uh, didn't machiavelli answer that one a long time ago?
"here the question arises; whether it is better to be loved than feared or feared than loved. the answer is that it would be desirable to be both but, since that is difficult, it is much safter to be feared than loved...for on men this observation must be made: they are ungrateful, fickle and deceitful...men have less hesititation in offending a man who is loved than one who is feared, for love is held by a bond of obligation which, as men are wicked, is broken whenever personal advantage suggests it, but fear is accompanied by the dread of punishment which never relaxes"