Why did the USA have to sell war bonds to finance WW2?

Discussion in 'Political Issues' started by slackercruster, Sep 1, 2020.

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  1. slackercruster

    slackercruster

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    I look through old mags and all I see are ads to buy war bonds. Gov does not need to sell war bonds any more to finance war. Why the difference between WW2 and now? Was it the gold or silver standard?
     
  2. dbak

    dbak

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    Great Depression? Now we just print some more and kick the can down the road.
     

  3. Timmy bigtime

    Timmy bigtime

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    US was coming out of great depression and did not have the funds. Trade was also no where near what it is today and could not borrow from the GDP of the time. We would do same for WWIII since some of our current trading partners would no doubt be the enemy.
     
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  4. vikingsoftpaw

    vikingsoftpaw DEPLORABLE ME!

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    Wars can be financed by selling war bonds or paid for through inflationary measures, as was the case during the Vietnam War. By selling bonds it took money out of circulation. That insured that funds were not available for goods in short supply because of rationing. Its part of the concept of 'Total War', switching all of a society's production to military production.
     
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  5. czsmithGT

    czsmithGT

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    The difference is back then everyone sacrificed for the war effort and we tried to pay for what we spent. Still came out of the war with a huge debt as a percent of our GDP but paid it down.

    Today, people don’t give a damn about ruining our economy and the value of our dollar and inflation as long as we get free stuff - someone down the road will have to starve for our greed and laziness and stupidity. People today are asses compared to the people back then.
     
  6. shadowgunner9

    shadowgunner9 This used to be AMERICA........

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    Today. we just whip out our Visa card to buy junk we don't need.
     
  7. jeanderson

    jeanderson Making America great again! Platinum Member

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    Great explanation.

    And speaking of rationing, few know what the real reason for gas rationing was in WWII. It wasn’t because of a gas or oil shortage. It was because rubber for tires was in short supply, and vital to defense.
     
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  8. rj1939

    rj1939

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    MMT wasn't a thing yet.
    And Paul Krugman hadn't 'splained that debt doesn't matter.
     
  9. railfancwb

    railfancwb

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    Gold standard, at least partly. Also to take money from workers’ pockets to reduce pressure on prices.
     
  10. railfancwb

    railfancwb

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    Early in the war, German subs were taking enough coastal tankers down that much crude oil was brought into the country and moved by rail.
     
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  11. thewitt

    thewitt

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    Actually it was the gold standard that prohibited us from just printing money.

    All of our money was backed by gold at that time. We did not just print money as we needed it, and we didn't have the gold resources to simply fund the war effort, so we had to sell bonds.

    Once the gold standard was replaced by "faith" in the currency, the printing presses could just keep on churning out cash without the risk of devaluing the currency.

    If we had simply printed more money to finance the war effort, the value of the dollar would have plunged.
     
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  12. bdcochran

    bdcochran

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    Multiple questions.
    1. the concept of scrap metal drives and paper drives were to make people feel better.
    2. issuing war bonds were not necessary as well.
    3. silver backed paper money was withdrawn either in the 50s or 60s
    4. went off the gold standard under Nixon.
     
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  13. rj1939

    rj1939

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    Most of the "shortages" were either to "get the folks at home involved" or due to hoarding of materials.

    Supposedly, tractors weren't being made and you sure couldn't buy one (even for a time after the war was over) Yet, the production numbers for them, show that production went on at nearly the same level all along. For at least one company I'm aware of.

    There were also "war models" they didn't have a rubber gearshift knob, an electric starter and generator.
     
  14. domin8ss

    domin8ss

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    Because Captain America put on a show with dancing girls and told everybody to buy war bonds

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