Over Here: How the G.I. Bill Transformed the American Dream by Edward Humes

In an era of government bailouts for Wall Street and stimulus packages that no one is sure even works, it’s good to read that at least one time in American history our congress got something right: The G.I. Bill that followed World War II. Determined to not fail our returning vets as was the case in all prior wars, then President Franklin Roosevelt started the legislative ball rolling in the early years of the war to offer benefits to the nearly 17 million soldiers who would be returning. What finally came out of Congress (after Roosevelt’s death) was a plan to offer G.I.’s a guaranteed home loan with nothing down and finances for attending college (along with a stipend for living expenses). The impetus behind the bill was the fear that if that many soldiers came home to no opportunities as was the case before the war, America would be ripe for socialism and communist influence. But, as Roosevelt said, a nation of homeowners is unconquerable. So what did our government do? They made a 110 Billion dollar (in today’s money) transfer of wealth from the public treasury to this group of Americans to enable them to go to school and buy their first house. To fight socialism, our congress committed one of the greatest acts of socialism in our nation’s history. The result was the create for the first time a real middle class of tax paying, home owning, college educated Americans. Prior to this less than 10% of our population could afford a home and less than 8% had attended college. With the collateral expenditures each homeowner made on appliances, furniture, improvements, and eventually bigger homes, $49 was returned to the national economy for every government dollar spent. The irony to my thinking is that many of the beneficiaries of this program were also the same who would later support governmental policies that have contributed to a virtual dismantling of the middle class. Economics aside, this is a reminder that not all government programs are bad. The key is whether it is direct aid or an opportunity to improve your life if you put forth some effort. One creates further dependence and indolence, the other creatively leverages our nations wealth to create greater opportunity for all who don’t mind working for the American Dream. I hope in the understandable frustration so many are feeling today about government spending, we don’t forget that some investments are worthwhile. The wildly successful post WWII GI Bill is a great example of how investing in ourselves can pay great dividends in the future both economically and as a people.