Post-War Boom and Suburbanisation · US History

The Servicemen's Readjustment Act of 1944, commonly known as the GI Bill, contributed to the post-war economic boom primarily by:

  1. Granting immediate cash bonuses to all soldiers who served overseas
  2. Providing low-interest loans for homes and subsidies for college education
  3. Nationalizing the automobile and steel industries to ensure full employment
  4. Establishing a federal minimum wage for all returning veterans
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Correct answer: Providing low-interest loans for homes and subsidies for college education

The GI Bill helped millions of veterans enter the middle class by making higher education and homeownership affordable. This led to a surge in consumer spending and a more highly skilled workforce during the 1950s.

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