The Rating of the Law
The G.I. Bill of Rights - the law of the land from 1944 until 1956- is considered by many analysts to be the greatest legislation in American history. It is certainly one of the four most important, with Social Security, Medicare and the Civil Rights Act. This article will explore the background to the legislation, describe its provisions and evaluate the impact it had on the nation.
The Unpleasant Experience Following the First World War
Several years after the end of the First World War, the country passed The World War Adjusted Act of 1924 - usually called the Bonus Act. The legislation provided bonuses for veterans - the amount depending on the time of service. The veterans, however, would not receive any money for 20 years. In the summer of 1932 - at the depth of the Great Depression - a contingent of veterans marched on Washington, D.C. demanding their bonuses immediately. A group of American soldiers fought with and dispersed the veterans sending them out of town. The memory of that awful incident made some government officials determined to treat our veterans better following the Second World War.
The Legislation is Debated and Passed
The G.I. Bill - officially known as the Servicemen’s Readjustment Act of 1944 - was written by Harry Colmery, a World War I veteran and former Chairman of the National Republican Committee. Its chief advocates in Congress were Senators Ernest McFarland and Warren Atherton and Congresswoman Edith Rogers.
The bill was introduced in the U.S. House of Representatives on January10, 1944 and in the Senate on the following day. The legislation encountered serious opposition in Congress because some members believed military service was an obligation and should not be rewarded with government benefits while others thought that providing veterans with unemployment insurance would discourage them from seeking employment. Different versions of the law passed the two houses of Congress and had to be reconciled. The legislation was signed into law by President Roosevelt on June 22, 1944.
Provisions of the Law
The legislation provided for:
- one year’s unemployment compensation of $20 per week.
- loans to buy homes or start businesses. The home loans - backed by the Veterans Administration - had low interest and required no down payment.
- college or vocational training. For veterans who were full-time students, the government paid tuition, books, registration fees and lab fees in addition to giving the veteran a monthly stipend. For part-time students the government only paid the veteran’s tuition.
Impact of the Legislation-Education
The law’s provisions relating to education benefits had an astronomical impact on the country- a very positive impact. As a direct result of this magnificent legislation:
- higher education became available to the “lower classes’ whereas prior to World War11, only the wealthy were able to attend college. The fact that college was just for the well-born elite was permanently shattered.
- engineers and technicians - desperately required for the technological revolution - became available.
- colleges expanded and improved their facilities.
- education served as a safety valve for returning veterans. Consequently, the job market was not flooded with many more employment-seekers than available jobs.
- the student body no longer consisted only of an immature 18-23 cohort but was a much more mature group resulting in improved education levels.
- the federal government received substantial financial benefits. Reliable studies concluded that for every dollar the government spent for veteran’s education, it received seven dollars back. This favorable ratio occurred because engineers, teachers, accountants, economists and other college graduates earn substantially more money and, thus, pay higher taxes than do unskilled workers and clerks.
- the educational and skill level of the country’s labor force improved significantly. In the seven years following World War II, 2.3 million veterans attended college, 3.5 million received vocational training and 3.4 million obtained on-the-job training.
Other Results of the Legislation
Although much less important than the education benefits, the housing provisions were also beneficial for the country. Houses were purchased by 2.4 million World War II veterans with the aid of mortgages guaranteed by the Veterans Administration. Prior to the Second World War, houses in the suburbs were usually purchased by the affluent while “ordinary people” remained in the cities. As a result of the G.I. Bill, that pattern changed to the benefit of the nation. Only a small percentage of veterans utilized the unemployment insurance available to them since most of them either worked or went to school, but it was helpful to the few who did not attend college and were unable to obtain employment.
Subsequent Related Legislation
The original G.I. Bill of rights ended in July, 1956. Since then, there have been a series of laws providing educational assistance to veterans. While not as comprehensive as the original law, they have been helpful in aiding veterans to obtain college degrees. Unquestionably, the 1944 G.I. Bill of Rights is one of the greatest pieces of legislation in American history.
Sources
- U.S. Department of Veteran Affairs
- Ontario Institute for Studies in Education at the University of Toronto
Raymond Spungin - I have analyzed the New York City metropolitan area for 33 years professionally. I was the author of many widely - read economic reports. ...
Join the Conversation