Working Paper: CEPR ID: DP12807
Authors: Hansjoachim Voth; Bruno Caprettini
Abstract: Why do people fight for their country? The risks are extreme, the payoff uncertain. In this paper, we argue that reciprocity is a key factor. Examining welfare spending in the US in the 1930s under the New Deal, we show that support for World War II became more common where welfare support had been more generous: war bonds were sold in greater volume, more men and women volunteered, and more soldiers performed heroic actions recognized by a medal. We use weather shocks in the form of droughts to instrument for agricultural emergency relief, and show that results hold. Because both war bond purchases and volunteering respond to welfare support, we argue that results cannot be driven by opportunity cost considerations. Data on World War I patriotic support shows that 1930s emergency spending is only predictive for World War II support. Pre-New Deal droughts are also not correlated with patriotism after 1941.
Keywords: Warfare; Welfare State; New Deal; World War II; Volunteering; War Bonds
JEL Codes: D64; D74; D91; H53; H56; I38; P16; N31; N41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| pre-New Deal droughts (N51) | post-1941 patriotism (F52) |
| higher welfare spending during the 1930s (H53) | increased patriotic actions during World War II (H56) |
| agricultural relief from AAA (Q18) | increased patriotic actions (F52) |
| drought incidence (Q54) | higher welfare spending during the 1930s (H53) |
| congressional committee representation (D72) | higher welfare spending during the 1930s (H53) |