20 Episode results for "rachel cohn"

Finance Fridays With Mary, Volume 2: Short Selling

The Indicator from Planet Money

09:56 min | 2 years ago

Finance Fridays With Mary, Volume 2: Short Selling

"You're listening to n._p._r. Do you know why there's a bell here. No is there a bell here. That is the the jargon bell. It's an idea that we borrowed from our friends at the financial times. Every time you use a piece of jargon. I'm gonna ring this bell and then you have to explain what that bit of jargon actually means in plain english like you were explaining it to your uncle. Dave oh okay. Let's get started mm-hmm everyone. This is indicated from planet money. I'm cardiff garcia and this is the second installment finance fridays with mary where my friend mary childs finance reporter answers your questions about the world of finance about wall street about banking and hedge funds and all those kinds of things mary welcome back. Thanks for having me today on the show mary mary you're going to cover short-selling heck yeah right betting against companies american thing you can do yeah no. It's not it's not but it still matters. It's important ooh working to explain why right after the break support for this podcast and the following message acid come from google domains google domains helps make your business a reality with the tools and partners for building your website like a pro and premium security features and included included for free make it happen at domains dot google slash n._p._r. Support also comes from fund rise innovating the way people can invest in real estate. They'd fundraise makes it simple to build a portfolio of high quality real estate affordably visit fund rise dot com slash built and get your first six months of advisory serie fees waived. Mary ready to feel this question about short-selling super reading. The question comes from listener boris fi tweet. We're gonna have our producer. Rachel cohn read it in her distinctly non boris voice. How does shorting work. What is the mechanism for investing against something okay so mary normally when when i think about putting money into the stock market i think of buying stock and then hoping it goes up short-selling is betting against the company in hoping that it stock goes down. Why why does anybody do that so i think short-selling becomes useful when you think the market's missing something you think that the bank analysts are too optimistic which happens you think that everyone is reading the numbers around the company is pledged something in their in their numbers on their balance sheet and when you see that unknown also caught on you have a huge opportunity to profit by the stock going down. That's right okay and so this is an instance in very basic terms in which you think that a company just isn't performing well enough to justify its stock price. It's trading at one hundred but that's only because everybody doesn't know something terrible about the company and it should really be at twenty okay. It should be a twenty. I'll be like a really good way. It's an amazing right. Yeah <hes> okay so why is it important for the market okay for the buying and selling stocks docs and securities. Why is it important that shortsellers are part of it. You need shortsellers to be able to come to <hes> the the true value of a company the true price of a company. The natural bent is oh my gosh accompany. I love it. Let's do this. I wanna share in. This company is probably going to grow companies. Do great things. Let's let's have a stake in that. That's the natural natural bent so having the ability to bet against having this ability to express a contrarian view means that people are gonna work harder if no one was going to bet against the company the company can do whatever so having shortsellers around and having people able to express this negative view saying hey i looked at your books and actually you messed up or hey i think you're hiding something and that that means that there's more what they call price discovery okay this soft little ringing the bell their price discovery so that prices accurately reflect how well a company's he's doing how well positioned in the marketplace he so in terms of how people actually bet against companies how does short-selling actually work which of course is the question question that we were asked by boris boris. Are you ready for this so we you're on the mechanics aright. We have a stock right here that i drew on some paper okay <hes> it's a stock doc here and we're going to demonstrate to you know you can't see us what happened so basically i'm a bank. I have this daca. I'm holding it and cardiff wants to bet against it <music>. I'm the short seller. You're the bank that's right. So carter thinks that this company of of which i have this stock <hes> let's call it apple say i think apple's going to go down. It's fruit company. Cardiff says i need to borrow that. I need to buy that stock. I lend the stock to cardiff here handing it to him. Got it in my hand so i now oh have this stock but i have to give it back to you later. I've only borrowed this stock. It's online okay so if i understand this correctly. The next thing i'm going to do is sell this stock into the marketplace where let's say our producer rachel cohn. Hello