I'd argue that while over-praising can lead to complacency, entitlement and a lack of lifeskills, there's not a direct causal relationship with the "spoiled little asshole" trait we're complaining about here. That comes more from the personality of the parents.
Jerks raise Jerks, no matter how coddling they are.
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Building an artificial intelligence that appreciates Mozart is easy. Building an A.I. that appreciates a theme restaurant is the real challenge - Kit Roebuck - Nine Planets Without Intelligent Life
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