Freakonomics is not your typical economics 110 textbook. There are no theories on how to fix the
nation’s debt, lower the unemployment rate, or the role of the monetary system. The topics discussed by the authors are
not the usual supply and demand ideas that students have been falling asleep to
for ages. Needless to say Dr. Kearl’s
lectures on the “law and economics of the judicial system and time in
compensatory damage” are not found within its pages. In order to enjoy this book the reader does not need a
degree in economics, in fact they don’t have to have any background in the field.
Freakonomics is a book that explores the hidden side of age old
questions but it doesn’t stop there.
It also dives deep into questions that few would ever think of asking
such as “How is the Ku Klux Klan like a group of real-estate agents?” It illustrates how economics shows us
how the world actually works. Freakonomics
uncovers and studies the incentives that lead people to make choices. It looks at how people can and will
misuse information. And it unmasks
lies that are portrayed to the public as conventional wisdom. This book contains fascinating
information on what is going on behind the curtains in our everyday lives. It answers the questions by showing us
the facts and the data. And I have
found out after reading this book that many times the answer to the question is
not what it initially seems.
So what? What did I learn from reading this book that I can use to apply to the so what and now what blog format? Three main areas from the book that I would like to highlight are (1) understanding incentives, (2) the use of information. These ideas are the what.
(1) Incentives are at the root of all economics, how
people get what they want and what they need. The authors’ definition on an incentive is something that
leads us to do more of a good thing and less of a bad thing. The three basic categories of incentive
are economic, social, and moral. Incentives are what lead to make the actions that we make everyday. Sometimes I am motivated to act by not so good incentives. Moving forward I will pay more attention to what my incentives are. An example of this implication in my life is dealing with home teaching. Is my incentive to home teach so that the Elders Quorum leader will get off my back? Or is my incentive to home teach so that I may attend to the needs of those whom I am assign to visit? I will look to improve my incentives.
(2) We tend to call someone who has lots of information
on a certain topic an expert in that respected field. If one earns that title they may then council others in
decision making. Experts have long
had the ability to take advantage of those without the same information as they
have. And that is exactly what
they have done. Car salesman,
real-estate agents, employers, and many other experts have taken advantage of
those without the same information as they possess. A great way to battle those who have information that you don't is internet. I know that there have been times when I have been taken advantage because of my lack of information. Moving forward I will focus on being more prepared with the proper information. Where I am doing that right now is in the job searching process. I will find out all the info I can on industries that I am interested in working in. That way I can avoid being taken advantage of my the business or the employer.
This was a great read and I would recommend it to anyone. It really is very informative on topics that are very interesting. It also prepares the reader with applicable knowledge.
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