Power and Money

| T. Franklin Murphy

Businessman standing on a stack of coins above a city, symbolizing the psychological relationship between power, money, status, and personal worth.

Human life begins in dependence. Infants survive because other people feed, protect, and teach them. As adults, we remain part of social systems that pool resources, divide labor, and provide forms of security no individual can create alone.

That dependence does not disappear when childhood ends. It changes form. Adults still need safety, belonging, competence, and some influence over the conditions of life. Money and power can answer parts of those needs. Money buys food, shelter, time, treatment, education, and options. Power can help us act, protect others, shape institutions, and resist domination. Neither is inherently corrupt.

The trouble begins when these useful means become proof of human worth. A bank balance becomes an identity. A title becomes evidence that our voice matters. The possibility of having enough retreats because the deeper question was never merely what we could purchase or control. It was whether we were secure, valued, and significant.

Key Definition:

Power and money psychology examines how resources, influence, and status can meet real needs for security and choice while also becoming symbols of recognition or self-worth. The pursuit becomes psychologically hazardous when having more is treated as the only reliable proof that a person matters.

The Psychology of Power and Money

Power and money are compelling because they alter what a person can do. They can reduce exposure to hardship, widen choice, and make a desired future more reachable. They also carry social meaning. Wealth and rank can signal success, competence, or membership in a valued group, even when those signals reveal little about character.

Wanting adequate income is not greed, and seeking authority to solve a problem is not domination. The central question is what the pursuit serves, how it affects other people, and whether the person can still recognize a point of sufficiency.

How Power Changes Attention and Perspective

Power Attention and Action

Social power is commonly understood as a person’s capacity to influence another person’s outcomes by providing resources, withholding them, or imposing consequences. Power therefore changes more than status. It changes the field of possible action. A manager can approve a schedule, a judge can restrict liberty, a parent can shape access to safety, and a public official can distribute benefits or burdens.

Dacher Keltner, Deborah Gruenfeld, and Cameron Anderson proposed a straightforward pattern: people with more power often face fewer restraints and see more opportunities for reward. This can encourage quicker action and less hesitation. People with less power may watch more carefully for threats, punishment, and the wishes of those who control important resources (Keltner et al., 2003).

This framework does not mean that confidence, decisiveness, or rapid action are bad. Communities sometimes need a person with authority to decide and act. The danger is that freedom from constraint can make a person’s own goal unusually vivid while the costs borne by others fade into the background.

Power and Perspective

In a series of experiments and a correlational study, Adam Galinsky and colleagues found that power was associated with less spontaneous perspective taking and poorer accuracy in reading other people’s emotions (Galinsky et al., 2006). These findings offer a plausible mechanism for familiar failures of leadership: the person with the greatest ability to affect others may receive the least corrective information about how those effects are experienced.

Power does not erase empathy in every person or situation. Responsibility, accountability, relationship orientation, and deliberate perspective taking can alter how power is expressed. The research supports a risk, not a destiny. Authority is safest when decision makers remain exposed to honest feedback and cannot punish the people who provide it.

Power as Responsibility

Power can also make constructive action possible. Sandy Hershcovis and colleagues examined how people responded after witnessing workplace incivility. Across experimental and field studies, people with greater power were more likely to confront the person responsible and less likely to avoid the situation. Felt responsibility helped explain part of that pattern (Hershcovis et al., 2017).

The finding does not turn power into virtue. Confrontation can protect another person, defend a hierarchy, or serve the actor’s own status. It does show why power should be understood as increased capacity rather than automatic corruption. The moral question is whether that capacity is organized around personal responsibility, protection, and accountable action.

What Money Can and Cannot Buy

Security Resources and Choice

Money matters. It protects against hunger, unstable housing, untreated illness, dangerous work, and the relentless mental load of unpaid bills. Any discussion of materialism that ignores deprivation turns privilege into philosophy. A person struggling to meet basic needs does not require a lecture on detachment. They require adequate resources and fair opportunity.

