USA HISTORY

AMERICAN IMPERIALISM(1890 1919)

THE UNITED STATES IN WORLD WAR I

[SOURCES]
Besides paying federal income tax, Americans supported the cost of WWII by

(A) ** Buying war bonds

(B) Working one week per month for free

(C) Adopting English war babies

(D) Having school fund raisers

EXPLANATIONS BELOW

Concept note-1: -President Roosevelt settled on two major means of raising money: increased taxes and borrowing, through the sale of massive amounts of war bonds. Besides paying for the enormous costs of war, these measures would remove excess wages and other spendable money in a time of shortages, helping to keep a lid on inflation.

Concept note-2: -To help pay for the war, the government increased corporate and personal income taxes. The federal income tax entered the lives of many Americans. In 1939 fewer than 8 million people filed individual income tax returns. In 1945 nearly 50 million filed.

Concept note-3: -During WWII the United States issued war bonds that were labeled Defense Bonds. They were later relabelled war bonds, after the attack on Pearl Harbor. The war bonds sold in the US helped the government raise about $185 billion. Bonds were bought by over 84 million Americans.

Concept note-4: -Bonds were available in denominations of $25 through $1000, designed to be affordable for everyone. For 10 cents, people could also purchase stamps, which were placed in special albums. When full, the albums were redeemed for a bond. War stamps were especially popular with children.