The book I recently finished, Gang Leader for a Day: A Rogue Sociologist Takes to the Streets, by Sudhir Venkatesh, is essentially the extended edition of Chapter 3 from Freakonomics.

Aside:

The book Freakonomics was an interesting look into the economic forces that drive everyday things. It doesn’t look like I ever got around to reviewing this book, but it comes highly recommended. Don’t let the “economics” put you off — it is suitable for those who are not inclined toward economics!

Chapter 3 of the book is “Why do drug dealers still live with their Moms?” and covers “The economics of drug dealing, including the surprisingly low earnings and abject working conditions of crack cocaine dealers”.

As a sociology student, Sudhir finds himself spending time with a local gang leader and discovering the intricate details of gangland Chicago.

The structure of a drug gang is not unlike that of a multi-site manufacturing company. There is a hierarchy of bosses who make decisions at various levels. People try to climb the ladder to get more money (and safer work). Violations such as stealing are met with standard disciplinary action.

Gang wars are often the result of “foot soldiers” (the peons of the drug gang) starting fights due to their inflated egos, but are highly undesirable in the grand scheme of things because violence drives away customers. “Turf wars” are more often conducted in controlled inter-gang meetings where negotiations take place without violence. Gangs even engage in mergers with other gangs!

The resemblance to more conventional enterprises is uncanny; I’m curious if this evolved completely independently, or if some gang boss once upon a time happened to have an MBA!

Police and ambulances often don’t attend calls in to gangland, so the gangs and local residents have to make their own structure and justice system. It’s like a miniature country with its own structure of jobs, policies, and taxation (by way of extortion, bribes, protection).

Sudhir, now Professor of Sociology and African-American Studies at Columbia University, spent a decade studying the gangs and local residents in Chicago’s South Side.

This book is a truly fascinating glimpse into a world that few outsiders get to see.