Freakonomics - The Hidden Side of Everything

Santiago Bel
December 22, 2024

Freakonomics, written by economist Steven D. Levitt and journalist Stephen J. Dubner, isn’t a typical economics book. It doesn’t focus on interest rates, GDP, or stock markets. Instead, it dives into the strange, surprising, and hidden forces that shape our human behavior. Using data, logic, and a lot of curiosity, the authors explore questions that seem random at first, but end up revealing deep truths about how the world works.
 

The book builds on a simple idea: “Economics” is simply the study of incentives. People often do things based on what they get for their behavior or what they lose by that behavior. Cheating on a test, selling drugs, naming a child, how to parent and much more is all about the reward/punishment involved in it. Levitt and Dubner develop this concept in investigating subjects not often connected to economics. This is why Freakonomics is incredibly interesting, because it applies economics to things we do daily.
 

The chapter that has perhaps been discussed the most compares schoolteachers to sumo wrestlers. Although this may sound silly, the authors show how both teams respond to incentives—and sometimes cheat to save their skins. In certain instances, teachers were discovered to change students' answers in standardized tests so that they could score better. Many sumo wrestlers throw a fight when they know that their winning record is under pressure. These examples are funny but show that when given incentives people break the rules and even do it in top professions.
 

Another eye-catching section examines the economics of drug dealing. Levitt obtained the financial records of a Chicago drug gang. Most of the money this gang spends goes to the street-level dealers. Further analysis by Levitt found out that the street-level dealers make less than minimum wage and still live with their parents. This goes against the stereotype of drug dealers being rich and flashy. The authors note that drug dealing is a business like any other, with some people raking in the profits and a whole bunch of others struggling at the bottom. It shows how data can move us past unfounded assumptions to a conception of reality.
 

One of the book's more incendiary arguments is that the drop in crime in the 1990s can be linked to the legalization of abortion in the 1970s. Fewer unwanted children being born meant fewer young adults growing up in difficult situations. This, in turn, led to less crime years later, the authors say. Some find the claim absurd, but Levitt and Dubner’s presentation of the data makes me want to support it at face value. As the chapter intends for the reader to believe whether or not they do, the chapter can foster critical thinking and show how economists can grapple meaningfully with complex issues of society.
 

In addition to success, the book also talks about parenting. In this regard, do certain things matter? For example, should I read to my child every night? Should I send them to a fancy school? Interestingly, the authors claim that many of these actions are less significant than many people might think. The education level, income and values of the families (and not the race) matter more. This chapter doesn’t provide easy answers but is a reminder to rethink what shapes a child’s future.

Another unexpected and surprising topic is the power of names. Levitt and Dubner show that names can affect a person’s life, especially when it comes to job applications and mobility. Names very often reflect people’s cultural and economic backgrounds. They also make people draw certain conclusions. It's not only discrimination it interprets signal from society, even of a name which is simple enough.
 

What makes Freakonomics so engaging is its storytelling. The authors provide stories related to the data not just data. The reader will feel like a detective in each chapter’s surprising twist and insight. The writing is clear and humorous, as well as easy to understand and follow, even when the topics are complex. It is simply explained and even readers without an economics background will be able to follow it without much trouble.
 

High school students benefit from reading Freakonomics as a critical-thinking introduction to the world. It shows that economics is not only about money, but also about choice and behavior. The author encourages the reader to question assumptions, look for patterns, and think about the deeper motives behind events. It’s not just educational—it’s eye-opening.
 

In my opinion, of all the things I enjoyed, the book made me curious. I began to see incentives everywhere; school, sports, politics. That led me to think that there's usually a reason behind a decision, even if we don't see it. Freakonomics provides a real life guideline – notice what’s not obvious; notice what is beneath.
 

In the end, Freakonomics isn’t trying to give readers a guide to success. It’s trying to spark curiosity. It’s about asking weird questions and using data to find surprising answers. What makes it especially relevant to the economic world is how it shows that economics isn’t limited to markets or finance—it’s a powerful tool for understanding human behavior, social systems, and decision-making at every level. For anyone who’s ever wondered why people act the way they do, or how small decisions can have big consequences, this book is worth reading. It’s smart, fun, and full of ideas that stick with you long after you’ve finished the last page.