is buying stock so notorious traitor. Yeah okay so rachel rachel. I've got this stock of apple that i've borrowed okay. I'm selling it to you now for a hundred bucks. Okay thank you you got it okay. It's go doc. Let's say i wait two weeks in the stock. Price has fallen apple had terrible news. All of the apples went rotten exactly so now now. This stock is only worth eighty bucks rachel so sorry sad about this or a but i'm going to buy this stock back from you for eighty bucks doc snow. I know remember. I sold it originally for a hundred bucks okay and i bought it back for eighty which means i now have twenty dollars and and i've got apple stock okay. I have to give apple stock back to you mary. Thank you here you go so my debt to use paid off and i i have twenty bucks. A prophet nailed it nice. You're very good at this. You should hedge fund should do this. It seems so easy in practice though it's not easy a quick follow up question here. Why would you as the bank lend me that stock in the first place securities lending a great business if i have this like stock sitting here just like hanging out. It's not doing me any good but i can lend it out and you'll pay me. There are paying a fee to borrow that stock in the first place correct and i love money banks. Don't give me that money. I know you're the worst. Let's talk about some real world examples because from what i understand things can get pretty heated. You got a bunch of people who are betting that doc is going to go up and now here comes shortsellers saying it's going to go down and trying to find reasons and publicize those reasons for why the stock should go down on there can be some confrontations right. Absolutely this can get very emotional seems to be the main way in which people express their emotions and finance. I feel like where you have one one hedge fund manager who like really believes in the company and then another answered manager who thinks it's zero and that's a big difference of opinion and there's a lot of money on the line so they freak out. What's what's your favorite example of to hedge fund managers who were like yes. I love the stock on the one side and the others like no the stock sucks and now we're gonna argue about why <music> i'm right and you're wrong. I'm glad you brought this up. There's one benchmark gold standard example of this once upon a time there was this hedge manager named bill ackman and he got to be in his bonnet. He really hated this company herbalife. He thought that it was a total scam all the stuff and <hes> and he was very public about this as shorts often are because they're like you know shaking people being like you have to see how this company is a zero. One hedge fund manager on the opposite side from ackman. Was this guy carl. Icahn was a notorious corporate raider from the nineteen eighties a corporate raider yeah in the eighties he was trump and then strips them and sells messes with them real hard so <hes> carl icahn is a bruiser like he you love a good fight and he sort of picked one with bill ackman over herbalife. This culminated in this moment where bill ackman and carl icahn lick argued on c._n._b._c. about this the stock just like just in the middle of the day right just shrieking each other. I mean every trading floors around the world just like stopped out to me like oh my god what is happening and just watch because it was just like an actual playground brawl. I really sorta had it with this guy act and he's like the cry baby in the school yard agnes. This aligarh okay karl like unfortun- does not have a good reputation. He's a bully okay. I have no interest you want invest with you okay. Let's let's the earth. It's rarely this dramatic to be honest. This was just a beautiful episode but yes this does come around with some regularity alaron because there's always a a company doing something shady or there's always a person hoping that a company's stock will go to zero. There's also the worry that shortsellers might ain't not just try to honestly uncover what's wrong with the company in other words what a company actually is doing wrong but that they might spread false rumors about the company to try to drive dr price down and then they profit from it even though actually the company was doing fine right. There's this this idea that short selling because you can make enough noise especially if you're kind of big name people if you have a track record just the fact that you were short a company will move the market and so then you can take your prophet you could just zip that right out of the market and go on your merry way if people we'll say oh well. I trust that person. They definitely did their homework or if you happen to have somehow inserted inaccurate information to the market there can be there's room for nefarious activity here career child's. Thanks for being here having remind everyone again where they can find your work. Barron's dot com barron's dot com and your email address. Mary dot child's at barron's dot com there. You go send send mary. Your questions for future. Installments of finance fridays with mary is episode of the indicator was produced by rachel cohn fact checked by emily lang and edited by patty hearst hersh indicator is a production of n._p._r. Did i do it right.

