Sunday, March 6, 2011

Freakonomics- pages xxiv-83

I never knew I could like economics so much! This book is a much different kind of economics of that which you hear in the news and in econ. classes. The book explains how at it's root, economics is the study of incentives; and there are many incentives in this world. In the introduction he questions real estate agent's incentives in selling you're house. He proposes they may sell your house for less than they could get if they spent more time and energy on it. Although they get a percentage of the profit, it is not big enough to provide incentive for them to work any harder. Getting more for less is what he says most people are into, and economics plays a big part in getting more for less. The book raises questions on many moral issues too such as cheating. More specifically- teachers cheating to get higher scores on standardized tests. When provided with incentives, many people will leave behind their values. He also raises questions about the Klu-Klux-Klan, comparing their incentives to that of real estate agents.

This book is really interesting, and the sections ahead seem even more intriguing than the last. In the next couple of sections he will provide statistics to explain why drug dealers live with their mothers, and what makes a perfect parent. I can't wait to read more on this topic. I have heard this is offered as a college class at some schools, I would love to take it. It's a lot like psychology in a way, except for it provides more hard facts about human incentives and behavior than psychology, or observation, alone ever could.

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