Review of Freakonomics

1662 Words4 Pages
Review of Freakonomics

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.

I definitely agree with this, while reading this I could think of several examples that take place in Mexico's daily life, and this is a clever explanation for them: Policemen corruption. It is not that policemen are bad people or that they don't have morals, it is that the monetary incentive is strong enough so that they prefer to "cheat" and profit more from corruption than what they would earn by their monthly wage.

Within this discussion it is explained that incentives sometimes lead to cheating, because "something worth having is something worth cheating for". I think the incentives placed in daily life –those that we can control, let's say, in our business – should be established wisely, in order ...

... middle of paper ...

...ifferent, children names are predictors of their success/failure because of its connection with his parents, and the cycle that names do through low to high socioeconomic classes. All these trends brought up by economic analysis turn interesting specially when they are supported by statistical data – but they are also examined through cause/effect like the raising question: is black culture a merely reflection of the economic gap between white and black people or has it caused the gap between them?

From my point of view this findings are surprising and hard to believe but they make sense. Though I think the author gets radical about this – regarding some post he has made on his website's blog about middle name Wayne characterizing criminals . I guess we can find so much strange coincidences but it is important to determine the causes of them, if there are consistent.

More about Review of Freakonomics

Open Document