Planet Money — coverage on Heardvine

Nov 4 · The history of light (classic)3 stories

Economist Bill Nordhaus Dies at 85

Jacob Goldstein notes that economist Bill Nordhaus, whose historical research on light and productivity was featured on Planet Money, passed away last week at the age of 85.

Historical Cost of Light Illustrates Exponential Productivity Growth

According to research by economist Bill Nordhaus, a day's wages in ancient Babylon bought about 10 minutes of light, whereas a day's labor in modern times buys roughly 20,000 hours of light.

Thomas Edison Turned On Lower Manhattan Power Plant Funded by J.P. Morgan in 1882

Paul Israel explains that Thomas Edison's historic lower Manhattan power plant, financed by J.P. Morgan and other investors, began providing electricity to a square mile of the district on September 4, 1882.

Oct 31 · Is this how the great international borrowing spree ends?2 stories

France faces rising investor fears and higher borrowing costs amid mounting debt

Economists and market participants are warning that France is facing a potential debt crisis as investors demand higher interest rates to lend money to the government. NYU professor and French government advisor Thomas Philippon explains that France's debt-to-GDP ratio has reached around 120 percent, while political dysfunction and mass cost-of-living protests make fiscal reform difficult.

Economists debate safe debt limits as advanced nations run massive deficits

Economist Olivier Blanchard discusses how low interest rates in past decades led many advanced economies to abandon traditional limits on national debt, such as the old rule capping debt at 60 percent of GDP. Blanchard points out that while high debt can be sustained through economic growth and debt rollovers, unexpected shocks like COVID-19 and rising interest rates have brought renewed danger.

Oct 28 · Politicians are afraid to fix taxes. So 100 citizens tried.4 stories

Connecticut Citizens Assembly Formed to Tackle Property Taxes

About 100 randomly selected Connecticut citizens gathered in New Haven to form a citizens assembly aimed at fixing the state's broken property tax system. State Comptroller Sean Scanlon and political scientist Hélène Landemore noted that elected politicians have failed to address the issue for decades due to political self-preservation.

Connecticut Selects 100 Citizens via Lottery for Tax Reform Panel

Out of over 200,000 invitation letters and 1,500 responses, organizers in Connecticut used a Powerball machine lottery to randomly select 100 residents for a citizens assembly. Each participant is slated to receive $1,200 for their time.

Connecticut Citizens Assembly Finalizes 10 Property Tax Reform Proposals

After months of deliberation and learning about state tax structures, assembly members voted to include roughly 10 proposals in their final report. Recommendations include a 1% tax on individuals earning over a million dollars, consolidating school services, and implementing interstate tolls.

Comptroller Temporarily Postpones Connecticut Tax Assembly Release

State Comptroller Sean Scanlon delayed the planned public release of the citizens assembly's proposals shortly before an election, fearing the findings would be used as a political football. The decision caused friction with organizers and assembly participants who felt their work was being undermined.

Oct 23 · How surveillance crept up on us4 stories

NYPD Domain Awareness System Accesses Vast Data and Thousands of Cameras Without Warrants

Former NYPD officials and legal advocates discuss the NYPD's Domain Awareness System, which aggregates data from over 80,000 cameras, automated license plate readers, and databases without requiring a warrant. Civil rights lawyers and critics highlight that this massive surveillance web operates with minimal public consent or oversight.

NYPD Commissioner Revealed Scale of Domain Awareness System in 2016

During an international awards ceremony in 2016, then-deputy commissioner Jessica Tisch revealed the massive scale of the Domain Awareness System, noting it encompassed millions of records and thousands of camera feeds utilized daily by over 10,000 police officers.

Former Comptroller Scott Stringer Ends Secret NYPD Expense Agreement

Former New York City Comptroller Scott Stringer explains how a 2007 memorandum of understanding allowed the NYPD to classify technology purchases as special expenses to keep them hidden from the public. Stringer officially ended this agreement in 2020 following public protests.

Legal Aid Society Lawsuit Forces Release of 165,000 Pages of NYPD Surveillance Contracts

Jerome Greco of the Legal Aid Society discusses an ongoing lawsuit requiring the NYPD to make historical surveillance contracts public. The litigation has begun to uncover millions in expenditures on private cameras and biometric tracking systems previously hidden in filing cabinets.

