Planet Money

In Chattanooga, Tennessee, the opening of a Volkswagen manufacturing plant marked a significant moment, especially as the state had aggressively competed to attract the automaker by offering substantial incentives. This new facility was seen as a beacon of hope during the economic recovery period, attracting a staggering number of job applications. The plant's establishment also caught the attention of the United Auto Workers (UAW), who saw an opportunity to unionize the workers there, given Volkswagen's global practice of encouraging worker representation. The UAW's efforts to unionize the Chattanooga plant faced numerous challenges. Initial attempts to establish a union were met with resistance not only from local politicians who feared the economic implications of unionization but also from Volkswagen management, which, despite expressing support for worker representation, rejected union authorization cards. This led to a formal election, which was heavily influenced by external anti-union campaigns and political pressure, including significant interventions by Tennessee Senator Bob Corker. The UAW's bid was ultimately unsuccessful, with workers voting against unionization. Following this defeat, the UAW attempted a different strategy by focusing on a smaller, specialized group of workers within the plant. This "micro unit" approach initially seemed successful, with a majority voting in favor of the union. However, Volkswagen contested this, leading to legal battles that stalled progress. Changes in the political landscape, particularly with the election of President Donald Trump, further complicated matters as shifts in the National Labor Relations Board affected the rules around forming such units. Despite these setbacks, the persistence of union supporters like Steve Cochran, a maintenance worker at the plant, kept the momentum alive. The union's cause was also helped by broader successes in the UAW's strategies under new leadership, which included more transparent and aggressive tactics during national strikes. These efforts culminated in a significant shift in worker sentiment at the Chattanooga plant, leading to a successful vote to unionize, reflecting a potential turning point for unionization efforts in traditionally conservative, anti-union regions of the South. This victory at Volkswagen is seen as just the beginning, with hopes that it will inspire similar outcomes across other non-unionized plants in the region.

The episode of Planet Money titled "FTX and the Serengeti of Bankruptcy" delves into the collapse of the cryptocurrency exchange FTX, one of the most significant financial meltdowns of the 21st century. The story begins with Begumshi Kanagundla, an IT professional and crypto investor, who had accumulated over $200,000 in cryptocurrencies through FTX. His confidence in the platform was shattered when FTX halted customer withdrawals and filed for bankruptcy, leading to a frantic scramble among customers like Begumshi to salvage whatever they could from their investments. The podcast explores the complex world of bankruptcy claims trading, where investors buy and sell claims from bankrupt companies hoping to recover funds. Begumshi, facing the potential total loss of his investments, discovered an online marketplace called Xclaim that allowed him to sell his bankruptcy claim. Although he sold his claim for only a fraction of its value, this transaction highlights a vibrant secondary market where such claims are traded. The narrative then shifts to the broader implications of FTX's bankruptcy, guided by insights from Adam Levitin, a bankruptcy scholar. He explains the U.S. bankruptcy system, particularly Chapter 11, which allows distressed companies to reorganize rather than liquidate immediately. This system creates a hierarchy among creditors and an ecosystem akin to a wildlife food chain, where secured creditors (likened to lions) have the highest priority, followed by unsecured creditors (hyenas and jackals), and finally equity holders (dung beetles). The episode also introduces Thomas Brazil, a broker in distressed debt, who capitalizes on the chaos by purchasing FTX bankruptcy claims at a low price, betting on a higher future payout. This segment of the podcast illuminates the strategies and risks involved in distressed investing, a niche but potentially lucrative area of finance. As the story of FTX's bankruptcy unfolds, it becomes a tale of loss, opportunism, and the complex interplay of legal and financial mechanisms in the face of corporate collapse. The podcast concludes by reflecting on the personal and systemic impacts of such financial disasters, emphasizing both the human cost and the sophisticated financial strategies that emerge in the aftermath of corporate failures.

In the recent episode of NPR's Planet Money, titled "Grocery prices, credit card debt, and your 401K (Two Indicators)," hosts Waylon Wong and Adrian Ma delve into the current economic challenges facing consumers, particularly in the aftermath of the pandemic and amidst ongoing high inflation. The episode begins by highlighting the significant rise in grocery prices, which have increased by 25% since January 2020, outpacing the general inflation rate. This surge in prices is particularly felt by consumers as they make regular purchases, contrasting with the less noticeable impact of wage increases that are often absorbed into routine direct deposits. The discussion then shifts to the financial cushions built during the early pandemic years, where median household bank balances saw a substantial increase due to higher incomes and reduced spending. However, as these savings are gradually spent, the real income growth has slowed, leading to either reduced spending or increased borrowing among consumers. This is evidenced by the record-high credit card balances, which reached $1.1 trillion in the fourth quarter of 2023, and rising delinquency rates, indicating financial distress particularly among younger and lower-income households. Another sign of economic strain is the decline in sales at discount retailers like Family Dollar, attributed to the reduction in SNAP benefits after the pandemic. This has forced lower-income consumers to make tough choices about food, and with the upcoming closure of many dollar stores, these consumers face even fewer options for affordable groceries. The episode also touches on the increase in hardship withdrawals from 401K retirement plans, a trend that suggests financial stress despite being complicated by recent changes in plan policies that make withdrawals easier. This indicator, along with rising credit card delinquencies and falling dollar store sales, paints a picture of a consumer base that is increasingly feeling the economic pinch. Lastly, the podcast discusses the Biden administration's consideration of reviving the Robinson-Patman Act, a 1930s antitrust law, to address unfair pricing practices that disadvantage smaller retailers compared to giants like Walmart. This move, however, is controversial as it may lead to higher prices at large retailers, which could negatively impact consumers who benefit from lower prices due to the efficiencies of large-scale operations. Overall, the episode provides a comprehensive look at the various economic pressures facing consumers today, highlighting the complex interplay between policy, market dynamics, and individual financial health.

In the episode "TikTok Made Me Deduct It" from NPR's Planet Money, tax attorney Victoria Lee discusses the complexities and misconceptions surrounding tax deductions, particularly those influenced by social media platforms like TikTok. Victoria, who practices in Beverly Hills, encounters clients who have attempted to deduct extravagant items like luxury cars and private jets, often based on dubious advice from TikTok. She emphasizes the importance of understanding where clients get their information and tries to empathize with them to maintain a good attorney-client relationship. The podcast also explores the broader issue of misleading tax advice on social media, where influencers often share tips that are either partially true or completely misguided. This misinformation is particularly problematic given the IRS's increased funding and capability to conduct audits. The episode highlights how some TikTok users are misled into thinking they can benefit from deductions on gambling losses or pet expenses, which are only applicable in very specific circumstances. Tax experts on the show, including former IRS tax lawyer Goldburn Maynard and University of North Carolina professor Jeff Hoops, discuss the nuances of tax deductions related to gambling losses and the use of pets in deductions. They clarify that while these deductions are legally permissible, they are often represented inaccurately on social media, leading to potential cases of tax fraud. The episode also delves into the so-called "G-Wagon deduction," a popular topic on TikTok that involves deducting luxury SUVs like the Mercedes G-Wagon as business expenses. This deduction is legitimate only if the vehicle is genuinely used for business purposes, highlighting the misuse of tax laws through social media advice. Overall, the episode serves as a cautionary tale about the pitfalls of relying on social media for tax advice, stressing the importance of consulting with professionals and understanding the intricacies of tax regulations to avoid legal troubles and financial losses.

In the classic episode titled "How much does this cow weigh" from Planet Money, the hosts explore a fascinating experiment originally conducted by Francis Galton, a scientist and statistician, over a century ago in England. Galton, who had a strong belief in the superiority of experts over the average person, was intrigued by a contest at a country fair where participants were asked to guess the weight of an ox. He collected all the guesses, calculated the average, and found it to be almost exactly the actual weight of the ox, only one pound off. This outcome was both surprising and eerie to Galton, as it suggested that a collective of random people could arrive at an accurate estimation without any individual expert knowledge. The Planet Money team decided to replicate Galton's experiment by asking people to guess the weight of a cow named Penelope at a county fair in Burlington County, New Jersey. They took the experiment further by posting pictures of Penelope online and inviting guesses from around the world. The hosts were curious whether a large group of random people, including non-experts and self-declared experts, could collectively guess the weight of the cow accurately. After collecting guesses from over 17,000 participants, the average guess was 1,287 pounds, impressively close to Penelope's actual weight of 1,355 pounds. This result was only about 5% off, demonstrating the phenomenon known as the "wisdom of crowds," where collective guesses can converge on a surprisingly accurate estimation. Interestingly, when the guesses of self-declared experts were analyzed separately, their average guess was slightly worse than that of the non-expert group. This outcome further emphasized the idea that a diverse crowd's collective judgment can be more reliable than that of a smaller group of experts. The episode delves into the reasons why this phenomenon occurs, suggesting that each person's guess adds a unique piece of information based on their individual experiences and perspectives. The errors in individual guesses tend to cancel each other out, leaving behind the valuable bits of information that contribute to the accuracy of the collective estimate. The episode concludes by reflecting on the broader implications of the wisdom of crowds, noting its relevance in various domains such as the stock market, where collective decisions set the value of companies despite individual irrationalities. The experiment with Penelope the cow serves as a compelling illustration of how, under the right conditions, the collective intelligence of a group can lead to remarkably accurate outcomes, challenging the conventional emphasis on expert knowledge.

In the 1980s, Japan's economy was booming, with its products and companies dominating global markets. This period of rapid growth led many in the United States to view Japan as an economic powerhouse that was taking over the world. However, this success story took a dramatic turn in the early 1990s when Japan's economic bubble burst, leading to a severe recession. Despite efforts to stimulate the economy through aggressive macroeconomic policies, Japan entered a prolonged period of stagnation known as the "lost decades," characterized by slow growth, deflation, and a banking crisis exacerbated by "zombie loans." Economists around the world were puzzled by Japan's situation, particularly when traditional economic tools seemed ineffective in reviving the economy. This led to the realization that Japan was experiencing a liquidity trap, a scenario where monetary policy becomes ineffective because people hoard cash instead of spending it. The concept of a liquidity trap, once thought to be a relic of the Great Depression, was now a reality in modern economics, prompting a reevaluation of economic theories and policies. In response to its economic challenges, Japan became the first modern economy to implement unconventional measures such as forward guidance and quantitative easing. These strategies aimed to encourage spending and investment by promising low interest rates and injecting money directly into the economy. Japan's experience with these measures provided valuable lessons for other countries, including the United States, which faced similar economic challenges during the global financial crisis of 2007-2008. The U.S. learned from Japan's experience, taking quicker and more decisive actions to prevent a prolonged economic downturn. Despite these efforts, Japan's economy continued to struggle with sluggish growth, leading to a shift in focus from demand-side issues to supply-side challenges. Japan's aging population and rigid labor market were identified as significant obstacles to economic growth. In an attempt to address these issues, Japan launched "Abenomics" in 2013, a comprehensive economic reform plan that included efforts to increase labor force participation and encourage innovation. Recently, Japan raised interest rates for the first time in 17 years, signaling a potential end to the "lost decades" and a shift towards addressing structural reforms to stimulate growth. Japan's journey from economic powerhouse to experiencing prolonged stagnation and its efforts to revive growth offer important lessons for other economies facing similar challenges. The country's experience underscores the complexity of modern economies and the need for innovative policy solutions to address both demand and supply-side issues.

The episode titled "The real estate industry on trial" delves into the intricacies and controversies surrounding the real estate industry, particularly focusing on the way realtors are compensated through commissions. It begins with the story of a lawsuit, Burnett versus the National Association of Realtors, which emerged from the grievances of a couple, Rhonda and Scott Burnett, who were perplexed by the commission fees they had to pay when selling their home. The Burnetts' case, which started in Missouri, highlighted a widespread practice in the U.S. real estate market where sellers end up paying commissions for both the seller's and buyer's agents, often amounting to a significant percentage of the sale price. Mike Ketchmark, a personal injury lawyer with no prior experience in real estate law, was approached to take on the case due to his exceptional jury trial skills. Despite his initial unfamiliarity with the real estate sector, Ketchmark was convinced that the commission practices in the industry were not just peculiar but potentially illegal. The lawsuit argued that the standard commission rates, which are significantly higher in the U.S. than in most other countries, and the lack of negotiation on these rates constituted a conflict of interest and a form of price-fixing that violated the Sherman Antitrust Act. As the case progressed, it expanded into a statewide class action representing 500,000 Missourians and targeted some of the country's largest realtor franchises and the National Association of Realtors (NAR). The NAR, a powerful entity with over a million and a half members, found itself at the center of a legal battle that questioned the very foundations of how real estate transactions are conducted in the U.S. The trial revealed startling evidence, including training videos and depositions that suggested a systemic encouragement of maintaining high commission rates among realtors. Data analysis presented during the trial showed a striking uniformity in commission rates across thousands of transactions, suggesting collusion among real estate agents to fix prices, a practice that ultimately harms consumers. The jury's verdict was a resounding affirmation of the plaintiffs' arguments, awarding $1.8 billion in damages to the 500,000 Missourians represented in the lawsuit. This amount was set to be tripled under antitrust laws, totaling $5.4 billion. In the aftermath, the NAR and several realty companies faced additional lawsuits and eventually agreed to a settlement that included paying $418 million and making significant changes to their business practices. These changes are aimed at making the real estate market more transparent and competitive, potentially saving buyers and sellers billions of dollars annually. This episode of Planet Money sheds light on a landmark legal battle that could have far-reaching implications for the real estate industry and the way Americans buy and sell homes. It highlights the power of legal action to challenge entrenched practices and promote fairness and transparency in one of the country's most significant markets.

The podcast episode from Planet Money on NPR delves into the contentious issue of U.S. financial support for military operations in Ukraine and Israel, focusing on the taxpayer's contribution to these efforts. The episode begins by highlighting the differing opinions among U.S. taxpayers regarding the country's involvement in the wars in Ukraine and Gaza. Some Americans question the morality and necessity of funding military actions abroad, especially when such actions are associated with civilian casualties and humanitarian crises. The hosts, Sarah Gonzalez and Alexi Horowitz-Ghazi, explore the complex nature of foreign assistance, breaking down the categories into security, economic, and humanitarian aid, with a particular emphasis on foreign military financing. This type of assistance primarily involves the U.S. providing funds to other countries for the purchase of American-made weapons. The episode reveals that Israel and Ukraine are significant recipients of such aid, with Israel having a longstanding financial relationship with the U.S. and Ukraine receiving substantial support following Russia's invasion. The financial figures discussed are staggering, with Israel receiving $3.8 billion and Ukraine $115 billion over specific periods, amounts that represent a small fraction of the U.S. federal budget but have significant implications for the countries involved. The episode also touches on the mechanisms of weapon sales, including the conditions under which countries like Egypt and Israel purchase military equipment from the U.S., and the unique financial arrangements that allow Israel to earn interest on its military financing and borrow against future allocations. In an attempt to quantify the average American taxpayer's contribution to these foreign military endeavors, the hosts engage in a simplified calculation, acknowledging the limitations and oversimplifications inherent in such an exercise. They estimate an annual per-person cost of $165 for Ukraine and $11.25 for Israel, based on the total amount of aid divided by the estimated number of U.S. adults. However, this calculation does not account for corporate taxes, deficit spending, and the complex ways in which the U.S. government finances these operations, leading to a conclusion that any per-person figure is inherently flawed and does not capture the full picture of U.S. financial involvement in foreign conflicts. The episode concludes with a discussion on the broader implications of U.S. military aid and weapon sales, emphasizing the strategic considerations behind these decisions and the difficulty in making a straightforward calculation of the taxpayer's contribution to these efforts. The ongoing debate in Congress over additional aid packages for Ukraine and Israel underscores the complexity and significance of these issues, highlighting the challenges in assessing the impact of U.S. foreign military support on both a financial and moral level.

