1) The US entry into WWII created a massive requirement for war materials. The government signed large contracts with private contractors to build/provide these essential war materials. The private contractors in turn hired tens of thousands of Americans in their factories/mills/mines etc.
2) The US government instituted a military draft and increased recruiting, which helped bring down joblessness.
3) The US government increased taxes and had bond drives to generate currency in order to pay for the massive expansion of the military.
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