Schoolteacher’s incentive is praise and money, but they also have other reasons to cheat, “...a teacher whose students test poorly can be censured or passed over for a raise or promotion” (Dubner and Levitt 23). The only way to guarantee a teacher his/her job is by changing children’s test answers or in other words, cheating. A sumo wrestler has a lot to lose if he does not become one of the top ranked sumo wrestlers because it determines how he benefits from his success including eating, sleeping and the money he earns (38). Just like the schoolteacher, the only way to insure his future is by cheating. For both the incentive was for the most part successful, the risk of getting caught cheating was minimal. Instead of anticipating the results, …show more content…
The authors show how the Klu Klux Klan takes advantage of their secrecy, and how without it they start losing members and power. Real-estate agents take advantage by benefiting only themselves, the authors use facts to prove this, “The agent...only lost $300-a small price to pay to ensure that she would quickly and easily lock up the sale…”(70). An agent will know which sales benefit him the most and also how to make both the seller and the buyer think they are benefiting. Meanwhile, in “The Weakest Link” the players use their knowledge to make strategies on who to eliminate based on their knowledge of the other player’s race. To me, informational asymmetry is unethical because it is taking advantage of others and the one truly benefiting is the “expert”. In society this benefits the producer in a capitalist country because they make deals that benefit them instead of the consumer. I’ve been a victim when I go to Mexico and a salesman sells me something and guarantees the best price but later on I see the same exact product for a better …show more content…
and the Black Disciples are similar to a franchise like McDonald’s because of their structure. The gang was part of a whole drug industry and only made up part of it, just like a McDonald’s store composed only one of the thousand stores of the franchise. J.T.’s gang, “...reported to a central leadership of about twenty men that was called...the board of directors” (96). McDonald’s like any other business or organization also has a board of directors. Not only that, but both, the gang and McDonald’s both keep records of their monthly revenues, expenses, employees and leaders. The drug trade is also similar to the hierarchy in the American Business because even though it may be illegal, it’s still a business. The salary of, “the top 120 men...represented just 2.2 percent of the….gang membership but took home well more than half the money”(100). In the drug business the hierarchy is also taken into effect, the ones who truly make business and win the “bottomless supply of cash” are the ones at the top of the hierarchy. The ones at the top are motivated by the money while the ones at the bottom are motivated by their dreams of being recognized, having money and
This article, In Search of Respect, “Selling Crack in El Barrio” reflects on the lives of inner-city dealers and their struggle to integrate into legal job markets. The crack industry that surrounded them provided respect and enough money to provide for their families. However, these men were not just interested in drugs but the reasons why most would chose this life over legal ways. Even if it didn’t provide consistent income they would not be made feel less of a person by managers while being paid minimum wage. Both Cesar and Primo discuss how their lives could be different if they were to get legal jobs but they can’t seems to walk away from dealing because they can make more. They would have different friend, live in different neighborhoods,
1. Chapter three, Why Do Drug Dealers Still Live With Their Moms?, expresses an intriguing thought by authors, Steven D. Levitt and Stephen J. Dubner. The Freakonomics authors follow a courageous man, Sudhir Venkatesh, a student at the University of Chicago, in his effort to understand and research the mysterious drug dealing business. Venkatesh first approached dangerous gangs and dealers in Chicago with a simple survey to learn more about them. After stumbling upon a branch of the “Black Gangster Disciple Nation”, Venkatesh wanted to take his study further. J.T., this specific branches leader, was interested in Venkatesh’s survey and initiated him as a spectator to his group. Venkatesh was integrated with this group for six years an acquired an immense amount of information on drug and gang groups. Thankfully, J.T. kept documents on the group 's wages. By looking at these books, Venkatesh was able to identify the hierarchy of a typical drug cartel. Which is where the main question of chapter is answered. Only the people on the top of the system made good money, for example, J.T. Contrary to popular belief, lower jobs of this business like foot soldiers make only $3.30 an hour, below minimum wage. Despite the fact that the foot soldiers are the ones who physically put their life on the lines. This style is compared to major corporations such as McDonald 's for a more context comparison. However, the people that are
The drug dealers paid their foot soldier’s minimal wages like Mc Donald’s and people worked in low wage jobs in hopes of climbing the ladder to make it big. The economist received financial data from a Chicago gang and were able to analysis the financial criminal workings, in which they found that the McDonald’s organizational Chart was almost identical to the drug dealers chart. Whether Drug dealers or McDonald’s both pay a low wage giving hope for little spots to make it big.
