Great U.S. construction, or why is the U.S. Army so powerful?

1944, World War II is in full swing. Lend-lease is literally drying up the U.S. economy. Huge resources are directed to unproductive industries, without the multiplication of GDP – weapons, free and unproductive exports of equipment, technology, food.

It is then that Roosevelt signs Servicemen's Readjustment Act. Literally it is difficult to translate this clericalism, it is about returning servicemen to peaceful life and adapting them after the end of military service. First of all, it is about financial assistance and assistance in obtaining higher education.

Part of this law was the program of mortgage lending to military personnel. It is called the Department of Veterans Affairs (VA) Home Loan program. Under the program, part of the mortgage loan is guaranteed by the state. This enables a veteran to get a mortgage without a down payment at a competitive interest rate and without the need for mortgage insurance.

This program has significantly increased the pace of construction in the United States since 1944, and was one of the main reasons for the construction boom in the 50-60s of the last century. It is important that this program has been running for almost 80 years. In 2021 alone, more than 1.4 million veterans' loans were issued in the United States under this program. mortgage loans, while the average loan amounted to 344 thousand rubles. USD

The one-story America we know from the films is largely the result of this program. It is easy to guess that the direct consequences of this program were and remain the development of infrastructure, the development of the land market, economic growth (after all, this is an investment in a productive construction industry with a large multiplier*).

Note that the VA Home Loan program was launched during the war, became a powerful motivator for many years to this day for volunteers and contractors going to the U.S. Army, provided a future for the families of the fallen U.S. military in various wars that the United States waged.

Finding solutions to restart Ukraine's economy during the war is a challenge that is just as important as the war itself, military action. After all, war is very expensive, and only the functioning economy can pay for the war in sufficient volume for Victory. It is here that lies the deeper motivation of society, which becomes an essential basis for patriotism and the will to Win – the visible and understandable long-term care of the state for the future of the military and their families.

The experience of the United States, perhaps the most successful economy in the world, a country that has the most powerful army in the world, should be immediately used in Ukraine. The launch of a similar program can be financed by international financial organizations, will become part of the Marshall Plan for the restoration of Ukraine. This should be done right now, without waiting for the end of the war.

* Multiplier – a coefficient showing the dependence of the change in income from changes in investments.

According to BRDO calculations, the multiplier of the construction sector in Ukraine can reach 6-7. That is, 1 UAH invested in construction generates another 7 UAH earned in related industries. The Confederation of Builders of Ukraine, on the other hand, believes that the multiplier in construction is more than 11 UAH. The numbers speak for themselves. Even a partial shutdown of the sector will lead to job losses, losses in related industries, and therefore to billions of dollars of the country's lost GDP.