Gresham’s Law is an economic principle that states, “Bad money drives out good money.” Wikipedia explains the principle as it applies to money:
For example, if there are two forms of commodity money in circulation, which are accepted by law as having similar face value, the more valuable commodity will gradually disappear from circulation
As an example, a silver dollar minted today is sold at retail for more than $25. With a face value of $1, those silver dollars are not used for purchases. Gold and silver coins long ago disappeared from circulation because they are far more valuable than the paper money that replaced them. Bad money—fiat paper currency—drives out good money—gold and silver.
Gresham’s Law also applies to moral concepts. We can say, “Invalid concepts drive out valid concepts.” Today, we are witnessing the debasing of moral concepts.
The concept of rights is one example. The valid concept of rights refers to an individual’s freedom of action in a social setting. The invalid concept of rights refers to an individual’s claim to a material value. In its valid form, rights protect an individual’s freedom to act to produce or earn values. In its invalid form, rights provide a claim to the values produced or earned by others.
To illustrate, rights protect our freedom to earn and obtain the health care that we need and desire. However, if one has a right to health care (or housing or an education or any other value) then others are obligated to provide that value. In practice, this means that the invalid concept obliterates the valid concept.
If individuals are obligated to provide values to others, then the actual rights of producers no longer exist. The freedom to act is replaced with the duty to provide. The producers no longer have the freedom to create, use, and trade values as they deem best. Instead, they are required to produce and then “donate” their creations to others.
The debasing of money results in currency which has less value. A gold coin with inherent value is replaced with paper money that possesses no inherent value. The debasing of moral concepts results in the same devaluing. When money is debased, its purchasing power is decreased. When moral concepts are debased, they become worthless for any rational purpose.