[WhiskeyPapa]

Poor U.S. Grant was left to clean up the inflationary mess that such a rapid increase in the monetary base portended.

What a hoot. Wonder how this became the wealthiest, most powerful nation on earth?

Walt

[ggekko]

"Wonder how this became the wealthiest, most powerful nation on earth?"

Lincoln doubled the monetary base during the period of 1861-1864 without adding any reserves to back up the new "Greenbacks". If you think that is healthy for economy then I suggest you need to retake econ 101.

U.S. Grant faced a crisis with Gold ih his administration which, in effect, was the popping of a masssive inflationary bubble. All things considered he did a halfway decent job in defusing the crisis created by his predeccessor.

The other touchstone of Lincoln's program was "internal improvements". Subsequent Republican administrations embraced railroad subsidies on a massive scale. All of the Federally subsidized railroad lines eventually ended up in bankruptcy.
By contrast, J.J. Hill's privately financed railroad was
profitable from its first day of operation.

America's economic development was fostered by men like J.J. Hill who who were able to act successfully as private capitalists. The users of government subsidies provided under Lincoln's "internal improvements" schemes never built lasting, successful enterprises.