Article
The Veterans' Bonus of 1936
Journal of Post Keynesian Economics
(2003)
Abstract
The Veterans' Bonus enacted January 1936 disbursed 9 year marketable U.S. bonds with a 3 % annual interest rate to 3 million World War I veterans when bank savings accounts paid 2.5 %. The average bonus per veteran exceeded 30 % of the mean household income for the veterans' age bracket. The June 1936 Federal deficit set a peacetime record of nearly 1 % of gross national product. In 2 weeks that June veterans cashed in 46 % of the total bonus paid out. The economic recovery in 1936 was more than 2.5 times greater than in the 2 preceding years. The June 1947 redemptions 45 % of the 1936 amount had less effect.
Keywords
- Fiscal Policy,
- Great Depression
Disciplines
Publication Date
2003
Citation Information
Lester G Telser. "The Veterans' Bonus of 1936" Journal of Post Keynesian Economics Vol. 26 Iss. No 2, Winter (2003) Available at: http://works.bepress.com/lester_telser/7/