n a classic example of a case in which someone might throw good money after bad, a company might invest in a major software upgrade, and learn that the software didn't meet its needs. To resolve the situation, the company would continue spending money on the software in an attempt to upgrade it and make it functional. Critics might argue that this money is wasted, and it would be better to start all over again with a fresh software system. The temptation to throw good money after bad can be considerable, especially when someone has invested a lot of time and money in something. It can be disheartening to be told that your money has been wasted, and it would be better to simply forget about it and move on. When people have invested the bulk of their money in a useless venture, throwing good money after bad can be catastrophic, as one will lose the typically borrowed funding used to prop the scheme up as well as the initial outlay. This can mean that someone ends up worse-off than he or she started. This term references the closely related idea of throwing money at something to fix a problem. While substantial applications of funds can indeed resolve some situations, money is not a panacea. Attempting to use money to fix a bad outcome sometimes ends up with a situation in which people throw good money after bad, not realizing that they are taking the wrong approach. 


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