{"id":8690,"date":"2013-04-29T11:36:42","date_gmt":"2013-04-29T15:36:42","guid":{"rendered":"http:\/\/www.Centives.net\/S\/?p=8690"},"modified":"2013-04-29T11:37:53","modified_gmt":"2013-04-29T15:37:53","slug":"the-economics-of-inner-city-gangs","status":"publish","type":"post","link":"http:\/\/www.Centives.net\/S\/2013\/the-economics-of-inner-city-gangs\/","title":{"rendered":"The Economics Of Inner City Gangs"},"content":{"rendered":"<p><span style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter  wp-image-8691\" alt=\"drug dealer\" src=\"http:\/\/www.Centives.net\/S\/wp-content\/uploads\/2013\/04\/drug-dealer.jpg\" width=\"357\" height=\"450\" srcset=\"http:\/\/www.Centives.net\/S\/wp-content\/uploads\/2013\/04\/drug-dealer.jpg 768w, http:\/\/www.Centives.net\/S\/wp-content\/uploads\/2013\/04\/drug-dealer-238x300.jpg 238w\" sizes=\"auto, (max-width: 357px) 100vw, 357px\" \/><\/span><\/p>\n<p>What happens when a South Asian math major come sociology PhD student teams up with Steven Levitt? Some pretty interesting insights into gangland economics;<\/p>\n<ul>\n<li>In the 1980s, being a gang leader meant power, influence and respect but no money.\u00a0Marijuana\u00a0just didn&#8217;t make enough cash.<\/li>\n<li>Crack-cocaine changed this; a drug that could be smoked, very addictive, but a short lived high.<\/li>\n<li>In terms of management structure, gangs are a lot like a MacDonald&#8217;s franchise. A local leader can set up, get his own crew, and use the main gang&#8217;s name and reputation in their local area.<\/li>\n<li>A footslogger in a gang might make around $3.50 an hour&#8230;many gang members actually work at MacDonald&#8217;s part time. A gang leader, however, makes in the order of $100,000<\/li>\n<li>The death rate for the lowest rank of gang member is 7% per year. For soldier&#8217;s in Iraq (2004) the figure was around 0.5%. Gangs understand this, and members get paid more when the violence gets worse<\/li>\n<li>Gangs could go into their neighbours territory and start shooting into the air. This would terrify locals and destroy their rival&#8217;s drug market. But they mainly don&#8217;t, as the other gang could do the same thing to them&#8230; inner city game theory.<\/li>\n<\/ul>\n<p style=\"text-align: left;\">A brilliant 20 minute insight, published in 2004. It&#8217;s well worth a listen or read, to find out how gangs parallel the dot com boom and why it&#8217;s important for gang leaders (and maybe CEOs?) to pay themselves handsomely even when the lowest ranks can&#8217;t get paid. Read more over <a href=\"http:\/\/www.ted.com\/talks\/steven_levitt_analyzes_crack_economics.html?\/\">here<\/a><\/p>\n<p>Source: <a href=\"http:\/\/www.ted.com\/talks\/steven_levitt_analyzes_crack_economics.html?\/\">TED<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What happens when a South Asian math major come sociology PhD student teams up with Steven Levitt? Some pretty interesting insights into gangland economics; In the 1980s, being a gang leader meant power, influence and respect but no money.\u00a0Marijuana\u00a0just didn&#8217;t make enough cash. Crack-cocaine changed this; a drug that could be smoked, very addictive, but [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8691,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8690","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-bulletin"],"jetpack_featured_media_url":"http:\/\/www.Centives.net\/S\/wp-content\/uploads\/2013\/04\/drug-dealer.jpg","_links":{"self":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/8690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/comments?post=8690"}],"version-history":[{"count":10,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/8690\/revisions"}],"predecessor-version":[{"id":8698,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/8690\/revisions\/8698"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/media\/8691"}],"wp:attachment":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/media?parent=8690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/categories?post=8690"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/tags?post=8690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}