White Trash: The 400-Year Untold History of Class in America

by Nancy Isenberg

In this and other ways, the federal government underwrote the growth of the new suburban frontier. Tax laws gave homeowners who took out mortgages an attractive deduction. Government made it profitable for banks to grant mortgages to upstanding veterans and to men with steady jobs. The Servicemen’s Readjustment Act of 1944, better known as the GI Bill, created the Veterans Administration, which oversaw the ex-soldiers’ mortgage program. Together, the FHA and the VA worked to provide generous terms: Uncle Sam insured as much as 90 percent of the typical veteran’s mortgage, thereby encouraging lenders to provide low interest rates and low monthly payments. Along these same lines, when potential buyers queued up for Levittown homes, the builder initially privileged veterans. With such perks, it became cheaper for “desirable” white men to buy a home than to rent an apartment. And rather than lift up everyone, the system tended to favor those who were already middle class, or those working-class families with steady incomes.