“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.”
― Freakonomics: A Rogue Economist Explores the Hidden Side of Everything
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.”
― 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.”
― Freakonomics: A Rogue Economist Explores the Hidden Side of Everything
― 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.”
― Freakonomics: A Rogue Economist Explores the Hidden Side of Everything
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.”
― Freakonomics: A Rogue Economist Explores the Hidden Side of Everything
“Give me a daughter with your stubborn heart, or your even temper. Give our children your dark-bright eyes, or your enchanted smile. So that even when we are gone, the world will find within them all of the reasons why I loved you”
―
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“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.”
― Freakonomics: A Rogue Economist Explores the Hidden Side of Everything
― Freakonomics: A Rogue Economist Explores the Hidden Side of Everything
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