|
|
|
Truth & Economics |
|
|
TRUTH AND ECONOMICS - A BOOK SUGGESTION 02/10/2006For those with a curious mind, here is a book that is worth reading: Steven D. Levitt, Stephen J. Dubner. Freakonomics: A Rogue Economist Explores the Hidden Side of Everything. New York: Harper Colliins, 2005. Now lest I “Oprah myself”, however, it is worth noting that there has been some debate about a possible “math error” in this respected economist’s work on abortion statistics (Levitt). That said, what is so greatly appealing to me about this book is its keeping with my fascination with how conventional wisdom can be SO much more conventional than wise, and how objective data can compellingly demonstrate how at least some of our views are probably in conflict with truth. In fact, this application of economic study to real-life issues makes for riveting reading, almost as good as a great novel because you’re constantly waiting for the other shoe to drop. And it does drop. Why do drug dealers tend to live with their mothers? How and why do teachers cheat on standardized tests? Which factors are really correlated with student achievement, and which variables are simply conventional myths? Does your child’s name impact their success in life? Why do realtors sell their home for an average of 3% MORE than they sell everyone else’s homes? What measures brought down the KKK and why do Sumo Wrestlers cheat despite the honored traditions involved? At its heart, this best-selling book also strikes a chord with me because it objectively seeks to gain insight into human motivation, and our abilities to self-rationalize – even at subconscious levels. In fact, Levitt and Dubner say that morals are how we wish the world worked, and economic principles best quantify and explain HOW the world really works. Interesting. Truly, on pages 89 and 90 Levitt and Dubner well summarize the thesis of my Truth-Driven Thinking fascination, with the help of the guru economist John Kenneth Galbraith. Quoting Galbriath, “We associate truth with convenience – with what most closely accords with self-interest and personal well-being or promises to best avoid awkward effort or unwelcome dislocation of life. We also find highly acceptable what contributes most to self-esteem.” He continues that economic and social behavior, “are complex and to comprehend their character is mentally tiring. Therefore we adhere as though to a raft, to those ideas which represent our understanding.” My favorite: Levitt and Dubner continue, “So the conventional wisdom in Galbraith’s view must be simple, convenient, comfortable, and comforting – though not necessarily true.” Couldn’t have said it better myself. |
|
Send mail to
sgibson@truthdriventhinking.com with
questions or comments about this web site.
|