Analysis Of Freakonomics

Freakonomics chapters three through five intrigued me the most due to the chapter titles. In chapter three, the authors discuss the title question of the chapter “Why do Drug Dealers Still Live with Their Moms”. In chapter five, the authors discuss the title “What Makes a Perfect Parent”. In chapter three, the title refers to “How is the Ku Klux Klan like a group of real estate agents?”. Information asymmetry connects to all three topics, the Ku Klux Klan, Real-Estate Agents, and The “Weakest Link”. The Ku Klux Klan and information asymmetry, in the book, a guy named Stetson Kennedy, a writer for ending bigotry joined the Ku Klux Klan. Kennedy worked his way up through the ranks, he did this in order to diminish the Klan, the information

Conventional Wisdom is the information that reinforces a person’s own interest and well-being. Although conventional wisdom suggests a comforting and convenient tone, it does not always mean it will be there. Drug dealing, more specifically crack dealing is one of the most profitable jobs in the world, this links in with conventional wisdom. J.T. is a college graduate, who is a part of the black gangster disciples. J.T. and his business are similar to many franchises in the United States, more specifically McDonalds, and how the business is running. J.T. is the head of one out of four hundred branches of the gangster disciples, to which he reports to the central leadership called the board of directors. J.T. pays a twenty percent fee to the board of directors to be able to sell crack within his area that he operates. The rankings in J.T.’s click run from three officers, who are under his authority. Beneath the three officers are fifty “foot soldiers” who are better known as street level sales men. Then at the bottom most part of the branches, there are rank-and-file members, which are ones that are not particularly employees but sell in the area and pay a sales fee. These members are prospects for the gang, ones who hope to get into the gang’s profits. Although the profits of selling crack as a street soldier are not as good as some think. J.T. makes around eighty-five hundred per month, where as his three soldiers, and foot soldiers split a profit of ninety-five hundred a month. Which brings about seven hundred a month to the officers each, then around three dollars and thirty cents per hour for the foot soldiers. The information that was just discussed shows that drug dealers either make a big amount of profit per month, but also shows how most live