Philippe Bourgois conducts his research study in a book called “In Search of Respect” and witnesses the many obstacles the people faced when growing up in East Harlem. He focuses on two Puerto Ricans of a drug selling gang who was lead by their boss Ray. They are Primo who manages the Game Room, which is a crackhouse den and Caesar who is one of his lookouts. There was a lot of poverty and East Harlem and Bourgois decided to move their for his research. Throughout the book, he discusses the obstacles that Primo and Caesar had to face of getting a legit job and how the obstacles lead to them becoming drug dealers.
In Chapter 2 the question is How is the Ku Klux Klan like a group of real estate agents? This chapter is all about information and how it can be used as one of the most powerful economic tools. The author claims that much of the KKK’s power came from the fact that so
Author Sudhir Venkatesh wrote “Gang Leader for a Day” to produce an in-depth ethnography on how people make a living with the use of underground economies in marginalized communities. He does so by providing descriptions of encounters with a crack-selling gang named the Black Kings, operating in Chicago, Illinois’ projects. The central take Venkatesh uses to explain how one makes money and the most popular way that young African-American males made money was by selling drugs and, for this in-depth ethnography, crack-cocaine. He also gives much detail on other ways that men make a living in the help of underground economies such as manual labor and selling stolen goods. For women, prostitution, daycare services, and taking in boarders were among the most profitable illegal services.
The principles of incentives, among the other basic mindsets are all visibly used throughout the rest of the book in solving the various problems presented. In the chapter “Why do crack dealers still live with their mothers?” these authors examine and compare how a Chicago gang mirrors that of many corporate companies. The authors use financial records kept by the gang to examine the pay system, and use the experiences of a young sociologist that lived among the gang to examine the reasons for joining and working for the gang. What the financial records show, is that the money earned through dealing is concentrated greatly among the top 2.2 percent of the members, much the same as any corporations like Wall-Mart or McDonalds. The gang even had its own “board of directors”, which was modeled off many businesses during the time. Incentives played a key role in the membership of the gang’s lower levels. The incentives of becoming the next drug lord, or the next big seller, were enough to draw members to positions that paid less than minimum wage and involve the risks of jail time and death. Although this would seem unlikely, a closer look reveals that dreams and incentives of these gang members are no different than that of a girl waitressing while she tries to make it in Hollywood. The author’s show the pull of incentives are seen in every aspect of life, whether it be drug
1. In the first chapter of Freakonomics by Steven D. Levitt and Stephen J. Dubner, it talks about dealing with societal mores, economic incentives, and cheating. With schoolteachers, the possibility of getting a pay raise and the grades their students get on standardized tests are some of the incentives that derive them to cheat. In the book, Levitt explains how he examines sets of answers to these tests and tries to see a pattern if teachers were changing answers for their students. Dubner and Levitt, both incorporate samples of these scored tests and have the readers try and find the cheating detected on there. “Teacher cheating is rarely looked for, hardly ever detected, and just about never punished.” (Levitt and Dubner 24) The incentives for teachers are to be more recognized and a chance to get a better pay while, for sumo wrestlers, they can move up a rank. The only difference is that for sumo wrestlers, they never got caught because in Japan, they assume they are always telling the truth and never lying, while for teachers, some lost their jobs because they were caught. “Cheating is a primordial economic act: getting more for less.” (Levitt and Dubner 21) Cheating is something I have witnessed multiple of times while being in school. There were students who would help and talk during tests to get better grades on the exam since the teacher wasn’t paying attention to the class when we took the test. At the end of it all, they did get away with it and the reason
In the Black Kings, there is a “board of directors” who I’d say are the equivalent of a large business owner. Things get done the way they want it done, and they stand to make the most profit. Then you have the “Captains” and “Lieutenants” who would act like the CEO’s. They have a lot of the power, but there is still someone above them that hands them orders and who can fire them. The ranks continue like this until you get all the way down to the bottom. In the case of a business the lowest ranking would be the intern or an assistant and in the Black Kings it’d be the young boys or “foot-soldiers” that do the heavy lifting and clean up. It’s very business like in that the higher up the ranks you’re able to move, the more money you’ll be able to make. Also, the rival gangs are competing with one another, to see who can make the most money, just as large corporations do. So, I think this was a great comparison. However, when you get down to it, illegal is still illegal. It makes no difference to me if it’s the gang-banger or the CEO committing the illegal act, they should both be punished. It also stands to reason that they’d organize a gang the same way as a business, since they both have the same goal; money.
