--- title: "Meaning & Key Takeaway of: Don't reward bad behavior. It is one of…" description: "\"Don't reward bad behavior. It is one of the first rules of parenting. During the financial cataclysm of 2008, we said it differently. When we bailed ou..." image: "https://sms4smile.com/quotes/i/fc3/eliot-spitzer-8630_bad-behavior_don-t-reward-bad-behavior-it-is-one-of-t_2755243.png" --- # Don't reward bad behavior. It is one of the first rules of… ![“Don't reward bad behavior. It is one of the first rules of parenting. During the financial cataclysm of 2008, we said it differently. When we bailed out banks that had created their own misfortune, we called it a 'moral hazard,' because the bailout absolved the bank's bad acts and created an…” quote by Eliot Spitzer](https://sms4smile.com/quotes/i/fc3/eliot-spitzer-8630_bad-behavior_don-t-reward-bad-behavior-it-is-one-of-t_2755243.png) [Download](https://sms4smile.com/quotes/i/fc3/eliot-spitzer-8630_bad-behavior_don-t-reward-bad-behavior-it-is-one-of-t_2755243.png) [Open image](https://sms4smile.com/quotes/i/fc3/eliot-spitzer-8630_bad-behavior_don-t-reward-bad-behavior-it-is-one-of-t_2755243.png) > “Don't reward bad behavior. It is one of the first rules of parenting. During the financial cataclysm of 2008, we said it differently. When we bailed out banks that had created their own misfortune, we called it a 'moral hazard,' because the bailout absolved the bank's bad acts and created an incentive for it to make the same bad loans again.” [Eliot Spitzer](https://sms4smile.com/quotes/author/eliot-spitzer/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Rewarding bad behavior creates moral hazard, encouraging repeat misconduct; avoid reinforcing negative actions. **In simple terms:** Rewarding bad behavior repeats it. Key Takeaway Do not reinforce negative actions. Themes ethics finance parenting Mood critical analytical Type ethical policy When to use this quote - bank bailouts - parenting - corporate governance - regulatory reform Key Concepts moral hazard incentives banking policy Questions to Reflect On - How can policies prevent moral hazard? - What incentives promote responsible behavior? A Different Perspective Complex systems may have hidden incentives; solutions need nuance. ★ ★ ★ ★ ★ No ratings yet [Bad behavior](https://sms4smile.com/quotes/about/bad-behavior/) [Behavior](https://sms4smile.com/quotes/about/behavior/) [Child](https://sms4smile.com/quotes/about/child/) [Habits](https://sms4smile.com/quotes/about/habits/) [Incentives](https://sms4smile.com/quotes/about/incentives/) [Misfortunes](https://sms4smile.com/quotes/about/misfortunes/) [Moral](https://sms4smile.com/quotes/about/moral/) [Moral hazard](https://sms4smile.com/quotes/about/moral-hazard/) [Parenting](https://sms4smile.com/quotes/about/parenting/) [Rewards](https://sms4smile.com/quotes/about/rewards/) ## Related quotes > [The government is promoting bad behavior... do we really want to subsidize the losers' mortgages... This is America! How many of you people want…](https://sms4smile.com/quotes/rick-santelli/the-government-is-promoting-bad-behavior-do-we-really-want-to/) [Rick Santelli](https://sms4smile.com/quotes/author/rick-santelli/) > [Only criminals and bloodsuckers reward bad behavior.](https://sms4smile.com/quotes/ted-nugent/only-criminals-and-bloodsuckers-reward-bad-behavior/) [Ted Nugent](https://sms4smile.com/quotes/author/ted-nugent/) > [“Oh I never fake it... I make it a point never to reward bad behavior”](https://sms4smile.com/quotes/nikki-mathis-thompson/oh-i-never-fake-it-i-make-it-a-point-never-to-reward-bad-behavior/) Nikki Mathis Thompson > [The government can always rescue the markets or interfere with contract law whenever it deems convenient with little or no apparent cost. (Investors believe…](https://sms4smile.com/quotes/seth-klarman/the-government-can-always-rescue-the-markets-or-interfere-with/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [I'm interested in the limits of personality, in the possibility of change, and the saving power of art. Do powerful works of art raise…](https://sms4smile.com/quotes/adam-ross/i-m-interested-in-the-limits-of-personality-in-the-possibility-of/) [Adam