Blair


 * __Introduction and Chapter 1: Passage Master and Summarizer__**

//Summary of Introduction**:**// ** In the beginning of the Introduction, the book talked about the rapid rise and fall of the crime rate in the US during the 1990's and early 2000's. I also read about one small court case (Rose vs Wade), and how it had a huge impact on the decrease of crimes committed in the US. By one woman from Texas winning her case to legalize abortion, lots of babies who would have otherwise become criminals weren't born. This led for the decline in crime. Then I read about real estate agents, and incentives. Incentives are a huge part of a person's decision making, whether its the right or the wrong choice. For the real estate agent, there is very low incentive for them to get you the "best" deal possible, because they will receive little compensation for their work. And so, because of the low incentive, the real estate agent urges you to get the first offer made. The main points in the Introduction were that incentives play a big role in our lives, dramatic effects are often caused by subtle causes, and "experts" use their knowledge to their own personal advantages. **

//Summary of Chapter 1:// In Chapter 1, I learned about the similarities between sumo wrestlers and teachers.This chapter talked again about incentives, but this time the different incentives that surround cheating.We learned that, because some teachers in Chicago had an incentive to make their students do well, they erased, filled in, or otherwise changed their students answer sheets. Then we learned about sumo wrestlers, and their incentives to lose matches to competitors who needed to win (for example, a sumo with a 8-6 record will lose a match to a sumo with a 7-7 record). The main theme in this chapter was that incentives are a major part of our lives. But, more specifically, cheating only arises when there is an incentive for the person to cheat for personal gain.

pg 11 " Morality, it could be argued, represents the way that people would like the world to work- whereas economics represents how it actually does work" The reason I chose this passage was because I think that its important to understand what economic means to the writers, and how they define the study of economics.That way, we better understand just how each of the stories and ideas that the book presents relates to economics.
 * // Passage Master: //

pg 16 "We all learn to respond to incentives, negative and positive." This was a big idea in the first chapter, which was all about incentives. I chose this passage because I think that it was an interesting and true fact, and something that not everyone thinks about regularly. I mean, to be honest, not most of stop and think "what is my incentive for this action?". So I thought that it was just something interesting to think about. Also, I think that it should be reviewed just because it was such a big part of the chapter.

pg 37 "It is true that sports and cheating go hand in hand. That's because cheating is more common in the face of a bright line incentive (the line between winning and losing for instance) than with a murky incentive." I chose this passage as something to be remembered because I thought that it was something interesting to think about, and it also related to the book. It seems pretty honest too. Most people are going to cheat if there is a clear incentive for them to do so. But if cheating may or may not give you something that you wanted, then a person is less likely to cheat. So I thought that this passage gave the group something to think about. Also, it was a large part of the chapter, and so I thought that it was important to review.

**__**Chapter 2: Summarizer, Researcher, and Connector**__


 * // Summary of Chapter 2: In this chapter, it talked about information, and how it can be used as power.One example the book gave was the KKK, who thrived on the idea of secret knowledge, such as secret passwords and secret meetings. The book also talked about professionals, and how they use their superior amount of information to their personal advantage. Often times, a professional is hired to advise a client because the client believes the professional has a superior amount of information about a certain topic. The book then brought up the example of real-estate agents, and how they use their superior knowledge of the market in order to earn the most money in the quickest amount of time. Often, this means that the person selling his house won't be advised to wait for the best deal, but rather he/she is urged by their agent to accept the first offer. The book also talked about different words that agents use when advertising a home. Words like "fantastic, charming, and great neighborhood" may all sound great to those who aren't familiar with their implied meaning. All of these words show that there is nothing in the house that can be specifically advertised, such as granite, nice bathroom, or maple. To most of us, the words "fantastic, charming, and great neighborhood" are all good things, but to those who understand the business, these words are all turn offs when buying a house. However, the book did mention that the professional's ability to use their knowledge to their advantage is rapidly depleting because of the Internet, which can supply anyone with the information they want.