apple mary childs rachel cohn bill ackman carl icahn producer cardiff rachel rachel boris boris google fund manager boris fi Barron Dave herbalife garcia reporter
The Gender Gap Series: Tampons - That Bloody Sales Tax

The Indicator from Planet Money

09:02 min | 2 years ago

The Gender Gap Series: Tampons - That Bloody Sales Tax

"You're listening to n._p._r. Everybody we are back with another episode in our series the gender gap this week. We're taking another look at some of our favorite stories about women and the economy in the last three episodes. We have explored how much women earn work and invest relative to men but today we take a look at how much women pay for stuff relative demand so stacey yeah in spanish. We have this phrase. It's maybe on under is it will give you a guy mess in english is i got a bissett from and that is the one that comes every month which is really creepy wait. Is this like a visit from your aunt. Flo excepts in spanish aunt. Flo is a man yes he yeah what would you do. Would i is or why we did that. Somebody is pissed at andrea exactly exactly but anyway so <hes> flow in an fellow was looking visit for mant flow your period period there is no reason for us has to be squeamish right. I mean literally more than half the planet deals with it for like forty years of their lives and of course you know to deal with our very natural friend andreas. We need equipment right. You gotta have tampons and pads and menstrual cups or other things to get through. The day and tampons are lot. It's like ten bucks twelve bucks for a box of twenty and here's the thing these products are subject to sales tax which might not sound like a big thing. You know we pay for other things as well but many products similar to tampons or health related items have a medical tax exception things like dandruff shampoo <music> aspirin foot powder and condoms and so you know understandably a lot of people say that's not fair if you're going to give condoms and aspirin and prouder tax exemption tampon should have tax exemption to this is the indicator from planet money. I'm stacey vanek. Smith and i'm going to do today on the show ending the tampons tampons acce. How much does it cost women and what is the cost to end. This message comes from n._p._r. Sponsor fundraise innovating the way people can invest in real estate. They'd fundraise makes it simple to build a portfolio of high quality real estate affordably visit fund rise dot com slash built and get your first six months of advisory serie fees waived support also comes from google domains google domains helps make your business idea a reality with the tools and partners for building your your website like a pro and premium security features included for free make it happen at domains dot google slash n._p._r. Sales tax wchs most people in this country pay sales tax on most of the things they buy. It's a big source of state revenue has been ever since the great depression and each state of course chooses what it sales tax tax will be and some of the products that will have sales tax. Some items like food or water that are seen as necessary to survival are not subject to this tax prescription. Listen and nonprescription drugs are also exempt medicines like aspirin dayquil or viagra also medical equipment and supplies which can be things like chapstick chapstick or goss- chapstick is tax exempt yep. That's interesting <hes> but you know constanza what does not fall into the medical supply category in many the states most states tampons tampons also pads and cups in all of the menstrual hygiene products and this is where the term tampon tax exp began. This is a matter of personal health and also puck health really i and yet because it's a women's health issue. It is instantly politicized. That's always salesman back. In two thousand sixteen. She filed a lawsuit. In new york to eliminate the sales tax on metro products zoe salesman and her team argued these products aren't necessary for women and they should be tax exempt then the r- medical supplies which are defined as supplies using the cure mitigation treatment or prevention of illnesses says or disease again that's really broad and one example the department of tax gave was things like bandages gauze and dressings and so those right alright adams that are used to staunch the flow of blood from the human body and tampons and pads as well as cops and panty liners those are used to staunch the flow of blood from the uterus so again clearly these items have to fit within that definition zoe made her case and the new york legislature took notice and in fact passed a bill back in two two thousand sixteen to exempt feminine products in new york from sales tax so that extra cost here in new york and stands up. We do not pay it anymore. Yeah but many other women in other states do pay it and study published this year by the american college of obstetricians and gynecologists found that two out of three low income women in the u._s. couldn't afford metro products at least once a year and nearly half of them struggle to buy both food and metro hygiene products over over the last year where you really are budgeting down to the dollar every month. That makes a big difference. Those women also tend to buy these products in smaller sizes and smaller packages and and in places like convenience stores where the prices are usually higher so all of that compounds to really make a really direct impact on their budget in fact. There's the second omic research that the tax break on tampons really benefits low income people. That's based on consumer data. After new jersey's tampon tax was repealed back in two thousand in five research showed that by eliminating the tax in made products cheaper and more accessible to lower income women but some people say the tampon on tax needs to stay but in general. I think that the sales tax is really one of the best ways for a state to raise revenue. This is nicole kaeding the vice president of federal projects at the tax foundation a think tank that studies tax policy she says picking and choosing products to be taxed or not tax is problematic for a lot of reasons first of all it can mean less money any for states they won't have enough money to fund public policies or the programs they want to fund and it can also mean that states have to increase other types of taxes to get that funding back so if the sales sales tax applies to fewer products the sales tax on the products that are left goes up nicole things an easy way to fix this issue is having a sales tax on everything no exemptions which by the way that can lower the overall tax rate for every product including tampons so when you start moving into these this world of exemptions sections you start adding complexity because you have to define what is and is not a qualified good under the exemption you know in my view a state would be much better off to have a broad sales tax that applies to all final consumption you avoid these sorts of picking between different product classes <hes> it would make for a much more efficient sales tax back in two thousand sixteen california governor. Jerry brown vetoed a bill the plan to eliminate the state's tampon tax. He argued that by not taxing metro. Products california lose up to twenty million dollars in annual taxes. X.'s and the governor has a point here new york where we eliminated the tax on minstrel products. We're losing about fourteen million dollars year in las tax revenue of course this isn't just an economic issue. It's a political issue to last year for example nevada voted to make minstrel products tax exempt nicole also expects more states to push for legislation impasse bills that would repeal the tampons access here like michigan georgia and ohio and of course california is looking at the issue yet again. Andrea is coming to town. We have two big developments. California and rhode island passed a budget package that exempts tampons john's administration products from state sales tax. It's worth pointing out that these tax exemptions could be changed in future budgets but for now the women in california and rhode island will get a little tax break on their tampons and i have a fun little update for us. Well okay member. How could i forget race well. It's definitely the weirdest euphemism out there for your menstruation. Hey there's actually over five thousand different ones all over the world wow so if if you have a really weird or funny one oh yes send them along then them along <hes> instagram us or send us an email. We would love to read them. Today's update was produced by rachel cohn. Our original episode was produced by me and our editor is paddy hirsch. Our current internist emily lang and the indicator is a production of n._p._r.

