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Intrinsic rewards will last a life-time, but extrinsic rewards only last a short period before one craves for more -- more money, more perks, better titles -- and leads to self-destruction by taking on more risks and less ethical approaches.

That said, one cannot live on intrinsic rewards alone. A mixture of intrinsic rewards (recognition, praise, good feelings) with meaningful and honest extrinsic awards will be the best. Some executives of Wall Street are justifiably incurring public wrath because of their out-sized compensation for a job poorly done. That is the wrong extrinsic reward. Extrinsic rewards should be tied to long-term performance, not short-term short-sighted financial gains that can ruin the company, shareholders, and the employees in the longer term.

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Q: What would be the effects on the Private sector if rewards were intrinsic instead of extrinsic?
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