Why did the liberal opposition criticize…

History Questions

Why did the liberal opposition criticize the New Deal? Check all the boxes that apply: 1) They believed the New Deal did not provide enough economic opportunity. 2) They argued that the New Deal led to excessive government spending. 3) They thought the New Deal did not do enough for wealth redistribution. 4) They felt the New Deal lacked sufficient social programs. 5) They believed the New Deal expanded states’ rights too much.

Answer

The correct answers are: They thought that the New Deal led to too much government spending. They thought that the New Deal expanded states’ rights too much. Liberals advocated for laissez-faire economics, which emphasized minimal government intervention and the belief that free markets would yield the most efficient results. They contended that markets, when allowed to operate independently, would drive the best economic outcomes. In contrast, the New Deal was inspired by Keynesian economics, which identified low aggregate demand as a principal factor in the Great Depression. The New Deal’s strategy was to increase demand by allocating substantial public funds towards creating jobs for the unemployed, allowing them to earn wages and stimulate consumption. This approach required significant government intervention, which liberals strongly opposed, arguing that such high levels of public spending would lead to a considerable national budget deficit.

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