Note > Note's Quotes

“Morality, it could be argued, represents the way that people would like the world to work, wheareas economics represents how it actually does work.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“Information is a beacon, a cudgel, an olive branch, a deterrent--all depending on who wields it and how.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“As W.C. Fields once said: a thing worth having is a thing worth cheating for.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“An incentive is a bullet, a key: an often tiny object with astonishing power to change a situation”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“Social scientists sometimes talk about the concept of "identity". It is the idea that you have a particular vision of the kind of person you are, and you feel awful when you do things that are out of line with that vision.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“Despite spending more time with themselves than with any other person, people often have surprisingly poor insight into their skills and abilities.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“For emotion is the enemy of rational argument.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“Knowing what to measure and how to measure it makes a complicated world much less so.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“Congress passed legislation requiring a five-year mandatory sentence for selling just five grams of crack; you would have to sell 500 grams of powder cocaine to get an equivalent sentence. This disparity has often been called racist, since it disproportionately imprisons blacks.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“It is well and good to opine or theorize about a subject, as humankind is wont to do, but when moral posturing is replaced by an honest assessment of the data, the result is often a new, surprising insight.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“There are three basic flavours of incentive: economic, social and moral.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“What Do Schoolteachers and Sumo Wrestlers Have in Common?”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“It was announced that any parent arriving more than ten minutes late would pay $3 per child for each incident. The fee would be added to the parents’ monthly bill, which was roughly $380. After the fine was enacted, the number of late pickups promptly went…up.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“The evidence linking increased punishment with lower crime rates is very strong.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“In the 1970s, researchers conducted a study that pitted a moral incentive against an economic incentive. In this case, they wanted to learn about the motivation behind blood donations. Their discovery: when people are given a small stipend for donating blood rather than simply being praised for their altruism, they tend to donate less blood. The stipend turned a noble act of charity into a painful way to make a few dollars, and it wasn’t worth it.
What if the blood donors had been offered an incentive of $50, or $500, or $5,000? Surely the number of donors would have changed dramatically.
But something else would have changed dramatically as well, for every incentive has its dark side. If a pint of blood were suddenly worth $5,000, you can be sure that plenty of people would take note. They might literally steal blood at knifepoint. They might pass off pig blood as their own. They might circumvent donation limits by using fake IDs. Whatever the incentive, whatever the situation, dishonest people will try to gain an advantage by whatever means necessary.
Or, as W. C. Fields once said: a thing worth having is a thing worth cheating for.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“Unless you have more information, however, it’s hard to say what’s causing what.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“These two factors—childhood poverty and a single-parent household—are among the strongest predictors that a child will have a criminal future.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“It was John Kenneth Galbraith, the hyperliterate economic sage, who coined the phrase “conventional wisdom.” He did not consider it a compliment. “We associate truth with convenience,” he wrote, “with what most closely accords with self-interest and personal well-being or promises best to avoid awkward effort or unwelcome dislocation of life. We also find highly acceptable what contributes most”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“In Levitt’s view, economics is a science with excellent tools for gaining answers but a serious shortage of interesting questions. His particular gift is the ability to ask such questions. For instance: If drug dealers make so much money, why do they still live with their mothers? Which is more dangerous, a gun or a swimming pool? What really caused crime rates to plunge during the past decade? Do real-estate agents have their clients’ best interests at heart? Why do black parents give their children names that may hurt their career prospects?”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“The broken window theory argues that minor nuisances, if left unchecked, turn into major nuisances: that is, if someone breaks a window and sees it isn’t fixed immediately, he gets the signal that it’s all right to break the rest of the windows and maybe set the building afire too.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“Incentives are the cornerstone of modern life. And understanding them — or, often, ferreting them out — is the key to solving just about any riddle, from violent crime to sports cheating to online dating.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“Who cheats?
Well, just about anyone, if the stakes are right. You might say to yourself, I don’t cheat, regardless of the stakes. And then you might remember the time you cheated on, say, a board game. Last week. Or the golf ball you nudged out of its bad lie. Or the time you really wanted a bagel in the office break room but couldn’t come up with the dollar you were supposed to drop in the coffee can. And then took the bagel anyway. And told yourself you’d pay double the next time. And didn’t.
For every clever person who goes to the trouble of creating an incentive scheme, there is an army of people, clever and otherwise, who will inevitably spend even more time trying to beat it. Cheating may or may not be human nature, but it is certainly a prominent feature in just about every human endeavor. Cheating is a primordial economic act: getting more for less. So it isn’t just the boldface names — inside-trading CEOs and pill-popping ballplayers and perkabusing politicians — who cheat. It is the waitress who pockets her tips instead of pooling them. It is the Wal-Mart payroll manager who goes into the computer and shaves his employees’ hours to make his own performance look better. It is the third grader who, worried about not making it to the fourth grade, copies test answers from the kid sitting next to him.
