Tuesday, February 17, 2009

Bonus Points and Inflation

The punishment for negative behavior on the part of Tonka or Paco is the loss of a privilege.

Usually, this is dessert or no TV or something like that.

I thought that we needed an equal system where they would be incentivized for positive behavior.

So, while I expect them to do certain things like, playing with Gianni, clearing their plates, or cleaning up their room, when they go "above and beyond," I give them 'bonus points.'

I also set a price where 2 bonus points could "buy back" a lost privilege.

So, we had a market.  (We haven't gotten into swaps, options, and derivatives...yet. And there is NO bailout coming either)

Anyway, the system has been working quite well..until the other day.

I walk into the kitchen and the NFO says to me, "Paco earned a bonus point today."

"What?" I asked, "I am the only one who can give out bonus points. What did he do?"

"He cleared his plate from the table without being asked," she responded.

"Uh, he's supposed to do that."

"Well, I gave him a bonus point."

Now, I was stuck. What to do?

As the Central Banker in the bonus point currency, it seemed to me that the NFO's action was tantamount to printing money, thereby causing inflation and a devaluing of the currency. 

Some have argued that her bonus points could be construed as 'counterfeit,' need to be seized, and I suppose, she could be prosecuted (though I don't see a jury of her peers convicting her. Well, maybe they'd convict her of questionable judgment for marrying me, but I digress.)

So, what do we do to stop this rogue behavior?

  • Raise prices to 3 bonus points?
  • Strip them of the bonus points?
  • Put an asterisk by them?
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