According to Gresham's law of money, bad money drives good money out of circulation. It means good money is kept by people while bad money is used for circulation. This can be seen everywhere. When gold was used as currency price of goods were low and when gold standard was removed, people started hoarding gold and started using fiat for transactions. This lets governments to print more and more money that increases inflation. So, actual value of currency decreases. It makes rich richer while poor poorer. It leads to financial crises and forces people to work more and more to pay for their taxes, rents, loans and buying things. They get trapped in a vicious cycle which forces them to work harder while keeping them enslaved.
This can be seen in the present time as well. After covid-19, governments printed too much currencies that lead to inflation, soaring prices and less savings for ordinary people. On the other hand wealth of super rich increased multifold. Now people have started hoarding gold to save themselves. This means high price of gold and devaluated fiats. Gold being good money is being stored while fiats are being widely used. Isn't this proving Gresham's law of money? Will it make economy to crash?
