The U.S. government primarily financed World War I through the issuance of war bonds, which encouraged citizens to lend money to the government in exchange for interest payments. Additionally, the government increased taxes, including income taxes and excise taxes, to generate revenue for the war effort. The establishment of the War Finance Committee helped coordinate these efforts and promote bond sales to the public. Overall, these measures played a crucial role in funding military operations and supporting the Allied forces.
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