Friday, December 12, 2008

The Logic of Life: The Rational Economics of an Irrational World

Recently I read the Chinese-version book "The logic of Life, uncovering the new economic of everyting". In English, the orginal name is "The Logic of Life: The Rational Economics of an Irrational World".

It is very interesting to tell me about the basic ecomomic theory implied in the life.

Even if you found Thomas L. Friedman's The World Is Flat a smidge, um, one-dimensional, there's something to be said for keeping it simple. The precocious columnist's only alternative is to take a bunch of neat conclusions and to try to make a larger point out of them.  

That's what the Financial Times' Tim Harford has done with The Logic of Life: The Rational Economics of an Irrational World. Harford, a former World Bank economist (who has contributed to Forbes), is much savvier about his beat than Friedman, and he knows it, too: one of the later chapters of the book is titled "The World Is Spiky."      

Harford excels at making economists' studies palatable for discerning but non-expert readers. The book uses hard data to show, inter alia, why promiscuous teens are actually health-conscious, divorce hasn't gotten a fair shake, corporate bosses will always be overpaid and job prospects for minorities continue to be grim.      

Harford also devotes a few pages to one-upping Friedman. Harford's riff is that the ease in transporting goods fuels the growth of cities, not the countryside, leading in part to taxation and gender-balance disparities between rural and urban areas.      

Advantage, Harford. But if Harford was so hot on responding to Friedman's book, he should have done so with one of his own, rather than just scoring a few hits on such a large target. The problem with fighting Friedman's book with another is that it would be unbelievably geeky--even for an economics columnist--fun as a "Harford contra Friedman" might be.      

"The World Is Spiky" is one of a succession of far-flung musings loosely tied together by frequent alerts on what's happened in previous chapters and what will be discussed in those to come. Most of the individual topics could, on their own, support a full book; especially insightful is the revelation that racism in the workplace persists because employers have subconsciously deduced it's more efficient to hire certain ethnicities over others. But none of the discourses in The Logic of Life is fully fleshed out before the reader is hit with the next one in line.      

In addition, Harford, otherwise a strong writer, has an affinity for inserting into the narrative his own experiences--even though they seem to be limited to kaffeeklatsches with peers.      The Logic of Life feels at once small-time and overly broad. Harford has a real passion for the countless studies he describes in the book. Why not take some time to set one up himself, or at least participate in one being done by a colleague?      

There's no reason an otherwise arms-length columnist can't get his hands dirty as an author.

Here is also some comments in the website of "Tim Harford":
“Life often seems to defy logic. When a prostitute agrees to unprotected sex, or a teenage criminal embarks on a burglary, or a smoker lights another cigarette, we seem to be a million miles from what we would call rational behaviour. None of this makes sense – or does it? Tim Harford thinks it does. And by weaving stories from locations as diverse as a Las Vegas casino and a Soho speed-date together with insights from an ingenious new breed of economist, he aims to persuade you that we are all, in fact, surprisingly logical. Reading this book, you’ll discover that the unlikeliest of people – racists, drug addicts, revolutionaries and rats – comply with economic logic, always taking account of future costs and benefits, even if they don’t quite realise it. It even explains why your boss is overpaid…”

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