"The Trouble with Table 101" episode from Planet Money delves into the intricate balance that restaurateurs must strike to maximize profits while ensuring a pleasant dining experience for customers. The story centers around Rani Mazumdar, the owner of Adda, a casual Indian restaurant in Long Island City, Queens. Initially designed to cater to a local clientele, Adda unexpectedly became a destination spot, leading to challenges with the restaurant's physical space and how it affected revenue. Specifically, Table 101, a high-top table positioned at the restaurant's front, was underperforming in terms of check averages despite its prime location. The episode explores the psychology and design considerations that go into restaurant layout and customer experience. To address the issue with Table 101, Mazumdar enlists the help of Daphne Robson, an expert in restaurant psychology and design. Robson's analysis and recommendations lead to significant changes, including replacing the high-top table with lower tables and adding a stub wall to create a sense of privacy and anchorage for diners. These adjustments were based on research showing that customers prefer tables that feel anchored and protected, as it taps into a primal desire for security. The experiment with Table 101 yields impressive results. After implementing Robson's suggestions, Adda sees a significant increase in the check average for dinner service at the redesigned table area, with a notable rise in spend per minute. This outcome underscores the importance of thoughtful restaurant design in enhancing customer satisfaction and boosting revenue. The success of the experiment also influences Mazumdar's approach to his other restaurant ventures, emphasizing the quality of the dining experience over merely maximizing seating capacity. The episode concludes with updates on Mazumdar's business and the broader implications of the Table 101 experiment. Despite the challenges posed by the pandemic, Mazumdar's restaurants have thrived, partly due to the lessons learned from optimizing Table 101. The story of Table 101 serves as a valuable case study in the power of design and psychology in the restaurant industry, demonstrating how small changes can have a significant impact on a business's bottom line.

Temu, a Chinese e-commerce company, has rapidly gained attention in the United States, especially after its extensive advertising campaign, including a Super Bowl ad. This company, which emerged in the fall of 2022, offers a wide array of products at seemingly impossibly low prices, with free shipping and additional discounts for engaging in activities within the app, such as feeding a digital pet fish. The shopping experience on Temu is described as a bizarre cross between Amazon and a game, filled with an assortment of odd and inexpensive items. This unique approach to online shopping has led to Temu becoming one of the most downloaded iPhone apps in the country, with around 50 million monthly active users in the U.S., shipping as many as a million packages a day into the country. Temu is a subsidiary of Pinduoduo (PDD), a giant e-commerce company based in China, known for its gamified social shopping experience. PDD's model encourages users to buy in bulk with friends to receive discounts, a concept known as team purchase. Although Temu in the U.S. does not currently use this bulk pricing model, it offers discounts for inviting friends to the platform. The success of PDD and, by extension, Temu, can be attributed to their innovative approach to e-commerce, which focuses on eliminating the inventory risk for suppliers by adopting a just-in-time manufacturing philosophy. This model allows manufacturers to produce goods based on actual demand, reducing the need for inventory storage and minimizing the risk of overproduction. However, Temu's rapid rise and business practices have raised several concerns, particularly regarding compliance with U.S. laws and regulations. Issues such as the sale of counterfeit goods, safety standards, and the use of forced labor have been highlighted. A significant loophole that Temu and similar companies exploit is the de minimis rule, which allows shipments under $800 to enter the U.S. without customs declaration or taxes. This loophole has led to a surge in packages from China, overwhelming U.S. customs and border protection and making it difficult to enforce laws against unsafe items, knockoffs, and products made with forced labor. U.S. Representative Earl Blumenauer has been vocal about these concerns and has introduced a bill aimed at closing the de minimis loophole for packages coming from China. This legislation, if passed, would require companies like Temu to declare the contents of every package and pay applicable tariffs, potentially changing the landscape of e-commerce and addressing some of the regulatory challenges posed by the current system. Despite these concerns, Temu's innovative approach to e-commerce has undeniably made an impact, offering consumers a wide variety of products at low prices while challenging traditional retail and manufacturing models.

Keith Bussey witnessed the transformation of the American steel industry from its zenith to its decline and eventual resurgence through innovation. In the early 1960s, the steel industry in the United States was a powerhouse of economic growth, national security, and employment, with companies like Bethlehem Steel leading the charge. However, by the late 20th century, the industry faced significant challenges, including labor disputes, foreign competition, and technological stagnation. Strikes in 1959 marked the beginning of a cycle of wage increases and price hikes, making U.S. steel less competitive globally. European and Japanese competitors, leveraging new technologies like the basic oxygen furnace, began to outpace American companies, which were slow to adopt these innovations. The introduction of the mini mill by companies like Nucor represented a seismic shift in steel manufacturing. These compact, efficient mills utilized electric arc furnaces and recycled scrap metal to produce steel, challenging the dominance of traditional, large-scale steel mills. Keith Bussey, who initially marveled at the construction of a Bethlehem Steel mill, would later play a pivotal role in Nucor's development of the first mini mill capable of producing flat-rolled steel. Despite skepticism and a limited budget, Bussey and his team overcame technological and labor challenges to establish a successful operation. Nucor's non-union model and incentive-based pay contrasted sharply with the unionized, flat-rate pay structure of the old steel giants. The rise of mini mills and the decline of traditional steel companies were compounded by the latter's focus on combating foreign competition through tariffs and anti-dumping measures, rather than innovating and improving efficiency. Legacy costs and outdated facilities further hampered their competitiveness. The eventual bankruptcy and closure of many big steel companies, including Bethlehem Steel, underscored the failure to adapt to changing market dynamics. Nucor's success, on the other hand, demonstrated the potential of innovation and adaptability in revitalizing an industry. The transformation of the U.S. steel industry from the dominance of large, traditional mills to the efficiency and flexibility of mini mills is a testament to the power of innovation and the importance of embracing change. While the industry once relied on a massive workforce, it now produces significant quantities of steel with a fraction of the labor, illustrating the profound impact of technological advancement and strategic vision on economic sectors.

The episode titled "The billion dollar war behind U.S. rum" from Planet Money delves into the economic battle between the U.S. Virgin Islands and Puerto Rico over the rum industry, a saga that has come to be known as the Rum Wars. The story begins in St. Croix, U.S. Virgin Islands, where rum production is a major industry, highlighted by the presence of one of the world's largest rum distilleries, producing the well-known Captain Morgan brand. This distillery became the focal point of controversy when, in 2008, the Virgin Islands government enticed Captain Morgan to relocate from Puerto Rico through a series of lucrative incentives, sparking a fierce competition between the two territories. The episode explores the origins of this conflict, tracing back to a century-old scheme by Congress designed to support the economies of U.S. territories like Puerto Rico and the Virgin Islands. This scheme involved redirecting federal taxes collected on rum sold in the United States back to the territories where the rum was produced. However, the relocation of Captain Morgan to the Virgin Islands, facilitated by substantial financial incentives, marked the beginning of an aggressive competition for rum production and the associated tax revenues. The narrative further unfolds as Puerto Rico responds to the loss of Captain Morgan by lobbying Congress to regulate the distribution of federal rum tax revenues more strictly, aiming to prevent such funds from disproportionately benefiting large liquor companies. Despite these efforts, the lobbying led to a stalemate, with Congress taking no action. Consequently, Puerto Rico and the Virgin Islands found themselves in a subsidy race, offering increasingly generous deals to rum producers to attract and retain their business. This competition resulted in significant portions of the federal rum tax revenues being diverted to subsidize the operations of these companies, rather than supporting the territories' economies directly. The episode concludes by reflecting on the broader implications of the Rum Wars, highlighting how the battle over rum tax revenues and subsidies has reshaped the economic landscape of the Virgin Islands and Puerto Rico. It also touches on the precarious future of the federal rum tax program, which faces uncertainty due to Congressional inaction, posing potential financial challenges for both territories. Through interviews with key figures involved in the Rum Wars, including politicians and industry insiders, the episode provides a comprehensive overview of this complex economic conflict and its lasting impact on the Caribbean region.

The episode "Wind boom, wind bust" from Planet Money delves into the complex and fluctuating world of wind energy in the United States, focusing on two contrasting stories that highlight the industry's current economic moment of both boom and bust. The narrative begins with the anticipation and subsequent disappointment surrounding the first auction for offshore wind farms in the Gulf of Mexico. Despite high expectations, the auction results were underwhelming, with one of the three sites selling for a mere $5.5 million, a fraction of what similar sites had garnered in other regions like New York. This outcome pointed to several challenges facing the offshore wind industry in the Gulf, including the availability of cheaper alternative energy sources like solar power in Texas, the risks posed by hurricanes, and the relatively calm wind speeds compared to the Northeast. The episode further explores why the auction attracted such minimal interest, despite the potential advantages of the Gulf of Mexico for offshore wind energy, such as its shallow waters and existing seafaring expertise from the oil and gas industry. Factors such as the high costs of construction, supply chain issues, and the critical role of state-level financial incentives in determining the viability of offshore wind projects are examined. The lack of guaranteed prices for electricity in states like Louisiana, Texas, and Mississippi emerged as a significant barrier to attracting bids for the offshore wind sites. In contrast to the challenges faced by offshore wind energy in the Gulf, the episode shifts focus to the burgeoning job market for wind turbine service technicians, or wind techs, which is expected to grow by 45 percent over ten years. The story of Connor Theriault, a lead technician for Vestas in Maine, provides a personal and detailed look into the daily responsibilities and safety protocols of wind techs. The narrative highlights the importance of this rapidly growing profession in maintaining and servicing the wind turbines that are an integral part of America's renewable energy infrastructure. Despite the physical demands and potential hazards of the job, the positive impact on local communities and the environment, along with competitive salaries and benefits, make it an attractive career path for many. Overall, the episode paints a nuanced picture of the wind energy sector in the United States, illustrating the complex interplay of economic, environmental, and political factors that influence its development. While challenges remain, particularly in the expansion of offshore wind energy in certain regions, the growth of wind tech jobs underscores the potential for wind power to play a significant role in the country's transition to renewable energy.

In the final hours of a fiercely competitive Oscars campaign season, journalist Matt Bellany provides insight into the elaborate and strategic efforts undertaken by Hollywood movie studios to secure Academy Awards. These campaigns, which span eight to ten months, involve specialized strategists leading various factions through a series of voter outreach events, fancy galas, and other promotional activities aimed at winning over the 10,000 or so members of the Motion Picture Academy. The campaigns are meticulously planned, targeting specific groups within the Academy to secure nominations and ultimately, wins. This process is not just about promoting films but involves framing them with messages that resonate with voters, making the films seem important or meaningful beyond their entertainment value. The Oscars campaign has evolved into a highly competitive and expensive endeavor, with studios spending tens of millions of dollars in hopes of securing the prestigious awards. This transformation can be traced back to the aggressive tactics employed by Miramax in the 1990s, under the leadership of Bob and Harvey Weinstein. Their strategy of aggressively campaigning for Oscar nominations and wins for indie films and foreign movies changed the landscape of Oscars campaigning, setting off an arms race among studios. The entry of streaming companies like Netflix into the fray has further escalated the competition, with these companies viewing Oscars as a means to differentiate themselves and attract top talent, despite the changing economics of moviemaking and the diminishing direct returns from Oscar wins. Despite the less direct profitability of Oscar nominations and wins in the era of streaming services and the decline of DVD sales, the pursuit of Academy Awards remains a high-stakes game for Hollywood. For streaming companies, Oscars serve as a brand-building tool, helping to attract subscribers and viewership. Independent studios and major Hollywood studios alike continue to invest heavily in Oscars campaigns, not only to attract and retain top talent but also to enhance the long-term value of their films. Winning an Oscar can significantly increase a film's lifetime earnings by adding a prestigious "Best Picture" brand halo, making the investment in Oscars campaigns a worthwhile endeavor for studios aiming to secure a place in the pantheon of celebrated films.

In a recent episode of Planet Money from NPR, the topic of dynamic pricing in supermarkets was explored. The episode begins with a simple observation: two gallons of milk with different sell-by dates are priced the same, highlighting a lack of efficiency and logic in supermarket pricing. This sets the stage for a discussion on how supermarkets, unlike other industries such as airlines or ride-sharing services, have largely stuck to static pricing models despite the potential benefits of dynamic pricing. Dynamic pricing, the practice of changing prices based on various factors such as demand, time, and inventory levels, is seen as a way for supermarkets to reduce waste, increase efficiency, and potentially offer better deals to consumers. The episode delves into the history of pricing in retail, noting that the transition from haggling to fixed prices marked a significant shift in how goods are sold. However, the fixed price model, while simplifying transactions, does not account for the varying value of products over time, especially perishable items. The episode then explores the reasons why supermarkets have been slow to adopt dynamic pricing. Initial assumptions pointed to the cost of changing prices, known as menu costs, as a potential barrier. However, further investigation revealed that the real challenge lies in the accuracy of inventory data. Supermarkets often struggle with keeping precise records of their stock due to various factors such as theft, breakage, and the time-consuming nature of updating inventory for similar items with different characteristics. Despite these challenges, some supermarkets, particularly in Europe, have begun to implement dynamic pricing through the use of electronic shelf labels (ESLs). These devices allow prices to be updated remotely and quickly, reducing the labor costs associated with manual price changes. The episode highlights the example of Rema, a Norwegian supermarket chain, which has successfully used ESLs to engage in dynamic pricing, leading to reduced food waste and competitive pricing strategies. However, dynamic pricing also raises concerns. There is the potential for price manipulation and customer distrust if prices fluctuate too frequently or if personalized pricing is implemented. To mitigate these issues, some supermarkets have adopted policies such as only lowering prices during store hours. The episode concludes by suggesting that as more supermarkets adopt ESLs and other technologies enabling dynamic pricing, consumers may see more frequent price changes in their local stores. This could lead to both benefits, such as lower prices for items nearing their sell-by date, and challenges, such as navigating a more complex pricing landscape.

In this episode of Planet Money from NPR, titled "Shopping for parental benefits around the world," host Mary Childs embarks on a global quest to find the best country for parental benefits, driven by her personal situation of expecting a child and already having a toddler in the United States. She highlights the lack of paid parental leave, expensive childcare, and the career setbacks often faced by mothers in the U.S. Childs sets out to explore countries offering more appealing packages for parents, including paid leave, smaller gender pay gaps, and affordable childcare, with the aim of identifying the best deal for her family. The journey begins with Singapore, known for its substantial cash bonuses for new parents, subsidized childcare, and a relatively small gender pay gap. However, the motivation behind Singapore's generous policies is its struggle with declining birth rates and an aging population. Despite the attractive financial incentives, the cost of living and the long path to citizenship make Singapore less appealing for Childs' immediate needs. The episode then moves to Sweden, renowned for its extensive parental leave, government-provided daycare, and efforts to promote gender equality. Sweden's policies, rooted in a desire to increase labor force participation and address demographic challenges, offer a compelling package for parents. South Korea, despite its robust parental support policies and efforts to boost its fertility rate, faces cultural and workplace challenges that undermine the effectiveness of its programs. Women continue to leave the workforce after having children, and the intense office culture discourages men from taking parental leave. Estonia presents another option with its long paid leave and unique "speed benefit" to encourage quick successive births, but concerns about daycare availability and the focus on increasing the native population raise questions for Childs. Finally, Canada emerges as a strong contender with its affordable childcare initiative, high women's workforce participation, and welcoming immigration policies. However, the gender pay gap in Canada, similar to that in the U.S., dims its appeal. Ultimately, Sweden stands out as the best all-around option for Childs, thanks to its comprehensive support for parents, emphasis on gender equality, and immediate eligibility for childcare benefits. The episode concludes with Childs' realization that while many countries offer attractive benefits for parents, practical and logistical challenges limit the feasibility of relocating for better parental support.

