How did the US government fund WW2 directly after the great depression?

After the Great Depression, the US government funded World War II (WWII) through a combination of measures that included: 1. **Increased Taxation**: The government raised taxes to generate revenue. The Revenue Act of 1941, also known as the "Tax Act of 1941," introduced significant tax increases, including a surcharge on income taxes, which helped to finance the war effort. 2. **Issuance of War Bonds**: The US government sold war bonds to the public to raise funds. These bonds were marketed as a way to support the war effort and were seen as a patriotic investment. The sale of war bonds was very successful, with many Americans investing in them. 3. **Federal Reserve Support**: The Federal Reserve played a crucial role in generating money to pay for the war. It influenced government bond prices to promote stable financial markets and helped to reduce interest rates on financing the extraordinary fiscal deficits associated with active participation in the war. 4. **Lending to Allies**: The US government also lent money to its allies, such as Britain and the Soviet Union, under the Lend-Lease program. This program allowed the US to supply its allies with materiel and financial assistance without requiring immediate payment. 5. **Monetization**: The government monetized its debt by creating new money to pay for the war. This was possible due to the US dollar's status as a fiat currency, which allowed the government to issue new dollars to fund its spending without worrying about running out of money. 6. **Debt Ceiling Increases**: The debt ceiling, which is the legal limit on the total amount of federal government debt that can be outstanding, was increased repeatedly to accommodate the increased borrowing needs. This allowed the government to continue borrowing to finance the war. In summary, the US government funded WWII through a combination of increased taxation, the sale of war bonds, Federal Reserve support, lending to allies, monetization, and increasing the debt ceiling. These measures allowed the government to finance the war effort directly after the Great Depression.