A note from Daniel

In a sense, Gresham's Law is the dark side of human nature. We're wired to optimize for the short term, to get the most value for the least effort. If we can pass off the less valuable thing and keep the more valuable one, we will. Without consequences, bad behavior drives out good. Bad lending drives out good lending. Bad morals drive out good morals. Overcoming this requires constant effort. In the short run, bad often drives out good. But in the long run, true value wins out.

Daniel The Great Mental Models, Volume 4, page 183 · December 29, 2024 Save to shelf
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