Ross](https://sms4smile.com/quotes/author/adam-ross/) > [Embryonic stem cell research is at the leading edge of a series of moral hazards.](https://sms4smile.com/quotes/george-w-bush/embryonic-stem-cell-research-is-at-the-leading-edge-of-a-series-of/) [George W. Bush](https://sms4smile.com/quotes/author/george-w-bush/) > [There is a major disaster when a person allows some success to become a stopping place rather than a way station on to a…](https://sms4smile.com/quotes/bill-vaughan/there-is-a-major-disaster-when-a-person-allows-some-success-to-become/) [Bill Vaughan](https://sms4smile.com/quotes/author/bill-vaughan/) > [Those with health insurance are overinsured and their behavior is distorted by moral hazard. Those without health insurance use their own money to make…](https://sms4smile.com/quotes/malcolm-gladwell/those-with-health-insurance-are-overinsured-and-their-behavior-is/) [Malcolm Gladwell](https://sms4smile.com/quotes/author/malcolm-gladwell/) > [Ratings agencies are highly conflicted, unimaginative dupes. They are blissfully unaware of adverse selection and moral hazard. Investors should never trust them.](https://sms4smile.com/quotes/seth-klarman/ratings-agencies-are-highly-conflicted-unimaginative-dupes-they-are/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [“The American share of the crisis began with grossly improper mortgages provided to wholly unqualified borrowers, all directly caused and encouraged by government distortion…](https://sms4smile.com/quotes/g-m-w-wemyss/the-american-share-of-the-crisis-began-with-grossly-improper/) [G.M.W. Wemyss](https://sms4smile.com/quotes/author/g-m-w-wemyss/) > [Deflation can be particularly dangerous when a financial system is shaky, with household and corporate balance sheets in poor shape and banks undercapitalized and…](https://sms4smile.com/quotes/ben-bernanke/deflation-can-be-particularly-dangerous-when-a-financial-system-is/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [When you collect bad loans... you sure learn a lot about making good ones. You also learn a lot about the power of persuasion,…](https://sms4smile.com/quotes/john-stumpf/when-you-collect-bad-loans-you-sure-learn-a-lot-about-making-good/) [John Stumpf](https://sms4smile.com/quotes/author/john-stumpf/) > [I have done a lot of work for affordable housing, rental housing. I understand the rap on me and other liberals is, oh, we…](https://sms4smile.com/quotes/barney-frank/i-have-done-a-lot-of-work-for-affordable-housing-rental-housing-i/) [Barney Frank](https://sms4smile.com/quotes/author/barney-frank/) > [We like to joke that India has sick companies but rich promoters. Yet, even after the bad loans and non-payment of dues have turned…](https://sms4smile.com/quotes/sucheta-dalal/we-like-to-joke-that-india-has-sick-companies-but-rich-promoters-yet/) [Sucheta Dalal](https://sms4smile.com/quotes/author/sucheta-dalal/) > [Too-easy credit and millions of bad loans made during the U.S. housing bubble paved the way for the financial calamity and Great Recession that…](https://sms4smile.com/quotes/mark-zandi/too-easy-credit-and-millions-of-bad-loans-made-during-the-u-s-housing/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) ## More by Eliot Spitzer > [The pace of global warming is accelerating and the scale of the impact is devastating. The time for action is limited - we are…](https://sms4smile.com/quotes/eliot-spitzer/the-pace-of-global-warming-is-accelerating-and-the-scale-of-the/) [Eliot Spitzer](https://sms4smile.com/quotes/author/eliot-spitzer/) > [Some say that I should settle down, go slower and not push so hard, so quickly for such transformational change. To them, I say…](https://sms4smile.com/quotes/eliot-spitzer/some-say-that-i-should-settle-down-go-slower-and-not-push-so-hard-so/) [Eliot Spitzer](https://sms4smile.com/quotes/author/eliot-spitzer/) > [Shareholders have the right and obligation to set the parameters of corporate behavior within which management pursues profit.](https://sms4smile.com/quotes/eliot-spitzer/shareholders-have-the-right-and-obligation-to-set-the-parameters-of/) [Eliot Spitzer](https://sms4smile.com/quotes/author/eliot-spitzer/) > [The