Freakonomics: The Hidden Side To Everything

In any time of recession, the best possible thing to do is to invest in yourself instead of letting fear and the negative mentality of the media get the best of you. For the last three years I have been studying economics at macro and micro levels as well as business and international business to better understand the markets, where the world economy has been, and where it might be headed. Through this research, I was able to see that this crash was coming in time. Instead of letting fear get to me, I have used this downturn as an opportunity.

Looking to past economic downturns provides a window into what happened and why, and then how it was solved. While it may not provide a clear answer, it is a start. Having the knowledge from the past, combined with studying what is happening in the world now, can help immensely in preparing yourself and your company to adapt swiftly and create a strategy that will get you where you want to be.

One of the books that I have just finished was Freakonomics by authors Steven Levitt and Stephen Dubner. It is a fascinating read exploring the hidden side of everything. The authors debunk the misperceived truths and expose the real facts behind them. From the book, here is a small excerpt of the questions they tackle:

Which is more dangerous, a gun or swimming pool? What do schoolteachers and sumo wrestlers have in common? Why do drug dealers still live with their moms? How much do parents really matter? What kind of impact did Roe v. Wade have on violent crime?

What You Can Expect To Walk Away With

Economics often sounds like a broad topic that only people who study it for years can understand. Through reading this book, as well as others, that is actually a misconception perceived about the topic of economics. It turns out, the study of economics is actually closer to the study of human behavior, sociology, and psychology mixed with numbers. The numbers back up or prove why an economic concept works or doesn’t work. Reading Freakonomics is like talking to the author one on one. It is written in a way that is clear and simple, yet offers all the data to back up the argument they are making. Malcom Gladwell says it best:

Steven Levitt has the most interesting mind in America, and reading Freakonomics is like going for a leisurely walk with him on a sunny summer day as he waves his fingers in the air and turns everything you once thought to be true inside out. Prepare to be dazzled.

In answering the questions that may sound out of place in a book about economics, Freakonomics shows just how related those questions are to economics, how they are connected to society, and you and me. You will see how a gang is run similarly to a franchise such as McDonald’s- and why that matters.

Another interesting thing you can take away and study further are incentives and how to use them. There is a great example of a daycare that charges a late fee for every minute the parents are late to pick up their children. But the incentive backfired because the fee was not high enough to change the behavior of the parents. This example is great for any business, as it shows how incentives are used trying to accomplish one thing, yet another happens.

Conclusion

To sum up Freakonomics, the jacket cover of the book says it best:

Freakonomics establishes this unconventional premise: If morality represents how we would like the world to work, then economics represents how it actually does work. It is true that readers of this book will be armed with enough riddles and stories to last a thousand cocktail parties. But Freakonomics can provide more than that. It will literally redefine the way we view the modern world.

Get Your Copy Today!

Get a handle on this economy by understanding what is actually fact, and what is perceived as fact. Just by understanding that, you will be well on your way to finding success.

Steven Levitt: Why Do Crack Dealers Still Live With Their Moms?

Caution: strong language may be offensive to some viewers.

Share Your Thoughts

Have you read this book? What did you think of the Steven Levitt’s talk? Were you surprised to learn the facts about gangs? Leave a comment and let me know your thoughts.