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Article
The Veterans' Bonus of 1936
Journal of Post Keynesian Economics (2003)
  • Lester G Telser, University of Chicago
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/