This article was originally published by Austin Litman on Proofofwork.ca
When a Country goes to war, if a Government can take money from its citizens to get ahead, it will. But inflation usually peaks during the war, so raising taxes causes many people to get upset. They need to be more creative to take money from the public. This is how war bonds started. War bonds steal wealth from citizens by making them feel patriotic.
Once WW1 ended, all the Countries that “won” changed the name War Bonds to Victory Bonds, so barely anyone sold these bonds and kept them in the market. During WW2, tons of movies, radio shows and TV stations promoted the purchasing of Victory Bonds. Billions and billions have been stolen from the public.
Do you think it’s not stealing? The average return on these bonds is 0.25% per year (less than inflation). The government uses public money to fund the war while hiding the fact they are losing money. Below are some quotes governments used to promote these bonds, and you can find countless others and even posters on Google.
“We will win if you buy!”
“If you can’t enlist — invest!”
“Defend your Country with your dollars.”
“Help finish the job. Buy Victory Bonds.”
