Freakonomics

in Books . . No Comments

Having heard good things about this book for ages, it seemed like a first good read. For those not familiar with the book, it’s not so much about economics as it is about how an economist views the world and solves problem. The book can be simplified to one concept: people respond to incentives. It explores various comical, yet seemingly everyday scenarios of how people respond to incentives. People such as realtors, gang members, organized sports, and parents.

I found this book to be fantastic because it all boiled down to a few high level points. It encourages you to look at situations differently, always thinking of why people do things, or rather, what incentivizes them. As an entrepreneur, this thought process has always present, but often lays dormant when out “in the real world”. This has really encouraged me to dig deeper when analyzing the world around me. I think I’ve become a little more cynical with my analysis, but that’s a better place to start compared to complete naivety.

I found the chapters on children & parenting particularity interesting. As a parent, it becomes easy to fall into the trap of wanting the best things for your kids. Why wouldn’t you want the safest car seat, or healthiest food? There is a huge gray area between paranoia / elitism, reality, and negligence / cheapness. The child safety industry is insane, and it rules with fear. The opposing government regulations and health networks seem to trail behind and legally can’t give any product advice anyway. Who do we trust?

I highly recommend the book. It’s probably more beneficial to the average person than business people… we need more people thinking analytically rather than being bullied around with fear.

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