As an expert in historical economics, I can provide a detailed account of the financial efforts made by the United States during World War II. The U.S. economy underwent a significant transformation during this period, shifting from the Great Depression to a wartime economy that was characterized by full employment and increased industrial production. Step 1: English Answer The United States' expenditure during World War II was a complex and multifaceted affair, involving not just direct military spending but also indirect costs such as increased domestic production to support the war effort. The figures often cited for the total cost of World War II to the United States are indeed staggering and reflect the immense scale of the conflict. The statement that "The federal government spent about $350 billion during World War II" is a commonly referenced figure, but it's important to understand the context and the methods of financing this expenditure. This amount, when adjusted for inflation, would be significantly higher in today's currency. It's also crucial to note that this figure represents nominal spending and does not account for the economic impact of the war, which includes factors like the loss of production, the destruction of infrastructure, and the long-term costs associated with veterans' benefits and war-related debt servicing. Approximately 40 percent of this expenditure was funded through taxes. The U.S. government increased tax rates significantly during the war to help finance the conflict. This was done through various means, including increasing income tax rates, implementing excess profits taxes on businesses, and introducing new taxes such as the Victory Tax and the capitation (head) tax. The remaining 60 percent was financed through government borrowing. The U.S. Treasury issued war bonds, which were marketed to the public under various names such as "War Bonds" and "Liberty Bonds." These bonds were a crucial part of the war effort, as they allowed the government to borrow from its citizens to finance the war. The sale of these bonds was a massive undertaking, involving advertising campaigns and appeals to patriotism to encourage citizens to invest in them. In addition to the direct costs of the war, there were also significant indirect costs. The U.S. economy was mobilized to support the war effort, which led to a shift in production away from consumer goods and towards military equipment and supplies. This had a profound impact on the American economy and society, as resources were redirected, and many industries expanded rapidly to meet the demands of the war. The economic impact of World War II was also felt in the post-war period. The U.S. emerged from the war with a greatly enhanced industrial base and a leading role in the global economy. However, the war also left the country with a significant national debt, which took decades to pay off. The legacy of this debt influenced fiscal policy and economic planning for years to come. In summary, the United States' financial commitment to World War II was immense, involving both significant direct spending and indirect economic adjustments. The combination of taxation and borrowing was essential to financing the war, and the economic consequences of this expenditure were felt both during and after the conflict. **read more >>

The federal government spent about $350 billion during World War II -- or twice as much as it had spent in total for the entire history of the U.S. government up to that point. About 40 percent of that came from taxes; the rest came through government borrowing, much of that through the sale of bonds.read more >>