world has conducted a massive macro-economic experiment since the cataclysm of 2008. In Europe, the fans of austerity have had their chance, and…](https://sms4smile.com/quotes/eliot-spitzer/the-world-has-conducted-a-massive-macro-economic-experiment-since-the/) [Eliot Spitzer](https://sms4smile.com/quotes/author/eliot-spitzer/) > [Any reasonable economist will tell you that it's nearly impossible to isolate the impact of right-to-work laws on a state's job growth. A multitude…](https://sms4smile.com/quotes/eliot-spitzer/any-reasonable-economist-will-tell-you-that-it-s-nearly-impossible-to/) [Eliot Spitzer](https://sms4smile.com/quotes/author/eliot-spitzer/) > [The Chautauqua Institution is truly a national treasure. It is a place for contemplation and a place for reflection, a place where platitudes and…](https://sms4smile.com/quotes/eliot-spitzer/the-chautauqua-institution-is-truly-a-national-treasure-it-is-a-place/) [Eliot Spitzer](https://sms4smile.com/quotes/author/eliot-spitzer/) > [From those to whom much is given, much is expected. I have been given much - the love of my family, the faith and…](https://sms4smile.com/quotes/eliot-spitzer/from-those-to-whom-much-is-given-much-is-expected-i-have-been-given/) [Eliot Spitzer](https://sms4smile.com/quotes/author/eliot-spitzer/) > [Why does it have to be politics? Is there a dynamism to that world and a theoretical capacity to do things that draws many…](https://sms4smile.com/quotes/eliot-spitzer/why-does-it-have-to-be-politics-is-there-a-dynamism-to-that-world-and/) [Eliot Spitzer](https://sms4smile.com/quotes/author/eliot-spitzer/) > [The reality of split government puts a premium on creativity within the administration. President Obama needs to put the right people in charge of…](https://sms4smile.com/quotes/eliot-spitzer/the-reality-of-split-government-puts-a-premium-on-creativity-within/) [Eliot Spitzer](https://sms4smile.com/quotes/author/eliot-spitzer/) > [It sucks. I used to be governor of New York.](https://sms4smile.com/quotes/eliot-spitzer/it-sucks-i-used-to-be-governor-of-new-york/) [Eliot Spitzer](https://sms4smile.com/quotes/author/eliot-spitzer/) > [The Republican argument that raising the debt ceiling encourages additional future spending is logically irresponsible. The debt ceiling has to be raised to authorize…](https://sms4smile.com/quotes/eliot-spitzer/the-republican-argument-that-raising-the-debt-ceiling-encourages/) [Eliot Spitzer](https://sms4smile.com/quotes/author/eliot-spitzer/) > [I view Al Jazeera as a very serious journalistic outfit. They have proven to observers around the world that they are serious and objective.…](https://sms4smile.com/quotes/eliot-spitzer/i-view-al-jazeera-as-a-very-serious-journalistic-outfit-they-have/) [Eliot Spitzer](https://sms4smile.com/quotes/author/eliot-spitzer/) > [As someone with a deep faith in competition and the market, I also know that markets only work with tough enforcement of the rules…](https://sms4smile.com/quotes/eliot-spitzer/as-someone-with-a-deep-faith-in-competition-and-the-market-i-also/) [Eliot Spitzer](https://sms4smile.com/quotes/author/eliot-spitzer/) > [I would very honestly just tell you that what I tried to do was simply respond to inquiries from people as they came in.…](https://sms4smile.com/quotes/eliot-spitzer/i-would-very-honestly-just-tell-you-that-what-i-tried-to-do-was/) [Eliot Spitzer](https://sms4smile.com/quotes/author/eliot-spitzer/) > [Those who are critical of Alliance are the same people who have done nothing for 30 years.](https://sms4smile.com/quotes/eliot-spitzer/those-who-are-critical-of-alliance-are-the-same-people-who-have-done/) [Eliot Spitzer](https://sms4smile.com/quotes/author/eliot-spitzer/) [Explore all 79 Eliot Spitzer quotes ](https://sms4smile.com/quotes/author/eliot-spitzer/) ## More Bad behavior quotes > [“It is chilling to know that some accepted ways of being with children can leave them vulnerable to suffering from anxiety, depression, or rage…](https://sms4smile.com/quotes/natalie-taylor/it-is-chilling-to-know-that-some-accepted-ways-of-being-with-children/) [Natalie Taylor](https://sms4smile.com/quotes/author/natalie-taylor/) > [More often than not, the