Chapters four and five of Freakonomics by Steven Levitt, discuss two interesting cases. In the beginning of chapter four, Steven Levitt starts off by arguing that the legalization of abortion played a big role in the sudden reduction in the crime rate in the United States approximately twenty years later. He then goes into the next chapter where he establishes a correlation between how a child is raised and later test scores. Furthermore, in his book he states many reasons for his argument and correlation.
Chapter four of Freakonomics starts off by giving background information of the dictator in Romania. Nicolae Ceausescu was the dictator of Romania that made abortion illegal. With this new abortion law Ceausescu wanted to strengthen Romania’s population. Before the abortion law, there were four abortions to every live birth (Levitt and Dubner, 2009). However, women who already had four children and were apart of the communist party were exempt from this law. Within one year of this act the population had doubled. Studies had shown that people who were born after the abortion law would do worse in school, in work, and would sometimes be more likely to become
There are a multitude of complex, intricate issues and problems that exist in modern day American society. In an effort to begin to fathom the complexity of such issues, society as a whole has created “conventional wisdoms” to explain the otherwise unexplainable phenomena. In addition, so-called “experts” on topics have tried to explain causes for such issues that may not even be causing them in the first place. Perhaps these causal hypotheses and conventional wisdoms are true, or perhaps there is more to the puzzle than meets the eye. In Freakonomics, Steven D. Levitt and Stephen J. Dubner use juxtaposition and selection of details to convince readers to dig deeper into the world and find the truth behind what seems like reality.
In order to understand how economics really work in today’s age we must think about how those economic ideas, revolutionary theories of many economists, that helped to shape the economic structure as we know it now, through many individuals and school of economic though that has existed through the ages. These schools are “the mercantilists, the physiocrats, the classical economists, Marxian economics, the neoclassical economists and the monetarist economics. For this essay I will only refer to the classical economists and the neoclassical economists.
The world is an increasingly tricky, sticky place. Mysteries present themselves every day; and in every way, people are puzzled and intrigued and on the hunt for answers. Steven D. Levitt, co-author of Freakonomics with Stephen J. Dubner, is one such person. Devoting his professional life to cracking the mysteries of seemingly mundane, and sometimes trivial, economic in daily life, Levitt jumps from assumption to decision, connecting dots in sometimes genius, sometimes haphazard, ways, and forming conclusions that occasionally defy conventional thought. Freakanomics gifts readers with several ideas to chew on and challenges deeply rooted thoughts.
This paper aims to present the book review of ‘Freakonomics: A Rogue Economist Explores the Hidden Side of Everything’ along with the main arguments, course applications and personal opinions.
Levitt, Steven D, and Stephen J. Dubner. Freakonomics: A Rogue Economist Explores the Hidden Side of Everything. New York: William Morrow, 2005. Print.
Adam Smith was one of the first economists of modern times. By modern time I mean post 1700’s and post mercantilism. This particular period in time is commonly referred to as the Age of Enlightenment. Enlightenment thinkers felt that change dictated by reason was essential for humanities’ continuation. Smith, of Scottish origin is best know for his book The Wealth of Nations in which he wrote his most famous theory of the Invisible Hand and not only educated but delighted ...
Freakonomics has been an incredibly interesting read and opens up with, what appears to the reader to be, a writing style that somehow personifies the text in a way that only the book itself can articulate. The authors, Steven D. Levitt and Stephen J. Dubner, do an amazing job describing basic economic concepts and rules using intriguing and nontypical examples all while entertaining facts and figures that leave the reader with a dropped jaw. The economist, Levitt, received his bachelors degree in economics from Harvard University, his Ph.D. from M.I.T., and has been a professor of economics at the Chicago School of Law since 1997. On the opposite side of the cover, the award-winning writer, journalist, TV and radio personality, Dubner, has
Revealing the hidden side of life in clarity, Freakonomics draws in all economists with unmentioned assumptions which are upheld with reasoned correlation, bonding subjects that unveil misconceptions, concluding on economic pattern limitations. Effectively, they lead their audience on their conviction route as smoothly as possible. Nice job on not screwing the map up. Allowing them to achieve their goals, this was to change people’s views. By the time a person puts down Freakonomics, they have been led to conviction about all their claims because Dubner & Levitt know that in order to change someone else’s way of thinking you must change your own.
This chapter's main idea is that the study of economics is the study of incentives. We find a differentiation between economic incentives, social incentives and moral incentives. Incentives are described in a funny way as "means of urging people to do more of a good thing or less of a bad thing", and in this chapter we find some examples public school teachers in Chicago, sumo wrestling in Japan, take care center in Israel and Paul Feldman's bagel business of how incentives drive people and most of the time the conventional wisdom turns to be "wrong" when incentives are in place.
Common Sense Economics: What Everyone Should Know About Wealth and Prosperity, written by James Gwartney, Richard Stroup, Dwight Lee and Tawni Ferrarini, explains the foundation of economics and how it all works in all aspects of our lives from the role of the government trickling down to personal credit cards and savings. This book was written with clear language for the audience to understand and comprehend the large amount of information within its condensed size. The authors’ target audience for this book seemed to be for those individuals wanting to learn the mechanics of economy including economic growth and stability. Gwartney separates his book into four parts: Part I, Twelve Key Elements of Economics, Part II Seven Major Sources of Economic Progress, Part Three Economic Progress and the Role of Government, and Part IV Twelve Key Elements of Practical Personal Finance.
...age. Levitt explores this passage with the same approach that he uses to explore the hidden side of many other such examples in society that have been overlooked and accepted as conventional wisdom for far too long. Take the parents who feel confident that they have made the right decision to forbid their child to play at a friend?s house whose family owns a gun, but allows their child to play at a friend?s house that has a pool. Levitt shows that the child is about ten thousand times more likely to drown in the swimming pool than in a gun accident, but that the violent conventional mindset associated with guns wrongly portrays their potential of causing death. Through these examples, Levitt establishes Freakonomics as a way by which the reader should live their life, never totally accepting something until every stone has been upturned, eventually exposing its hidden
Levitt, Steven D., and Stephen J. Dubner. Freakonomics: A Rogue Economist Explores the Hidden Side of Everything. New York: Penguin Books Ltd, 2006. Print.
The theory of economics does not furnish a body of settled conclusions immediately applicable to policy. It is a method rather than a doctrine, an apparatus of the mind, a technique for thinking, which helps the possessor to draw correct conclusions. The ideas of economists and politicians, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist." (John Maynard Keynes, the General Theory of Employment, Interest and Money p 383)