Even beyond survival, income can widen meaningful choice. It can purchase education, transportation, privacy, recovery time, and the ability to leave a harmful setting. These are not shallow comforts. They can support autonomy and preserve dignity. The psychological case against worshiping money is not a case against economic security.

Scarcity Narrows Attention

Financial scarcity does more than reduce what a person can purchase. It repeatedly calls attention back to what is due, missing, or at risk. Ernst-Jan de Bruijn and Gerrit Antonides reviewed research suggesting that poverty can concentrate attention on urgent scarcity-related demands while other concerns receive less attention. This narrowing may help explain overborrowing and neglected obligations in some settings (de Bruijn & Antonides, 2022).

The review also warns against making the theory larger than the evidence. Support for a general reduction in mental bandwidth was inconclusive, and methodological problems prevented firm conclusions about several pathways. Scarcity is therefore best understood as a demanding context that can shape attention and tradeoffs, not as proof of poor character or permanently impaired judgment.

Income Comparison Status and Adaptation

The connection between income and happiness becomes less straightforward once basic hardship is reduced. Using more than 80,000 observations from a British household panel, Christopher Boyce and colleagues found that income rank within a comparison group predicted life satisfaction more strongly than absolute income in their model (Boyce et al., 2010). Their evidence highlights the role of social comparison: satisfaction can depend on where we stand relative to others, not simply on what our income allows us to do.

Rafael Di Tella and colleagues followed 7,812 people in Germany and examined changes in income, occupational status, and happiness. They reported substantial adaptation to income across four years, while the estimated effect of status persisted more strongly (Di Tella et al., 2010). This does not prove that money stops mattering or that everyone adapts equally. It shows why the next raise may deliver less lasting change than imagination promises.

The pattern resembles the hedonic treadmill. Circumstances improve, expectations adjust, and comparison supplies a new standard. If the goal is simply more, arrival cannot last. The finish line moves with us.

How Money and Power Reinforce Each Other

Money can purchase access, time, expertise, visibility, and influence. Power can shape rules that protect or enlarge wealth. Together they form a reinforcing loop. Resources affect whose preferences are heard, who can absorb risk, and who receives another chance after failure.

How Resources Become Influence

Peter Blau’s account of social exchange begins with dependence. If one person controls a benefit that another person needs and cannot easily find elsewhere, the first person gains influence. When the benefit cannot be readily repaid, obligation and status differences may grow into stable authority (Blau, 1964).

The feedback loop is therefore social as well as psychological. Wealth can reduce dependence on others while increasing other people’s dependence on the person who controls valued resources. Power can then protect the arrangements that preserve that advantage. Fairness, legitimate authority, and resistance all become part of how the imbalance is maintained or challenged.

Inside that structure, success draws attention to rewards, comparison makes the next level salient, and fewer people feel safe offering correction. A person may gradually confuse freedom from opposition with accuracy and financial gain with moral endorsement.

When Wanting More Becomes Greed

Insatiability Is Different From Ambition

Psychological research increasingly treats greed as an individual difference marked by an insatiable desire for more. The desired object may be money, possessions, influence, status, privilege, or another valued outcome. What defines the pattern is not energetic pursuit alone. It is the difficulty of experiencing enough (Zeelenberg & Breugelmans, 2022).

That definition helps separate greed from ambition. Ambition can be bounded by a purpose. A person may work intensely to build a business, earn expertise, or lead an institution while still honoring limits and the claims of others. Greed keeps converting achievement into evidence that the next acquisition is necessary.

Moral Disengagement and Ethical Risk

Terri Seuntjens and colleagues developed the Dispositional Greed Scale and found that greed was related to materialism, envy, self-interest, lower self-control, and lower life satisfaction. Across behavioral studies, greed also predicted taking more for oneself in allocation and resource dilemmas (Seuntjens et al., 2015).

