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New Deal in America

by neha.patni » Fri Jul 30, 2010 3:11 am
The New Deal in America began in 1933 and included widespread bank reforms, unprecedented government infrastructure spending, and unparalleled expansion in the size of government. Some political commentators and economic historians contend that President Franklin Roosevelt's New Deal singlehandedly propelled the United States out of the Great Depression and into decades of uninterrupted prosperity. To support this claim, these economists note that during the years following 1933, GDP grew, unemployment shrunk, and optimism increased.

Which of the following statements, if true, would most weaken the above argument?

A) The considerable debt burden that the government assumed to fund the New Deal sparked fear in the minds of some economists, investors, and businessmen.
B) The considerable government expenditures and massive labor requirements engendered by America's entry into World War II in late 1941 helped employ Americans and grow GDP.
C) On average, GDP per capita fell and unemployment rose in many foreign countries during the years after President Roosevelt announced his New Deal.
D) During 1939, the U.S. economy contracted sharply, unemployment jumped 5%, and America's optimism fell.
E) U.S. GDP during the mid 1930s stood at levels much lower than 30 years later.
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by outreach » Fri Jul 30, 2010 3:16 am
is it D
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by selango » Fri Jul 30, 2010 4:02 am
"propelled the United States out of the Great Depression and into decades of uninterrupted prosperity"

"during the years following 1933, GDP grew, unemployment shrunk, and optimism increased"

Option D weaken the argument.Because the argument states that prosperity is uninterrupted for decades.But unemployment increased after 6yrs itself.
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by reply2spg » Fri Jul 30, 2010 4:18 am
IMO B is the answer. What is OA?

Edited - Agree with D, don't know what the crap I am thinking while solving CR.
Last edited by reply2spg on Fri Jul 30, 2010 6:48 am, edited 1 time in total.
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by yasir » Fri Jul 30, 2010 4:25 am
In my opinion "D".
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by uwhusky » Fri Jul 30, 2010 8:24 am
I believe the answer is indeed B:

A) The considerable debt burden that the government assumed to fund the New Deal sparked fear in the minds of some economists, investors, and businessmen.
Irrelevant information.
B) The considerable government expenditures and massive labor requirements engendered by America's entry into World War II in late 1941 helped employ Americans and grow GDP. Correct answer
C) On average, GDP per capita fell and unemployment rose in many foreign countries during the years after President Roosevelt announced his New Deal.
Irrelevant information.
D) During 1939, the U.S. economy contracted sharply, unemployment jumped 5%, and America's optimism fell.
A single year of bad economy does not refute the claim of the economic historian.
E) U.S. GDP during the mid 1930s stood at levels much lower than 30 years later.
Irrelevant.

The reason why B is correct is because the argument is:
Some political commentators and economic historians contend that President Franklin Roosevelt's New Deal singlehandedly propelled the United States out of the Great Depression and into decades of uninterrupted prosperity. To support this claim, these economists note that during the years following 1933, GDP grew, unemployment shrunk, and optimism increased.
"Decades" means at least 20 years if not more, but B introduces an outside element that undermines the argument that New Deal singlehandedly propelled the economy for decades.

I could have guessed this answer because it's history =)
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by thephoenix » Fri Jul 30, 2010 9:03 am
the correct an IMO is B
conclusion:President Franklin Roosevelt's New Deal cause resulted in GDP grew, unemployment shrunk, and optimism increased effect.
to weaken it we need to show any one of following
1)alt cause for the stated effect 2) reversal of C and E relationship 3) when C occurs E does not occurs or vis e vis

a)does not fall in any of the cat mentioned above and is out of scope
b) correct and is same as case 1) mentioned above
c)irrelevant
d)opposite of the facts mentioned in stimulus
e)talks about only GDP and is irrelevant
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by uwhusky » Fri Jul 30, 2010 10:02 am
What do you mean by: "d)opposite of the facts mentioned in stimulus "?
Yep.
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by PurpleReign » Fri Jul 30, 2010 11:00 am
I chose B. My thought process....

Conclusion: Some political commentators and economic historians contend that President Franklin Roosevelt's New Deal singlehandedly propelled the United States out of the Great Depression and into decades of uninterrupted prosperity.

Premise: To support this claim, these economists note that during the years following 1933, GDP grew, unemployment shrunk, and optimism increased.

When I read the conclusion the word singlehandedly stuck out to me. I've gotten a few CR questions wrong because I didn't pay attention to those types of words (most, many, all, singlehandedly) and the answer choice that weakened the argument had something to do with undermining that part of the argument. I hope I'm making sense here. Basically I watch out for absolute claims because absolute claims are usually easy to chip away.

