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With the recent fiscal cliff deal in Washington, Americans will most certainly see their taxes rise in 2013. Sequestration (defense and non-defense program cuts) and debt discussions look as if they will continue through March.
This leads us to remind everyone of the creative ways used by the U.S. government to pay for World War II, including multiple war bond drives. Citizens gave their cash - on top of taxes - to the government who in turn promised to repay citizens with interest at a later date while using the cash flow to buy war material and pay military salaries, factory workers, transportation costs, mining operations, research and development, and war-related health care.
Newspapers were fond of retelling stories of American children sending in their $0.25 allowances to help out their brothers, fathers, and neighbors beat the Axis on both fronts.
Find out more about the cost of American wars throughout history in a report published by the Congressional Research Service in 2010. We discovered that at its peak, America spent as much as 37.5% of its GDP and a combined total of just over $4 trillion dollars prosecuting the war effort.