Cars, iPhones, and Incentives to Work

February 25, 2011 BY danariely

A few centuries ago little luxuries like iPhones and cars did not exist for the working class to consider buying, so the motivation to work did not extend beyond the desire to feed oneself and one’s family. Now, however, we can imagine that with cars and iPhones within reach, even lower wages in the face of higher taxes are offset by the motivation to acquire these items. The market for such consumer luxuries, in turn, has inspired an incredible wave of motivation and innovation, so let’s be thankful for them.