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Podcast: Stock Stories
Episode: Mental Model: The Law Of Competing Standards (Gresham's Law) - Reactions To Scarcity Override Systems Of Morality
Description: Basic Idea - what gets rewarded gets repeated, regardless of any ethical considerations. Specifically “bad money drives out good”History - named after Sir Thomas Gresham, who was an English Merchant in the 1500s. Also attributed to Copernicus and Aristophanes.Gresham brought to public attention that, in an economic system with fake coinage, the fake coinage will drive out the real coinage in circulation. People will keep what is valuable and spend what is not.A few ways to interpret this:Things of value will tend to become more scare, while copycats and imi...