In the episode titled "The secret world behind school fundraisers" from NPR's Planet Money, the focus is on the intricate and often overlooked world of school fundraising, particularly through the lens of Villa Corte Elementary in La Puente, California. The episode begins with a vivid description of a typical school fundraising assembly, where students are enticed with various prizes to sell items like cheesecakes, wrapping paper, and assorted snacks. The narrative then shifts to the broader context of why schools engage in these fundraising activities, revealing that they are a crucial method for schools across the U.S. to raise money for extra activities and resources that are not covered by their official budgets. The episode follows the fundraising efforts of Villa Corte Elementary over a year, with the goal of raising enough money to send every student on a field trip, a goal set by Maria Laris, a dedicated teacher and PTA member. Through interviews with Laris, students, and the school's principal, the episode paints a detailed picture of the challenges and motivations behind school fundraisers. It highlights the reliance on fundraising companies that provide the products and prizes for these events, and the significant cut these companies take from the proceeds. Despite the effort and the sometimes modest financial returns, the community aspect and the direct benefits to students, such as field trips and school events, are emphasized as key motivators. The episode also delves into the financial mechanics of school funding, explaining how schools are funded and the limitations on how this funding can be spent. It contrasts this with the flexibility of funds raised through PTAs, which can be used for a wide range of activities and needs, from field trips to buying printer ink. The narrative questions the efficiency and ethics of using students as salespeople and explores alternative fundraising methods, including direct donations. However, it concludes that in many communities, the tangible rewards and experiences offered by traditional fundraisers are more effective in garnering support. Overall, the episode sheds light on the complex ecosystem of school fundraising, exploring the motivations, challenges, and impacts of these efforts on schools, students, and communities. It presents a nuanced view of the necessity of fundraisers in filling the gaps left by official school budgets, while also questioning the sustainability and ethics of current practices.

The podcast episode titled "A controversial idea at the heart of Bidenomics" from Planet Money on NPR delves into the contentious topic of industrial policy, a strategy where governments attempt to stimulate economic growth by supporting specific sectors of the economy through financial aid or trade barriers. Historically, industrial policy has been viewed with skepticism by economists, who argue that it can lead to inefficiency and support uncompetitive businesses. Despite this, recent years have seen a resurgence in the adoption of industrial policies by various countries, with the United States under President Biden making significant investments in sectors like microchip manufacturing and clean energy. Rekha Youhaus, a professor of economics at the University of British Columbia and an expert on industrial policy, discusses the theoretical underpinnings of industrial policy, highlighting its potential to address market failures such as positive externalities and coordination failures. However, she also acknowledges the challenges associated with implementing industrial policy effectively, including the risk of political capture and the difficulty of identifying where market failures exist. The episode also explores historical examples of industrial policy, contrasting the successful experiences of East Asian countries like Taiwan, Japan, and South Korea with the less successful attempts in Latin America. Through a detailed examination of a natural experiment from the time of Napoleon in France, Youhaus provides evidence that industrial policy can, under certain conditions, overcome market failures and contribute to long-term economic growth. As the United States embarks on one of its most ambitious industrial policy initiatives in history under the Biden administration, the episode raises important questions about the potential outcomes of these policies. While there are concerns about the government's ability to effectively pick winners and losers, Youhaus suggests that a well-functioning bureaucracy and a willingness to learn from both successes and failures are crucial for the success of industrial policy. The episode concludes with a reflection on the importance of rigorous research and evidence-based policy-making in navigating the complex landscape of industrial policy.

The episode titled "Two Indicators: Economics of the Defense Industry" from NPR's Planet Money delves into the complex and high-stakes world of U.S. defense spending and the defense industry's economic dynamics. It begins with a striking example of how the Pentagon paid $4,361 for a drive pin that should have cost only $46, highlighting the issue of government overpaying for military equipment. This story serves as a springboard into a broader discussion about the economics of the defense industry, including the challenges of maintaining a balance between cost-efficiency and readiness in military procurement. The episode further explores the Department of Defense's proposed budget for 2024, which stands at $842 billion, or about 3.5% of the U.S.'s GDP. It sheds light on the government's monopsony power in purchasing military equipment and the negotiation process with defense contractors to determine reasonable profit margins. However, the narrative also points out the defense contractors' monopoly power for certain military technologies, which, coupled with a history of consolidation in the industry, has led to less competition and higher prices for military equipment. A significant portion of the discussion is dedicated to the concept of just-in-time production in the defense industry. This manufacturing philosophy, which emphasizes efficiency and quality by reducing inventory and fostering close relationships with suppliers, has been adopted from the civilian sector. However, the episode argues that this approach may not be entirely suitable for military needs, especially in times of conflict or crisis, as evidenced by the current munitions shortage faced by the U.S. military. The episode concludes by considering the Pentagon's steps towards funding spare production capacity and the broader implications of maintaining readiness in peacetime for unforeseen conflicts. Overall, the episode provides a comprehensive overview of the economic challenges and considerations within the U.S. defense industry, highlighting the delicate balance between cost-efficiency, competition, and military readiness.

The episode of Planet Money from NPR delves into the historical and contemporary roles of the U.S. Navy in ensuring the safe passage of commercial ships across the world's oceans, a concept known as freedom of the seas. The narrative begins with a recent incident involving the cargo ship Bacardi, owned by Genco and operated by John Wovensmith. The ship was attacked off the coast of Yemen by a militant group called the Houthis, who have been targeting ships to protest Israel's war in Gaza. In response to the attack, the U.S. Navy, which has long been the unofficial enforcer of the principle that commercial ships should freely travel the seas, did not offer direct protection but provided a hotline for assistance. The episode then transitions into a historical exploration of how the concept of freedom of the seas evolved from a mere idea into a cornerstone of the global economy. The concept of freedom of the seas was first articulated in the 1600s, during a time when maritime powers like Spain, France, Portugal, and Britain imposed strict controls over who could sail where. The episode highlights the role of privateers, state-sponsored pirates, in enforcing these restrictions. It then focuses on America's first foreign war against the Barbary pirates of North Africa in the early 1800s, which was fundamentally about protecting American commercial interests and asserting the right to free navigation. This conflict, and the U.S.'s subsequent actions to defend its trade routes, laid the groundwork for the modern understanding of freedom of the seas. The episode further explains how, by the late 19th and early 20th centuries, the U.S. Navy began to protect not just American ships but all commercial vessels in the interest of supporting global trade. This shift was largely driven by the U.S.'s emergence as a major industrial power and its need to export goods worldwide. The concept of freedom of the seas was solidified after World War II when the U.S. and British navies, as the dominant maritime powers, effectively ensured that commercial ships could travel unimpeded across the globe. This principle became so entrenched that it was later codified in a United Nations treaty, establishing a norm that has been rarely violated. However, the episode concludes by examining the current challenges to freedom of the seas posed by the Houthis' attacks on commercial shipping in the Red Sea. Despite the U.S. and its allies' military responses, the Houthis continue their assaults, driven by a desire to resist perceived U.S. imperialism and gain support at home. The episode suggests that the incentives that have historically supported the principle of freedom of the seas do not apply to the Houthis, a militant group with different goals from those of nation-states. This situation underscores the complexities of maintaining open shipping lanes in the face of evolving geopolitical challenges.

Title: It's giving... Valentines Summary: The Planet Money team celebrates Valentine's Day by sending "sonic love letters" to the unexpected things that brought them economic joy or learning over the past year. Alexi shouts out a grocery store chain in California, Vallarta Supermarket, that made his co-host Sarah Gonzalez feel at home with its fresh, authentic Mexican food and ingredients that reminded her of her Southern California upbringing. Nick celebrates FastCap, a manufacturing company that has daily mandatory "improve the process time" where employees spend 30 minutes streamlining production and cutting inefficiencies. This boosts productivity and morale. Emma sends a valentine to Iowa basketball phenom Kaitlyn Clark, whose willingness to take extremely difficult shots makes her a uniquely valuable player, even though she has lower shooting percentage efficiency than other players. Alex Goldmark valentines the book "Material World" for answering questions he didn't know he had about the raw materials, like oil and steel, that built the modern world. Sam yellow Horse Kessler valentines the play "Manahatta," which dramatizes an Indigenous woman's inner conflict working on Wall Street while her community suffers from the housing crisis. Finally, Alexi valentines the "Corporate Gossip" podcast, which applies the drama of reality TV and true crime to unpacking the corporate world, reminding him why he fell in love with economics reporting.

The podcast episode focuses on a man named Keith King who files an unusual lawsuit after his wife has an affair. Keith runs a successful BMX stunt company in North Carolina. He marries his wife Danielle, who helps promote and manage the growing business. They seem to have an ideal life together. However, Keith eventually discovers flirtatious messages between Danielle and another man. Despite Keith's demands, the affair continues and destroys their marriage. Devastated, Keith comes across the concept of "heart balm" lawsuits - unusual civil cases allowed in some states that seek damages from romantic interference. Still permitted in North Carolina, Keith decides to sue the man who had the affair with his wife for "alienation of affection." Keith meticulously prepares binders of evidence showing he and Danielle had a loving relationship, as well as proof of the affair's economic impact on their business. In a dramatic courtroom scene, Keith's lawyers argue for an astounding $8.8 million in damages. The judge agrees, finding the man's behavior "reprehensible." However, the man declares bankruptcy, leaving Keith with no way to collect. Meanwhile, the man proceeds to marry Danielle. Despite winning the case, Keith remains in debt from legal fees and has no family or marriage restored. The laws attempt to remedy broken hearts, but cannot recreate lost relationships. Keith achieved a moral victory but not the emotional relief he desired. The outdated suits struggle to provide solutions for complex modern circumstances.

The podcast discusses several controversial markets that elicit moral objections, even though they may be economically efficient. Nobel prize-winning economist Al Roth studies these types of "repugnant transactions." One example is the market for human organs. There is a shortage of kidneys for those who need transplants, yet monetary compensation for donors is illegal almost everywhere. An underground black market exists where donors are often exploited. Legalizing and regulating organ sales would likely increase supply, improve health outcomes, and reduce unethical practices. However, the idea of paying donors seems to violate moral intuition. The podcast explores potential solutions to address concerns over compensating donors. Resolving poverty and income inequality could reduce objections that the poor would be coerced. Limiting compensation to only the wealthy, perhaps through tax credits, is another twisted approach. The core resistance stems from messy feelings that certain goods should not be allocated through markets. Designing around specific objections still fails to satisfy the general notion that some transactions are inherently repugnant. The podcast discusses other examples like surrogacy and assisted suicide as markets that elicit disgust. It applies the economic framework to the concepts of revenge and insider trading. Research shows retaliation in certain contexts can be effective, though gender differences exist. And some arguments suggest allowing insider trading could improve market efficiency and corporate governance through better information and incentives. But the benefits warrant further study to change existing norms and regulations.

The Planet Money podcast faces an ancient curse where every Groundhog Day they must report on stories that occurred on February 2nd throughout history. If the stories are deemed important and interesting enough by the "Groundhog gods", they will break this curse. The hosts first try telling the story of the invention of the "Mug-go Lunch", a Betty Crocker product from 1976 that allowed you to make pasta meals in a mug by just adding hot water. However, this story is rejected by the mystical forces. Next, they decide failure might please the gods, so they explore a company called Movie Gallery Inc. filing for bankruptcy on Groundhog Day 2010. This was their second time filing for Chapter 11 bankruptcy protections, sometimes called "Chapter 22". But the gods reject learning about the video rental company's methods for acquiring tapes to rent out. Finally, the hosts land on the story of the failure of the Susan B. Anthony dollar coin. In 1979, new smaller dollar coins featuring suffragette Susan B. Anthony were minted to replace unpopular larger Eisenhower dollars. But the public complained, with some objecting to the government push and others making sexist remarks about carrying a coin with a woman's face. Worse, the new coins looked and felt similar to quarters, leading to confusion. Despite a PR campaign, the coins were a failure and production stopped just years later. The podcast concludes with a producer attempting to spend $52 worth of Susan B. Anthony dollars at Philadelphia shops to celebrate the coin. The hosts ultimately argue the coins represent the country's resistance to currency change. It's unclear if their offerings please the mystical forces and break the curse.

In the late 1950s and early 1960s, the U.S. and Germany had an era of free trade. Americans were going crazy for the Volkswagen Beetle, while Germans were consuming increasing amounts of cheap American chicken. However, German chicken farmers felt threatened by the imported chicken and convinced their government to place a tax on it. In retaliation, the U.S. placed a 25% tariff in 1963 on foreign-made trucks and vans, which was dubbed the “chicken tax." This gave American truck manufacturers an advantage since foreign trucks were now more expensive. Companies tried to get around the tariff by shipping trucks in parts and assembling them in the U.S. or by classifying trucks as passenger vehicles, but customs agents did not allow these tactics. Over time, the chicken tax led to dominance of American trucks like the Ford F-150 since there was little foreign competition. Even as the auto industry globalized, the tax persisted as a bargaining chip in trade negotiations. For example, Japan would likely want the U.S. to remove the tax in exchange for allowing American rice imports without a tariff. Despite benefiting from the lack of competition, auto executives admit they may not need the tax anymore given the entrenched loyalty to American trucks. However, the chicken tax remains in place over 50 years later. Once protective tariffs are implemented, there is little incentive to remove them even when no longer necessary. They simply become tools for future negotiations. So while the chicken tax achieved its purpose of promoting American trucks decades ago, it is now merely an artifact of outdated trade policy. But it remains an important card that U.S. trade representatives can play in brokering deals with other nations. The episode illustrates how even obscure tariffs can have an outsized and long-lasting impact on entire industries.

The podcast features Janet Yellen, the Secretary of the Treasury and former Federal Reserve Chair, as a guest on NPR's weekly news quiz show "Wait Wait...Don't Tell Me!". Host Peter Sagal interviews Yellen about her job responsibilities, her experience trying marijuana in college, and her skill at the mobile game Candy Crush. Yellen explains that as Treasury Secretary, she is responsible for financing the cumulative US budget deficits and managing the national debt. When asked about rising inflation, she jokes "not my fault, that's the Fed's job." Sagal brings up a story he heard about Yellen overpreparing to smoke marijuana for the first time in college. She explains that she had never smoked before and wanted to practice inhaling, so she bought cigarettes to smoke in preparation. This led to a decade-long smoking habit before she was finally able to quit. The conversation then turns to Yellen's enthusiasm for mobile games. She shares that she first got hooked on Brick Breaker on her Blackberry before discovering Candy Crush. Though initially skeptical of the game, she now plays at a very high level, having reached over 6,000 levels. Yellen jokes that reports of her being an internationally ranked Candy Crush player are not true. In exclusive outtakes played just for Planet Money listeners, Yellen is asked about being served psychedelic mushrooms at a state dinner in China. She confirms the story but says the mushrooms were properly cooked and she did not notice any psychedelic effects. Comedian Dulce Sloan also asks Yellen why Harriet Tubman is not yet featured on the $20 bill. Yellen promises she is "working on it" and it will happen soon.

