sided with the policymakers. E says most POLICYMAKERS believed federal regulations should be temporary. This does not address why Economist would agree them, especially if the economists were fearing another depression.

The only answer that works is B because it gives an answer why the economists would side with the policymakers despite fearing another depression (the policy doesn't actually maintain economic stability/wouldn't have an impact on economic depression)

Hope this helps!

This was my thinking as well. B is correct.
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Re: QOTD: During the 1930s, Roosevelt’s New Deal  [#permalink]

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29 Jun 2017, 03:45
GMATNinja wrote:
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.

I have a confusion here. So option B states that the agencies were created only to cater to financial needs during recession and as per the conclusion there is an upcoming recession. So we might still need these agencies to just provide the same type financial relief as they did earlier. Am I making any sense?
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Re: QOTD: During the 1930s, Roosevelt’s New Deal  [#permalink]

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30 Jul 2017, 10:09
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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Re: QOTD: During the 1930s, Roosevelt’s New Deal  [#permalink]

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26 Jan 2018, 07:28
Chose E between choices B & E. However B appears to be more logical as it completes the argument with economists' perception on the deal and their concern on economic stability.
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Re: QOTD: During the 1930s, Roosevelt’s New Deal  [#permalink]

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26 Jan 2018, 09:35
souvik101990 wrote:
[textarea]

Verbal Question of The Day: Day 27: Critical Reasoning

Which of the following most logically completes the argument?

During the 1930s, Roosevelt’s New Deal expanded federal authority by creating several new government agencies designed to administer financial relief to the country, which had been devastated by the 1929 stock market crash and the ensuing economic depression. In the decades following the depression, however, 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. Although they feared another economic depression, many prominent economists of that time sided with those policymakers, since

(A) further expansion of federal authority would hinder economic growth and increase the risk of another economic depression.
(B) many agencies created under the New Deal were designed to provide financial relief, not to maintain economic stability.
(C) most Americans feared expansion of federal authority more than they feared another economic depression.
(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.
(E) most policymakers of that time considered federal regulation of the market to be an emergency measure that, as such, should only be temporary.

Economists point of view needs to continue

(A) further expansion of federal authority would hinder economic growth and increase the risk of another economic depression.
Not continuing with the flow, nothing to indicate that an expansion of authority is being considered.

(B) many agencies created under the New Deal were designed to provide financial relief, not to maintain economic stability.
Provides a good flow to the passage, probable answer.

(C) most Americans feared expansion of federal authority more than they feared another economic depression.
Economists point of view should continue, not most Americans, too much. hence out

(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.
Thougth this could be a probable answer, but nothing indicates that the power and authority had expanded

(E) most policymakers of that time considered federal regulation of the market to be an emergency measure that, as such, should only be temporary.
talks about the policymakers point of view, doesnt seem to go with the flow, the answer should indicate the economists point of view. Hence out

while anwering i narrowed it down to B and D and then selected D,
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Re: QOTD: During the 1930s, Roosevelt’s New Deal  [#permalink]

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05 Jul 2018, 10:39
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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Re: QOTD: During the 1930s, Roosevelt’s New Deal  [#permalink]

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08 Jul 2018, 16:08
B because it talks about what would concern economists and not just the policymakers.
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Re: QOTD: During the 1930s, Roosevelt’s New Deal  [#permalink]

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10 Jul 2018, 20:15
sunkiss12116 wrote:
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.

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Re: QOTD: During the 1930s, Roosevelt’s New Deal &nbs [#permalink] 10 Jul 2018, 20:15
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