Reading Freakonomics: Personal Statement

This interest in current affairs first motivated my enthusiasm for Economics. My first insight into this vast and fascinating subject was provided by school in which I studied basic economic theories. After finding that I was suddenly able to understand different ideas regularly brought up by the news and political debates I decided to explore the subject further. I did this through a combination of reading and listening to online lectures on the Kahn Academy website. Reading Freakonomics by Steven Levitt was a turning point for me as it opened up my eyes to the extent to which economic principles can be applied to so many different unlikely things from cheating sumo wrestlers to dealing drugs. I was particularly fascinated by how the author

was able to see patterns in data which revealing for example that legalising abortion significantly reduced crime rates years later. The book in particular taught me the dangers of confusing correlated facts with a definite causality as well as the power of incentives in our world. In addition, I also started reading The Economist every week. I deeply enjoyed the magazine’s pertinent analysis of current affairs, but worried I was becoming too influenced by its liberal free market views I decided to read 22 Things they don’t tell you about Capitalism. In this book, economist Ha Joon Chang questions the wisdom of very liberal views. I think the most important of the issue which he raises is the fact that undeveloped countries need protectionism to grow their fragile industries. I am