In 1994, Captain Prentiss Strong III (known as Skip) was in charge of an oil tanker called the Cherry Valley during a tropical storm off the coast of Florida. They received a distress call from a tugboat that had lost engine power and was drifting towards the coast. Though an oil tanker is not well-suited for rescue operations, Skip decided to attempt to secure the tugboat and tow it to safety. After multiple failed attempts in worsening conditions, they finally managed to secure a line to the tugboat and discovered it was towing a fuel cell barge for the space shuttle. According to maritime law regarding salvage rights, rescuing a ship in distress entitles the rescuer to a reward based on the value of the rescued ship and cargo. Though NASA was grateful and initially offered $5 million, the Justice Department argued that $1 million was more reasonable compensation. Skip and the tanker owners sued the government for a higher salvage award. Their lawyer built a case based on the extraordinary dangers Skip and his crew faced in the rescue attempt. The judge was swayed and awarded $6.4 million, a record for a U.S. salvage case. However, the government appealed to the Fifth Circuit Court, arguing the amount was excessive for the time and effort involved. The Fifth Circuit proposed evaluating salvage cases through an economic lens, calculating a hypothetical market price for the rescue operation. Using this approach, they lowered the award to $4.1 million. Though the logic was unsatisfying to the trial judge and lawyers, Skip has ultimately accepted the outcome, believing the rescue was never about financial reward in the first place.

The podcast episode features three big ideas from economists that aim to improve efficiency and people's lives. The first idea is from civil engineer Vikash Gaya, who proposes banning left turns in downtown areas. His reasoning is that left turns are inefficient and lead to many accidents. By banning left turns and requiring drivers to make three rights instead, Vikash argues that trip completion times would actually decrease on average, even if distances traveled increase slightly. He tested this idea through simulations and found supporting evidence. The second idea is from economist Derek Hamilton, who proposes "baby bonds" - government funded trust accounts given to babies at birth, with additional funds deposited over time based on family wealth. The goal would be to help close the racial wealth gap. Under this system, less wealthy families would accumulate more in their accounts, while wealthy families would get less or none. The accounts could only be used at adulthood for wealth building purposes like a house down payment. Studies suggest that baby bonds could significantly reduce wealth disparities. The third idea comes from economist Daron Acemoglu, who argues that the US congressional election system needs reform through proportional representation. This would entail getting rid of districts, voting for parties rather than candidates, and filling Congress based on the percentage of votes each party gets statewide. The goal would be to reduce polarization and gridlock by encouraging less extreme candidates and giving more voters representation. While unlikely to be adopted soon, Daron argues this system would be more democratic.

The podcast episode is an installment of the series "Econ Battle Zone" in which Planet Money reporters compete to explain challenging economic concepts. In this episode, Alexi, Amanda, and Erica are tasked with relating an economic phrase to why inflation has been coming down recently. Alexi is assigned "supply chain healing." He uses extensive metaphors comparing the global supply chain to the human circulatory system and describing how COVID caused economic "palpitations." He explains how stimulus money led to inflation by chasing limited supply. As the supply chain healed, prices moderated. Amanda must explain the concept of "R-star," the theoretical neutral interest rate for an economy at an optimal equilibrium. She interviews New York Federal Reserve President John Williams, an economist who helped develop an R-star model. He explains how R-star helps guide Fed policy when the economy faces shocks like the pandemic. Erica is challenged to explain "labor hoarding" to a child. She creates a mini podcast with her 8-year-old cohost Paul. They discuss how employers have retained workers despite slowing business growth, possibly contributing to persistent inflation. The judges award Erica the win for her creative approach successfully explaining the concept through an entertaining podcast with a child. The episode concludes with Erica receiving the championship belt.

Tensions are escalating in the Middle East conflict between Israel and Gaza. Regional actors like Hezbollah and Houthi rebels have begun attacking Israel and ships in the Red Sea in solidarity with Palestinians. These attacks have provoked military responses from countries like the US and UK. Iran also launched missiles into Iraq, claiming they targeted Israelis. As the conflict expands, economic ripple effects are being felt globally. In particular, threats to oil production and shipping routes could impact prices and availability of key exports like oil and food. Shipping routes are already being disrupted in the Red Sea and Suez Canal due to attacks by Houthi rebels in Yemen. Ships are avoiding the area or taking longer alternate routes, adding costs. There are three stages of possible further escalation to watch. First, the conflict could spill into neighboring countries like Lebanon and Syria. Second, shipping could be disrupted in key oil transit chokepoints like the Strait of Hormuz. Finally, direct war between Israel and rivals like Iran could break out, potentially roping in other Gulf oil producers. Each stage poses greater threats to oil prices and food security. While tensions are high, key dominoes like Iran and Gulf states curtailing oil output have not yet fallen. But if escalation continues, the economic impacts could be severe. The biggest risks are spikes in oil and food prices that could tip vulnerable regions into crisis and trigger global recession. For now, the situation remains dangerous but contained.

The podcast tells the story of the Maine Potato War of 1976, when potato growers from Western states challenged Maine's dominance in the potato market. For decades, Maine was the top potato-producing state, growing potatoes like the Kitata with pride and intensity. Maine potatoes were traded on the futures market at the New York Mercantile Exchange, allowing Maine growers to hedge against price fluctuations. Meanwhile, states like Idaho and Washington were increasing production through irrigation and ideal growing conditions. But their potatoes weren't traded on the Exchange, putting them at a disadvantage. In 1976, Idaho potato kingpin J.R. Simplot and another Western grower made a massive bet, purchasing millions of dollars worth of Maine potato futures contracts. They hoped to flood the East Coast with their cheaper Western potatoes and bring the price down. Maine traders happily took the other side of the bet, confident in the factors pushing Maine potato prices up. As the May 7 contract deadline approached, the "Mainers" realized they could squeeze the Westerners, who would have to buy potatoes from them to fulfill massive delivery obligations. But on deadline day, Simplot and Tagarez defaulted in the largest commodities default ever. Though they took losses, confidence in the Maine futures market was destroyed. The market soon delisted Maine potatoes, growers lost price protections, and Western processors gained power.

The podcast explores the idea of providing direct cash transfers to people in poverty to help lift them out of poverty. It revisits a 2013 study by the nonprofit GiveDirectly, which gave over $500,000 to more than 500 households in rural Kenya. The hosts travel to one village to speak with recipients like Bernard, who used the money to buy a motorcycle to start a taxi business. Others purchased metal roofs to replace leaky grass roofs, mattresses to replace sleeping mats, or cows to generate income. However, the recipients also share stories of neighbors who supposedly wasted their money on alcohol or food. This raises the question of whether people really use cash transfers responsibly. Further investigation reveals more reasonable explanations, like one man who spent the money on a dowry so he could remarry after his wife passed away. Overall, the cash transfers seem to spur entrepreneurship and provide longer-term benefits. In the second half, the episode explores recent research by GiveDirectly on universal basic income (UBI). The study compares giving people a lump sum payment versus regular monthly payments. Economist Abhijit Banerjee advocates including the lump sum group to test whether regular small payments can be as effective. In many villages, people pool their monthly UBI payments into lump sums through communal savings groups called "merry-go-rounds." This allows them to make large investments, showing they find lump sums more useful. After two years, the results show better outcomes for lump sum recipients over short-term monthly recipients in measures like income and assets. But long-term monthly recipients who save through merry-go-rounds perform similarly well. This suggests UBI requires longer time horizons to change financial behaviors and effectively reduce poverty.

The podcast episode tells the story of Spanish ships that were wrecking at an extremely high rate in the 1500s on the route between Mexico and the Philippines. These ships, called Manila galleons, were loaded with valuable goods like silver, porcelain, and textiles being traded between Asia and the Americas. Shockingly, one in five ships failed to make it from Manila to Acapulco. Economists Fernando Arteaga, Desiree Desierto, and Mark Koyama became fascinated by this mystery and tried to uncover why these ships sank so frequently. They explored different possible explanations like bad weather, pirate attacks, overloading, and more. But when they dug into the data, they realized the main culprit was the ships departing too late. The Spanish crown had ruled that ships must leave port before mid-July to avoid the dangerous monsoon season. Yet the logs showed ships repeatedly blowing this deadline and sailing right into typhoon season. So what would motivate the ships to leave so late if everyone knew that was risky? The economists argue it came down to a series of unfortunate economic incentives. Protectionist policies severely limited the number of ships able to make this voyage to just one or two per year. This made it extremely valuable for merchants to get their goods onto one of those ships. They would bribe the captain with more and more money to overload the ship and delay departure to cram their cargo on board. The captain went along with it because the payoff was so big compared to the slightly increased risk of wrecking. In the end, it seems good intentions to limit risk led to bad incentives for merchants and captains that ultimately doomed many ships. The economists found evidence for this theory in the wrecks themselves - archaeologists discovered ships still on the seafloor were massively overloaded compared to regulations. A perfect storm of economic factors sent ships sailing knowingly into treacherous waters year after year.

The podcast episode "The Rest of the Story, 2023" features host Nick Fountain providing updates on people and stories that Planet Money has covered in previous episodes. The first update is on Sarah Gonzalez, who reported an episode about why Americans get less vacation time than other countries. Sarah discusses going on a two-week vacation herself after that story, but finding that she struggled to relax and enjoy so much time off. She felt it was indulgent and selfish, revealing the American difficulty with non-productivity. Her ideal would be one week to relax with family and another to be productive. Next, producer Dave Blanchard gives an update on a Hollywood strike captain named Bill Walkoff who was obsessed with proving studios were abusing neutral gate systems. The strikes have ended with writers like Bill returning to work, relieved to put the tension behind them. In one touching moment, a studio executive told Bill's writing team he was glad to have them back after the bitter strike. The final update is deeply emotional, remembering singer Ernest Jackson who passed away at 75. Ernest sang Planet Money's inflation song in his iconic voice. He recently achieved a long-held dream of being on TV, singing a 1970s gas crisis song for an episode of Bob's Burgers. Ernest brought joy everywhere and his voice made the inflation song a hit. His loss leaves many cherishing the memories of his smile lighting up every room.

This episode of Planet Money features hosts from Planet Money and its sister show The Indicator competing in a game show segment called "Family Feud." The game has two rounds where the hosts each argue what they believe is the most important economic indicator that defined 2023 and what will define 2024. In the first round for 2023, Jeff Guo argues that the main economic storyline was the question of whether the Fed could bring down inflation without triggering a recession, keeping the economy in suspense all year. Kenny Malone counters with the argument that the growing split between good economic numbers and bad economic sentiment shaped the world, nominating consumer sentiment as his indicator. Waylon Wong then argues that negative consumer sentiment was largely driven by the lousy housing market in 2023, with mortgage rates rising to 8% and home sales projected to hit a multi-decade low. In the second round for predictions about 2024, Kenny Malone pulls out a magic eight ball to argue that the Fed and interest rates will be the top story, with predictions that the Fed will cut rates in 2024 potentially putting downward pressure on rates for loans and mortgages. Jeff Guo argues that "Bidenomics," specifically Biden's embrace of industrial policy and government investment in industries like manufacturing and semiconductors, will drive the economic narrative in 2024. Waylon Wong gets more specific within Bidenomics, arguing that Biden's push against "junk fees" across various industries will be the top indicator as proposals to limit surprise fees could save consumers money in 2024. The hosts urge listeners to vote for the best indicators of 2023 and predictions for 2024 by December 31st, with the winner being announced in early January. The episode is light-hearted but outlines contrasting visions of major economic forces that defined the past year and those that could shape the year ahead.

Planet Money reporters Robert Smith and Nick Fountain decided to try making money by selling Christmas trees in Brooklyn. They attended an auction in Pennsylvania, the nation's largest Christmas tree auction, hoping to get good deals on trees to resell at a profit. At the auction, they learned that Christmas tree prices were unusually high due to a shortage. During the Great Recession over a decade ago, many tree farmers went out of business, leading to fewer trees being planted. The seedlings that were planted in those years make up this year's Christmas tree crop. With high demand and limited supply, prices at the auction skyrocketed. Smith and Fountain ended up overpaying for misfit trees, hoping desperate New Yorkers would buy them. Back in Brooklyn, Smith and Fountain struggled to sell their overpriced trees on a street corner. Their story about the origins of the trees failed to impress potential customers. After hours without a sale, they resorted to guilting their coworkers at NPR into buying trees. They ended up selling all 19 trees but at a $2.70 loss, not counting expenses. Still, they found the experience rewarding when a customer shared a photo of their beautifully decorated tree, symbolizing the spirit of Christmas. The hosts checked back in with the auctioneer this year. With inflation raising costs, luxury extra-large trees saw big price increases. But average tree prices were fairly stable, as supply has started to recover from the recession shortage. The auctioneer believes the market has flattened out for now after years of increasing prices.

Argentina's new president, Javier Millet, won the election in part by promising to dollarize the country - to scrap the peso and replace it with the U.S. dollar. The idea is that this would help fix Argentina's broken economy that has suffered from decades of mismanagement and instability. The first step in dollarizing would be for Argentina to acquire billions of U.S. dollars, possibly by taking out loans. Then the government would set a date and exchange rate for "dollarization day" when Argentines could swap their pesos for dollars. Their salaries would then be paid in dollars instead of the rapidly inflating peso. The timing is key - if done as a surprise, it could avoid people panicking to dump pesos in anticipation. However, dollarizing has many potential complications. Argentina would lose money earned from printing its own currency. Without enough reserve dollars, it could worsen inequality and lead to recession. And if Argentina later runs deficits, it would struggle to boost growth since it couldn't lower interest rates or print money. Alternate provincial currencies could take over. Still, since Argentines are very used to using dollars alongside pesos, the cultural transition may not be too difficult. Dollarizing holds power as an almost "golden ticket" solution to solve the country's perpetual economic woes. But the aftermath of actually putting dollarization into practice is complex. So while easy to promise, dollarizing Argentina would be harder to successfully implement.

The podcast discusses research on productivity of remote work arrangements. Jose Maria Barreiro, a professor of finance at Itam University, shares findings from his recent working paper reviewing evidence on remote work. The research indicates that fully remote work arrangements often lead to lower productivity compared to working in the office. Studies have found productivity declines of up to 10% for jobs well-suited to remote work, like call center employees. The reasons include communication frictions when seeking quick feedback from colleagues, more emails and meetings required, and cognitive limitations for creative idea generation over video calls versus in-person. However, some firms calculate that despite the productivity declines, the cost savings from eliminating office space outweigh the losses. In contrast, hybrid arrangements with 2-3 days a week in the office show no measurable productivity drops. Employees report higher satisfaction with hybrid schedules, avoiding long commutes while still enabling beneficial in-person collaborations. This helps companies attract and retain talent. Firms must thoughtfully structure hybrid policies so whole teams coordinate office days, rather than letting employees choose individually. Overall, Barreiro believes the pandemic has led to a better equilibrium by reducing the stigma of remote work. Pre-pandemic norms dictated most knowledge workers show up to the office 5 days a week, even if not necessary, simply because it was standard practice. Now remote and hybrid approaches are more accepted, allowing flexibility without signaling lack of dedication. The pandemic experience taught the upsides of saving commute time and downsides of missing in-person interactions.

Economist Florian Eterer tells the story of how he uncovered the identities behind many anonymous toxic posts on a popular economics jobs forum called Econ Job Market Rumors. His friend Kyle, an engineer, noticed that the site's method for anonymizing posters was flawed. Using their IP addresses and some statistics, Florian, Kyle, and another researcher were able to identify the institutions responsible for a majority of the racist, sexist, and threatening comments. They discovered that the toxic posts were coming from all over the economics profession, including top universities and institutions like Harvard, Stanford, and the Federal Reserve. This challenged the notion that such posts were just from fringe members of the field. The researchers presented their findings at a major economics conference, leading to panic among anonymous forum members who feared being doxed. However, Florian and his team did not reveal any individual identities, only the names of institutions. Their goal was to confront the economics profession as a whole about the pervasive toxicity within its culture. In the months since, little action has been taken by universities or the forum itself. The site now assigns posters famous economist names rather than numbers. Florian defends protecting anonymity but acknowledges his work may open the door to others who want to expose individuals. One anonymous professor says he will keep posting, though he hides his IP address now.

