What is bad money expelling good money? Illustrate the phenomenon of bad money expelling good money

What is bad money expelling good money? Illustrate the phenomenon of bad money expelling good money

The phenomenon of "bad money drives out good money" in modern life
Bad money drives out good was put forward by Elizabethan Mint in the 16th century, also known as Gresham's law. "Bad money drives out good" is a well-known law in economics. This law is a summary of such a historical phenomenon: in the era of coinage, bad money drives out good, When the inferior coins, which are lower than the legal weight or quality, enter the circulation field, people tend to collect the good coins, which are of sufficient value. Finally, the good coins will be expelled, The information asymmetry of the parties is the basis of the phenomenon of "bad money expelling good money". Because if both parties know the quality or authenticity of money well, it is difficult for the bad money holder to use the bad money, or even if they can use it, they can only trade with the other party according to the "actual" rather than the "legal" value of the bad money
The phenomenon of bad money expelling good money not only exists in the circulation of money, but also in all aspects of social life. For example, when taking a bus, people in line with the rules are always crowded around, and they can't get on a few buses. People who don't obey the order often get on the bus first. At last, fewer and fewer people follow the order. When the bus comes, people will rush to get on, Taking a bus is like fighting a war. For another example, piracy of audio-visual products is rampant in society, and the cost of pirated CDs and VCDs is low. Compared with the authentic products with almost perfect sound quality but high cost and high price, the price is relatively cheap. For this reason, many people will choose pirated products. Because of the market, pirated products will be more and more, and more and more people will buy them, For example, if the corruption in the officialdom can not be stopped, it will spread like a plague. It seems abnormal not to take bribes and damage the public interests. When all the people in a group are greedy, the corruption in the officialdom will spread like a plague, As a result, there will be fewer and fewer honest people. This is also a phenomenon of "bad money drives out good money"
The Internet is the carrier of blogs. According to the Ministry of information industry, the number of Internet users in China has exceeded 137 million by 2007, It accounts for 10% of the total population. The number of people who write or browse blogs has reached more than 30 million. There is no doubt that blogs will become an important information media. Such a huge customer base makes many people become popular on the Internet, such as muzimei and sister Furong. The reasons for their popularity are people's curiosity psychology and privacy psychology. Standing on the elevated interests, they are more popular than others, It's hard to avoid people shaking. After muzimei and sister Furong became popular, they didn't have to think that their value would increase greatly, so some people began to follow suit, such as hooligan Yan and brother Hehua (bad money). So, if such influential people join in, then the popularity of the website would naturally rise. Therefore, Nowadays, the spoof and nonsense of these people on the Internet have occupied more than half of the country. There is no humanistic atmosphere around us. What we contact on the Internet every day is not Li Bai, Su Shi, Lu Xun, Yu Qiuyu and other literary masters who can improve their self-cultivation. Bad money drives out good money
Similarly, in people's experience, it seems natural that the excellent can always defeat the backward, and the good can always defeat the bad. The answer may not be so inevitable in some areas. Perhaps you have found a strange phenomenon: in our life, sometimes the best do not prevail, There are many phenomena that deeply affect me, such as the phenomenon of "bad money weeding out good money" in human resource management of some enterprises
Let's take a simple example. We know that there are many employees in any enterprise, and their working abilities are also uneven. Some people are very capable, while others may be lazy or incompetent. When a group of people come to the company (assuming that they are all university graduates), at the beginning, the salary paid by the company to these people may be similar, For example, 2000 yuan per month. When people start to work for a period of time, some of them will have higher scores, while others may have lower scores. Theoretically, people with insufficient quality or ability will be eliminated. But in fact, most people's work performance is difficult to be measured by simple numbers or have performance evaluation, However, the result of performance evaluation is not so effective or accurate. Therefore, although everyone's salary is different, it is not completely equal to everyone's work performance. Because performance evaluation and supervision are limited after all, enterprises do not know exactly how much work everyone has done, who has done better, who has done worse, Perhaps an enterprise can only formulate a general wage standard according to the overall efficiency of the company. Then, there may be little difference in the wage levels of everyone, or even a big pot of rice. It is obvious that the most competent and outstanding employees do not get the corresponding return, and for them, the payment and income are always out of proportion, As a result, they have to move to other companies. The remaining employees who are not so competent are willing to accept the current salary level, so they stay with peace of mind. The following story is even more interesting: as the competent employees leave, the overall work level of the remaining employees drops significantly, which may indirectly lead to a downward trend in the company's performance, At this time, the enterprise may reduce the salary level according to the overall performance of the company. As a result, the employees who are less capable will have a similar situation with the previous group of employees. The income level will drop, but the pay is still so much, so it is not worthwhile to continue to work. As a result, the employees who are less capable will resign. Finally, the employees who are the least capable will continue to stay, This is the phenomenon of "bad money weeding out good money" in human resource management of some enterprises
The premise of this situation is the information asymmetry between the enterprise and employees. Because every employee knows what he has done, but the enterprise may not know so clearly. There is obvious information asymmetry between the two. It is the existence of this information asymmetry that leads to the emergence of this series of phenomena, High quality goods (high-quality talents) are constantly eliminated by low-quality goods (people who muddle along). Finally, after a series of "competition" and "screening", the remaining people in the enterprise are likely to be useless people who are useless. This is just the opposite of our general principle of survival of the fittest, Therefore, in the human resource management of our enterprises, if we want to avoid the phenomenon of "bad money expelling good money", one is to establish an environment with sufficient information and competition, and the other is to really identify "bad money" and "good money", and give them real value and differential treatment, so that the real "good money" can circulate smoothly in the market, Healthy and harmonious development
The phenomenon of bad money expelling good money has existed and disappeared in history, and it does exist today. I believe that as long as the direction is correct, the method is reasonable, and the measures are appropriate, it can also be eliminated

Which of the laws of bad money expelling good money and geographical conditions had a greater impact on British colonization

In the 16th century, in England, precious metals were not enough for coinage, so other metals had to be added to the newly minted coins. Therefore, there were two kinds of money in the market at that time, one was the money without impurities, and the other was the money that was

How to treat the phenomenon of bad money expelling good money

"Bad money expels good money" is a well-known law in economics. This law is a summary of such a historical phenomenon: in the era of coinage, when the "bad money" which is lower than the legal weight or quality enters the circulation field, people tend to collect the "good money" which is of sufficient value. Finally, the good money will be expelled, Only bad money is left in circulation in the market
In the era of coinage, when the inferior coins, which are lower than the legal weight or quality, enter the circulation field, people tend to collect the good ones. Finally, the good ones will be expelled and only the inferior ones will be left in the market