All it takes is a new way of looking.” In the first chapter, What Do School Teachers and Sumo Wresters Have in Common? Cheating. In this Dubner and Levitt explore the beauty of incentives as well as cheating, and how in order for a teacher to cheat and risk getting caught there would have to be a high enough incentive. Throughout this book we learn people respond to incentives. The authors use the example of a daycare in Israel establishing a late fee fine in order to try and motivate parents to pick up their children on time, this is an example of a typical incentive in everyday life. However, this plan backfired since the late fee fine was only an additional $3 dollars on their weekly bill instead of motivating the parents to feel bad about picking up their child late and paying the additional fee parents thought if being
Both groups cheat because the incentives are worth it; the profits outweighs the consequences. Teachers help their students cheat because their scores reflect on the teacher, and the better they do the more likely said teacher is to be promoted or given a raise, “If her students do well enough, she might find herself praised, promoted, and even richer,” (Levitt 23). Teachers are willing to change a couple answers on their student’s test in order to get that raise or promotion. However, for the teachers, cheating was not worth it because the school was able to put together an algorithm to determine whether or not the teachers cheated. Sumo wrestlers throw matches in order to help their opponent stay up in the ranks. They do this because they
One of the main economic problems that many people, particularly gangs, in Robert Taylor faced was the fact that they didn’t want to trade in their status for entry-level jobs because in many cases, gang leaders made far more than they would have if they worked minimum wage jobs (72). Many of the gang leaders such as J.T. held the false belief that the drug economy was “useful for the community, since it redistributed the drug addict’s money back into the community via the gang’s philanthropy” (115). However, the drug economy is not a stable or lucrative economy compared to your average jobs because it was clearly very hard for people to get ahead in gangs, thus no one ever had a fair shot of earning more money in their life span. Nevertheless, the situation can tend to be a grey area of debate since a lot of the residents did attempt to hold blue-collar jobs but continued to get laid off (60). In this case, the underground economy of drug sales may have been the only choice for residents looking for an income. Another way the gangs play into the economic situation is when there are drive by shootings, in which case parents
Becoming a drug dealer on the streets of Chicago neither serves to increase one’s life expectancy nor helps to gain some goodwill from the neighborhood police department. But then why do people want to make a living out of dealing cocaine? The reason for such a life choice is because of incentives. The incentive people respond to in this case is money. Cocaine dealers configure their whole identity around crime, gang affiliations, and drugs because of money. A crack dealer and a gang boss to most people does not seem like a glamorous profession; however, for people growing up in poverty stricken neighborhoods, drug dealing and gang ties look to be rather lucrative ventures.
Mr. L reported being raised in a low-income Hispanic/African American community in Brooklyn where there was a strong association between money, success, and respect. Male role models were scarce in clients’ environment so Mr. L and many of his friends modeled themselves after the rap artists and movies that portrayed drug dealers romantically. The combination of money being valued above all else and absentee role models created a younger generation that desired the fast money and prestige associated with selling drugs.
Ever since drugs became illegal to be purchased in the early century the whole illegal drug trade started to rise and many individuals especially youth started to join this dangerous and illegal economy. Youths were ambitious and were attracted to this inner city business just to get money in a faster way. That is because drug selling and other illegal activities appeared to be the most effective way to get rich in a faster way. Also many of these youth would rather earn money in a dangerous way than working for someone racially superior. Many of these youngsters joined these underground jobs because of their low economic status they were trapped in. Another reason why these teenagers joined this dangerous economic is because of the autonomy they would get in this job. The fact that they can self govern themselves is essential to them because is something they weren’t able to find in an entry-level job (Bourgois, Pg. 9-10). They also gained respect from the surroundings they would usually socialize with. Practically most of the youths that had joined the underground jobs have had negative experiences in the minimum-wage labor market from their racist bosses or supervisors (Bourgois, Pg. 7). One of the things the underground economy offers that the inner city doesn’t is the fast short-term success. Many young people were looking for the capacity of growing to a higher social or economic position (Bourgois, Pg. 10). However, besides the higher ranking, the respect, and