The podcast explores why advertisements from the 1990s seem more memorable and impactful than modern ads. It traces the evolution of advertising over the 20th century, using iconic soap and milk ad campaigns as examples. In the early days of radio, brands like Proctor & Gamble sponsored radio dramas known as "soap operas" solely to advertise their products to housewives. When television became ubiquitous in the 1950s, soap operas and their sponsorship model moved to TV. Advertising grew more creative over time, utilizing things like jingles, slogans, and storytelling. The 1990s represented a peak in mass advertising. Most people were still exposed to the same TV commercials and magazine ads. This allowed catchphrases and images to permeate the cultural consciousness. Brands focused more on name recognition than directly driving sales. The famous "Got Milk?" campaign made milk fun and exciting through deprivation humor, even if it didn't actually increase milk consumption. After the 1990s, new technologies fractured mass audiences and changed advertising strategies. DVRs, streaming, and the internet allowed people to avoid common advertisements. Performance and targeted marketing became more important than broad brand campaigns. However, a few big brands like credit cards and insurance still invest heavily to imprint their names through mass advertising. While more efficient, modern targeted ads lack the creativity that made '90s advertising so collectively memorable.

The U.S. Treasury market is crucial to keeping the entire financial system functioning. Treasuries, or U.S. government debt, are considered super safe assets that can easily be converted into cash. This makes treasuries very useful as collateral in financial transactions between institutions. In fact, regulations passed after the 2008 financial crisis require banks and other financial firms to hold a certain amount of treasuries on their balance sheets specifically because they can be easily traded. One market that relies heavily on treasuries is the repo market, where financial firms lend to each other on a very short term basis to meet their daily needs. Around $4.5 trillion flows through this market every day, with 67-70% of the transactions collateralized by treasuries. The problem is that regulators don't actually track how many times an individual treasury is reused as collateral across the system. Estimates suggest a single treasury could be collateralizing three different debts at once. This lack of transparency means no one really knows how reliant the system is on these treasuries actually being risk-free. If faith in the safety of treasuries were to falter, it could compromise the availability of credit throughout the economy and financial markets. So political fights that call into question whether the U.S. will pay its debts, like the recurring debate over the debt ceiling, undermine a crucial pillar of stability. The safety of treasuries is an invisible agreement we've all made to keep the system working, but we may be more reliant on that agreement than we realize.

This episode of Planet Money explores why doctors still use antiquated pagers for communication in hospitals instead of modern technology like cell phones and messaging apps. The show focuses on two emergency room doctors, Mary Mercer and Christopher "Toph" Peabody, who tried to replace pagers with a HIPAA-compliant group messaging app at their hospital in San Francisco. Mercer and Toph believed the messaging app would increase efficiency and reduce patient wait times in the emergency department. During a 6-month pilot program, some ER doctors enthusiastically embraced the app, especially the ability to send photos of injuries directly to specialists. However, many residents resisted the change, complaining the app gave ER doctors too much access to bombard them with messages. Residents valued how pagers gave them more control over when to respond. The pilot program failed to reduce average patient wait times in the ER. Mercer and Toph were puzzled by the results until they analyzed the data showing declining app usage rates over the course of the pilot. Michaela Kerasie, a Harvard Business School professor who wrote a case study on the failed initiative, explains new technology changes power dynamics and habits within an organization in complex ways. Beyond the direct efficiency benefits of a new technology, leaders need to address how it might introduce new risks, disrupt ingrained habits, alter people’s roles and identities, and redistribute organizational power and control. Though the pager is an antiquated technology, Mercer and Toph realized replacing it requires more than just introducing a technically superior alternative. The social systems and communication norms built around the pager also need to evolve. Though their attempt to eradicate pagers did not succeed, they remain committed to improving communication and efficiency through new technology. However, they now better understand the complexity of catalyzing organizational change.

The podcast features two stories related to food and drink. The first discusses economic pressures facing traditional British fish and chips shops. Fish and chips is an iconic comfort food and national dish in the UK, consisting of battered deep fried white fish and fries. However, fish and chips shops are now struggling due to soaring costs, including for fish, oil, energy, packaging, and rent. As a result, the price for customers has increased significantly, turning fish and chips from an affordable staple to a luxury for many Brits. Fewer people are buying fish and chips, leading dozens of shops around the UK to close. The story reflects a common trend of staple foods becoming unaffordable luxuries over time. The second story involves a legal dispute between Coca-Cola and a small Colombian company that makes a coca leaf-infused beer called Coca-pola. Coca-Cola sent the company a cease and desist letter demanding they remove the product from shelves due to trademark infringement concerns over the similar name. However, the company founder Fabiola Penaquia, who comes from an indigenous group that has used coca leaves for thousands of years, fought back. She sent a letter threatening to ban Coca-Cola from indigenous territories over appropriating the term "coca" without their permission. This reflects a clash over trademark law versus the rights of indigenous cultures. Ultimately Coca-Cola dropped the issue, allowing both companies to continue operating, perhaps deciding that bad publicity wasn't worth pursuing legal action.

We have an economic mystery on our hands. Historically, when the economy was doing well, consumer sentiment reflected that. And when the economy struggled, sentiment dropped. But now, even as economic measures have improved over 2021 and 2022, with lower inflation, strong job growth, and rising incomes, consumer sentiment has remained stubbornly low. Economists are puzzled by this disconnect. Claudia Saam has been digging into the data and asking people to try to understand it. She first considered whether this reflects an unequal recovery, with most gains going to the rich. But the data shows this recovery strongly benefited lower income groups through stimulus checks, debt reduction, and increased job switching power. Another theory is that gig work and policy supports like stimulus checks increased instability even as incomes rose. With less certainty about the future, people feel worse off. Claudia wants more research here to assess pandemic policies. Non-economic factors like increased political polarization and overwhelming negative news likely also play a role. More people cite inflation as extremely troubling compared to the higher inflation but less polarized 1970s. Still, Claudia notes sentiment hasn't yet translated into changed consumer behavior that could trigger a recession. For now, consumer sentiment seems to have lost some ability to capture true economic conditions. But it's possible it could realign post-pandemic.

Matt Ochoa is a marijuana entrepreneur in Oregon who wants to sell his legally grown marijuana to other states, but is prevented by state and federal laws. Oregon has produced far more marijuana than it can consume, leading prices to plunge. Matt takes a reporter to his marijuana farm and warehouse, where tons of unsold marijuana products are stockpiled and some plants are left to rot in the fields. Interstate marijuana commerce is prevented by federal law classifying marijuana as illegal, though it's been legalized by many states. This tension between state and federal law causes problems for marijuana businesses. They can't access the normal tools used by legal businesses, like trademarks, bankruptcy filings, business loans, and tax write-offs. Matt does transactions in cash and has had numerous bank accounts shut down. The biggest problem is that Oregon's surplus marijuana can't be sold to buyers in other states. Matt joins a lawsuit arguing that the Constitution gives Congress sole power to regulate interstate commerce, so states can't prohibit it. If the lawsuit succeeds, Matt hopes to export Oregon marijuana products nationwide and globally. But marijuana would remain illegal under federal law, so further legal changes would be needed to realize his vision.

The hosts of the Planet Money podcast decide to make an entire Thanksgiving feast and invite their colleagues over to eat with them. At the grocery store, they notice that turkeys are on sale for the holidays, even though demand spikes at this time. This leads them to investigate why turkey prices actually go down when demand goes up. An economist named Xiao Dong theorizes that more grocery stores carry whole turkeys during the holidays, which increases competition and puts downward pressure on prices. The hosts spend all day preparing a huge Thanksgiving meal - turkey, mashed potatoes, sweet potatoes, green beans, gravy, etc. They discuss how all of this home cooking represents valuable economic activity that is not counted in GDP. An economist named Jixiu Yu explains that if the value of home production was included, GDP would be about 20-25% higher. Over the holidays, time spent on home production increases, offsetting decreases in GDP. With the meal prepared, Planet Money colleagues arrive as guests. The hosts use matching theory and optimization algorithms from economics to arrange a "stable" seating chart where no guests would rather switch seats. After some initial reservations, the table agrees this is an optimal arrangement. Finally, everyone feasts on the Thanksgiving meal. There is some humor around an overcooked turkey, but ultimately the hosts pulled off a "very Planet Money Thanksgiving."

The podcast episode explores how some fiction writers incorporate economic concepts and financial topics into their novels. It features interviews with three authors - Min Jin Lee, Emily St. John Mandel, and Hernán Díaz. Min Jin Lee, author of the bestseller Pachinko, originally wanted to become an economist, but found macroeconomics too abstract. As a novelist, she seeks to understand the motivations behind people's economic decisions, seeing money as central to human behavior. Researching historical context for her novels involves interviewing many sources, getting details right to immerse readers. This led her to learn about pachinko gambling parlors in Japan, which offered Korean immigrants economic opportunities amidst discrimination. The game's mix of skill and randomness mirrored their challenge navigating an unfair economy. Novelist Emily St. John Mandel became fascinated with the invisible but enormous shipping industry after reading about the "ghost fleet" of empty ships idled during the 2008 recession. She immersed herself in shipping trade publications, enraptured by the global scale. Her novels capture the lyricism within dry industry terminology about routes, piracy risk, and cargo. She transforms shipping into an engine of "revealed preference" manifesting the world's desires. Hernán Díaz began writing his Pulitzer-winning novel Trust aiming to demystify finance. He found most writing on money opaque and jargon-filled. Researching primary sources, he saw how terse responses of finance figures to Congress conveyed power through rhetoric. This informed his portrayal of a taciturn tycoon who buys up critical books. Economics itself, he learned, uses math at times to frame policy ideas as unquestionable. The years-long process made Díaz feel more empowered amid finance's complexities.

China is facing a real estate crisis right now, with its massive $60 trillion property market shrinking over the past couple years. Property developers have started missing loan payments and even defaulting. This crisis has been building over decades. In the 1980s, China introduced private property rights and allowed people to own land and homes. But this meant the government lost revenues. So in 1994, the government reformed taxes to take more money from local governments and give them an incentive to sell land leases to developers. This spurred frenzied building of apartments as local officials depended on land sales to fund their budgets. During the go-go years of the 2000s, property developers like Xu Zhaoyun of Evergrande became enormously wealthy through building, using political connections, and even bribery. The incentives were aligned for continued construction. Developers made huge profits, local governments met growth targets, and people invested in homes. In 2017, President Xi Jinping signaled this property speculation should be reined in. But the market kept overheating until 2020 when the government set “three red lines” to limit developers' debt. Housing prices started falling in most cities. In 2021, Evergrande defaulted on hundreds of billions in loans. Many developers are now struggling with too much debt. China is trying to deflate its property bubble without crashing the economy. With falling prices and developer bankruptcies, there are big losses in the market. Now the question is how widespread the damage will be and whether China can contain it before the economy is severely impacted.

The podcast discusses how OpenAI's chatbot ChatGPT may have used copyrighted books without permission to train its artificial intelligence. Author Douglas Preston realized ChatGPT could provide detailed information about characters and plot points from his novels, indicating it had likely "ingested" his books. Preston joined with other authors like George R.R. Martin to file a lawsuit against OpenAI for copyright infringement. The authors argue OpenAI scraped their books without permission to create its AI, which will compete with and undermine the market for their works. OpenAI contends its use of copyrighted books qualifies as "fair use," though the authors dispute this. There is precedent for these tech copyright disputes, like when Google scanned millions of library books and Spotify streamed songs without full licensing. Those cases ultimately settled, with the companies paying for past infringements. The Spotify case especially shows how a lawsuit can benefit tech firms by consolidating plaintiffs to negotiate with. Though statutory damages could total billions, the authors' lawsuit will likely end in a settlement. Still, it raises concerns about AI companies using copyrighted content, perhaps "asking permission later" as the tech industry tends to do.

Planet Money hosts Alexi Horowitz-Gazi and Darien Woods recently discussed an economics paper that found rich and poor Americans were most likely to mingle at mid-priced chain restaurants like Outback Steakhouse. Intrigued, Alexi took vegetarian Darien to an Outback for the first time to test the paper's hypothesis. They interviewed patrons and staff who confirmed Outback attracts an economically diverse crowd. Inspired by this adventure, Alexi challenged two writers to try new experiences related to their work. He took L.A. Times columnist Brian Merchant, author of a book on the Luddites, to a "rage cage" to smash office equipment, like the Luddites smashed mechanical looms. Though cathartic, Brian noted the Luddites had serious economic concerns and were unfairly portrayed as reactionaries. Alexi then met labor economist Kevin Lang, who researched how the Teamster workforce changed as trucks replaced horse-drawn wagons. Though wages rose initially, employment eventually declined. Alexi and Kevin rode through a historical village with one of America's last Teamsters to experience a dying occupation. The episodes showcase how leaving one's comfort zone can yield economic insights. Direct experience with people and places featured in academic studies brings statistics to life. Embracing new perspectives allows us to reconsider historical figures like the Luddites. And observing obsolete jobs up close makes us reflect on which current roles may face a similar fate.

Title: FTC Chair Lina Khan on Antitrust in the Age of Amazon - Lina Khan is the chair of the Federal Trade Commission (FTC), which regulates competition and monopolies in the U.S. - Antitrust laws were originally passed in the late 19th century to curb the power of monopolies like Standard Oil. - In the 1970s, antitrust enforcement became more lax under the prevailing "consumer welfare" standard, which focused narrowly on consumer prices and product variety. - Khan rose to prominence arguing for more aggressive antitrust enforcement, especially against big tech companies like Amazon. She says monopolies can harm innovation, workers, and more. - As FTC chair, Khan has tried to expand the view of antitrust harm beyond just consumers. She has filed major lawsuits against Facebook, challenged several mergers, and recently sued Amazon. - Khan has faced setbacks in court but says she is focused on deterring illegal mergers and behavior. She believes antitrust laws should be enforced more proactively to promote competition. - Her Amazon lawsuit alleges the company has abused its monopoly power to harm sellers and consumers. It could potentially lead to Amazon being broken up.

Part 1: Ida Tarbell vs Standard Oil - In the late 1800s, new technologies like railroads and telegraphs allowed companies to expand rapidly. This led to the rise of huge "trusts" that dominated industries. - Ida Tarbell was an investigative journalist who decided to expose the practices of the biggest trust of all - Standard Oil, run by John D. Rockefeller. - Tarbell revealed how Standard Oil made secret deals with railroads for discounts and rebates that undercut competitors. Rockefeller also coerced rivals to sell out to him or be crushed. - Through these tactics, Standard Oil gained control of over 90% of oil refining. Tarbell's exposé turned public opinion against the company. - In 1911, the Supreme Court broke up Standard Oil into 34 smaller companies for violating antitrust laws. This was a landmark use of antitrust law to limit monopoly power. Part 2: Robert Bork and the Consumer Welfare Standard - In the 1960s, the Supreme Court made very strict antitrust rulings against mergers and other business practices, trying to protect small competitors. - Robert Bork, a conservative legal scholar, argued this went too far and actually harmed competition and consumers. In his influential book "The Antitrust Paradox" he advocated a "consumer welfare" standard. - Under this view, antitrust should only focus on practices that clearly harm consumers through higher prices, not on protecting individual competitors. - Bork's ideas gained influence in the Reagan administration and Supreme Court rulings. The "consumer welfare" standard now dominates antitrust law interpretation. - Critics argue the standard has allowed very large mergers and market dominance that ultimately harms competition and consumers.

