Not a GI Bill

In the wake of war and depression, the GI Bill sent a generation to college and created the largest middle class in history. (Applause.)
-President Obama to joint session of Congress, Feb. 24 2009

Let me remind you that I voted for Obama, and I support him. I'm PrObama. But it is a mistake to compare the current economic spending/investing activity to the GI Bill.

The GI Bill financed college educations, offered unemployment compensation, and extended home and small business loans. But this support was given to veterans returning from World War II. Let me tell you something about these veterans. They were soldiers who were trained in things like leadership, teamwork, and strategy. They were taught discipline and had a sense of responsibility for others. These are the types of people you want running businesses. These are the types of people who will use their educations. These are the types of people you want to invest in. These people knew not to take for granted what they had in this country.

The beneficiaries of the current plan include greedy people ranging from short-sighted bankers to irresponsible borrowers. From an economic standpoint, you can make an argument that these people currently need government aid. Of course, the non-greedy are getting aid too.

But don't expect to get the same kind of return on investment that we got from the GI Bill.

Marx's Prediction

This quote was forwarded to me in an email:

Owners of capital will stimulate the working class to buy more and more expensive goods, houses and technology, pushing them to take more and more expensive credit, until debt becomes unbearable. The unpaid debt will lead to the bankruptcy of banks, which will have to be nationalised, and the State will have to take the road which will eventually lead to Communism.
-Karl Marx

I haven't been able to confirm this, but it sounds like something he would say.