Question

How did the U.S. government pay for the war effort during world war 2

Answer 1

Answer:

1) The US took loans out from the US treasury, which in turn sold bonds to the US public, which is a guaranteed amount of profit after the bond matures. For example, a $100 bond would be sold for only $75 for, let's say, 1 year. When the bond matures (hit's the 1 year mark), the bond is then resold back to the government, in which the holder would receive a $25 profit.

2) The US raised taxes on corporate and individual taxes, as well as expanding the mandatory status to include a wider range of people.

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