The Planet Money team visits Las Vegas to explore the economics behind the city's extravagant all-you-can-eat buffets. They meet with a buffet insider named Brian who explains how buffets used to be cheap amenities to keep gamblers gambling. Now they are elaborate, almost like theme parks, with premium offerings like seafood and prime rib. The hosts go on an economics scavenger hunt at the buffet, spotting concepts like loss leaders, price discrimination, framing biases, flat rate pricing, and diminishing marginal returns. Economist Eric Cheng joins them and explains strategies to optimize the buffet experience, like starting with your favorite foods and trying new things on later plates. Other economic ideas discussed include adverse selection, the taxi meter effect, sunk cost fallacy, and convex preferences. The hosts realize buffets cater to people's love of variety. In the end, they conclude buffets demonstrate that economics is about more than just money - it's about the things that bring people joy and make life delightful.

Title: Cutting school... by 20% The Warren County R3 School District in Missouri was struggling with teacher retention, losing about 20% of its teaching staff each year. Voters rejected proposals to raise taxes to pay teachers more. As an alternative, the district decided to switch to a 4-day school week, giving teachers a 3-day weekend while keeping their pay the same. This is part of a growing trend, with about 7% of U.S. school districts now using a 4-day week. The schedule is popular with teachers, parents, and students, but research shows there are costs. Students eat worse and juvenile crime rises on the off-day. Academic achievement typically declines slightly in math and reading. But schools can avoid declines by adding at least 90 minutes to the remaining 4 days. The 4-day week works best for very small rural schools with attendance issues. As more districts adopt 4-day weeks, it is losing effectiveness as a teacher recruitment tool. With entire regions switching, salary again becomes the main way to attract teachers.

Paragraph 1: The podcast is about three attempts over 10 years to unionize a Volkswagen auto plant in Chattanooga, Tennessee. It illustrates the challenges unions face in organizing workers today. Paragraph 2: In 2011, Volkswagen opened a new $1 billion auto plant in Chattanooga after the state provided over $500 million in incentives. The United Auto Workers (UAW) union saw it as an opportunity to organize the plant's workers. Paragraph 3: The UAW's membership had declined dramatically over previous decades as foreign automakers opened non-union plants in the U.S. Volkswagen seemed receptive to having a union, so the UAW tried to convince workers to authorize them to represent them. Paragraph 4: However, Tennessee politicians opposed the UAW, fearing it would hurt business. In 2014, the UAW held an election but lost the union vote. A state senator made threats about Volkswagen expanding elsewhere, which may have swayed workers. Paragraph 5: In 2015, UAW tried organizing just skilled workers in a "micro-unit." They won a vote but Volkswagen opposed it. After legal battles, a new Republican labor board rejected the micro-unit. Paragraph 6: In 2018, after a policy change, workers protested on the factory floor, stopping production. This launched a third unionization campaign, but then a UAW corruption scandal emerged, hurting the union's image. The UAW lost a third vote in 2019. Paragraph 7: The union drives failed due to political interference, legal barriers, and scandals. But some workers still aim to unionize the plant, viewing it as an ongoing fight.

Episode Title: Indicator exploder jobs and inflation Summary: - The podcast explores how two key economic indicators are created - the inflation rate as measured by the Consumer Price Index (CPI) and the monthly jobs report. - The CPI tracks the prices of consumer goods and services. Price checkers follow specific items each month to see how prices change. This meticulous process involves hundreds of workers gathering millions of data points. - The monthly jobs report surveys households and businesses. It aims to provide a comprehensive picture of the labor market. Interviewers like Erica Hennion call around 400 businesses a month to collect payroll and employment data. - The inflation and jobs numbers influence major decisions like government policies and Federal Reserve interest rates. The reports aim to be accurate reflections of the economy despite challenges like businesses not wanting to participate. - The people behind these economic indicators see their work as an important public service. Their labor-intensive data collection makes the numbers as precise as possible.

Comedian Maria Bamford has adopted a radical financial transparency, which is rare for famous people. She arrived at this through decades of hard-earned financial lessons. In the mid-1990s, Maria moved to LA as a struggling standup comic. She got sick, had a big medical bill she couldn't pay, and fell behind on rent. Debt collectors called constantly. She joined Debtors Anonymous, which provided simple tools like writing down all debts and spending. Her "pressure relief group" helped her find an affordable apartment, increase income through temp jobs, and budget for small luxuries so she didn't deprive herself. It took 8 years, but she paid off her debts. Now financially successful, Maria still attends Debtors Anonymous and practices "open book accounting" - sharing all her financial info. She published a month's worth of her business's full accounting in her new memoir. This transparency has made her team uncomfortable commenting. Her opener Jackie appreciates the fairness and is now more open with others about money. Some critique how much Maria pays Jackie. Maria's financial openness is radical. She'll ask anyone - even our tape syncer - how much they're paid. She wants to use her privilege to help others, like getting people into shows for free. Her transparency provides useful information, though most would find it terrifying to be so candid.

Title: Why the Price of Coke Didn't Change for 70 Years Summary: The price of a bottle of Coca-Cola was 5 cents from 1886 to 1959. This was highly unusual, as most prices fluctuate over time. Economists were puzzled by this. They researched the Coca-Cola archives to understand why. In 1899, Coca-Cola signed a contract agreeing to sell syrup to bottlers for a fixed price in perpetuity. This prevented Coca-Cola from raising syrup prices. Coca-Cola ran national advertising campaigns prominently featuring the 5 cent price. This made it difficult for retailers to charge more. The company provided soda fountains with standard glasses marked for 5 cent servings. This controlled serving sizes. Vending machines only accepted nickels, making it impossible to raise the price. The company unsuccessfully lobbied the government to issue a 7.5 cent coin. Inflation in the 1940s made the 5 cent price unsustainable. By 1959, Coca-Cola was sold for higher prices, ending the 70 year run of nickel Coke.

Title: A man, a plan, wind power, Uruguay In 2007, Uruguay was facing an energy crisis. The country's economy was growing but there wasn't enough power to meet demand. Physicist Ramon Mendez Galan came up with a plan to switch Uruguay to renewable energy, mainly wind power. He envisioned covering the country's expansive agricultural lands with rows of wind turbines. Galan was appointed National Director of Energy and worked to get buy-in for his vision. Laws were changed to declare wind a public good. Galan devised a public-private partnership model to finance the turbines' construction and operation. This allowed billions of dollars of investment without major government debt. In 2009, Uruguay held its first auction for wind energy contracts. By 2011, an auction for 150MW of capacity received bids for over 1,200MW. Galan signed 20-year contracts with the bidders, boosting wind power over 40% almost overnight. Today, wind provides a large share of Uruguay's energy. The country exports excess renewable power to neighbors. Consumer prices have fallen, though not as much as wholesale costs. The transition cut Uruguay's carbon emissions drastically. Galan's model has been copied globally. He sees Uruguay as proof that a green economy is possible.

The Flight Attendants of CHAOS In 1993, the flight attendants union for Alaska Airlines was in tense contract negotiations with the company. The union knew that if they went on a normal strike, the airline could permanently replace them, a tactic first used by TWA in 1986. To avoid this, the union announced a new strategy called CHAOS - Create Havoc Around Our System. They threatened strikes on flights but didn't reveal details, creating booking declines but avoiding replacement. Alaska prepared by training management as flight attendants. The union began intermittent strikes, walking off a flight for a short time before returning. This prevented permanent replacement during the short strike windows. Alaska scrambled to cover the struck flights with management. After several weeks of intermittent strikes, Alaska proposed an improved contract that the union accepted. The CHAOS strategy allowed the union to gain leverage without losing jobs. Elements of this tactic have influenced labor actions by other groups since.

Title: A trucker hat mystery, the curse of September and other listener questions Summary: The episode begins with a question from a listener named Justin, a professor in Quito, Ecuador, who is puzzled by the popularity of Bass Pro Shop trucker hats among his students. Bass Pro Shops are hunting and fishing stores in the U.S., but there are none in Ecuador or South America. The hosts investigate how the brand became popular there. Next, they answer a question about the "September effect" or "curse of September" - the phenomenon of stocks tending to decline in September. Finance professor Lily Fong explains this is likely due to a lag in processing negative news over the summer months when people in finance take vacations. The hosts then discuss the Federal Reserve's new instant payment system FedNow and why banks haven't adopted it more quickly. The current system can lead to overdraft fees for customers but benefits banks. Full adoption would require banks to be mandated to use FedNow. Another listener asks whether casinos are like banks. The hosts find that casinos do have some bank-like regulations and anti-money laundering rules but don't function as full banks. Finally, the hosts solve the mystery of the Bass Pro Shop hats. Exchange students brought them to Ecuador, and they became trendy on social media. A popular song references the hat, and knockoffs are common. The hats spread through informal networks since Bass Pro Shops doesn't export hats to South America.

Title: Natural Disaster Economist - Economist Tatiana Derugina studies the economic impact of natural disasters like hurricanes and tornadoes. These events act as "natural experiments" that allow researchers to understand how people and communities respond. - Derugina found that charitable giving increases after disasters, with people giving more not just in the year of the disaster but persistently afterwards. - She also found that total incomes went up for people affected by Hurricane Katrina. Reasons were increased cost of living in New Orleans and people relocating to more economically prosperous places. - In a follow-up study, Derugina found Katrina evacuees were more likely to be alive years later because many relocated to places with lower mortality rates. - This research reveals the power of place in shaping lives and economies. It raises questions about why people stay in disaster-prone areas and how governments should respond as climate change increases these risks. - Studying natural disasters can provide insights beyond just disaster response and recovery. These events disrupt lives in ways that reveal deeper truths about society.

Argentina has a long history of economic turmoil and currency crises. Recently, inflation has spiked to over 100% annually. To understand what it's like living through this, we follow an Indian woman named Saya who is visiting Buenos Aires for a tango competition. Saya planned her trip knowing the peso would keep falling against the dollar. She sees the exchange rate fluctuate daily. Locals are used to it, but it's still scary. A shoe seller we meet raises prices multiple times a month to keep up with inflation. Many employers give raises several times a year so workers' pay doesn't lose value. There is a black market for exchanging dollars where the real exchange rate is revealed. The government's official rate overvalues the peso. Saya exchanges dollars illegally at a cueva, a covert currency exchange store. A police officer moonlights guarding the cueva. Parallel economic systems prop up the overvalued official rate. People find creative ways to earn dollars and get the most value from their money. It's like the improvisation of tango emerging from a failed system. Locals worry the upcoming election could bring more volatility, but they're accustomed to economic hardship.

Title: The Race to Make the First GameStop Movie Summary: In January 2021, Hollywood producer Aaron Ryder became obsessed with turning the GameStop stock frenzy into a hit movie. He knew he would be racing against other producers to acquire intellectual property and assemble the elements to make the first GameStop film. Ryder acquired the book rights from author Ben Mezrich, whose book proposal sparked a bidding war between studios. Ryder's studio MGM won the rights. He then hired screenwriters and attached a director and stars. Just as the film was nearly greenlit, Amazon acquired MGM, putting the project in limbo. Ryder convinced Amazon to let him buy back the rights. He partnered with producer Teddy Schwarzman to independently finance the film so it could get to theaters quickly. The film, titled Dumb Money, raced against competing projects in development at Netflix, HBO, and Paramount. It overcame obstacles and will likely be the first GameStop movie in theaters. The episode reveals the hidden machinery of Hollywood's race to turn current events into films.

In March 2022, the blockchain game Axie Infinity was hacked and over $600 million worth of cryptocurrency was stolen. This was the largest crypto heist in history. Erin Plant, a private investigator who specializes in tracking down stolen cryptocurrency, was hired to investigate the case. Plant and her team at Chainalysis started tracing where the stolen funds went on the blockchain. The hackers were extremely sophisticated, systematically moving the funds through crypto mixers to obscure the trail. Using proprietary "de-mixing" technology, Plant's team was able to follow about 90% of the funds. The way the funds were moved matched the methods used by North Korean state-sponsored hackers. The U.S. believes North Korea is using stolen cryptocurrency to fund its nuclear program. The Axie Infinity hack was a turning point, leading the U.S. government to sanction crypto mixers for the first time. Plant staked out centralized crypto exchanges where she expected the hackers to try and cash out. When alerts came in, she had only 20 minutes to 1 hour to convince exchanges to freeze the funds before they disappeared. Over months, her team was able to recover around 20% of the stolen money by freezing accounts. The Axie case showed the dangers of cryptocurrency being used for money laundering. It led many exchanges to increase customer screening. For Plant, sharing the investigation publicly was an emotional moment after a career working on classified cases.

Title: China's Weakening Economy in Two Indicators - International tourism to China has plummeted 99% compared to pre-pandemic levels due to COVID restrictions and geopolitical tensions. This hurts the economy as foreign visitors are not spending money. - Consumer spending on luxuries like fancy restaurants and natural wines has dropped significantly. People are worried about the future and pulling back. However, cheaper restaurants remain busy. - The urban youth unemployment rate hit 21% in June, with 1 in 5 young people unable to find a job. High unemployment for young people can have long-term consequences for their careers and the economy. - Factors contributing to high youth unemployment include intense competition for white collar jobs, unwillingness of graduates to take factory jobs, and financial support from families that allows young people to be picky or not work. - The gap between expectations and available jobs for educated young people is causing dissatisfaction and lack of direction. This could lead to social problems if not addressed.

The Phillips Curve was economists' favorite tool for fighting inflation. It mapped the relationship between unemployment and inflation. In the 1950s, New Zealand engineer Bill Phillips built a machine with flowing water to model the economy. This got him a job as an economist. Phillips analyzed UK data and found high inflation correlated with low unemployment, and vice versa. His graph became known as the Phillips Curve. It suggested you could pick low unemployment or low inflation. In the 1960s, the Phillips Curve guided policymakers. But economist Milton Friedman said it was too simplistic. In the 1970s, stagflation proved him right - high inflation and high unemployment occurred together. Economists then rebuilt the Phillips Curve as a more complex equation. Fed Vice Chair Alan Blinder used the new version in the 1990s to guide rate hikes that successfully reduced inflation without causing a recession. But from the late 1990s onward, the Phillips Curve broke down again. Unemployment moved a lot while inflation barely budged. Economists realized economies are too complex for universal laws like the Phillips Curve. It remains a useful guide, but shows the difficulty of finding economic truths.

Title: Prince of Prints and His Prints of Prince In 1981, photographer Lynn Goldsmith took a black and white portrait of Prince. A few years later, Andy Warhol used Goldsmith's photograph to create a colored silkscreen print of Prince for a Vanity Fair magazine cover. Goldsmith was paid $400 at the time. After Prince's death in 2016, Goldsmith discovered Warhol's silkscreen was being used on another magazine cover. She contacted the Warhol Foundation about being uncompensated for the additional use of her photo. The case went to the Supreme Court. The Court ruled 7-2 in favor of Goldsmith, focusing not on whether Warhol's work was transformative, but on the fact that both Goldsmith's photo and Warhol's silkscreen served the same commercial purpose. The Court reasoned that even if Warhol's work was aesthetically different, he still owed Goldsmith for the additional commercial use of her work. The ruling transformed the "transformative use" test for fair use, emphasizing the economic aspects of copyright over just the aesthetic ones. It illustrated the tension between creativity and commerce at the heart of copyright law.

