YIKES! The war was costing about a 1,000,000 dollars a day by 1917

Total War Costs Money! The Costs of the war very quickly overcame the government’s ability to pay Gov’ts can only do two things to pay for things: A) raise taxes B) borrow So, they had to do BOTH!

Income Tax!

Victory Bonds

A bond is a loan – citizens bought Victory Bonds and the government promised to pay them back (with interest) after the war

Buying Victory Bonds was considered by many a duty, especially for those who could not join in the war effort itself by enlisting