Can money create control issues?


Yes, money can create control issues in several ways, as discussed by trusted experts.

Psychological Impact of Monetary Incentives highlights that overusing money as an incentive can make people feel controlled, leading to resentment and rebellion against the incentive scheme. When monetary incentives overshadow personal autonomy and intrinsic motivations, they can disrupt the feeling of being in control 1.

Family Dynamics and Symbolism Using money within intimate settings, like families, can also be problematic. Money can symbolize control, loyalty, and obligations, potentially leading to a slippery slope where individuals might expect and rely on financial motivations for various aspects of life. This dynamic can erode the sense of intrinsic motivation and personal autonomy 1.

Children and Financial Control discusses the importance of children having control over their money. Without this control, they might develop unhealthy attitudes towards money, like spending hastily to get more from their parents. Allowing children to manage their money teaches them responsibility and the consequences of their financial decisions, reinforcing their sense of autonomy and control 2.

These insights emphasize how monetary incentives and control can interact, affecting personal autonomy and interpersonal dynamics.

The Problem with Using Money as an Incentive

Tyler Cowen discusses the drawbacks of using money as an incentive, highlighting issues of control and the clash between autonomy and monetary motivations. He explores the symbolic and slippery slope problems that arise in family settings and suggests that monetary incentives may work well for certain personality types.


Tyler Cowen on Your Inner Economist