Financing the War
Aside from the shift in wartime production, Americans were now faced with financing the war. The government implemented several mandates to secure enough revenue. The first of these steps came with the Revenue Act of 1942, which increased the number of Americans who paid income taxes, as well as introduced the idea of withholding income taxes from pay.
War bonds advertisment
During that same year, the Treasury Department introduced the idea of war bonds—government bonds that helped finance the war. War bonds were considered a good investment for all; they were deemed as an investment in the country.
Unfortunately, the government also utilized deficit spending during World War II—relying on borrowed money to pay for the war. Although such practices helped boost the economy, it also led to a huge national debt.