Why bonds? Why not pay as we go? Institute a huge gasoline tax to cover the cost of the war. You want cheap gas? Pay for it. The only people who benefit from war bonds are those who die before the principal has to be repaid.
7. No, if you buy a war bond, and you die, then you lose
When you say "The only people who benefit from war bonds are those who die before the principal has to be repaid." I don't think you are clear on how the war bonds worked. You bought at it some value, and the gov't paid you face value in the future. In other words, a loan from John Q. Individual to the gov't. Or am I misunderstanding you?
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