Sep 30 · Who’s gonna pay for your Social Security?4 stories

Social Security Facing Insolvency by 2032, Actuary Warns

Social Security is projected to be unable to make full payments to retirees as soon as 2032, according to an actuary who previously worked for the Social Security Administration. This shortfall is largely attributed to the retiring baby boomer generation and increased life expectancies. The trust fund reserves have been tapped since 2010, and significant changes are needed to adjust the system.

Raising Payroll Tax Could Solve Social Security's Funding Crisis, Expert Says

A proposed solution to Social Security's impending insolvency involves raising the payroll tax rate. Douglas Arnold, author of 'Fixing Social Security,' suggests increasing the rate from the current 6.2% for workers and employers to 8.4%. He argues this would resolve the funding issues for the next 75 years and is in the best interest of both current workers and future retirees.

Social Security Facing Potential 22% Payment Cuts by 2032

Without intervention, Social Security payments to retirees could be reduced by 22% as early as 2032, according to projections. This potential cut is a significant concern for beneficiaries who rely on these payments for essential expenses. The issue stems from Social Security spending more than it takes in, with the trust fund reserves being depleted.

Historical Context: Social Security's Origins and Evolution

Social Security was established nearly a century ago during a period of industrialization and poverty among the elderly. President Franklin D. Roosevelt launched the program to provide monthly payments to older Americans. While initially successful, the program has faced increasing financial challenges in recent decades due to demographic shifts and stagnant tax rates.

Sep 25 · Middlegarchs are the new Oligarchs5 stories

Economist Identifies 'Middlegarchy' as Powerful, Stealthy Wealthy Class

Eric W., an economist at the University of Chicago, argues that a significant group of 3 million multi-millionaires, whom he calls the 'middlegarchy' or 'stealthy wealthy,' collectively hold more than 13 times the wealth of the Forbes 400 richest billionaires. This group, often overlooked compared to flashy billionaires, derives their wealth from mundane industries and are increasingly wielding their economic power to influence policy and society.

Pass-Through Businesses Dominate US Economy, Outpacing Corporations

The rise of 'pass-through businesses' represents a quiet revolution in the American economy, with these entities collectively bringing in more revenue than all traditional corporations combined. Economist Eric W. highlights this trend as central to understanding the wealth and power of the 'middlegarchy.'

New Research Uncovers Wealth of Private Business Owners Through Tax Data

A team of economists, including Eric Swick, Owen Zidar, and Danny Yagan, utilized Treasury Department tax data to gain an unprecedented understanding of the income and wealth of private business owners. Their research, initially aimed at understanding tax payments, revealed a significant blind spot in previous analyses of wealth in America.

'Middlegarchy' Uses Political Power to Shape Consumer Industries

The 'middlegarchy,' a group of wealthy private business owners, is actively using their influence to shape various consumer-facing industries. According to economist Eric W., this group's power extends to areas such as car sales, dental care, beer distribution, and even medical diagnoses.

40 Years of Tax Policies Fueled Rise of Wealthy Private Business Owners

Over the past four decades, preferential tax policies have significantly contributed to the rise of a wealthy class of private business owners, propelling them into the top 1% of income earners. This group, characterized by their ownership of pass-through businesses, has accumulated substantial wealth that was previously not well-documented.

Sep 18 · The Domino’s Pizza Tracker Theory of Everything6 stories

Domino's Pizza Tracker Revolutionized Consumer Waiting Experience

Alex Mayosi proposes that the Domino's Pizza Tracker, developed in the early 2000s, fundamentally changed how consumers perceive and manage waiting times. This innovation was driven by Domino's understanding that customers valued a sense of control during the pizza ordering process, especially after the company abandoned its problematic 30-minute delivery guarantee.

The Domino's Pizza Tracker: Origin of the 'Everything Tracker'?

Alex Mayosi's 'Domino's Pizza Tracker theory of everything' posits that the pizza tracker became the foundational model for all subsequent online tracking systems, from package deliveries to ride-sharing apps. This innovation created a new consumer norm of expecting constant updates and a sense of control over service timelines.

