Freakonomics and Misconceptions of Economy Essay

1244 Words 5 Pages
A number one bestseller many say is grasping in amazement: Freakonomics is said to unravel the untold stories of life. Steven D. Levitt and Stephen J. Dubner break common misconceptions of economics by revealing its true science. Freakonomics shatters the view of economics being an arid study of finance and markets. They pull in information to make inferences on past occurrences subtly influence on the present. Freakonomics packs punches with its countless number of tables and figures, serving as concrete data to make their assumptions. Levitt & Dubner in the beginning identify the fundamental Latin phrase post hoc ergo propter hoc in the sentence, “…just because two things are correlated does not mean that one causes the other”, due to …show more content…
Without stating this in their novel they are saying “we know something you do not know,” as in the sumo wrestling story when they tell the reader how they were able to find out about the cheating matches, inferring that there are truths to be explored. Dubner & Levitt note that the powers of incentives are what govern the lives and actions of people. They explain how many people are oblivious to their incentives all around them. A conclusion is drawn that particular incentives for baby reaching needs cause people to behave irrationally. Freakonomics exemplifies the real-estate agent who works only to an extent because the incentives to work harder are low. One, they assume that homeowners selling their house are naive to this, and real-estate agents are practically mercenaries – who only care about their cut. Can it be so hard to believe some real-estate agents actually care about their clients? Well, Dubner & Levitt think so. Tactful in preventing the reader for arguing their claim, the authors combat their opposition; if you leave an opportunity for readers to form their own opinion, conviction is much harder.
Freakonomics sets up their assumptions and inferences by explaining the scenario and forming reasonable conclusions. A prime example is the bagel shop story. Dubner & Levitt provide background information on Paul Feldman, and then explain how his data of bagel records show…