aspirin california Andrea nicole kaeding bissett google rachel cohn stacey vanek Flo new york new york rhode island new jersey paddy hirsch salesman Jerry brown
Your Questions: Meatless Meat And GDP

The Indicator from Planet Money

09:34 min | 2 years ago

Your Questions: Meatless Meat And GDP

"Hey, everyone. It's Cardiff in Stacey. And this is the indicator from planet money here at the show. We get a lot of questions from listeners, and we love this. We love getting questions from listeners parts of the jobs. True, it really is. And so, you know, every once in a while we try to devote an episode to answering and addressing these questions today. We're answering to listener questions. One is about the kind of stuff that the US economy produces and how it breaks down between goods versus services. The other question is about those meatless burgers, that are suddenly so popular right now and I even gonna make Stacey, try one the sacrifices one must make for once chats and so that's it. We will see you on the other side of the ad break burgers in hands. Support for the indicator and the following message come from Michigan economic Development Corporation, if you want to start or grow your business. Michigan is the place to make it happen. Learn why searching, Michigan pure opportunity. Support also comes from snowflake. The only data warehouse built for the cloud unlock deep data insights with the instantly scalable cloud built data warehouse start your journey towards data driven decision making at snowflake dot com slash NPR. Okay to listener questions on today's episode. The first question comes from Jake Rita Jake is from an Ville, Pennsylvania, as we all know our national GDP is value of all the goods and services produced within the US during a particular period. I would like to know or percentage of his overall metric is goods versus services. How is this balanced changed over the years? And are there any theories as to the reasons for the change? This is a great question, because it gets at one of the big ways that the US economy has been involved. Ving for some time and Jake is right, when we are talking about the US economy. We are just talking about all the goods and services it produces. So we should do a quick definition of terms here now goods are physical products. The companies make and then sell to us, these are things you can touch cars furniture smartphone food, houses medicines Rubberduck Ie's bottles of shampoo. You get the picture services are everything else, not just routine things like haircuts and dry cleaning, but also things like banking law teaching medical services, and Jake asks, how much of the economy is goods in how much is services. Well, if we just look at the private sector so for a minute, ignore the government, the industries that produce goods in the private sector make up only about eighteen percent of the US economy. These are industries, like manufacturing and construction again industries that make stuff industries that provides services on the other hand are about seventy percent of the economy that is almost four times bigger than industries that produce goods services are. Huge and service industries include healthcare education, arts, and entertainment, finance and a ton of others. So if eighteen percent the economy makes goods and seventy percent of the economy provides services, it's not one hundred percent. Oh, it's not there's still twelve percent leftover and that twelve percent is government. That includes all government, federal, state, and local governments added up and this includes services like military defense, public schools, the court system, your local DMV feels like it takes up a lot of it. Maybe, maybe you're there, but in his question, Jake also asked how the mix between goods and services has changed over time now this part of the question is easy, more and more of the US economy is becoming services. In fact, that applies to the global economy, as well, not just the US economy and as for what explains the trend towards services. There are a few reasons but we would focus on one really important 'cause which is over time. The economy has become more efficient at making goods, including a lot of good. Goods that most people use in their daily lives goods like food and refrigerators and washing machines and televisions. And smartphones and rubber Ducky and bottles of shampoo. Hey, whatever. Floats your rubber duck. Okay. And because those goods are made more and more efficiently. Every year companies can also sell them for cheaper, and therefore people spend less money on goods as a share of their overall budgets. So they end up having more money leftover to buy services but overall providing services has not become more efficient at the same pace that making goods is become more efficient. So people ended up spending more money on services and more people got hired to work in the services sector. So there was is that services have become a bigger share of the economy thinking about it this