Thursday, June 24, 2010

Freakonomics.... Book review a inside story

I have heard about this book long back but I never got a chance to read...
Last month as I was retuning back from Pune, connecting flight had a 6hrs transit at Frankfurt, listening only to music will not suffice.

I was wandering in the terminal from one gate to another, that’s when I passed by a book store and there saw the book Freakonomics (written by Levitt and Dubner), and the next 3 hours wait at the terminal went just fine…

It is a real nice book giving insight about of the know topic which go by unnoticed in our daily life, and when anyone hear about economics, numbers starts to scare you off and on top of that you will see some complex equation and assumption running down mostly which do not make any sense unless you are an economist.

Few topics discussed in detailed are:
1. Why drug peddlers stay with their moms.
2. What do gym membership and gift cards have in common.
3. Is it safe to send your kid to play in a house with swimming pool or a house having gun.
4. Do name of a child decide their future.

Comments on above topic:
1. Back in late nineties a study was performed by a sociologist named "Sudhir Venkatesh" from Chicago University for 6 longs years from the data that was collected pointed out that a drug peddlers earn $3.5 per hour against minimum wage of $7.00
That was one of the reason why drug peddlers end up staying with their mothers, the reason they worked \because the top bosses have lot of money and power, just to achieve power he goals for the big and risks his life and earns only for his survival.

2. Common between Gym membership and gift card are they go unused...
On an average 25% plus people who have annual gym membership rarely go to gym, for those people it would cost effective if they pay only weekly or daily membership
And as far as gift cards been considered on an average 20% of people do not use their gift card in the same year.
And Best Buy makes average $100 million every year due to unused gift card, a real treat for the shareholders and investors

3. In US every year the ratio you child is 100 times more likely die due to a mishap in swimming pool then gun related incident at, still parents fear a neighbor having gun.
Still parent fear a house with gun is due to the nature of demise that scares everyone

4. Do name really make or break a child future, some studies do suggest, but one cannot assure that to be a safe bet..
Say if a child is named Ram and another kid is named Raavan It would be unfair to assure that the kids will inherit characteristic and behavior of the characters based on Hindu Mythology “Ramayan”.
A major aspect in every child future depends on environment and surrounding where the child is brought up.

Note: Reading this book will definitely will make sure a person will have a different approach towards economics

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