this post was submitted on 15 May 2025
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[–] [email protected] 8 points 1 week ago (3 children)

It used to be backed by gold until 1971.

[–] [email protected] 7 points 1 week ago (2 children)

And what was the gold backed by?

[–] untakenusername 4 points 1 week ago

being deflationary I think

[–] RowRowRowYourBot 3 points 1 week ago

And moving away from backed currencies has increased economic stability.

[–] [email protected] 3 points 1 week ago

Only officially. The US effectivly dropped the gold standard in 1933 because it was making the Great Depression worse. Money was completely stagnant, and the federal worl projects FDR championed to get the economy moving again couldn't be funded when the government couldn't get access to more gold.