// //Research:// // In chapter 2, it also talked about how WorldCom, Enron, and Global Crossing fabricated billions of dollars in revenue to boost their stocks. Below is a website that talks about what happened in greater detail during the investigation of WorldCom. //**[]. This site basically describes the investigation of WorldCom, and it provides the reasons behind the scandal, as well as just what happened. Here is another link about the scandal that happened with Enron:[]. This link gives a general overview of what Enron is, what it was doing before its fraud was discovered, and what happened during the investigation

//Connection: The main theme that was present in Chapter Two was the idea that knowledge was important, and that those with more knowledge than others can use their information to their advantage. Different examples from the reading included real estate agents, the KKK, doctors, and also large corporations. So what about teachers? Could they fall under this category? Don't they have a superior amount of knowledge, and don't we as students trust them to provide us with the right information? Also, with the Internet, isn't their ability to teach us new information depleting as well, because we too have access to the information on the Internet? This chapter also talked about the KKK, and how some of their appeal was that the group was surrounded in mystery. No one really knew just what went on in the meetings, so more people wanted to join and find out. Isn't it the same with little kids? They have secret handshakes, make exclusive clubs, and even sometimes make up names for their friends. Also, this chapter connects to our essential question (which is how does economics drive history/create change) because it gave us examples of how information can be used to manipulate things. For example, the Enron group used the information to cheat the stocks, and their bankruptcy became a part of history.


 * __Chapter 3: Discussion Director and Summarizer__** //

//Summary of Chapter 3:// Well, in this chapter, the topic of discussion was crack cocaine, and the dynamics of the gangs that sold it. It also talked about the social hierarchy in a Chicago drug gang. The board of directors, the highest up in the gang's social ladder, made the most money and had control multiple gangs. Then came the officers, who managed one group in one location and reported to the board of directors. These guys made money too, almost $100,000 a year (and that didn't include what they were skimming off from other projects). Then came the foot soliders, who made less than $3.30 an hour. The authors related this type of system to that in Hollywood and the NFL. So many people try out and want to be the top (in this case, on the board of directors), but only a few actually get there. The rest are left waiting for their break (in the case of the drug gang, these guys would be the foot solders). This chapter also talked about how the invention of crack cocaine had a huge impact on poor black communities. It talked about how, because of the destruction that crack cocaine had on communities, the progress that African Americans had made because of the civil rights movement was now beginning to slip away, and the poorer black communities that were involved with crack were regressing. This chapter ties in with the essential question because it was all about how the economics of drugs effected a community. Crack cocaine was created as a cheaper drug that most people would be able to buy, and so those who were selling the drugs would make more money faster. The selling of crack had a huge negative impact on the communities that were involved with the drug, and so the economics behind crack created a change in poorer black communities.

//Discussion Questions:// Why do you think that the authors decided to include this chapter? In the other chapters, there was a central theme that was supported by all of the different examples given. Why do you think the authors chose to focus on one specific topic for this chapter (the entire chapter was about gangs in Chicago and crack)? What did we learn about economics from this chapter? How does this chapter relates to the essential question?


 * __Chapter 4: Summarizer, Passage Master, and Connector__

//Summary of Chapter 4:// This chapter addresses the rapid drop in crime rates during the 1990's. It talks about the various beliefs and reasons given as to why the crime rate dropped, such as improved policing strategies, a stronger economy, the increased number of police, and the aging population. Then it takes each reason individually and describe how each of these reason isn't accurate or isn't as accurate as people believe (for example, the stronger economy would only have effected the white collar crime rate, not the violent crime rate, because it's been shown that the economy and violent crime have no direct relation). Then the authors suggest another reason that has never been credited with the drop in crime: abortion. The chapter talks about the different reasons why a woman wouldn't want her baby, and says that studies have been shown that a baby is more likely to have a hard life if the mother doesn't want it. Also, the authors say that the drop in the crime rate occurred when all of these aborted babies would have been around the age they would have gotten involved in crime. All the males would have otherwise become criminals weren't born, and the girls who were being aborted would have most likely been teenage mothers, and would have continued the cycle of crime.

