From Psychology Today. . . I've quoted a portion, and the full article is available at the link.
Parenting: The Sad Misuse of Self-Esteem
Self-esteem is the most misunderstood and misused developmental factor of the past thirty years. Child-rearing experts in the early 1970s decided that all of the efforts of our society should be devoted to helping children build self-esteem. I couldn't agree more. Children with high self-esteem have been found to perform better in school and sports , have better relationships, and have lower rates of problem behavior.
The Wrong Message About Self-Esteem
Unfortunately, these same experts told parents that the best way to develop self-esteem was to ensure that children always felt good about themselves. Parents were told to love and praise and reinforce and reward and encourage their children no matter what they did. Unfortunately, this approach created children who were selfish, spoiled, and entitled.
Parents were also led to believe that they had to be sure that their children never felt bad about themselves because it would hurt their self-esteem. So parents did everything they could to protect their children from anything that might create bad feelings. Parents didn't scold their children when they misbehaved. Parents didn't discipline their children when they didn't give their best effort in school. In sum, parents didn't hold their children accountable for their actions, particularly if they made mistakes or failed-"Gosh, that would just hurt my little one's self-esteem!"
Schools and communities bought into this misguided attempt at building self-esteem by "protecting" children from feeling bad about themselves. For example, school grading systems were changed. I remember between sixth and seventh grade my middle school replaced F for failure with NI (Needs Improvement). God forbid I'd feel bad about myself for failing at something! Sports eliminated scoring, winners, and losers in the belief that losing would hurt children's self-esteem. My four-year-old niece came home one day from a soccer tournament with a ribbon that said "#1-Winner" on it. When I asked her what she did to deserve such a wonderful prize, she said that everyone got one! Though Woody Allen once said that 90 percent of success is just showing up, it's the last 10 percent-the part that requires hard work, discipline, patience, and perseverance-that true success is all about. Children are being led to believe that, like Woody Allen's view, they can become successful and feel good about themselves just for showing up. But showing up is just not enough in today's demanding society. By rewarding children just for showing up, they aren't learning what it really takes to become successful and showing up definitely won't build self-esteem.
The supposed benefit of this mentality is that children's self-esteem is protected. If children aren't responsible for all of the bad things that happen to them, then they can't feel bad about themselves and their self-esteem won't be hurt. This belief has been bolstered by the culture of victimization in which we live-"It's not my fault, it's not my kid's fault. But someone has to be held responsible and we're going to sue them." In its poorly conceived attempt to protect children's self-esteem, our society caused the very thing that it took such pains to prevent-children with low self-esteem, no sense of responsibility, and the emotional and behavioral problems that go with it.
Of course children need to feel loved and protected. This sense of security allows them to feel comfortable venturing out to explore their world. But we have gone way too far in protecting our children from life's harsh realities. In fact, with this preoccupation with protecting our children, those so-called parenting experts neglected to tell parents about the other, equally important contributor to mature and healthy self-esteem.
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http://www.psychologytoday.com/blog/the-power-prime/201002/parenting-the-sad-misuse-self-esteem