Greenbacks introduced in the U.S.
Hey Sparkles! Happy Monday! For today’s Monday Moment post, I am writing about paper money (greenbacks) being introduced in the U.S.
This introduction was done by President Abraham Lincoln. He did this on February 25, 1862, which is 157 years ago today. They were in two forms: Demand Notes, issued in 1861–1862, and United States Notes issued in 1862–1865. They were legal tender by law but were not backed by gold or silver, only the credibility of the U.S. government.
Money not backed by gold or silver is called fiat currency and is more easily able to be corrupted. In every country fiat currency has been introduced to, it has gotten ridiculously inflated and then crashed, leaving millions of people with nothing.
Take Germany, for instance. Starting in 1914, when WWI broke put, the government printed massive amounts of marks, after unlinking the value from the value of gold. This took a toll on German citizens, making bread and meat cost far more than any common citizens could afford.
The U.S. dollar has drastically reduced in value since 1913. This chart below shows how drastic it is.
This is why our grandparents remember things being a whole lot cheaper. As you can see, the introduction of greenbacks has changed things. Well, that’s all I have for you today, Sparkles. I hope you enjoyed this post. Thanks for reading, and Sparkles away!