Freakonomics

After being on the library waiting list for a few months, I finally got Freakonomics and read it last weekend. It's a great book (starting with the awesome title) which focuses on using analysis of raw data to reach unexpected conclusions that are often in conflict with "conventional wisdom". For example, the book discusses at length how the declining crime rate in the 1990s was attributed to many causes, such as "innovative policing strategies", when it was actually due primarily to the fact that abortion had been legalized about 20 years earlier.

My favorite chapter discussed the economics of selling crack. Based on the analysis in the book, most low level crack dealers make less than minimum wage, while a few highly placed people make hundreds of thousands or millions of dollars. The motivations of the dealers are similar to people in other industries with similar economics, such as acting and professional sports. Making it to the top results in a very glamorous position, so people are willing to work long hours for little pay for a chance to make it. At least they are willing to do it for a few years, then they drop out and look for a less glamorous but more dependable job.

Rating for Freakonomics : 4 out of 5.