belief that you are bad contributes to the "bad" behavior. Change and learning occur most readily when you (a)…](https://sms4smile.com/quotes/david-d-burns/more-often-than-not-the-belief-that-you-are-bad-contributes-to-the/) [David D. Burns](https://sms4smile.com/quotes/author/david-d-burns/) > [The desire to keep doing what we love supersedes the desire to penalize bad behavior.](https://sms4smile.com/quotes/nell-scovell/the-desire-to-keep-doing-what-we-love-supersedes-the-desire-to/) [Nell Scovell](https://sms4smile.com/quotes/author/nell-scovell/) > [“Admit it—own up to the fact you have an undesirable habit. Tell the Lord about it (He already knows; it just helps you to…](https://sms4smile.com/quotes/al-fike/admit-it-own-up-to-the-fact-you-have-an-undesirable-habit-tell-the/) [Al Fike](https://sms4smile.com/quotes/author/al-fike/) > [If you do anything today: trade in that bad behavior for a new and improved one.](https://sms4smile.com/quotes/kaoru/if-you-do-anything-today-trade-in-that-bad-behavior-for-a-new-and/) [Kaoru](https://sms4smile.com/quotes/author/kaoru/) > [“wen am good you will not accept, now don't blame me for my bad behaviors ...”](https://sms4smile.com/quotes/sakhiabbas/wen-am-good-you-will-not-accept-now-don-t-blame-me-for-my-bad/) sakhiabbas > [“We need to get our minds right, because right now we are behaving as if we are out of our right minds.”](https://sms4smile.com/quotes/carlos-wallace/we-need-to-get-our-minds-right-because-right-now-we-are-behaving-as/) [Carlos Wallace](https://sms4smile.com/quotes/author/carlos-wallace/) > [“It’s extremely unlikely you will be magically transformed from a mediocre or average people manager to a Satya Nadella or a Ratan Tata. You…](https://sms4smile.com/quotes/binod-shankar/it-s-extremely-unlikely-you-will-be-magically-transformed-from-a/) Binod Shankar > [The Fox News that I know and work in is a team of producers, technicians, photographers, truck operators and production managers who barely have…](https://sms4smile.com/quotes/martha-maccallum/the-fox-news-that-i-know-and-work-in-is-a-team-of-producers/) [Martha MacCallum](https://sms4smile.com/quotes/author/martha-maccallum/) > [Most bad behavior comes from insecurity.](https://sms4smile.com/quotes/debra-winger/most-bad-behavior-comes-from-insecurity/) [Debra Winger](https://sms4smile.com/quotes/author/debra-winger/) > [ “\[T\]here are some human rights that are so deep that we can't negotiate them away. I mean people do heinous, terrible things. But there… ](https://sms4smile.com/quotes/sister-helen-prejean/t-here-are-some-human-rights-that-are-so-deep-that-we-can-t-negotiate/) Sister Helen Prejean > [The end result of positively reinforcing bad behavior is that you get more of it. The culmination of a failure to punish predators is…](https://sms4smile.com/quotes/ilana-mercer/the-end-result-of-positively-reinforcing-bad-behavior-is-that-you-get/) [Ilana Mercer](https://sms4smile.com/quotes/author/ilana-mercer/) > [I think writers are excited by stupidity and bad behavior, generally.](https://sms4smile.com/quotes/martin-amis/i-think-writers-are-excited-by-stupidity-and-bad-behavior-generally/) [Martin Amis](https://sms4smile.com/quotes/author/martin-amis/) > [“I became a student of my own depressed experience, trying to unthread its causes. What was the root of all this despair? Was it…](https://sms4smile.com/quotes/elizabeth-gilbert/i-became-a-student-of-my-own-depressed-experience-trying-to-unthread/) [Elizabeth Gilbert](https://sms4smile.com/quotes/author/elizabeth-gilbert/) > [“She leaned down so she was looking right in my eyes. "You hear me, child. you can't use other folks' bad behavior to excuse…](https://sms4smile.com/quotes/susan-crandall/she-leaned-down-so-she-was-looking-right-in-my-eyes-you-hear-me-child/) [susan crandall](https://sms4smile.com/quotes/author/susan-crandall/) [Browse all 203 Bad behavior quotes ](https://sms4smile.com/quotes/about/bad-behavior/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "Don't reward bad behavior. It is one of the first rules of parenting. During the financial cataclysm of 2008, we said it differently. 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