Domino's IT Team Faced Skepticism Over Pizza Tracker Development

David Hallbin Stricker and his IT colleagues at Domino's faced internal resistance when proposing the pizza tracker. They recognized its potential to manage customer emotions and improve the waiting experience, but corporate leadership was hesitant due to the significant time investment required and whether it was worth building a 'gimmick' for marginal anxiety reduction.

The Psychology of Waiting: Domino's Tracker Addressed Customer Anxiety

The Domino's Pizza Tracker was a strategic response to the psychological 'roller coaster' customers experienced while waiting for their orders. By providing real-time updates, the tracker aimed to give customers a sense of control, alleviating the anxiety of the unknown and transforming the waiting experience into something more manageable and engaging.

The 'Domino's Pizza Tracker Theory of Everything' Explained

Alex Mayosi articulates his 'Domino's Pizza Tracker theory of everything,' which suggests the pizza tracker set the precedent for all subsequent tracking technologies. He argues that this innovation, born from a desire to manage customer emotions, created a new expectation of control and transparency in service delivery, influencing everything from package tracking to ride-sharing apps.

Domino's Tracker: A Humble Status Page That Changed Lives?

The Domino's Pizza Tracker, initially conceived as a tool to manage customer anxiety, is argued to have had a profound impact, potentially changing lives. While some find the idea of a 'status page' influencing lives remarkable, its success lies in tapping into a fundamental human need for control.

Sep 2 · Love in the time of Palantir7 stories

Palantir's Controversial Use in Military Operations Highlighted

The podcast discussed Palantir's controversial role in military operations, specifically its use in identifying individuals for elimination. This has led to the company being known for 'shortening the kill chain.'

Palantir's Data Handling Practices Under Scrutiny at Dating Event

A dating event inspired by Palantir explored the company's data analysis capabilities, with attendees curious about what data the company possesses and how it's used. The organizer used various data enrichment techniques, including facial recognition and public records, to create attendee profiles.

Palantir Denies Owning, Buying, or Selling Data

Mike Steinberger, author of a book on Palantir, clarified that the company does not own, buy, or sell data. Instead, Palantir provides software tools that enable organizations to utilize their own data more effectively.

Palantir Software Improved Airbus Production Efficiency

Palantir's software was implemented at Airbus to address production glitches with the A350 airplane. The software helped identify bottlenecks, reducing the time to fix production issues from nearly a month to about a week.

Palantir Organizer Receives Cease and Desist, Faces Legal Risk

The organizer of the Palantir-themed dating event, James Steinburg, revealed that Palantir sent him a cease and desist letter. He acknowledged the risk of being sued and potentially losing everything, but believes the event is worthwhile if connections are made.

Palantir Aids Government in Creating Detailed Individual Files

According to author Mike Steinberger, Palantir's software assists the government in organizing data and creating more detailed files on individuals. This is achieved by enriching disparate datasets and identifying patterns and connections that were previously obscured by siloed systems.

Dating Event Sparked Some Matches Despite 'Joke' Premise

The Palantir-themed dating event, initially conceived as a joke by organizer James Steinburg, resulted in at least some dating matches. Attendees expressed intrigue in using their own data, even if some felt the event was 'too much of a joke' or slightly exploitative.

Aug 28 · Branded fruit: How produce got “Honeycrisp-ified"3 stories

New Jersey Tomatoes: A History of Innovation

Dan Pashman and Kenny Malone discuss the historical significance of New Jersey tomatoes. Nearly a century ago, a scientist at Rutgers, in collaboration with Campbell Soup Company, developed a new variety of tomato that became dominant for decades.

Dan Pashman Prefers Cherry Tomatoes Over Grape Tomatoes

Dan Pashman expresses a preference for cherry tomatoes over grape tomatoes due to their juicier texture. He admits he might be biased against grape tomatoes but is open to having his mind changed.

Rutgers University Develops New Tomato Variety

The podcast explores the trend of "Honey Crisp-ification" in the produce aisle, focusing on a new grape tomato called the Scarlet Sunrise developed at Rutgers University. The hosts aim to understand the market forces and consumer desires driving this trend.