A later series of studies connected dispositional greed with greater acceptance of unethical conduct and a greater likelihood of taking a bribe. Across five samples in the first study, the association between greed and unethical behavior was moderate rather than absolute. The authors also found that stronger desire helped explain the relationship (Seuntjens et al., 2019).

Unethical conduct also requires a story that makes it tolerable to the self. James Detert, Linda Trevino, and Vicki Sweitzer studied moral disengagement, the mental maneuvers that allow people to set aside their usual moral standards. In their three-wave study of 307 students, moral disengagement was positively related to unethical decision making (Detert et al., 2008).

The sample and self-report measures limit broad conclusions, but the mechanism helps explain how advantage can coexist with a moral self-image. Harm can be renamed, responsibility diffused, consequences minimized, or injured people blamed. Greed remains a risk factor rather than a verdict on every wealthy or ambitious person. Ethical behavior also depends on norms, accountability, opportunity, and whether misconduct can be challenged.

Money Status and Self Worth

Fear of Insufficiency

Success is not always visible from the inside. Childhood labels, repeated comparison, and painful exclusion can leave a person uncertain of their value even after real accomplishment. Work and love become testing grounds. We fear that we are not competent enough for the group or desirable enough for a partner, so we look for proof that cannot argue back.

Money, titles, possessions, sexual attention, and online reach can serve as that proof. They are countable. They display well. They may quiet doubt for a moment. Yet the symbol cannot fully satisfy the need beneath it, because belonging and self-respect depend on lived relationships, contribution, and an identity that can survive a change in rank.

This is where materialism becomes more than the enjoyment of objects. It becomes an organizing value in which acquisition and visible success carry too much of the burden of identity.

Money Goals and Well Being

Richard Ryan and Edward Deci’s review distinguished hedonic well-being, concerned with pleasure and satisfaction, from eudaimonic well-being, concerned with meaning, self-realization, and full functioning. Across the research they reviewed, wealth was often only weakly related to well-being, and goals centered on financial success were less consistently supportive than goals involving growth, relationships, and community (Ryan & Deci, 2001).

This does not require choosing poverty or renouncing achievement. It asks whether money is serving a life or whether life has become organized around maintaining the meaning of money. The same paycheck can be a resource, an obligation, a score, or a defense against shame. The amount matters, and so does the role it has been assigned.

To Have or To Be

Erich Fromm described a having mode in which identity rests on possession: I am what I have. When property, rank, or influence carries the self, loss becomes more than inconvenience. It feels like personal erasure. The portfolio falls, the title disappears, the audience leaves, and the person no longer knows what remains (Fromm, 2013).

Fromm contrasted having with being, a mode grounded in aliveness, participation, and contact with reality. Psychology does not give us a clean division between the two. We need possessions, institutions, and roles. The distinction remains useful as a question: Do our resources expand our capacity to live and contribute, or must we continually enlarge them to hold the self together?

Psychological Needs Beyond Income

Self-determination theory offers a psychological language for the being side of the distinction. People tend to function well when they experience autonomy, competence, and relatedness: a sense of volition, effectiveness, and meaningful connection. Daily variation in these experiences has been associated with variation in vitality and positive affect (Ryan & Deci, 2001).

A large cross-national study adds nuance. Louis Tay and Ed Diener analyzed responses from 60,865 people in 123 countries; household-income data were available for 41,933 of them. Meeting basic needs and experiencing social connection, respect, mastery, and autonomy were each related to different aspects of well-being, even when income was considered. Because the study was correlational, it cannot show that these needs cause well-being in a fixed order (Tay & Diener, 2011).

Money and power can support these needs. Income can create choice. Authority can make effective action possible. Resources can protect relationships from chronic strain. They can also undermine the same needs when they become tools of control, comparison, or emotional distance. What matters is not only what we possess but what our possession permits us and others to become.

Gratitude and the Experience of Enough

Emily Polak and Michael McCullough reviewed research connecting materialism, gratitude and well-being. They reported negative associations between dispositional gratitude and materialism, while emphasizing that the evidence did not yet establish whether gratitude reduces materialism, materialism inhibits gratitude, or both (Polak & McCullough, 2006).

