Why the G.I. Bill was so successful

After millions of drafted Government Issues returned home as World War II closed, the American Legion fiercely lobbied Congress to pass the G.I. Bill of Rights, or the Serviceman's Readjustment Act. This bill was passed in Congress and signed by F.D.R. in 1944, investing billions in the education for returning War Veterans. It has since been estimated that every dollar invested in the G.I. Bill pumped $7 in returns for the U.S. Economy. It was a dazzling success, and conservatives have since used it as a reason to invest additional funds in military, arguing that it has historically returned into the economy. I will do my best to rebuke that argument.

The Interstate Highway system, carried out primarily
 in the post-WWII era.

Before World War II, the United States was in a crippling economic depression, known as The Great Depression, that had persisted for decades. As the War economy ensued and the nation rallied behind a single cause (and women began to work, and rampant deficit spending occurred), the economy shifted back into gear and powered forward. As WWII ended, however, a sickening economic slump seemed to spell recession in the couple of years immediately following the war. Most people of the time worried that faux wartime economy would not persist, and the Depression would return. Curiously, however, skilled workers were suddenly dropped from the sky (after the required amount of time for trade school or an Associated Degree, just coincidentally) and the economy again surged forward. With continued projects for the betterment of the nation (most notably the Interstate Highway), the economy continued to accelerate, at the expense of the Federal Budget, which continued to deficit spend. All of the money invested in that nation sustained a powerful U.S. economy for years to come from the advantages derived from this legislation. Many ask, how did this economic boom emerge from the Great Depression?

Contrary to popular belief, it was not completely World War II that did the job. World War II was merely a medium behind which the country could unify. What really solved the problem was a major investment in education for those who wouldn't normally be able to afford what used to be an exclusively gentleman's enterprise--a college education. Most people look at the economic boom as a product of the war. Let's look, however, at the historical trends. These are graphs of the U.S. Economy over the last few hundred years:

Notice that the economy plunges in 1776 and in 1812, the two years where War breaks out.

Notice how the economy was badly damaged by the Civil War and how continuous growth in interrupted by the Spanish-American War and turns downward initially during the outbreak of WWI.

Notice that in the years between WWI and WWII, the economy was growing anyway, on its way to stabilization.

So, as you can see, history shows that war is generally damaging to an economy, as, of course, would be expected if you didn't focus solely on WWII. If you look closer at the data, look at the sharp economic increase in 1870 (the year all states had public elementary schools). Although education has been more of a trend than singular implementation, progressive-era trends (see the sharp increase between 1903 and 1907) and educational expansion times always seem to be accompanied with economic growth.

So what was the real value of the G.I. Bill? Was it the money spent on the war, or the money invested in public education? The answer, historically and factually, is clear. Where should we put our money? Where it will help our economy most--in the classroom, investing in the future.