Some cheating leaves barely a shadow of evidence. In other cases, the evidence is massive. Consider what happened one spring evening at midnight in 1987: seven million American children suddenly disappeared. The worst kidnapping wave in history? Hardly. It was the night of April 15, and the Internal Revenue Service had just changed a rule. Instead of merely listing the name of each dependent child, tax filers were now required to provide a Social Security number. Suddenly, seven million children — children who had existed only as phantom exemptions on the previous year’s 1040 forms — vanished, representing about one in ten of all dependent children in the United States.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“But fear best thrives in the present tense. That is why experts rely on it; in a world that is increasingly impatient with long-term processes, fear is a potent short-term play. Imagine that you are a government official charged with procuring the funds to fight one of two proven killers: terrorist attacks and heart disease. Which cause do you think the members of Congress will open up the coffers for? The likelihood of any given person being killed in a terrorist attack is far smaller than the likelihood that the same person will clog up his arteries with fatty food and die of heart disease. But a terrorist attack happens now; death by heart disease is some distant, quiet catastrophe. Terrorist acts lie beyond our control; french fries do not. Just as important as the control factor is what Peter Sandman calls the dread factor. Death by terrorist attack (or mad-cow disease) is considered wholly dreadful; death by heart disease is, for some reason, not.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“Could any man resist the temptation of evil if he knew his acts could not be witnessed?”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“If morality represents the way we would like the world to work and economics represents how it actually does work, then the story of Feldman’s bagel business lies at the very intersection of morality and economics. Yes, a lot of people steal from him, but the vast majority, even though no one is watching over them, do not. This outcome may surprise some people — including Feldman’s economist friends, who counseled him twenty years ago that his honor-system scheme would never work. But it would not have surprised Adam Smith. In fact, the theme of Smith’s first book, The Theory of Moral Sentiments, was the innate honesty of mankind. “How selfish soever man may be supposed,” Smith wrote, “there are evidently some principles in his nature, which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it, except the pleasure of seeing it.”
There is a tale, “The Ring of Gyges,” that Feldman sometimes tells his economist friends. It comes from Plato’s Republic. A student named Glaucon offered the story in response to a lesson by Socrates — who, like Adam Smith, argued that people are generally good even without enforcement. Glaucon, like Feldman’s economist friends, disagreed. He told of a shepherd named Gyges who stumbled upon a secret cavern with a corpse inside that wore a ring. When Gyges put on the ring, he found that it made him invisible. With no one able to monitor his behavior, Gyges proceeded to do woeful things—seduce the queen, murder the king, and so on. Glaucon’s story posed a moral question: could any man resist the temptation of evil if he knew his acts could not be witnessed? Glaucon seemed to think the answer was no. But Paul Feldman sides with Socrates and Adam Smith — for he knows that the answer, at least 87 percent of the time, is yes.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“If you were to assume that many experts use their information to your detriment, you’d be right. Experts depend on the fact that you don’t have the information they do. Or that you are so befuddled by the complexity of their operation that you wouldn’t know what to do with the information if you had it. Or that you are so in awe of their expertise that you wouldn’t dare challenge them. If your doctor suggests that you have angioplasty — even though some current research suggests that angioplasty often does little to prevent heart attacks — you aren’t likely to think that the doctor is using his informational advantage to make a few thousand dollars for himself or his buddy. But as David Hillis, an interventional cardiologist at the University of Texas Southwestern Medical Center in Dallas, explained to the New York Times, a doctor may have the same economic incentives as a car salesman or a funeral director or a mutual fund manager: “If you’re an invasive cardiologist and Joe Smith, the local internist, is sending you patients, and if you tell them they don’t need the procedure, pretty soon Joe Smith doesn’t send patients anymore.”
Armed with information, experts can exert a gigantic, if unspoken, leverage: fear. Fear that your children will find you dead on the bathroom floor of a heart attack if you do not have angioplasty surgery. Fear that a cheap casket will expose your grandmother to a terrible underground fate. Fear that a $25,000 car will crumple like a toy in an accident, whereas a $50,000 car will wrap your loved ones in a cocoon of impregnable steel.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“The most compelling new idea that Bratton brought to life stemmed from the broken window theory, which was conceived by the criminologists James Q. Wilson and George Kelling. The broken window theory argues that minor nuisances, if left unchecked, turn into major nuisances: that is, if someone breaks a window and sees it isn’t fixed immediately, he gets the signal that it’s all right to break the rest of the windows and maybe set the building afire too.
So with murder raging all around, Bill Bratton’s cops began to police the sort of deeds that used to go unpoliced: jumping a subway turnstile, panhandling too aggressively, urinating in the streets, swabbing a filthy squeegee across a car’s windshield unless the driver made an appropriate “donation.”
Most New Yorkers loved this crackdown on its own merit. But they particularly loved the idea, as stoutly preached by Bratton and Giuliani, that choking off these small crimes was like choking off the criminal element’s oxygen supply. Today’s turnstile jumper might easily be wanted for yesterday’s murder. That junkie peeing in an alley might have been on his way to a robbery.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“In a paper called “The Economics of ‘Acting White,’” the young black Harvard economist Roland G. Fryer Jr. argues that some black students “have tremendous disincentives to invest in particular behaviors (i.e., education, ballet, etc.) due to the fact that they may be deemed a person who is trying to act like a white person (a.k.a. ‘selling-out’). Such a label, in some neighborhoods, can carry penalties that range from being deemed a social outcast, to being beaten or killed.” Fryer cites the recollections of a young Kareem Abdul-Jabbar, known then as Lew Alcindor, who had just entered the fourth grade in a new school and discovered that he was a better reader than even the seventh graders: “When the kids found this out, I became a target. . . . It was my first time away from home, my first experience in an all-black situation, and I found myself being punished for everything I’d ever been taught was right. I got all A’s and was hated for it; I spoke correctly and was called a punk. I had to learn a new language simply to be able to deal with the threats. I had good manners and was a good little boy and paid for it with my hide.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“Harris argued, albeit gently, that parents are wrong to think they contribute so mightily to their child’s personality. This belief, she wrote, was a “cultural myth.” Harris argued that the top-down influence of parents is overwhelmed by the grassroots effect of peer pressure, the blunt force applied each day by friends and schoolmates.”
― Steven D. Levitt, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything

“All of old. Nothing else ever. Ever tried. Ever failed. No matter. Try again. Fail again. Fail better.”
― Samuel Beckett, Worstward Ho