Aug 26 · The continent nobody owns & everyone benefits from (Summer School)4 stories

Antarctica Holds Immense Economic Value Despite Lack of Markets, Says Economist

Economist Natalie Stukel argues that Antarctica, despite having no formal markets or private ownership, provides massive and hugely important goods and services to the global economy. She states that economics is about more than just markets and can be used to understand resources around the world.

Antarctic Treaty System: A Model of Trust and Collaboration

The Antarctic Treaty system, signed by 46 countries, reserves the continent for peaceful purposes and scientific research, prohibiting military bases and mining. Enforcement relies heavily on trust and willingness to collaborate among member nations.

NPR's 1979 Antarctic Expedition: A Glimpse into a Remote World

In 1979, NPR sent science reporter Ira Flato to Antarctica, capturing sounds of wildlife and human activity. His reports highlighted the continent's natural wonders, including penguins and Weddell seals, as well as the functional aspects of McMurdo Station, a US research base.

A Glimpse into Antarctic Commerce: The McMurdo Station Store

Liz Waters, who worked as a dispensing and ship's store officer at McMurdo Station in the 1980s, describes her role managing the base's general store. She highlights the logistical challenges, such as ordering merchandise that could take six months to arrive, and the necessity of such services for the station's personnel.

Aug 14 · You bet your life insurance4 stories

Frank Sarawsky's Life Insurance Journey from Childhood Fire to Financial Strategy

Frank Sarawsky's early experience with insurance involved a childhood bedroom fire that was covered by his father's policy, leading him to see insurance as 'genius'. Later, as an adult, he viewed life insurance as a great deal, paying $600 a year for a $1 million payout, and later expanded his coverage to $1.5 million.

The Evolution of Life Settlements: From AIDS Crisis to Multi-Billion Dollar Industry

The life settlement industry, which allows people to sell their life insurance policies, began as a compassionate response during the AIDS crisis. A wealthy benefactor helped Scott Page and his partner Greg by fronting money for life insurance premiums, with the expectation of repayment from the policy's payout. This evolved into a complex, multi-billion dollar industry where large financial firms invest in the life expectancies of strangers.

Scott Page's Personal Journey and the Birth of the Life Settlement Industry

Scott Page's personal life, marked by a struggle with his sexuality and a desire for a lifelong partner, led him to enlist in the Air Force. He later found love with Greg, but their plans were disrupted when Greg was diagnosed with AIDS. Facing financial hardship, Scott discovered a way to leverage Greg's life insurance policy, a situation that inadvertently contributed to the development of the life settlement industry.

Frank Sarawsky Sells Life Insurance Policy for $500,000 Amidst Market Fluctuations

Frank Sarawsky discovered the concept of life settlements and found potential buyers for his $1.5 million life insurance policy. Initially seeking $600,000, he negotiated with brokers who were auctioning his policy. After a year of waiting for the price to increase, he accepted an offer of $500,000, viewing it as a successful way to care for his family.

Jul 31 · What makes a toy go viral4 stories

Squishy Dumpling Toy Craze Fueled by Surprise Element and Social Media

The viral success of squishy dumpling toys is attributed to their surprise unboxing element and widespread presence on platforms like TikTok. Consumerologist Kristen McLean notes that squishy and fidget toys are a rapidly growing category, with sales up 279% since January.

RMS toy company's strategy for viral success: tweaking trends and agile production

Zach, a representative from toy company RMS, explains their strategy for creating viral toys involves tweaking existing trends and maintaining agile production schedules. This approach allows them to quickly adapt to market demand, a key factor in their success with products like 'poppers' and squishy dumplings.

The psychology behind the squishy toy trend: seeking hope and anxiety relief

Toy industry analyst Kristen McLean suggests that the current popularity of squishy and fidget toys stems from a desire for hope, playfulness, and joy, as well as a need to manage anxiety. This trend shows no signs of slowing down and is expected to continue into the holiday season.

