Each June 22nd, we celebrate the signing of the Servicemen’s Readjustment Act of 1944 by Franklin D. Roosevelt. Most of us know it better today as the GI Bill.
President Roosevelt signed the Act into law to prevent another financial disaster, like the Great Depression that was still fresh in many Americans’ minds. When WWII would eventually wind down, veterans would be coming home by the thousands and looking for work. It was easy to imagine how there would be significantly more people than jobs available, thus creating an unemployment nightmare.
Original GI Bill
One benefit of the Servicemen’s Readjustment Act was an opportunity to go to college. Veterans could get up to $500 per year to pay for tuition, books and other college costs, along with a monthly stipend of $50 for unmarried students; married students received slightly more.
At the time, most of the students enrolled in college were from upper-class families. But many veterans could see that getting an education was their chance for a better future and they took advantage of the opportunity – 2.2 million of them to be exact. By 1947, half of all students were veterans using the GI Bill portion of the Act of 1944.
52-20 Club
Another benefit of the Act, but largely unknown, was the “52-20 Club”. Under it, a returning servicemember that could not find work could draw $20 per week for up to 52 weeks. Checks would be picked up weekly at the local unemployment office.
The rules then were much as they still are today; those drawing under the 52-20 Club were expected to seek employment while receiving their weekly checks. A couple of other rules were:
- If the individual found work, the weekly payments stopped.
- If the individual got fired or quit their job, they could not go back into the 52-20 Club.
According to records by August 1946, 6 million veterans had drawn at least two months of benefits. One year later, 1.7 million veterans still had not found jobs and were drawing their $20 per week to a cost of $135 million a month to the Nation.
What happened when the 52 weeks ran out? Many veterans decided to then go to school before looking for work as the job market still had not recovered after the war. This gave them another two to four years for the job market to improve and for them to increase their odds of getting a good job by having a post-secondary education – something not the norm back then.
Veterans not wanting to go to school were forced to work at whatever jobs they could find once their 52-20 unemployment ran out. They really had no other option as it was their only safety net at the time.
And the theory of the 52-20 Club hung around for a while. Veterans returning from the Korean War received $26 per week for up to 26 weeks.
Servicemen’s Readjustment Act of 1944 got America started down the right road post-war. President Roosevelt’s vision paid off handsomely as America avoided another financial meltdown, veterans had an opportunity to go to school which they most likely otherwise would not have had, and those not finding employment right away received some money for up to a year to support themselves while looking for work. A win/win for country and veterans alike!
