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THIS RESEARCH PAPER WILL EXAMINE THE WAY IN WHICH THE FEDERAL GOVERNMENT’S ATTEMPT TO TEMPORARILY THWART ECONOMIC INSTABILITY OVER HALF A CENTURY AGO CONTINUES.

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Presentation on theme: "THIS RESEARCH PAPER WILL EXAMINE THE WAY IN WHICH THE FEDERAL GOVERNMENT’S ATTEMPT TO TEMPORARILY THWART ECONOMIC INSTABILITY OVER HALF A CENTURY AGO CONTINUES."— Presentation transcript:

1 THIS RESEARCH PAPER WILL EXAMINE THE WAY IN WHICH THE FEDERAL GOVERNMENT’S ATTEMPT TO TEMPORARILY THWART ECONOMIC INSTABILITY OVER HALF A CENTURY AGO CONTINUES TO HAVE PROFOUND SOCIAL AND ECONOMIC RESULTS TODAY. Unintended Consequences: The GI Bill Throughout the 21st Century

2 From the beginning: WWI Veterans return from WWI to unemployment and poverty 1932- thousands of WWI veterans march on Washington in search of federal financial aid 1944 - Fearing a similar response to the Post WWI recession the Serviceman’s Readjustment Act of 1944 is passed

3 Serviceman’s Readjustment Act of 1944 Drafted by American Legion member and Illinois governor John Steele Primary concern is to avoid economic hardship for country Republican Hamilton Fish of the Hudson Valley in New York State tells House of Representatives that WWII veterans would not “come home and sell apples as they did after the last war, because if that is all they were offered, I believe we would have chaotic and revolutionary conditions in America.” FDR signs bill into legislation June 22, 1944

4 Results 2.2 million WWII veterans used Serviceman’s Readjustment Act education benefits after WWII In 1947 half of college students are veterans WWII veterans primarily in their late twenties to early thirties return to the U.S. anxious to catch up with heir non military peers – marry, settle down, and raise a family 1/5 of all single family homes in the United States within 20 years after WWII are financed with the Serviceman’s Readjustment Act of 1944 A new white suburban middle class is born Education responds to needs of veterans with degree programs in business and engineering

5 A Second Generation U.S. involvement in Korea and Viet Nam and the end of the draft in 1973 results in very low volunteerism Representative Montgomery (D-Miss), chairman of the House Veterans Affairs Committee sponsors the Montgomery GI Bill President Ronald Reagan signs the bill into law in 1984 Montgomery GI Bill requires voluntary contribution from soldier but provides twentyfold tuition assistance

6 GI Bill and Race One of the SRA’s co-sponsor’s is Senator John Rankin (D-Miss) who is a segregationist Black veterans are entitled to same benefits as all GI’s but meet with profound discrimination

7 De facto discrimination 1947 1700 veterans are employed by the Veteran’s Administration in one Southern state; 7 are black Veterans are eligible for benefits but most colleges are segregated Black colleges are quickly overcrowded A majority of black veterans entered the service without a high school diploma and do not meet college entrance requirements VA housing and hospitals are segregated American Legion allowed 5 state offices permission to charter posts for African Americans; only if segregated

8 1/17/1956-Atlanta, GA: Airman Second Class Philip Wagner, of New York City, en route to the Warner Robbins Air Force Base Near Macon, GA African American Soldier Reads Segregated Terminal Sign

9 VA & Industrial Philosophy Veteran’s Administration encourages African Americans returning from war to learn a skill or trade Congressman Charlie Rangel (D-NY) veteran of Korean War receives 4 battle stars, the Bronze Star, and Purple Heart in his all black battalion. Upon his return home he is urged by the VA to seek a trade as a “mortician or electrician” rather than apply to college. He later graduates from St. John’s University Law School

10 Economics 1986 Congressional Research Office study indicates for every $1 invested in the GI Bill the U.S. recoups between $5 - $12 as a result of increased taxes paid by veterans who have achieved higher incomes made possible by higher education

11 A New Generation The Post 9-11 GI Bill is co-sponsored by Senator Barack Obama (D-Ill) 2009 – Post 9-11 GI Bill is passed into law by President Barack Obama New bill extends benefits to Reserve and Guard as well as veteran’s dependents “[W]e do this not just to meet our moral obligation to those who’ve sacrificed greatly on our behalf and on behalf of our country, we do it because these men and women must now be prepared to lead our Nation in the peaceful pursuit of economic leadership in the 21st century” - President Barack Obama August 3, 2009

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