You are here:

Military History/Have a question about the economic impact of WW2 on countries like the US, and Germany.

Advertisement


Question
What was the economic impact of World War 2 on the US and Germany, did the governments still tax their citizens and how did they get the money to pay for all the tanks and supplies for the war?

Answer
There was still an income tax like there was before the war.  The United States, and most of the other countries involved in the war, sold War Bonds.  This was basically where the citizen would lend the government money, at a fixed rate of interest, and the government agreed to pay it back to the citizen, with interest at a certain time (usually ten years later).  In addition, during and after the war ended the income tax rates were increased so the people with the most income were very heavily taxed.  

https://en.wikipedia.org/wiki/War_bond

Here is a graph that shows that the income tax rates rose sharply after we were attacked in 1941:  
http://www.efile.com/efile-images/charts/historic-lowest-and-highest-tax-rates.p

Hope this helps,

JIM

Military History

All Answers


Answers by Expert:


Ask Experts

Volunteer


Jim Saurman

Expertise

I can usually handle any question on USA or European history since 1870. I am especially interested in WW2 and Spanish-American War. Also Spanish Civil War and WW1 to a lesser extent.

Experience

B.A. in History.

©2016 About.com. All rights reserved.