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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?
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.
The considerable debt burden that the government assumed to fund the New Deal sparked fear in the minds of some economists, investors, and businessmen.
On average, GDP per capita fell and unemployment rose in many foreign countries during the years after President Roosevelt announced his New Deal.
During 1939, the U.S. economy contracted sharply, unemployment jumped 5%, and America's optimism fell.
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Answer / Aftab Alam
The considerable debt burden that the government assumed to fund the New Deal sparked fear in the minds of some economists, investors, and businessmen.
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