The G.I. Bill: A Government Program That Worked

President Roosevelt signed the Serviceman’s Readjustment Act of 1944 on this date 67 years ago.

Better known as the G.I. Bill, it was a revolutionary way to re-integrate the millions of servicemen back into society following their return from World War II. FDR was well aware of the misery that greeted many veterans of the first World War upon their return. Many were unable to secure the jobs they left behind. Others were without the resources to attend college or start a business. Roosevelt particularly wanted to avoid a repeat of the so-called “Bonus March” of 1932, when 20,000 unemployed veterans and their families descended on Washington to protest.

The G.I. Bill did many things—unemployment compensation, the ability to acquire loans and the right to return to their previous employer, but perhaps the most profound aspect were the incentives to receive a college education.

Before the war, less than 15 percent of Americans were able to go to college—and a university education was seen as unattainable for all but the most privileged in American society. After WWII, nearly half of college enrollment consisted of veterans—and in 1950, a half million college graduates entered the work force(compared to 160,000 in 1939)

The incredible economic expansion following the war was in large part due to this legislation. Of the money set aside strictly for unemployment compensation, only 20 percent was actually used. Most servicemen found work or entered college.

The low-interest loans are credited with an explosion in home construction and the growth of American suburbs.

Here’s an informative film clip from the era, outlining the purpose of the G.I. Bill and how veterans could take advantage of it—fun to watch this glimpse of life back then:



http://www.youtube.com/watch?v=YL4PP2kS-fg


In a world where government programs are generally vilified, the G.I. Bill is a prime example of a government incentive program that worked. Not a handout, but rather a well thought-out system that both rewarded the service of our returning soldiers, but also jump-started our economy by placing a huge emphasis on education.

We could learn a thing or two by paying attention to the things that work. Investing in our future is never a bad gamble.

Even in a recession.


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