Economic lessons with a deeper twist

I think we all need to look at the world with different eyes. Most people try to measure success or failure by looking at the economics of a situation - trying to find answers by studying numbers - even though numbers can tell half the story. Many times we need to look beneath the surface for the real reasons why things are happening in society today.

Clever young social economists Steven D. Levitt and Stephen J. Dubner, the authors of Freakonomics, observe things in a different way....looking for spicy motivation behind all sorts of behavior. They think about and observe circumstances in order to look at them in a very thoughtful way.

For example, we talk about good parenting every day - but Levitt tells us that a day-care center fined parents $3 per child when they showed up late to pick up their children. Of course, they hoped this would encourage parents to come on time....while in fact, the number of parents showing up late doubled when parents legitimized the cost as "parents could buy off their guilt."

And Levitt hands Jane Roe (of Roe vs. Wade) credit for reducing the number of millions of potential criminals born into America today. His research showed that legalized abortion led to less unwanted children that would be born into poverty and destitution - which ultimately (2 decades later) led to less crime. In fact, he says it had far greater impact than even gun control or the improved economy. Although this is shocking - it seems to be valid.

So remember, it’s not always wise to jump too fast – wait, watch and think. Don't look for quick answers...or make snap decisions - sometimes it is good to look deeper.