"I was a twenty-two-year-old veteran with a wife and a baby, and no prospect of owning a home. Then came the new government programs. With no down payment and low interest rates, we were able to buy a brand-new house in a suburban development. Suddenly, we had a yard, a modern kitchen, and a community of families just like ours."
—Adapted from a postwar veteran's oral history, c. 1950
Which of the following federal initiatives most directly enabled the homeownership opportunities described in the excerpt?
- The passage of the Servicemen's Readjustment Act (GI Bill)Answer
- BThe implementation of the Great Society programs
- CThe deregulation of the financial industry under Reaganomics
- DA return to laissez-faire economic policies in the housing market
Answer
The passage of the Servicemen's Readjustment Act (GI Bill)
The correct answer is the passage of the Servicemen's Readjustment Act (GI Bill). The GI Bill, enacted in 1944, provided millions of returning World War II veterans with low-interest home mortgages that required no down payment, which directly catalyzed the rapid expansion of suburban developments in the postwar era.
Step-by-Step Solution
Key Concept
Postwar Economy, Suburbanization, and Demographics
Estimated Time:45s