Dr. Raghunath Mishalkar, an 81-year old scientist in India, earned the nickname "Warrior of Haldighati" for his fight against biopiracy of traditional Indian knowledge. In 1995, Mishalkar read about a US patent granted for the wound-healing properties of turmeric. Outraged that this common Ayurvedic remedy was being patented, Mishalkar vowed to challenge it. Mishalkar, head of India's scientific research, assembled a legal team to have the patent revoked. They found over a dozen Ayurvedic texts showing turmeric's history as a healing agent in India. The patent was overturned due to prior art. But this was just the beginning, as Mishalkar soon learned of hundreds more traditional knowledge patents, termed "biopiracy." To solve this systematically, Mishalkar proposed creating a digital library of India's traditional knowledge for patent examiners. Over years of work, texts were translated and remedies cataloged into a searchable database. By making this knowledge visible, the library aimed to prevent improper patents from being granted. The library has helped modify or revoke hundreds of patents. But some experts critique it as an unnecessary expense since the free market would likely have challenged commercially valuable patents anyway. Mishalkar defends the library as upholding a moral principle against biopiracy, providing access to hidden cures, and sending a message to deter would-be biopirates.

Episode Title: r School 8 Graduation and the Guppy Tank - Planet Money hosts a "Guppy Tank" pitch competition for listeners to present their business ideas to a venture capitalist judge, Angela Lee. - Five listeners pitch ideas: a book subscription service curated by famous authors (Ian Desher), an Uber-like platform for tour guides (Dane McGibben), a collapsible rain boot (Kaylee Hubbard), an app to facilitate end-of-life planning (Eleanor Jacobs), and Viking funeral services (Jonathan Randich). - Angela asks tough questions about each business idea, probing into target customers, market size, competitive landscape, operations, and legal considerations. - She chooses Ian Desher and his celebrity book club concept as the winner, impressed by his credibility as a published author and his clarity in articulating the problem he aims to solve. - Ian gives a brief valedictory speech encouraging listeners to pursue and actualize their ideas. Angela offers parting advice about validating ideas before large investments.

Episode Title: Secret Entrance That Sidesteps Hollywood Picket Lines Summary: Paragraph 1: During a strike by the Writers Guild of America, picketers set up outside the Television City studio in Los Angeles. They were trying to disrupt productions by companies involved in the labor dispute. Television City had a separate "neutral gate" that was supposed to only be used by productions not involved in the strike. Paragraph 2: Strike captain Bill Wolkoff suspected that productions who were supposed to be striking were sneakily using the neutral gate to avoid picket lines. After weeks of stakeouts, his team caught an actor from The Young and the Restless improperly using the neutral gate. This allowed the writers to start picketing the formerly neutral gate as well. Paragraph 3: Flipping the gate expanded the picket lines and caused more disruption to the studio. While it likely won't single-handedly resolve the strike, it moves the needle by annoying more employees and tangibly demonstrating the writers' resolve. Overall, it's a small but meaningful victory in the economic battle between the unions and studios.

The Negotiator's Dilemma - In any negotiation there are two simultaneous goals: compete with your partner to extract value, and cooperate to build trust and relationship. Pursuing one can undermine the other. Buying a Car - Start with a low but reasonable offer to get the negotiation going. Use "disarming empathy" to resist concessions while still being nice. Get the other side to bargain against themselves. Overbooked Flight - Look for ways to "grow the pie" by adding issues to the negotiation, not just haggling over price. Use the "nibble" technique - after reaching a deal, ask for small additional concessions. Salary Negotiation - Research typical pay and have a "walkaway number." Consider asking for non-salary perks that matter to you but not the employer. Focus on "aligned issues" where your interests converge. Marvel and Sony - Shift from "position-based" (who gets what percent) to "interest-based" (underlying goals and needs) bargaining. Creative solutions can make both sides better off. Tips - Do thorough research. Expand the issues on the table. Have a good BATNA (alternative option). Be assertive on substance but empathetic in style.

The U.S. Takes So Little Vacation The U.S. is the only rich country in the world that does not guarantee any paid vacation days or paid holidays for workers. Most countries guarantee at least 10 paid vacation days plus paid holidays. For example, Spain guarantees 25 paid vacation days and 14 paid holidays - that's 39 paid days off every year. This stark difference stems from the early 20th century, when European countries began pushing for guaranteed paid vacation time for all workers by law, not just the aristocracy. This idea spread widely in Europe across political parties and religions. The U.S. did not have this same tradition of pushing for vacation as a right for all. In the 1930s, when the U.S. passed minimum wage and other worker protections, some unions intentionally did not advocate for federal vacation mandates. They wanted those benefits to remain something that unions could negotiate for workers, so workers would still need unions. As a result, the U.S. has no federal vacation mandate. Another factor is that the U.S. has also historically lacked public pensions, health insurance, and other benefits that European countries guarantee. So American workers focus more on pay and health insurance in negotiations rather than vacation time. This lack of guaranteed vacation helps explain why the U.S. is the only rich country where people work more weeks per year on average. Americans simply take less vacation. The average American works 1.5 more hours per day than Europeans due to fewer vacation days. As a result, many Americans do not use all of their earned vacation time - forfeiting billions in benefits.

Title: r School 6 Operations and 25,000 roses Summary: This episode of Planet Money Summer School focuses on operations management. The hosts are joined by professor Santiago Galino from Wharton, who explains how operations keeps businesses running smoothly by managing supply chains, optimizing processes, and dealing with variability and bottlenecks. The first segment tells the story of a New York florist who ordered 25,000 roses from a single farm in Ecuador for Valentine's Day. Despite weather problems that threatened the crop, the farm's expert rose engineer uses tricks to get the roses blooming on time. The roses are then shipped to New York via commercial airline flights and arrive in time for Valentine's Day sales. This story illustrates key operations decisions like managing supply chain risk and scheduling. The second segment examines the invention of the supermarket self-checkout machine by Howard Schneider. His machines were initially rejected by stores worried about losing the human touch. After piloting the machines successfully, they spread to more stores but still required employee supervision. The story looks at issues like automation, capacity, and bottlenecks. Professor Galino analyzes the stories, explaining concepts like the news vendor model for inventory planning, balancing efficiency and flexibility in supply chains, and how bottlenecks and variability create long lines. The episode wraps up with key vocabulary about operations management.

Title: The Sneaky Biden Plan That Could Still Erase Your Student Loans Summary: Last year, President Biden announced a plan to forgive federal student loans for millions of borrowers. However, the Supreme Court struck down that plan. Unbeknownst to many, Biden announced a separate, complex income-driven repayment plan in the same speech that could lead to loan forgiveness. This little-known plan allows borrowers to pay a smaller monthly amount based on income and have any remaining loan balance forgiven after 10-20 years. The plan essentially subsidizes higher education through loan forgiveness. Experts estimate 20% of undergraduate borrowers will repay none of their loans. The plan will cost at least $140 billion over 10 years. Unlike the original loan forgiveness plan, this repayment plan is on strong legal ground since Congress gave the Education Secretary power to create income-driven plans. The plan will likely face legal challenges but has a greater chance of being implemented. Millions stand to benefit from loan forgiveness through this plan. However, some critique it as an inefficient way to help low-income Americans compared to other proposals. Either way, it is moving forward because Biden can enact it without Congress.

Episode Title: r School 5 Tech and the innovator's dilemma Summary: - Technology changes rapidly, so tech companies must constantly seek new competitive advantages. This makes decisions harder but also creates more opportunities for innovation. - "Disruptive innovation" refers to new technologies that are initially seen as worse than existing ones, so big companies ignore them. This allows startups to gain a foothold. Examples are Netflix vs Blockbuster and tablets vs tube toothpaste. - To get customers to adopt new products, you must convince them it's better, easier, and cheaper than what they currently use. This is hard because people are creatures of habit. - Self-driving cars face a dilemma - too much human control risks deadly mistakes, but taking away control makes people anxious. Google's driverless cars are designed more like elevators than airplanes to keep riders calm. - New technologies follow an "S curve" of adoption - slow at first among enthusiasts, then rapid growth, then leveling off. Shortening this curve is key for startups trying to disrupt big companies. - For big companies, adopting new tech that might threaten existing products is the "innovator's dilemma." Their hesitation creates an opening for startups.

- Inflation has come down significantly from 9% last summer to around 3% now. Economists disagree on what will happen next with inflation and the economy. - One view is a "hard landing" where the Fed's interest rate hikes lead to higher unemployment and a recession as inflation comes down. Signs of this include more missed debt payments already happening. - Another view is a "soft landing" where inflation keeps falling without a big jump in joblessness. This relies on inflation expectations staying low. Recent rapid disinflation makes this more plausible. - A third view sees a "no landing" scenario where inflation stays elevated for years because rate hikes so far haven't fully curbed inflation. Inertia in prices and wages will keep inflation from falling quickly. - A tarot card reader was also consulted. Her cards indicated some initial economic turmoil but an eventual turnaround by end of 2023. This aligns somewhat with the hard then soft landing outlook. - Overall the predictions range from recession and high unemployment to continued growth with moderating inflation. The tarot cards and some economists see a bumpy 2023 but improvements late in the year.

Title: r School 4 Marketing and the Ultimate Hose Nozzle Summary: This episode of Planet Money Summer School focuses on marketing and sales. The host interviews Barbara Kahn, a marketing professor at Wharton, who explains key marketing principles like creating customer value and branding. The episode features two case studies that illustrate marketing tactics. The first looks at product demonstrations at a state fair. The pitchmen use hooks, problem-solving, and urgency to get fairgoers to make impulse purchases of gadgets. The second examines how the luxury brand Hermès markets its Birkin bags by intentionally limiting supply and making them difficult to purchase, creating exclusivity and status. Kahn explains how even non-luxury brands can create compelling stories and experiences around their products to generate customer loyalty. She advises using the “four Ps” - product, place, promotion, and price - when developing a marketing strategy. The episode concludes with tips for creating a strong brand narrative and valuable customer experience at any price point.

Lower Your Medical Debt with Life Kit A medical crisis can quickly become a financial crisis. 40% of American adults have medical debt from bills, credit cards, or loans. But there are ways to reduce or eliminate medical bills. First, check if you qualify for charity care. Nonprofit hospitals are required to provide free or discounted care if your income falls below a certain level, usually 300% of the federal poverty line. The application requires proof of income. Second, request an itemized bill and review it for errors. Bills can contain charges for procedures you didn't receive. Identify any discrepancies and dispute them. Third, try negotiating. Hospital bills are inflated and negotiable. Call and ask for a settlement amount if you pay immediately. You may get 30-50% off just by asking. Be persistent and call back if needed. Having an advocate call on your behalf can be helpful during this stressful process. Take your time, don't panic, and know that medical bills can be reduced.

Dan Ariely and Francesca Gino were behavioral science superstars known for research on "nudges" to make people more honest. Their famous "sign at the top" paper claimed people were more honest if they signed honesty pledges at the beginning of forms rather than the end. Researchers tried replicating the findings but kept failing. Ariely and Gino revisited their work and found their original results didn't hold up. They published the data, prompting scrutiny from Yuri Simonson at Data Colada. Simonson found obvious evidence of fabricated data in one experiment about car insurance odometer readings. Ariely blamed the insurance company that provided data. The company later confirmed the published data was manipulated and supplemented with fake data after they gave it to Ariely. In another experiment, Simonson found evidence someone had tampered with the data to strengthen findings. Multiple other suspicious experiments by Gino point to "evidence of fraud." Gino is now on leave from Harvard as two of her papers have been retracted. The revelations cast doubt on the field of behavioral science and the power of nudges to change behavior.

Title: Planet Money Summer School 3 - Accounting and The Last Supper - Accounting is more than just numbers and taxes - it provides a way to interpret and assess how a business is performing. - Luca Pacioli, an Italian mathematician, wrote about double-entry bookkeeping in 1494. This revolutionized accounting by tracking where money comes from and where it goes. - Pacioli likely helped Leonardo da Vinci with the mathematics and perspective for painting The Last Supper. His bookkeeping methods spread across Europe over the next centuries. - In the 1970s, Dan Bricklin invented the electronic spreadsheet, allowing much faster "what-if" analysis. This transformed accounting and enabled complex financial modeling. - Spreadsheets can also enable fraud by allowing financial results to be manipulated. Proper oversight is required. - Key accounting vocabulary: Assets, Liabilities, Equity. The accounting equation balances them: Assets = Liabilities + Equity.

Title: Econ Paper Club - Planet Money hosts start an "Econ Paper Club" to discuss fascinating economics research papers. - First paper tests which fictional parent (mother or father) schools call back more - finds schools call the mother back 40% more. Shows gender inequality in expectations for parental involvement. - Second paper has students with identical LinkedIn profiles ask for career advice - women get warned more about grueling careers. Shows gender bias in career guidance. - Third paper finds women don't anticipate the career costs of motherhood - their views on work become more negative after having kids. - Claudia Goldin's research on "greedy jobs" is cited - jobs that demand total devotion. When couples have kids, more women leave greedy jobs. - Goldin says making jobs more flexible could help close gender gaps, even with lingering social norms.

The podcast discusses business competition and how companies differentiate themselves. It features two case studies: Stefan Marbury's $15 Starbury sneaker - Marbury wanted to create an affordable sneaker compared to expensive brands like Air Jordan - He partnered with Steve & Barry's clothing company to make the Starbury sneaker that retailed for $14.98 - The low price made people think it was low quality, but Marbury proved it was durable by wearing it himself in NBA games - The sneaker sold well initially but the business model didn't last long-term The Handbell Wars between Schulmerich and Malmark - Schulmerich was the original handbell maker, but former employee Jake Malta started competitor Malmark - Malta removed a small brass piece called the tang to create a "purer" bell sound - The companies fought legal battles over advertising and comparisons - They eventually called a truce as younger leadership took over both companies Key business concepts discussed: - Differentiation - Making your product stand out from competitors based on quality, cost, features etc. - Getting "stuck in the middle" - Trying to be everything to everyone instead of focusing on a specific strength - Locking in customers - Creating loyalty through branding, ecosystems, subscriptions - Perfect competition - When products become indistinguishable and companies compete only on price The episode emphasizes how important differentiation is for companies to stand out and avoid destructive price wars.

Title: Surprise, You Just Signed a Contract! How Hidden Contracts Took Over the Internet Contracts solve a problem of trust between strangers trying to make deals. A contract is a legally enforceable promise. In the 1800s, the modern contract emerged. Courts focused on whether people entered deals freely rather than whether deals were fair. In the 1850s, companies used standardized contracts to sell new products like sewing machines to the masses. Courts decided these were valid to promote efficiency. In the 1990s, a landmark court case involving software allowed "shrink wrap" contracts enclosed in product packaging. This opened the door to today's online contracts like clickwrap and browsewrap that don't require active acceptance. The focus now is whether contracts are sufficiently noticeable rather than if they're actively negotiated or accepted. Each change promoted economic growth but eroded what it means to accept a contract. Many internet contracts are entered accidentally without awareness. Contracts have gone from empowering to acquiescent. Convenience is traded for free will.