B states that there were other factors (government spending on WWII and such) that brought about higher GDPs, employment rates etc. in addition to the New Deal. This weakens the argument that the New Deal singlehandedly brought the US out of the Great Depression.
Last edited by PurpleReign on Fri Jul 30, 2010 12:03 pm, edited 1 time in total.
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by debmalya_dutta » Fri Jul 30, 2010 11:56 am
neha.patni wrote:The New Deal in America began in 1933 and included widespread bank reforms, unprecedented government infrastructure spending, and unparalleled expansion in the size of government. Some political commentators and economic historians contend that President Franklin Roosevelt's New Deal singlehandedly propelled the United States out of the Great Depression and into decades of uninterrupted prosperity. To support this claim, these economists note that during the years following 1933, GDP grew, unemployment shrunk, and optimism increased.

Which of the following statements, if true, would most weaken the above argument?

We need to weaken "President Franklin Roosevelt's New Deal singlehandedly propelled the United States out of the Great Depression and into decades of uninterrupted prosperity."
We probably need to look for an answer which proves something contrary to President Franklin Roosevelt's New Deal resulted in the improvement of the economy

A) The considerable debt burden that the government assumed to fund the New Deal sparked fear in the minds of some economists, investors, and businessmen. - Irrelevant
B) The considerable government expenditures and massive labor requirements engendered by America's entry into World War II in late 1941 helped employ Americans and grow GDP. - Correct
C) On average, GDP per capita fell and unemployment rose in many foreign countries during the years after President Roosevelt announced his New Deal. - talks about other countries ..Not the US ..So irrelevant
D) During 1939, the U.S. economy contracted sharply, unemployment jumped 5%, and America's optimism fell. this proves economy did not improve . So it is negating what is stated in the argument
E) U.S. GDP during the mid 1930s stood at levels much lower than 30 years later. - this proves economy did not improve . So it is negating what is stated in the argument
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by FightWithGMAT » Fri Jul 30, 2010 12:36 pm
neha.patni wrote:The New Deal in America began in 1933 and included widespread bank reforms, unprecedented government infrastructure spending, and unparalleled expansion in the size of government. Some political commentators and economic historians contend that President Franklin Roosevelt's New Deal singlehandedly propelled the United States out of the Great Depression and into decades of uninterrupted prosperity. To support this claim, these economists note that during the years following 1933, GDP grew, unemployment shrunk, and optimism increased.

Which of the following statements, if true, would most weaken the above argument?

A) The considerable debt burden that the government assumed to fund the New Deal sparked fear in the minds of some economists, investors, and businessmen.
B) The considerable government expenditures and massive labor requirements engendered by America's entry into World War II in late 1941 helped employ Americans and grow GDP.
C) On average, GDP per capita fell and unemployment rose in many foreign countries during the years after President Roosevelt announced his New Deal.
D) During 1939, the U.S. economy contracted sharply, unemployment jumped 5%, and America's optimism fell.
E) U.S. GDP during the mid 1930s stood at levels much lower than 30 years later.
I like D

B does not fill the gap of 8 yrs. If WW2 had done something positive in 1941, the effect would have reflected after that. But the argument talks about the yrs following 1933.

D does not weaken the entire claim, but does partly. One part of the claim is that the progress continued for decades. D denies it. And weakening partly is as good as is weakening completely.
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by uwhusky » Fri Jul 30, 2010 12:43 pm
Another thing to note about D is that rise in unemployment and contraction in economy does not constitute as disruption to prosperity.

Definition of decade(s) means at minimum 20 years, thus WWII fits within that period.
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by paes » Fri Jul 30, 2010 5:28 pm
IMO B

D : it is only for one year.
other thing, it is directly contradicting to the conclusion.
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by selango » Fri Jul 30, 2010 5:54 pm
Why option D?

Bcoz in thhe argument it is stated that"New Deal singlehandedly propelled the United States out of the Great Depression and into decades of uninterrupted prosperity"

For 10 years there is uninterrupted prosperity.But after 6 yrs itself there is a recession.This weakens the argument.

Option B

In the argument it is stated that "New Deal singlehandedly propelled the United States out of the Great Depression and into decades of uninterrupted prosperity"

World war does not propelled the country out of depression.But it strengthen the economy.

Any thoughts?
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by uwhusky » Fri Jul 30, 2010 6:02 pm
selango wrote: For 10 years there is uninterrupted prosperity.But after 6 yrs itself there is a recession.This weakens the argument.
D) During 1939, the U.S. economy contracted sharply, unemployment jumped 5%, and America's optimism fell.

Contracted economy, higher unemployment rate, and lower optimism is NOT a recession. It could simply be interpret as "less rosy", but a far cry to call it anything but a minor hiccup, if at all.
selango wrote: In the argument it is stated that "New Deal singlehandedly propelled the United States out of the Great Depression and into decades of uninterrupted prosperity"

World war does not propelled the country out of depression.But it strengthen the economy.
B) The considerable government expenditures and massive labor requirements engendered by America's entry into World War II in late 1941 helped employ Americans and grow GDP.

There's nothing that says WWII propelled the country out of depression, but you're right, the war did strengthen the economy, thus weakens the argument that New Deal singlehandedly put US into decades of uninterrupted prosperity. In fact, anything that could offer as alternative to say that New Deal was not the sole reason is enough to weaken the argument.
Yep.
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