Gratitude is therefore not a command to accept deprivation or injustice. It is an attentional practice that can widen awareness beyond what is missing. At its healthiest, gratitude and ambition can coexist. We can appreciate what sustains us while still working to change conditions that should not remain.

Keeping Ambition in Proportion

Defining Enough

Ambition deserves a purpose larger than accumulation. Before pursuing more money or influence, we can ask what concrete freedom it would create, whose lives would be affected, and what amount would count as sufficient for the intended purpose. A goal without an answer to enough is vulnerable to endless escalation.

It also helps to examine what the pursuit is displacing. If achievement consistently consumes intimacy, health, fairness, or the freedom to speak honestly, the cost is not incidental. It reveals the hierarchy of values expressed by behavior, even when our stated values sound different.

A brief reflection can make the question more concrete. It is not a psychological test, but a way to examine the purpose and cost of wanting more.

  • What concrete need would more money or influence meet?
  • Is the need primarily security, autonomy, recognition, belonging, or control?
  • What observable condition would count as enough?
  • Who bears the cost of the pursuit, and can affected people safely disagree?

Accountability and Safe Dissent

Accountability becomes more important as power increases. Ingrid Nembhard and Amy Edmondson studied 23 neonatal intensive care units and found that leader inclusiveness was associated with psychological safety and engagement in improvement work. Leaders who invited and appreciated contributions helped reduce the inhibiting effects of professional status differences (Nembhard & Edmondson, 2006).

A healthcare-team study cannot establish one rule for every institution, but its practical lesson is widely relevant. The useful advisor is not merely loyal. They can disagree without losing access, status, or livelihood. Transparent rules, independent oversight, protected dissent, and measures that record foreseeable harm return information that wealth and rank tend to filter out.

We Are All Susceptible

The lure of power and money is easiest to see in someone else. Social media makes the temptation more personal. An audience offers influence, approval, and sometimes income. Yet the audience also teaches the creator what attracts attention, and that feedback can quietly become a command.

Several years ago, I shared a brief opinion about a political leader. It attracted more reaction and more followers than articles that required hours or days of research. The lesson arrived immediately: outrage traveled farther than careful thought. I could have followed the reward, expanded my reach, and dealt with the cognitive dissonance later.

That small experience matters because corruption rarely announces itself as a decision to abandon principle. It often appears as one rewarded exception, followed by a new standard for what the work is for. The external reward becomes easier to measure than the internal loss.

Associated Concepts

  • Greed: an insatiable desire for more that may involve money, possessions, power, status, or other valued outcomes.
  • Materialism and Happiness: the study of how assigning high value to acquisition and possessions relates to identity and well-being.
  • Self-Determination Theory: a theory of motivation organized around autonomy, competence, relatedness, and the degree to which goals are personally endorsed.
  • Eudaimonia: well-being understood through meaning, growth, virtue, and full functioning rather than pleasure alone.
  • Hedonic Adaptation: the tendency for emotional responses to changed circumstances to diminish as expectations and attention adjust.
  • Prosocial Behavior: voluntary action intended to benefit another person or a wider community.
  • Emotional Intimacy: a form of connection grounded in trust, emotional openness, and responsive understanding.

A Few Words by Psychology Fanatic

Power and money answer ordinary human longings for safety, freedom, competence, and recognition. This is why their pull deserves more than condemnation. A healthier life does not require pretending that resources and influence do not matter. It requires keeping them in proportion and placing them in service of a life larger than accumulation.

Money can support a life without becoming its measure. Power can protect and create while remaining answerable to people who can speak without fear. The evidence of our worth is expressed in how we use what we have and what remains of us when the applause, title, or balance changes. The deepest security is not ownership of the world. It is a self capable of living responsibly within it.

