Review: SUPERFREAKONOMICS by Levitt & Dubner

Once again, I revisited the twisted world of Steven Levitt and Stephen Dubner.  In many ways, Superfreakonomics is more of the same…the application of economic models to data in order to solve common questions.  One of the more interesting differences in this installment is the emphasis on cheap and simple solutions to some of life’s complex problems.  A few of the main topics discussed were simple solutions for global warming, the effect television has on the way women in rural India are treated, how to spot a terrorist by examining their financial records, etc. 

My favorite part of this book were the discussions on simple and cheap solutions to problems.  For example, for only a fraction of what we pay out in hurricane damage each year, a water circulation device could be created and used to cool the surface temperature on the oceans, decreasing the intensity of hurricanes.  This solution would continue to allow topical storms and low grade hurricanes to bring the much needed moisture to maintain the ecology of these affected areas of the world, yet it would prevent the storms from reaching the level four and five intensities which bring mass destruction or property and lives.  The science behind this device is so logical and easy that even I understood it!  So why don’t these cheap & simple solutions get put into action?  Because they are cheap and simple.  There isn’t enough money to be made off of them. 

Just like Freakonomics, the writing was fast-paced.  The topics seemed to bounce around a lot, but they always connected back the original thread.  This writing style keeps the reader from getting too bogged down in the data and allows them to see the big-picture.  As some of you may know, I am in grad school now for Business, so I have a broad base knowledge of finance and economics prior to reading these books.  The beauty of them though is that any person on the street could pick them up and not only follow the ideas, but enjoy what they read.  I’m so happy to see writers making economics accessible to the masses, because it really can be incredibly interesting. 

Overall, I give Superfreakonomics…

Innovative Ideas – 5 bookmarks

Accessibility – 4 bookmarks

Review: FREAKONOMICS by Steven Levitt & Stephen Dubner

If you are a regular reader of this blog, you already know that my personal reading for the last few weeks has had to take a backseat to my homework.  Luckily for me, I get to combine personal reading and academic reading this week!  

I actually have read Freakonomics three times now.  The first time was for fun.  The second was for my book club.  And now the third is for a book review for my finance class.  It was the only book on the list of 25 that I had already read, and I didn’t want to have to read something dry if I didn’t have to.  This third reading was really more of a skim, but it counts.) 

Anyway, Freakonomics is a fascinating book that will make even math-adverse people like myself feel smart.  The basic idea of Freakonomics lies in economist Steven Levitt’s belief that economic theory isn’t just for the financial world, but can be applied to the everyday problems of life.  Do realtors really get you the best deal they can when selling your home?  What do bagels in an office lunchroom teach about white collar crime?  How does “No Child Left Behind” encourage teachers to cheat the standardized testing system?  How can an ethnic name influence a person’s job prospects?  Virtually any situation where accurate data is recorded can use economic principles to solve its problems. 

Sound boring?  Trust me…this book is anything but boring.  And you do not have to know anything about economics going in to reading it.  The authors also do not stuff a bunch of mathematical equations down your neck.  The focus is on the cause an effects of certain situations and what they mean.  For example, in the early 1990’s, the crime rate was raising at an alarming rate.  Law enforcement and politicians were in a panic over what how to handle it.  Then, out of the blue, the crime rate started to fall without cause.  Law enforcement and politicians took the credit for it, but the real reason the crime rate fell had to do with something seemingly unrelated—Roe v. Wade.  It seems criminals who largely come from poor, disadvantaged backgrounds were just not being born due to the legalization of abortion.  (DISCLAIMER:  This is not a comment on the morality of abortion.  Purely an observation made in the book.  I don’t want to get into it with anyone.)  This is just one example of the interesting examples studied.  If you want a break from fiction, give this a shot.

Overall, I give Freakonomics…

Innovative Ideas – 5 bookmarks

Accessibility – 4 bookmarks (Most adults should not have any problem following along.)

Likelihood I will read the sequel Super Freakonomics – 4 bookmarks (I’ll definitely get to it eventually.)

Dream Cast (otherwise known as who I pictured while reading) – There are no characters, but in the section where they talked about Sudhir Venkatesh—the sociology student who gained open access to the financials of a drug lord—I couldn’t help but picture the dude who plays Zaboo on “The Guild.”