Thursday, April 5, 2012

7. Major incidents

In chapter three, this deals with the economics of drug-dealing. Most of the evidence in the chapter came from Sudhir Venkatesh, who studied a gang and got the financial records of it giving them to Levitt. This proved a common misconception of having wealthy dealers, where most of the money goes to the high ranked members, while the few get barely any. He compared the gang to McDonalds, where the few executive or manages of the
establishment prosper from the work of thousands of laborers. The data gave evidence that dealers get less than minimum wage and have a higher risk of death.

In chapter five Levitt talks about what makes a perfect parent from an economic view. He gathered support from his research that a child is at a higher risk of dying in a pool than playing with a gun by 100 times. And that positive parenting is more important than what you do, like where you are placed in socioeconomic status and parental education than any other practice. These factors are important in determining high standardized test scores in children include: highly educated parents, high socioeconomic status, maternal age of greater than thirty when the child was born, low birth weight, English as the primary language spoken in the home, and many books in the home environment. Additionally, if a child if adopted they tend to have lower standardized test scores than non-adopted children in the educational system.

In the introduction , he talks about the morality and economics in relation to each other. “Morality, it could be argued, represents the way that people would like the world to work, whereas economics represents how it actually does work.” This explains the beliefs of the people are misguided on what the world really is like, but economics is like a dart hitting a bulls-eye, it is precise and shows whats true behind all of the corruption of our own minds. "Since the science of economics is primarily a set of tools, as opposed to a subject matter, then no subject, however offbeat, need be beyond its reach." Telling us that no matter what scenario it is, economics will always be able to come up with an answer to the questions of the world.

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