way, if nice television costs, half as much today as it did a few years ago, but you're still making the same amount of money. That means you have more money left over to go out for dinner, more often, or to see the doctor or to get your teeth cleaned. So you end up spending more on service. With the money that you save on goods. That's a really simplified way to explain what's happening to the whole Konami, but it's the basic idea. Now question number two comes to us from Jenny Owens of Washington state, and I was just wondering with all the site -ment over the recent IPO of beyond meat, what exactly is the economic impact of artificial meet both plant based and VAT, ground. Thanks. I like the term VAT, grown Fendt grows. That what we're going to be about when it comes to like me moving forward. Works for me Jenny is talking about the company beyond meat beyond me has been in the news. A lot in the last few weeks, because it stock prices gone through the roof since it started trading on the stock market last month. But there are other companies that also offer alternative meat products and they're having quite a moment right now these meat alternatives are estimated to be about five percent of the overall market for meat and people analysts the food industry, that number will keep growing in the next decade, yet meat alternatives have become a big hit Lali, especially in the case of beyond me. And another company called impossible foods, and one reason, is that the science has gotten better in recent years. These meatless products are getting closer to actually tasting burgers, or other real meats and also, feeling like meat burgers in their texture. It's true. That's what they're working on the feeling of a burger. I did. Yeah. I mean, that is a big part of the experience, and now a lot of restaurants and fast food outlets are starting to offer these meat alternatives, because people want them and Jenny wants to know what the economic consequences of this might be, and that depends on a couple of things. One of them is whether the science keeps getting better so that these meat alternatives can be made more cheaply and actually compete with real meat in terms of price right now, meat alternatives are more expensive, both because the process of making them is still relatively new and is still evolving, and also because right now there's just so much demand for them. That brings us to the other uncertainty, whether meat alternatives are just a fad, or whether people will continue to want more and more of them. There are all kinds of reasons that people give for wanting these meatless products. One is that they are made in a way that's more environmentally friendly than the way meat is produced or some people just want meatless products for dietary reasons they want to eat less red meat, or they might be concerned with the way cows are treated by companies that produce meat and so meet, let's product could end up being like the new almond milk or soy milk, where people start trying them for dietary reasons. But then they become more popular because people just like the taste of them. That's right. The economic consequences might end up coming down to taste speaking of which Stacey. Yes, you know, we asked Rachel Cohn, our producer to TGI Fridays, which offers these meatless products. And she brought back for us both real burger and a meatless burger. And now I'm gonna see if you can tell the difference, I can tell the difference my parents as beef cattle if I tell the difference this is pretty high right now. This is going to be a rough you take action wise rough holiday season. Family judge? Just in case you can tell what's real. And what's fake by the look of it, I'm gonna need you to put that scar a blindfold? Yeah. All right. Okay. Excite, I feel like I've chosen the right job right now? Okay. I am going to hand you burger number one. I used to eating Quaeda. I think this isn't the real one. Okay. I'm gonna take that back from you. Okay. And I'm gonna give you burger number two, okay? This is this is the not meet one. They're saying you're saying, Berga, number two is not meet. It doesn't have that BV taste. It's not a bad taste incidentally. It just doesn't have that much of a beef just has that perfume. And it had you know, like it's got the beef taste the beef taste face. Vanik smith. Your I'd Aho reputation remains in you are correct, right. Correctly identified the real burger, and the fake burner. You can now take off your blindfold and enjoy whichever you'd like cows continue to run in fear for the other half of the planet myself. Wait. We gotta do the credits definitely do do the while your mouth still full. Yes. Say just took a used by seeking to the credits. Okay. I'll see if my all my years of trading, I mean, I've been paying for this for fifteen years, today's episode of the indicator was produced by Rachel comb, edited by Patty Hearst. And the indicator is a production of NPR. That's right. Well, thank you. I already had lunch, by the way.