Childhood nostalgia fuels toy trends, from Garbage Pail Kids to Squishy Dumplings

The appeal of collectible toys with surprise elements is a recurring theme, as seen with 'Garbage Pail Kids' trading cards and the current squishy dumpling craze. The element of chance, where consumers seek rare items, taps into a nostalgic aspect of toy collecting.

Jul 29 · How to beat the resource curse in Norway (Summer School)4 stories

Norway's economic success attributed to strategic oil management and expert advice.

Norway has become a richer country per person than the United States due to effective management of its oil wealth. Professor Hilda Bjornland notes that while Norway excels in social welfare, it lags in entrepreneurship, productivity, and adopting new technologies like AI. She suggests that Norway's wealth tax might hinder investment in these areas.

Farouk Al-Qasim's pivotal role in Norway's oil industry development.

Farouk Al-Qasim, an Iraqi geologist, played a crucial role in Norway's oil industry after moving there in the 1960s. Despite initial skepticism about oil discovery, Al-Qasim's expertise was instrumental in analyzing exploration data and advising on the careful management of oil resources, preventing Norway from falling victim to the 'oil curse'.

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Norway's strategy to manage oil wealth emphasizes restraint and long-term perspective.

Norway's approach to its oil riches is characterized by a conscious decision to extract resources slowly over decades, contrasting with many other nations that exploit them rapidly. This strategy, influenced by figures like Farouk Al-Qasim, aims for long-term wealth and sustainability by resisting short-term spending urges.

Norway leads in sustainability and electric vehicle adoption.

Hilda Bjornland highlighted Norway's leadership in sustainability and environmental consciousness, citing high per capita consumption of organic food and the highest market share of electric vehicles globally. This demonstrates the Norwegian people's awareness and action on environmental issues.

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Jul 10 · Seven allegedly fake Chanel bags vs The RealReal3 stories

Chanel Sues The RealReal Over Authenticity Concerns

Luxury brand Chanel is suing The Real Real, an online reseller of luxury goods, over issues related to the authenticity of products. The lawsuit centers on whether The Real Real can accurately authenticate high-end items like Chanel bags.

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Graham Wetzbarger Explains Four Pillars of Luxury Authentication

Graham Wetzbarger, former chief authenticator for The Real Real, detailed the company's authentication process, which he helped build. He broke down authentication into four key pillars: materials, construction, hardware, and brand identifiers.

Resale Market for Luxury Goods Grows, Facing Authentication Challenges

The market for second-hand luxury goods has expanded significantly, with online resellers offering accessible alternatives to in-store purchases. However, ensuring the authenticity of these items remains a key challenge for both resellers and consumers.

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Jul 3 · How to win a penalty shootout (with game theory)5 stories

Game Theory Reveals Strategy Behind Penalty Kicks

Game theory, when applied to soccer penalty kicks, suggests that players should not always shoot to their dominant side, but instead use a mixed strategy to remain unpredictable. This concept aims to exploit an opponent's predictability, a strategy pioneered by economist Ignacio Palacios-Huerta.

Economist's Data Guided 2008 Champions League Penalty Shootout

Economist Ignacio Palacios-Huerta provided Chelsea with a penalty report for the 2008 Champions League final against Manchester United. The report offered insights into individual players' tendencies, though ultimately the strategy backfired, contributing to Chelsea's loss.

Lionel Messi's Penalty Woes Highlight Game Theory's Role

Despite being one of the best soccer players, Lionel Messi's penalty kick success rate is below average, even missing crucial kicks. This highlights how penalty taking involves more than just kicking skill, incorporating game theory and psychological elements.

Game Theory: Why Predictability is a Loser in Penalty Shootouts

The application of game theory in soccer penalty kicks reveals that predictable strategies by either the kicker or the goalkeeper can be exploited. While economists initially doubted the practical use of mixed strategies, soccer players demonstrate an ability to be unpredictable when stakes are high.

Data-Driven Strategies Now Common in Professional Soccer Penalty Shootouts

Since 2008, teams have increasingly used data analysis, inspired by economists like Ignacio Palacios-Huerta, to prepare for penalty shootouts. This has led to strategies like taping crib sheets to water bottles and practicing under simulated shootout conditions.

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