The Spurs chief is the latest Premier League manager to shed light on the role of agents empowering players in the game, following Wayne Rooney's dramatic contract saga this week.
The Manchester United striker put pen to paper on a new five-year deal after initially requesting to leave Old Trafford and Redknapp believes it is another example of how the game has changed.
The White Hart Lane boss believes the amount of money young performers earn these days means it is difficult for coaches to keep them motivated.
"The biggest problem for me is the kids," Redknapp told The Mail on Sunday.
"They've all got agents, they've all got long contracts. When I began in the game, then after I became a manager, it was usual for a youngster to be given a one-year contract, at most two.
"At the end of the season, you went to see the manager and you either got a new deal or were released. Nowadays, kids at clubs like Tottenham, and elsewhere, get four or five-year contracts for crazy money.
"They get their feet under the table, go and buy a big car and get a nice few grand a week. Where's the incentive for them to practise, work hard or dedicate themselves?
"They're on Easy Street. But they're stuck on long contracts for fear if they do become any good you could lose them. There are the odd ones who have the proper desire, but there is so much wastage."
Redknapp reckons the financial aspect of the English game is partly to blame for the lack of home-grown talent in the country.
The 63-year-old added: "People ask me, 'Where's the young English talent?' Well, half of them don't work at the game.
"There are kids here with long contracts who need to buck up their ideas. I send a lot of them out on loan to clubs down the divisions. But when they don't succeed, it's always the fault of the club where they have been.
"They tell you they didn't play enough football or didn't pass the ball like Real Madrid, so they weren't used to that style of game.
"It's always someone else's fault, instead of getting on with it. There's probably some good agents out there - I'm not saying they are all bad guys - but they want to shift players, make deals happen. It's what they do.
"I know of agents who have called the Tottenham chairman, Daniel Levy, to complain because I am not playing one of their players.
"It's nothing to do with them who I pick, but it happens. If the players had anything about them, they would be coming into my office and talking to me. Yet this seems to be a generation of players reliant on their agent.
"They take care of getting them a house, a car, even a holiday. You won't change it now, but any young player could do worse than be with the PFA. They charge players next to nothing for doing their deals, and do a good job."