Wednesday 30 July 2008

WWII provided jobs for people because of the manufacturing boom of war materials. But where did the money come from that paid those workers?

The
manufacturing of all of the materiel needed forwas funded in two main ways.  These were taxes
and borrowing.

Obviously, the war was tremendously expensive.  However,
there was a great deal of room to raise taxes in those days.  The pre-war income tax rate had
been 6%.  In 1942, tax rates were raised by a tremendous amount, with the top marginal
tax...

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