US Jake Rita Jake Jenny Owens Stacey Michigan DMV Michigan economic Development Cardiff Konami Stacey Rubberduck Ie Rachel Cohn Ving NPR Rachel comb
What Medicare For All Might Mean For Jobs

The Indicator from Planet Money

09:44 min | 2 years ago

What Medicare For All Might Mean For Jobs

"This is the indicator from planet money on n. p. R. <music> medicare for all is everywhere. The idea has gone from the fringes of the healthcare conversation to being centerpiece of it in a few short years turn on on any of the democratic presidential debates and you'll hear about it and medicare for all would be a massive overhaul of the healthcare system one that it supporters like because it would give health insurance ernst to everyone and pretty generous insurance at that and that's a big deal in a country where nearly twenty nine million people didn't have health insurance last year but with a massive overhaul the holcombe trade-offs and here's one big one that interested us as some proponents of medicare for all will acknowledge it could cost a lot of jobs during the transition in fact what inspired this whole episode was this opinion piece by elizabeth rosenthal that i saw in the times earlier this year it was called medicare for all could kill two million jobs and that's it's okay that kind of blew my mind. I just wanted to learn more and of course my policy would put people out of work is not the most effective campaign platform form true true especially in the country that slowly clawed its way out of a recession and is scared of another one. I'm darius rafi on and i'm danielle. Nail kurds laban filling in from the n._p._r. Politics podcast today on the indicator we talk about medicare for all and one aspect of it in particular the potential for it to eliminate lots. It's in lots of jobs and we talk about what that says about our healthcare system and just how hard healthcare reform is support for this podcast. The following message come from google from connecticut to california from mississippi minnesota. Millions of american businesses are using google tools to grow online learn more at google dot com slash grow support also comes from wicks dot com with wicks you can build your own robust website and web applications set up up your own databases with service hassle free coating go to wicks dot com. That's w. i. X. dot com slash indicator to get ten percent off. Let's start with a quick refresher. Medicare for all is what democratic presidential candidate bernie sanders calls his single payer health proposal. He is named after the current popular government run health health insurance plan for older americans medicare and while lots of people have co-opted his branding his single payer plan is what we're going to be referring to today when we talk about medicare for all just to be clear and when we say single payer payer is the government so taxpayers <hes> everyone would be covered by government issued health insurance and at least in sanders vision private insurance would be basically obliterated which is a big change. I mean there are lots of private. Insurers think aetna cigna blue cross ross whoever you might have your health insurance through and there are lots of people who work for those companies getting rid of those insurers means you have a bunch of workers who would have to find something else to to do as well as probably a bunch of people in hospital billing offices who would have to find something to do and just how many jobs would be lost while we talked to robert pollen he is a distinguished is professor of economics. At the university of massachusetts amherst. He and some colleagues got together in analyze the potential economic effects of medicare for all here's what they found so if you add up the losses in the health insurance industry and among call the administrative staff at providers. We think we're looking. Ah about one point eight million jobs becoming redundant one point eight million now doesn't not a great political bumper sticker right and i wanna be clear upfront here. Robert likes medicare for all he really does. He consulted with the sanders campaign. This election cycle on it and and robert found that one point eight million jobs could be lost if medicare for all his instituted now. Here's why one of the biggest drivers of high healthcare costs in the u._s. is administrative the street of cost. Things like insurance claims billing payments all that studies have shown that we spend in the u._s. Way way more on these things than other advanced economies. Here's one on staggering statistic by one thousand nine estimate for every ten doctors there at that time nearly seven fulltime workers in billing and insurance so so workers who weren't directly improving people's health the savings that robert talks about would largely be driven by getting rid of that bureaucracy to put this in perspective one one point eight million employees. That's more workers than american payrolls have added over the last nine months so three quarters of a year of all those jobs days gone and this is is where we get at one of the big points apollon study that medicare for all would in his estimation be a good thing and that's because in his estimation it would save money