G-d started the creation of the universe by creating the sky and the earth. The creation ended with the creation of mankind on Friday, which was Rosh Hashana 2 AM.
AM stands for ‘Anno Mundi’, which is Latin for “in the year of the world”.
We count our years AM, from the day of creation of the universe. On the other hand, Rabbi Yossi ben Chalafta in Seder Olam counts the years from the creation of Mankind, which was already in year 2 AM, therefore, we find that in Seder Olam, every year is minus 1.
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