//Connector:// In this chapter, it talks a little about a woman's right to choose how she wants to live her life (in this case, with or without the baby). What about our lives? Are there any instances where we should/could have the right to choose, but we don't? Also, this book talked about all the reasons that the public (and even some experts) came up with as to why the crime rate went down, the most popular being the increase in police tactics. This reason was most popular with the public because they liked to believe that the increase in police strategy made them safer. Is that true with us? Don't we like to believe that the police for is better than the criminals, and dont we like to believe that whenever crime rates drop, its because the police are coming up with new ideas to make us safer?

//Passage Master://

pg 118: " After the relief had settled in, after people remembered how to go about their lives without the pressing fear of crime, there arose a natural question: just where did all those criminals go?" I chose this passage from Chapter 4 because it was an intro to the question that was talked about in the topic, but also because I thought that it was kind of a silly and interesting line. With the fear of rising crime rates having been so prominent, the question "just where did all the criminals go?" seems like a somewhat casual and humorous way to address a question that lots of people were concerned with.

pg 126: "There was perhaps mo more attractive theory than the belief that smart policing stops crime. It offered a set of bona fide heroes rather than simply a dearth of villains." I chose this passage because I think that there is a lot of truth in that statement. Whenever crime goes down, or even when the crime rate remains the same, people still like to believe that smart policing is the answer. I think that's because people want to believe that the police are doing a good job, which in turn makes them feel safer. So I chose this passage because I think there's a lot of truth to the statement.

pg 139: "In other words, the very factors that drove millions of American women to have an abortion also seemed to predict that their children, had they been born, would have led unhappy and possibly criminal lives." I chose this passage because it was the basis of the assumption that abortions led to a drop in the crime rate. This statement acted as the basis for almost half of the chapter, and so I thought that it would be important to bring this passage up in our discussion.

**__**Chapter 5: Summarizer and Researcher**__

// Research // : [] In this chapter, a book called //Raising America: Experts, Parents, and a Century of Advice about Children// was mentioned, and so this link just provides a little summary of what the book talks about, as well as a short biography of the author. I chose to include this because the book was mentioned several times, and so I think it would be a good idea to know a little more about the book that the authors referred to. [] In chapter 5, an organization called the ECLS was mentioned. The link above is a summary of what ECLS is, what it stands for, and what it does. I chose to include this link because the ECLS was mention-oed several times as well, so I thought it would be interesting to get a little more information about the organization. __Chapter 6: Summarizer and Discussion Director (MAY 21)__
 * // Summary of Chapter 5: // Chapter 5 addresses parenting, and just how much a parent really matters in their child's upbringing. In the beginning of the chapter, it talks about the hundreds of different ideas that people have about parenting (should the baby sleep on its back or front? alone or in the parent's bed? should the baby be allowed to cry, or should it be coddled?), and some poor misconceptions parents have about what and what isn't "dangerous". For example, most parents would allow their child to go to a house with a pool over a house with a gun, but the child is more likely to die from drowning then from accidentally being shot. Then the chapter progresses and talks about the impact that good parenting has on a child. The chapter then says that, while parenting may have some impact on a child's personality, children are more influenced by their peers then by their parents (although personally, this doesn't seem like such a surprise. After all, kids are around their peers a lot more than their parents.) However, just to measure how much parenting influences a child, the chapter then talked about different parenting techniques or beliefs that would or would not effect a child's academic performance. For example, a child whose parents have high socioeconomic status correlates with higher test scores, while a move to a better neighborhood has no correlation with better school scores. Also, a child who speaks English in the home does better than a child who doesn't, but if a child's parents take them to museums, it has no correlation to better academic standing. The chapter goes on to provide more examples, and then ends with a discussion about how much influence adoptive parents can have over their children in terms of getting good grades and doing well in school. This chapter can relate to the essential question because it's clear that the children of those with higher socioeconomic standings are likely do better in school, and so that increase in education may help them to live a life that they would not be able to without the education, so it is a little like change. Also, in this chapter it talked about a group of high school kids who were given the right to attend any public high school in their area.In order to get into the better schools, kids names were randomly drawn, like a lottery. And the reason that this lottery was even set up was because those who were given the choice of schools were from poorer, lower-income families. So the economy in those kids area sparked a change in the way that the public school system was set up in their area.