and here's what robert means when he talks about savings. He estimated that everyone in the u._s. Altogether spends a little more than three trillion dollars on healthcare every year by his teams math. Even even with everyone insured and using the healthcare system it would still be ten percent cheaper than that three trillion dollars and it would also be a big shift in how that spending ending takes place so take all the spending right now and make it just the government spending the money well the government via tax payers important point and if you did that there their would-be savings but and this is the important point here there are trade-offs. The biggest single source of savings we have to acknowledge is <hes> layoffs of people whose jobs become redundant so to robert one point eight million lost jobs are not exactly good but they are evidence that the plan will have worked and so knowing knowing that those job losses could happen. He told me that he wants to make sure that a single payer proposal plans for those potential losses. I mean the the principal reason why focused i on this was precisely to make sure that as part of the discussion around medicare for all we included just transition process assist for the people whose jobs become redundant in what robert means when he says adjust transition process that would include job retraining a guaranteed pension and and one years wages for displaced workers and we should add that when we reached out to the sanders campaign for comment they said that medicare for all includes five years of funding to provide assistance to displaced workers workers including things like wage support and retraining and here's where we need to stop for a second because first off let's again stress robert and his colleagues estimate of medicare for all his just one one estimate of the potential savings or costs of this plan. We're talking about it to get it. Just how complicated all of this is which is to say that there are also other estimates of savings studies have found a range of possible effects for medicare for all that maybe it could save americans a bunch of money on healthcare or that it could cost americans. Trillions is more. It is very possible that could happen. It's a really important distinction to make so you know plus or minus a few trillion here or there who's counting right so talk about what happens. If medicare for all doesn't save money which might mean it wouldn't cost a lot of jobs. We called katherine baker dean of the harris school of public policy at the university of chicago. Oh and she's less optimistic about medicare for all than robert was. I haven't seen a medicare for all proposal that seems to promise a lot of savings savings or a lot more efficiency in the healthcare system but she does have concerns about medicare for all for example. She doesn't think it would address wasteful health spending or to put put more plainly that it might not draw a line between healthcare services that are cost effective that improve people's health and services that are really expensive but don't for example so help people live longer and of course there's still the question about efficiency you know it might mean a bloated system. That's as inefficient as it is now or it might mean a kind of shifting no more private insurance workers but a lot more healthcare workers and i want to be clear that saving money is not the goal anymore than keeping the number of jobs jobs in healthcare is the goal the goal is to get as many people as possible. My my goal would be to have as many people as possible covered by health insurance plan. That's delivering healthcare in an efficient way. Obviously the loss of lots of jobs in health care would be painful for a lot of workers. That's clearly not the great thing at all but for baker. It's also not great to have a healthcare system. That's expensive and not helping us get healthier if we could employ a lot fewer people people in the healthcare sector without harming health at all that would be a good thing those people could then go work in other sectors and generate other things that improve people's quality polity of life or standard of living to me dr is this isn't just about whether medicare for all is good or not all of this to me is a perfect window into the impossibly difficult job bob of trying to improve the healthcare system and what improving it even means whether it's saving money what it means for jobs whether people are getting healthier not an all of that is such a balancing act bullets zoom out here and be realistic for a second for medicare for all to pass. You'd need democrats to keep the house win the white house win really big in the senate and also for enough of those democratic lawmakers to actually come together and agree on medicare for all plan listen. I refused to make political predictions so i'll say that that's a lot of pieces to fall into place meaning. We might have a lot more time to debate all this. This episode of the indicator was edited by paddy hirsch produced by emily lang and fact check by rachel cohn. I also want to thank larry levitt at the kaiser family foundation who also helped us out in this episode. The indicator is a production of n._p._r. Uh-huh.