Planet Money Goes to Business School This episode of Planet Money features lessons from business school professors on how to start and run a successful business. The first case study tells the story of Frederick Hudson, an entrepreneur who came up with the idea for a photo delivery service for prisoners while he was incarcerated. Frederick knew the market well since he had been in prison himself. He started testing his business idea by sending postcards to inmates advertising his service. The high response rate showed there was demand. After prison, Frederick officially launched his company, Pigeonly, which expanded into other services for prisoners and their families. Professor Angela Lee from Columbia Business School highlights key lessons from Frederick's story: know your target customer demographic, understand their problems or "pain points," and test your solution early to validate there is demand. The second case study profiles twin sisters LaShawn and Rayshawn who started a crab delivery service during the pandemic after losing their restaurant jobs. They priced their crabs too low at first, but raised prices as demand increased. The business grew rapidly, forcing them to move out of their mother's kitchen. The twins bootstrapped the business by reinvesting profits, taking out personal loans, and bringing on an business partner. Despite clashes with their partner, they persevered and recently opened their own restaurant. Professor Lee notes that entrepreneurship is extremely hard work, especially in the early years doing everything yourself. She advises talking to other entrepreneurs to understand the realities before quitting your job. Lee explains bootstrapping versus taking venture capital, and how each path impacts control and lifestyle. The key lessons are know your customer, identify their pain points, test your solution, listen to feedback, and understand financing options. With grit and flexibility, you can turn your idea into a real business.

Title: Quest to Save Macroeconomics from Itself Macroeconomics has historically struggled to provide definitive answers to big questions about the economy. Macroeconomists build models but often lack sufficient data to test them. Emi Nakamura is an empirical macroeconomist trying to improve the field. She focuses on hunting down new data to ground macroeconomics in facts. Nakamura's work has provided insights into how quickly prices change, the impact of government spending, the role of inflation expectations, and more. She has helped weigh in on debates using detailed price data. By finding new data sources like old microfilm records, Nakamura is slowly helping provide empirical evidence to address open macroeconomic questions. Her field of empirical macroeconomics is growing and aiming to incrementally improve the credibility of macroeconomics.

Title: Indicators After Affirmative Action & Why America Overpays for Subways Summary: Part 1: - The Supreme Court recently ruled against affirmative action in college admissions. This effectively ends the practice of considering race as a factor in admissions. - Affirmative action aimed to increase racial diversity in higher education. Ending it will likely reduce enrollment of Black, Hispanic, and Native American students at selective colleges. - When California banned affirmative action in the 1990s, underrepresented minority enrollment dropped sharply at top public universities like UC Berkeley and UCLA. - Research shows the ban also reduced future earnings for minority students who likely would have been admitted under affirmative action. Part 2: - U.S. transit projects like subways have costs up to 10 times higher than in European countries. - Key reasons include: station designs being too large, outsourcing engineering work, lack of coordination between government agencies, and avoiding neighborhood disturbances. - Fragmented oversight and appeasing community concerns lead to delays and higher costs. - Scrutinizing costs more could allow building more transit for the same money. But champions focus on just getting projects built.

Episode Title: The Frog Smugglers Demand: The Ufaga Lamani frog is a rare and endangered poison frog found only in a small region of Colombia. It became highly coveted by frog collectors, known as "froggers," who were willing to pay very high prices for them. This drove smugglers to illegally take frogs from the wild to sell on the black market, putting the species at risk of extinction. Extinction: It's estimated that around 80,000 Ufaga Lamani frogs were smuggled out of Colombia over the past few decades. This decimated the wild population, leaving only about 5,000 frogs remaining. The smugglers were depleting the forests and threatened to make the species extinct. Return: A Colombian conservationist named Ivan Lozano Ortega hatched a plan to flood the market with captive-bred frogs in order to lower prices and put the smugglers out of business. After years of working to breed the frogs, he got government approval to export them. However, he struggled to produce enough frogs and lower prices enough to fully compete with the black market. While he has had some success shifting attitudes against buying smuggled frogs, the threat of extinction remains if more is not done to protect the species' habitat and crack down on illegal smuggling.

The podcast discusses economic lessons from the COVID-19 pandemic through a game show format called "Two Truths and a Lie." Key points: - The pandemic provided natural experiments that helped prove or disprove economic theories, like the bullwhip effect in supply chains. - Remote work has not reduced the gender imbalance in administrative tasks - women still tend to be assigned more "crappy tasks." - Despite a strong pandemic labor market, workers did not gain as much in wages, benefits, and protections as expected. - The U.S. did not take as bold policy actions in response to the crises as some European countries, contrary to the idea that Europe copied U.S. models like the New Deal job programs. - Economics as a field has not focused much on "place-based" research at a granular, community level, but new data sources are enabling more of this analysis. The game show format aimed to present key economic lessons from the pandemic in an engaging way for a live audience.

Title: The Mover vs. The Furniture Police In the late 1980s, Mike Shanks was a mover operating without the required permit in Washington state. He was frequently pulled over and cited by state investigators known as the "furniture police." Mike tried to get a permit but was told it was impossible - no new permits had been issued in decades. This was due to regulations that allowed existing licensed movers to block new competition at permit hearings. Mike continued moving illegally and racked up dozens of citations. He fought the regulations for years, even running for office multiple times to publicize the issue. His rabble-rousing eventually led regulators to reform the system in the late 1990s, making it easier for new movers to obtain permits. This increased competition, lowered prices, and benefited consumers. Mike had waged a decade-long personal fight against a regulatory system that protected incumbent businesses over consumers. He pursued the conflict relentlessly, even when it wasn't in his own interests. In the end, his stubbornness forced change to a broken system.

The episode explores the history and impact of twin studies. It starts by recounting how the hosts Karen and Sally, both twins themselves, were studied as children by having their brain activity monitored while watching emotional videos. This exemplifies how twins have been invaluable to science as a "natural experiment" in genetics. The story then goes back to the 1800s, when Francis Galton pioneered twin studies to research heredity. However, his belief in genetic determinism led him down the dark path of promoting eugenics. After WWII, twin studies fell out of favor due to their association with the horrific Nazi experiments. In the 1980s, the famous "Jim twins" case brought twin studies back into the spotlight. The Minnesota researcher Thomas Bouchard realized that identical twins separated at birth and reunited as adults could show the influence of genes versus environment. He went on to study over 100 pairs, finding similarities even in religiousness and political leanings. The episode explains how twin studies work by comparing traits in identical versus fraternal twins. The hosts conduct a mini-study on their own sisters about lateness. Modern twin research has found genetics play a major role in many behaviors, like following rules. The electrode cap from Karen and Sally's childhood study measured emotional reactivity, looking for brain differences in antisocial kids. However, the view that genes determine outcomes has given way to understanding complex gene-environment interactions. Twin studies remain useful, especially for illuminating environmental influences. Overall, the episode explores the ongoing quest to untangle nature and nurture.

Title: 0-Day Job Race In January 2023, major tech companies like Amazon, IBM, and PayPal announced large layoffs. Ashka, a product engineer at Amazon, was shocked when she was included in the 18,000 layoffs at her company. At the same time, Nalanjan, who worked in digital advertising at Google, was also laid off. Both Ashka and Nalanjan were on H-1B visas, which allow skilled foreign workers to work in the U.S. temporarily. With the 60-day rule, H-1B holders have 60 days after losing their jobs to find a new employer willing to sponsor their visa or they have to leave the country. Ashka and Nalanjan faced a race against time to find new jobs. While some of their American coworkers saw it as a chance to take a break, Ashka and Nalanjan couldn't stop searching. The clock was ticking with commitments back home and new families in the U.S. weighing on them. The H-1B visa system showed its flaws during this time. The 60-day timeline caused significant stress. After hundreds of applications, last minute opportunities arose but securing jobs and visa transfers was complex. In the end, both Ashka and Nalanjan succeeded. Ashka found a new job right before her visa expired. Nalanjan got a job offer and visa approval just after his baby daughter was born. But the experiences revealed problems with how the H-1B visa program functions when the tech industry shrinks.

Title: Indicators - The Economics of Innovation Paragraph 1: In the 1980s, chemist Joshua Boggio worked at pharmaceutical company Merck trying to develop new drugs. He felt the large company bureaucracy stifled innovation, with management resistant to new ideas and processes. A venture capitalist convinced him to leave and start his own biotech company, Vertex Pharmaceuticals, in 1989. Paragraph 2: Economist Ufuk Akceget found that inventors earn more at big, established companies but produce fewer groundbreaking inventions. He believes large companies focus more on defending market share than creating new markets. The fraction of inventors at young startups is declining, which could slow U.S. productivity growth. Paragraph 3: SpaceX dominates the space launch business but it's not very profitable. The company is investing billions developing the giant Starship rocket for Mars colonization. Analysts say there's no commercial need for Starship currently. Profits depend on overcoming R&D costs and expanding their Starlink satellite network. Investors value SpaceX at $140 billion based on faith in their world-changing vision.

Title: How a Small Town in Kenya Became the World's Randomized Trial Capital Summary: The podcast tells the story of how Busia, a small town in western Kenya, became the epicenter for randomized controlled trials in economics. In the 1980s, economist Michael Kremer taught high school near Busia. When he later returned, he suggested an experiment to a nonprofit working there - comparing schools that received aid to similar schools that didn't. This launched the use of randomized trials to test economic assumptions. Kremer and other economists then conducted randomized studies in Busia on issues like textbooks, deworming, and clean water. The trials revealed what interventions worked best, changing how governments and aid groups spend money. Local Kenyan staff like Carol Nakesa helped run the studies, entering survey data and making suggestions. As randomized trials spread globally, Nakesa and others made research careers. In 2019, Kremer won the Nobel Prize in Economics for experimental methods to alleviate poverty, cementing Busia's status as the randomized trial capital. The approach has made economics more relevant and improved aid effectiveness.

Paragraph 1: The podcast episode discusses the Spider-Man film rights and the complex relationship between Sony Pictures and Marvel Studios. It centers around Sony's recent animated Spider-Man film, Spider-Man: Across the Spider-Verse, which earned $120 million in its opening weekend without being produced by Marvel Studios. This success redefines the meaning of the original Planet Money podcast episode about the battle over the Spider-Man rights. Paragraph 2: The original episode examined how in the 1990s and 2000s, Marvel licensed out the film rights to many of its popular characters, including Spider-Man to Sony. At the time, Marvel didn't make its own films. The first Sony Spider-Man film starring Tobey Maguire in 2002 was a huge success, making Marvel realize the value of holding onto film rights. Meanwhile, Sony was contractually obligated to produce new Spider-Man films every few years to retain the rights. Paragraph 3: In the 2010s, Marvel Studios produced its own hugely popular films like The Avengers, while Sony rebooted Spider-Man twice, first with Andrew Garfield and then Tom Holland. Leaked Sony emails during a hack revealed Marvel's efforts to get the Spider-Man rights back and collaborate with Sony. This led to a complex agreement where Sony retained the rights but Marvel helped produce Spider-Man films where the character could appear in the Marvel Cinematic Universe. Paragraph 4: The new success of the Spider-Man: Across the Spider-Verse animated film shows Sony has figured out how to build its own Spider-Man universe by utilizing the obscure characters it has the rights to, much like Marvel Studios did with its lesser-known characters. This was the surprising ending to the original Planet Money episode about the battle for the Spider-Man rights.

The episode explores the automation of telephone operation in the early 1900s and its impact on the many women who worked as operators. In the early 20th century, telephone operators played a key role in connecting calls by manually operating switchboards. Millions of women worked as operators, making it one of the most common jobs for women at the time. However, the job was eventually automated by machines that could connect calls automatically without human operators. This represented a major automation shock that displaced many operators. To study this history, the hosts interviewed two economists, Dan Gross and James Feigenbaum, who researched original census records to analyze how the labor market adjusted. They found older incumbent operators tended to suffer the most from losing their jobs. But younger women who would have become operators could more easily adapt and find work in other occupations requiring similar skills. The episode also featured a science fiction radio play dramatizing this automation shift from the perspective of a telephone operator in 1950s Oregon who loses her job to a robot. Overall, this history illustrates how certain groups of workers can be severely impacted by automation while the broader labor market is more resilient. It also sparks discussions about how to help workers negatively affected by automation today.

Title: The Host in the Machine - Planet Money is experimenting with AI to see if it can automate parts of making a podcast episode. - In the previous episode, they used AI tools like ChatGPT to write an entire script. - For this episode, they wanted to use AI to create a synthetic version of former host Robert Smith's voice to narrate the episode. - They provide background on the evolution of synthetic voices, from choppy robotic voices to more natural sounding ones today. - WellSaid Labs helps create a synthetic "Robert Smith" using just a small amount of his audio and transcripts. It takes hundreds of thousands of training cycles. - They play audio samples showing the progression of the synthetic voice over the training period. The final version is remarkably realistic. - The real Robert Smith reacts to and critiques the synthetic version of himself. He is impressed but also recognizes the potential downsides. - The deal is the synthetic voice can only be used for this one episode, then will be destroyed. - In the final episode, the AI-written script will be narrated by the synthetic Robert Smith, completing the experiment.

Title: Rise of the Machines - Kenny and Jeff from Planet Money decide to see if AI can write an entire episode of their podcast. They want to test if creative and knowledge work like journalism could be automated. - They start by using GPT-3 to write introductions in the Planet Money style. It mimics the style well enough to fool former host Stacey Vanek Smith. - They have GPT-3 read and summarize an academic paper on the automation of telephone operator jobs in the 1920s. This will be the topic of their AI-generated episode. - GPT-3 generates intelligent interview questions that impress the economists they speak with for the episode. - Through trial and error, Kenny and Jeff find GPT-3 is good at some creative tasks like titles and explanations but bad at others like jokes. - GPT-3 writes a dramatic fictional radio play about a telephone operator losing her job to automation. It impresses Kenny and Jeff by choosing the name Ethel from a minor character in the research materials. - Finally, they have GPT-3 stitch together all the parts - introduction, interview, radio play, etc. - into a full podcast episode script. - Kenny and Jeff are anxious about how quickly AI is mastering creative human skills like writing. But the episode shows the limitations, as they still needed to guide the AI extensively.

The podcast episode explores the challenges of connecting new renewable energy projects like wind and solar farms to the electrical grid in the United States. It focuses on a proposed wind farm project on the Pine Ridge Reservation in South Dakota led by Lyle Jack. Lyle has spent nearly 20 years trying to build this wind farm to bring economic benefits to his tribe. The reservation has abundant wind resources, making it an ideal location. However, connecting new energy projects to the grid has become extremely difficult due to overwhelmed interconnection queues. These queues are essentially long waiting lists managed by regional authorities like the Southwest Power Pool. They study the grid to ensure stability and reliability when adding new generation. But with hundreds of proposed projects waiting years for connections, there is a massive bottleneck. Lyle's project faced exorbitant grid connection fees initially over $400 million. After delays, changes, and losing partners, the costs came down but were still prohibitive. Ultimately his project and many others have had to drop out of the queue, unable to move forward. The podcast explores potential solutions like building ahead of demand, sharing costs more broadly, and regulatory changes. The Inflation Reduction Act and other policies aim to address this gridlock to enable the transition to renewable energy. Lyle remains dedicated to seeing his wind farm built, but the challenges are immense. Overcoming the interconnection queue obstacle is critical for meeting sustainability goals.

Title: Planet Money Predictions: Jobs! - Economists Diane Swank and Sungwon Son return to review their 2022 predictions on inflation, housing prices, and job growth. - Sungwon wins on predicting inflation and job growth, while Diane wins on housing prices. Overall, Sungwon is the winner. - Sungwon moves on to face a new challenger, Joe Brusuelas, in making predictions for 2023 on inflation, job growth, housing prices, and the possibility of a recession. - For 2023, both economists predict inflation will cool somewhat but remain above pre-pandemic levels. - They expect strong job growth to continue in 2023, though slower than 2022. The labor market should stay tight. - They diverge a bit on housing with Joe expecting a small rise in prices and Sungwon expecting no change. - Both lean towards no recession in 2023 barring any major shocks, though risks remain. - The economists agree the economy is settling into a post-pandemic normal, with slower growth ahead. Their close predictions suggest increased uncertainty about the path forward.