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Case I : Freakonomics Black Disciples & their crack business

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by

Joe Ra

on 18 November 2014

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Transcript of Case I : Freakonomics Black Disciples & their crack business

What about the wage level?

Chapter 3
Black Disciples & Their crack business

Average Salary of a Drug Dealer
Leader
Officers
Foot
Soldiers
$100,000 / year
$8,400 / year
$1,776 / year
Positions
Central
Leadership
Description
Officers
Foot Soldiers
Runs the gang and controls their salaries. This person takes in most of the profit.
Enforcer
:
ensures member saftey
Treasurer
: watched over the money and kept records
Runner
: Transported the drugs and money to and from the supplier.
Street level sales men who's goals are to become an officer.
$3.30/hr


Central leadership
officers
The board
Enforcer
Treasurer
Runner
foot soldiers
the board of directors
CFO
COO
Managers
employees
The organization
The Truth is ...
something strange:
not only did most of the crack dealers
live in housing projects,
but most of them still lived at home
with their moms.
Franchisee
J.T.
GOAL
Enforcer
Treasurer
Runner
the board of directors
each one $500,000/year
J.T.
roughly 50 foot soldiers combined payment $7,400/month
$8,500/month
$700/month for each officer;which is $8,400/year
over $100,000/year
Job Conditions
of a Foot Soldier
4 Year Balance

Number of times arrested 5.9

Number of nonfatal wounds or injuries 2.4

Chance of being killed
1 in 4

Luisa

R03749006
Johannes

R03749042

Choi

R02749043

Key Man
"
Sid
" (Sudhir Venkatesh)
University of Chicago

PhD student
Sociology
Assignment:
Field Study
Black Disciples
Chicago Branch
Sampling
Gang Questionnaire:
"What do you feel about being black and poor?"
+ 69 questions
Unsuccessful
(But successful in still being alive)
6 years exploring Gang's life
Data gathering: Observations, Interviews,
Secret Business Insights

Gang
Gang
Gang
Gang
Gang
Gang
Gang
Population
Inferential Statistics:
Predictions about a crack dealing as a whole from the Chicago observations

Revenues
Wage Allocation
Injuries / Death Rates
Conventional Wisdom
Media
Officials
"Experts"
The Board of
Directors
Why would someone become a dealer to begin with?
Introducing Crack
1984-1994
• Homicide rates doubled
• Infant mortality
• Children in foster care
CEO
COO
CHRO
CFO
Employees
=
$3
$5
$7
$9
$11
$13
Soldier
McDonald's
Officer
Minimum
Receptionist
Office Clerk
< 1:1000
1:4
1:20
Logging
Roofers
Aviation
Fishery
Foot Soldiers
Deathrow
Full transcript