// Summary of Chapter 6: In chapter 6, the topic of discussion was names, and what kinds of implications they can have about a person. In the beginning of the chapter, it talks about the implications a name may have in terms of a person's income, race, and socioeconomic standing. The book brings up two young men, James (white) and DeShawn (black). Both young men sent in the same resume, but James is much more likely to get the job than DeShawn. The reading goes on to address the possible reasons why, such as the employer may associate the name DeShawn with a lower income class, or the employer believes that it means DeShawn may be trouble. Or, another reason may be that the employer is simply racist. Then the chapter continues on and talks about various names that are popular amongst whites and blacks, poor and wealthy families, and low and high-education parents (all of these categories have two lists, one for boys and one for girls). The authors even go so far as to predict the most popular names for 2015. But the goal for the author's analysis of these names was to show the reader that all of these names carry some sort of implication about a person, whether it be their race, their parents education, or even their parents income. And the interesting thing is that most of us don't even realize what our names or our friends names may imply about any of these factors. This chapter relates to the essential question because it addresses the change in popular names based on economic standing. The chapter says that the higher income names are often used by lower income families, and so thats how names rise or fall in popularity. So names that are very common now were originally used only for high-end families who were extremely wealthy. This changing in a name's popularity is based around the economic standing of a family, and so, essentially, economics are creating change.

Discussion Director: What did you think of the list of names, and the implications these names had about a person's life? What did you think about the predictions the author's made about the most popular names for 2015? Do you agree? Did the story about James and DeShawn surprise you? Do you agree with what the authors were saying? How did you relate this chapter to the essential question?

//**//__** Epilogue and Bonus Material: Summarizer, Passage Master, and Connector (MAY 25) **__//

//Summary of Epilogue and Bonus Material: In the epilogue, it again addresses the them of the book, or should I say the lack there of. The reading says that, although there isn't a common theme, their is a common thread that runs through the book. And that thread is the idea of thinking sensibly about people's behavior in the real world. This reading relates to the essential question because in the epilogue, the author's say that, by learning about economics, you can change the way that people think. For example, it says that, by reading this book, the reader may be a little more skeptical of our real estate agent. Or maybe the reader won't let their kids play near a swimming pool any more. All of these things are changes that we may make because of what we learned about economics, and so this can clearly relate to the essential question. Our group read farther into the novel, and chose to read the bonus material as well. The bonus material was a collection of articles, columns, and other printed materials that talked about Freakonomics, or addressed some points that were made in the book. One piece of bonus material was an article written by New York Times Magazine that featured one of the authors of this book. It gives a little bit about the life and work of Steven D. Levitt, and talks about his inspiration for writing Freakonomics. Another part of the bonus material was the Q&A with the authors.There were questions about their partnership, their intentions when writing this book, and how they view the success of their first book.

Passage Master:

"But just imagine how much more valuable it [tea] would be if, like marijuana, it were illegal. (Note to selves: corner the market on Chinese tea, then bribe the government to criminalize it)" pg 268 I chose this passage to include because it was a humorous way to end the book, and I thought that it would be something for the group to look back on as one of the funnier passages from the book.

"You might become more skeptical of the conventional wisdom; you may begin looking for hints as to how things aren't quite what they seem; perhaps you will seek out some trove of data and sift through it, balancing your intelligence and your intuition to arrive at a glimmering new idea..........The most likely result of having read this book is a simple one: you may find yourself asking a lot of questions." pg 210 I chose this passage because it talks about what changes we might make in our lives based on this book about economics. I thought that this would be important to bring up in the group because it is an example of how this chapter relates to the essential questions, and it would be a good way to incorporate the essential question in our discussion.

"And now, with all these pages behind us, an early promise has been confirmed: this book indeed has no "unifying theme"" pg 209 I chose to include this passage because having no unifying theme was something that the authors brought up a lot in this book. I thought that it would be something to talk about in our discussions, and so I chose to include it.

Connector: The authors said that, if we read this book, we may change the way we think. Are their any books like that we have read before? Also, in the end it talks about the idea of "conventional wisdom", and how we may begin to question it because of these books. What kinds of conventional wisdom have you experienced, and has it been good or bad for you personally? //