bad money drives out good
The phrase "bad money drives out good" is rooted in Gresham's Law, an economic principle observed in currency circulation.
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Definition
C1Economics
(technical, academic)When two types of currency with the same face value but different real values circulate, the less valuable currency will be used more widely, while the more valuable currency will be hoarded.
Example
- Due to Gresham's Law, the silver coins disappeared from circulation as people preferred to spend the less valuable alloy coins.
- In times of economic uncertainty, bad money drives out good, leading to a scarcity of high-value currency.
C1General
(figurative)Inferior quality or talent tends to become more common, while superior quality or talent is undervalued and sidelined.
Example
- In many organizations, bad money drives out good, as mediocre employees are often promoted over more talented ones.
- The market was flooded with low-quality products, proving once again that bad money drives out good.
Similar
Terms that have similar or relatively close meanings to "bad money drives out good":