Greshams Second Law

Greshams Second Law

Bad workers drive out good workers

Gresham's law

Bad money drive out good money

The English founder of London's Royal exchange Mr. Thomas Gresham
left a legacy in the form of an economic principle, stating that “bad money drives out good”.

A simple example is that bad money is used to transact and good money
is used for store of value.
In today's society, we use bad money so-called fiat
currencies(state-issued currencies without long time value) for daily
transactions, when we buy bread, corn and so on.
And then we save capital in gold for example which does not go down
in value over time.

Sidenote:
Some modern cases of bad money causing harm could be found in Greece
where the government destroyed the countries economy or in Venezuela where the currency was victom to hyperinflation.

History repeats itself countless times, leaving the currency devaluated by the central banks, such as giving back the users 50 cents on the dollar or similar.

The cause of bad money being used in society is mostly because of
regulations and various violence monopolies, pushing the merchants
to enforce a certain way of trade.
When those regulations and enforcements are not being enforced anymore, then the magical Their's Law starts to kicks in.
All the merchants are now only accepting what they personally consider
to be good money.
In a free-trade society no single entity is controlling the currency.
Removing violent monopolies power to strike fear into its citizens.

Having power hungry actors in the game, telling everyone to use a certain
currency. Will cause the market to adopt Greshams law. And if the market gets to decide what they will use. Theirs Law will step into place.
The merchants will accept the payment method they see as the best.

Some good reads about this is the article we did with George Selgin
about his book “Good Money” and also reading Hayek's The Denationalization of Money book.

So a greshams law concept could be seen as Bad X is driving out good X.

Could this way of thinking be put into other fields?

Greshams law is the same with information, bad information drives out good information, especially when you have bad people in power - Tim Scully

Governments imprison the people that are against the government and picture them as insane - Timothy leary

Gresham's Second Law

Greshams second law

Source:
Liberty Magazine Volume 4, Number 4

A reader makes a great speculation we are sure many are familiar with
that when a new employee joins a workplace filled with people that
have lost motivation.
The new person will either quit or loose motivation after a while.
Resulting in the bad work force driving out the good one.

Why is it that the less motivated workers stay in one place while others move on?

Is it fear-based?

The stereotypical image of a bureaucratic mind is a person that never went
beyond the fear of asking questions that would seem scary or loaded with fear.
We are not yet given a guide on how to think for ourselves by the school system.
Creating a market demand
for it and inspiring homeschoolers to do a better job.
The corona pandemic has greatly increased Ricardo's law.
Now companies are looking globally for people working remotely or
from home that are industry experts.
No longer do companies look for the best possible talent within a shorter geographical area.

Having joined the corporate bureaucratic hamster wheel. You will see a submissive
bureaucratic culture being implemented.
Creating a negatively toned culture of trash-talking “overachievers”.

Not giving positive reinforcement and motivation to drive the work forward to next level is very dangerous.
Causing the bad workers to drive out the good ones.

Several homeschooling parents encourage positive reinforcements in order for the child to specialize in
a certain subject, achieve a Ricardo's law state where the child becomes an industry expert, securing both the
person's intellectual stimulation and financial stability, becoming a very attractive choice to hire.

The more you learn, the more you question things, the more you are open
to change and to work on your self, the freer and sovereign you
become.

External Links:
https://en.wikipedia.org/wiki/Gresham%27s_law
https://en.wikipedia.org/wiki/Thomas_Gresham
http://libertyunbound.com/
https://en.wikipedia.org/wiki/Tim_Scully