References

Blau, Peter Michael (1964). Exchange and Power in Social Life. John Wiley & Sons.
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Boyce, Christopher J.; Brown, Gordon D. A.; Moore, Simon C. (2010). Money and Happiness: Rank of Income, Not Income, Affects Life Satisfaction. Psychological Science, 21(4), 471-475. DOI: 10.1177/0956797610362671.
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de Bruijn, Ernst-Jan; Antonides, Gerrit (2022). Poverty and Economic Decision Making: A Review of Scarcity Theory. Theory and Decision, 92(1), 5-37. DOI: 10.1007/s11238-021-09802-7.
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Di Tella, Rafael; Haisken-De New, John; MacCulloch, Robert (2010). Happiness Adaptation to Income and to Status in an Individual Panel. Journal of Economic Behavior & Organization, 76(3), 834-852. DOI: 10.1016/j.jebo.2010.09.016.
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Detert, James R.; Treviño, Linda Klebe; Sweitzer, Vicki L. (2008). Moral Disengagement in Ethical Decision Making: A Study of Antecedents and Outcomes. Journal of Applied Psychology, 93(2), 374-391. DOI: 10.1037/0021-9010.93.2.374.
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Fromm, Erich (2013). To Have or To Be? Bloomsbury Academic. ISBN: 9781780936802.
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Galinsky, Adam D.; Magee, Joe C.; Inesi, M. Ena; Gruenfeld, Deborah H. (2006). Power and Perspectives Not Taken. Psychological Science, 17(12), 1068-1074. DOI: 10.1111/j.1467-9280.2006.01824.x.
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Hershcovis, M. Sandy; Neville, Lukas; Reich, Tara C.; Christie, Amy M.; Cortina, Lilia M.; Shan, J. Valerie (2017). Witnessing Wrongdoing: The Effects of Observer Power on Incivility Intervention in the Workplace. Organizational Behavior and Human Decision Processes, 142, 45-57. DOI: 10.1016/j.obhdp.2017.07.006.
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Keltner, Dacher; Gruenfeld, Deborah H.; Anderson, Cameron (2003). Power, Approach, and Inhibition. Psychological Review, 110(2), 265-284. DOI: 10.1037/0033-295X.110.2.265.
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Nembhard, Ingrid M.; Edmondson, Amy C. (2006). Making It Safe: The Effects of Leader Inclusiveness and Professional Status on Psychological Safety and Improvement Efforts in Health Care Teams. Journal of Organizational Behavior, 27(7), 941-966. DOI: 10.1002/job.413.
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Polak, Emily L.; McCullough, Michael E. (2006). Is Gratitude an Alternative to Materialism? Journal of Happiness Studies, 7(3), 343-360. DOI: 10.1007/s10902-005-3649-5.
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Ryan, Richard M.; Deci, Edward L. (2001). On Happiness and Human Potentials: A Review of Research on Hedonic and Eudaimonic Well-Being. Annual Review of Psychology, 52(1), 141-166. DOI: 10.1146/annurev.psych.52.1.141.
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Seuntjens, Terri G.; Zeelenberg, Marcel; van de Ven, Niels; Breugelmans, Seger M. (2015). Dispositional Greed. Journal of Personality and Social Psychology, 108(6), 917-933. DOI: 10.1037/pspp0000031.
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Seuntjens, Terri G.; Zeelenberg, Marcel; van de Ven, Niels; Breugelmans, Seger M. (2019). Greedy Bastards: Testing the Relationship Between Wanting More and Unethical Behavior. Personality and Individual Differences, 138, 147-156. DOI: 10.1016/j.paid.2018.09.027.
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Tay, Louis; Diener, Ed (2011). Needs and Subjective Well-Being Around the World. Journal of Personality and Social Psychology, 101(2), 354-365. DOI: 10.1037/a0023779.
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Zeelenberg, Marcel; Breugelmans, Seger M. (2022). The Good, Bad and Ugly of Dispositional Greed. Current Opinion in Psychology, 46, 101323. DOI: 10.1016/j.copsyc.2022.101323.
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Last updated: October 3, 2026

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