Tuesday, 7 April 2015

GRESHAM'S LAW

The bad drives away the good. This is the essence of Gresham's Law. In every field of human activity where the bad is allowed to thrive the good is driven off.

For example, in financial services it is a notorious fact that the release of fake currency automatically leads to the hoarding of the genuine stuff.
Or when false assets and paper money is flooded into the system to curb inflation, assets that actually have value flee the market to protect their value and the market is usually left with worthless assets.
In car sales the abundance of the lemon peddler tars everyone else whether false or genuine with the same brush and leaves the genuine salesman fighting to prove he is legit first before then making the sale.

Think upon it as you go about your work. Gresham's Law.

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