Common Sense for the Biochemist

Note: This should have been posted last Thursday, sorry for the delay. Michigan State University brings in several speakers a year for a lecture series called the "Worldview Lecture Series". I think they usually have one or two a semester and they are free to all students and staff. Several weeks ago, I attended a very intriguing lecture by the documentary filmmaker Ken Burns (of PBS fame for documentaries on Baseball and the Civil War to name a few). But that's not what I want to talk about tonight. Tonight I had the priveldge of hearing a lecture by Stephen Dubner, of Freaknomics fame. If you haven't heard of the book Freaknomics (or have but haven't picked up a copy of it)I would highly encourage you to check it out. The book was co-written by Stephen Dubner and Stephen Levitt. Who are these guys? Well, Mr. Dubner is a journalist who as a few books to his credit (I won't list them here, you can check out his website) and is a frequent contributor to the New York Times. Steven Levitt is one of the more highly regarded younger economist in the United States (if not the world) and is currently a professor at the Univesity of Chicago. The collaboration between the two authors is working very well as Dubner is able to understand the data and proposals being put forth by Levitt and is able to communicate them in a way that is understanbable to common folk like us biochemists. In summary Freakonomics is: well, I don't know how to really explain it. The authors proclaim that their is no unifying theme behind the book, but rather a series of stories that look at the economics of certain topics. The book looks at such issues as the economics of drug dealing and explains why drug dealers still live with their mothers. The book also uses statistical approaches to study cheating amongst teachers and sumo wrestlers. The book even looks at what makes a good parent. The authors have stirred some controversy with this book as it has brought into the mainstream Dr. Levitt's theory that the legalization of abortion caused drops in crime rates during the 80s and 90s. I won't go into details about the book, but I want to present my thoughts after reading it: The more I chew on the stories presented in this book, the more I look at economics in a new light. Some people have focused on the individual stories presented and the authors take on the controversies surrounding them but that is not what I really focused on. The point brought home to me is that economics is really the study of incentives. Their are incentives to being a drug dealer making less than minimum wage. There are incentives to being a teacher that cheats. The basis for everything we do is based on incentives. I guess I never really looked at the world that way. Overall the lecture was very enjoyable. Most of the topics covered were already visited in the book although there was some that wasn't, including the the first documented case of monkey prostitution (that story would probably be incentive enough for me to recommend his lecture to someone). Perhaps the most humorous (maybe thought provoking) part of the night came during the question and answer session. The question was asked, what is the reasoning behind people wanting to gamble when they know that they are going to lose their money? The answer is the same reason why people vote. Before I explain, let me say that Mr. Dubner and Dr. Levitt have a column coming out in the New York Times this Sunday concerning why people vote. The answer to both of these questions is that we are paying for the rights to fantasize. By putting a quarter in a slot machine or buying lottery ticket, we are buying the right to fantasize about what we would do with all those millions we are about to win. In the same way, by voting, we are buying the right to believe that we are single-handedly changing world policies. In a utilitarian view, the chances of coming up a millionaire or casting the deciding vote that puts a Democrat in the White House to stop the war and stop world hunger are slim. If you don't rush out and buy the book, at least check out their website, it has several hours worth of reading material on it. I have read the book and will say that it is a very enjoyable read.