Question

True or False?

The New Deal emerged from the inability of the laissez-faire capitalism of the late nineteenth and early twentieth centuries to deal with its self-generated problems.

Among many attempts to overcome Europe's economic backwardness, the most important was the creation of a Common Market without tariff barriers, a breakthrough in modernizing and unifying Europe.

Important among the forces behind the Golden Age boom was the decreased role of government.

Command economies are never good for mobilizing.

Answer 1

True. New Deal was initiated in 1933 by President Roosevelt. it consisted of series of public works and unemployment benefits to overcome the difficulties of Great Depression.

True. By 1950, it was known that European isolated markets were no match to the US and the Soviet Union. In order to improve economic environment and prevent wars, many influential leaders suggested integration of Europe into a common market. Hence, in 1957, European Economic Community (EEC) was established.

False. Golden Age is referred to period of high economic growth in post-war years in the US, European countries and Japan. One of the most important factors for this boom was expansion of welfare state. Many countries undertook huge public spending on infrastructure, education and health. They formulated different schemes for unemployed, refugees, working class etc. which helped these economies to recover greatly from the War

False. We cannot say that command economies are never good for mobilizing. In fact, in presence of full information, command economies may mobilize factors more efficiently than conventional markets. An important example in this respect is China.