During world war 1, the government raised money for the war effort by

The government raised about one-third of the money through taxes, including a progressive income tax. The rest of the money was through public borrowing by selling "Liberty Loan" and "Victory Loan" bonds. How did the government raise money for the war effort? ... SInce all the people have to leave straight from the war.

Liberty bonds were sold to the American citizens in order to finance the war effort. With this bond, the money paid by Americans would go directly to the federal government ... When the bond was cashed in, the citizen would receive more money than they originally paid to the government.