medicare Robert bernie sanders google darius rafi katherine baker dean university of massachusetts am elizabeth rosenthal paddy hirsch kaiser family foundation rachel cohn larry levitt
Finance Fridays With Mary, Volume 5: Why Fees Matter

The Indicator from Planet Money

09:57 min | 2 years ago

Finance Fridays With Mary, Volume 5: Why Fees Matter

"N. P. R. Everyone Welcome to the indicator from planet money. I'm Cardiff Garcia and I'm joined today by my friend. Mary Child to finance report over Baron's for the next installment of Finance Finance Fridays with Mary. Mary how are you I'm great. How are you good. I hope you enjoyed your brief hiatus from Finance Fridays with Mary because you've come back with some pretty big news actually actually for our listeners nortel do everybody. I'm joining planet money. Yes you're now going to be my colleague. I can't even believe it. Yeah you're joining our sibling. PODCAST CAST says those beautiful long form narrative podcasts about business and economics. It's GonNa be awesome and today we're going to be fielding a listener question in about the fees that are charged by hedge funds and private equity firms okay and I think a lot of people going to hear from you like why would I care about. That sounds like a thing for rich people to worry about Telhami Homework. That's not the case so actually you should care. It turns out that of the four point two trillion dollars invested in private equity some some forty four percent of that is actually from pension funds pension von. That's right those are the funds that are supposed to help people in retirement actually afford their retirement so you put in a dollar today and in twenty five thirty five whatever years it comes back to you in a nice fixed income stream and you get to live happily ever after and in hedge funds which is like three point six trillion dollars. That's forty two percent of that comes from pension funds so it's substantial these are real normal people that are trying to live out their lives. Asia's want to relax relax retirement. They earned it and we're depending on hedge funds and private equity for them to do that. So it matters that hedge funds and private equity firms do well and also by the way eight means that it matters if the fees that they charge those pension funds and other types of institutional investors like bees like endowments and universities cities. It's a big deal if they're overcharging them but is that the case that is the question we're going to be exploring right after the break support support for this podcast and the following message come from Google Domains Google domains helps make your business a reality with the tools and partners for building your website like a pro and N. premium security features and included for three make it happen at domains dot gov slash. NPR support also comes from fund rise innovating the way the people can invest in Real Estate Fund rise makes it simple to build a portfolio of high quality real estate affordably visit fund rise dot com slash built and get your first six months of advisory Fees Waived Okay Mary. Today's listener question is about the fees that are charged by hedge funds and private equity firms real. Oh quick explainer first about what hedge funds and private equity firms actually are a hedge fund takes money from pension funds and universities and other big investors and then invest that money money using all kinds of sophisticated strategies including a lot that I don't really understand private equity firms do something a little different they take that money and they invested by buying out whole companies and then running those companies for a period of time like seven to ten years and then hopefully selling that company again for a Prophet so with that out of the way here's the question from Listener Stephen Murdoch hello. This is Stephen Murdoch calling from Kent in the United Kingdom. My question is what do people tolerate tolerate. The exorbitant fees that hedge funds and private equity firms charge for a long time. These groups have charged a two percent management fee every year and a twenty percent performance fee if they're successful after the two thousand eight crash many people said that the two and twenty feet structure would change but I'm not sure it has has it changed okay first off Mary though I need to explain to our listeners what that too and twenty structure actually represent so if I'm pension fund and I give my money to a hedge fund then right off the bat the Hedge Fund will keep two percent of all that money as a fee. That's the management fee but then wants to hedge funds start investing the money it will also so take twenty percent of the profits that it earns through the investment that also is a fee. That's the performance fee so two and twenty and steven is wondering Wyatt is that hedge funds and private equity firms are still charging two and twenty fees so the question is are they stevens instincts are actually sort of correct correct here. They are not really charging to in twenty anymore. Private equity is charging on average. One point eight in management fee and seventeen ish for performance armaments and hedge funds one point five percent and nineteen percent for performance. That's according to pray. Quin okay so in other words. They're charging less but is that a lot less. How should we think about that for sure emotionally. It's a lot less emotionally. They're having a hard time with it. They heated the one point five. They say is actually particularly painful. Especially for a startup hedge fund a new hedge fund. It's harder harder and harder to to actually be able to function business with lower management fees because you may go through a dry spell where you're making no prophets. Don't get that nineteen percent and that's where the real money is but you I really believe in your investments and you may not make it to that day. If your management fees are too low to survive okay so obviously they're not gonna like it the fact that they are having to charge less S. yeah right so here's a question that I think a lot of people are going to have Mary which is to in twenty or slightly less than two in twenty. It sounds like a lot of money that hedge funds and private equity firms are charging for their services. Do they actually justify those high fees so for a private equity over a historic period. Yes they have outperformed public equities. According to Cambridge associated better than the stock mark that's right. There's sort of an asterix tricks to that though because the outlook for that is less sunny right so people are concerned that now with the stock market so high private equity companies are having to pay a a ton of money when they want to buy a company ticket private which means that it's even harder to make that company worth more money in the future because it already is so expensive exactly okay so the bottom line is for private equity. They've done well in the past but they might actually not do as well in the future. What about hedge funds so it's been a bit spotty the done really well some in years and other years not so well in the years since the crisis on aggregate. They've kind of not crushed it. It's been it's been here's my question there other things that people people can put their money in right like there was mutual funds. There's exchange traded funds. These vehicles that just invest in the stock market basically where the fees are a lot lower. You're right how do private equity fees and Hedge Fund fees compare to the fees charged by say a mutual fund. The average for mutual funds and exchange traded funds is zero zero point four eight percent. That's a lot less than two so much less okay so mary if these other vehicles charge so much less and it's not clear that hedge funds private equity firms in the future are going to always be able to justify the higher fees that they charge. Why would pension funds or anybody the L.'s put their money into hedge funds and private equity firms in the first place. It's mostly for diversification so if you think that the stock market is really expensive expensive right now and the bond market is really expensive right now and you're kind of anxious and you think that maybe things are going to go down. It's really good to have something that's different from just two long mutual fund that is betting on the stock market and betting on the bond market with how much water goes down. You want something that can bet using other things that aren't accessible to those regular alert vehicles so for a hedge fund that means they can short things they can bet against things for private equity that means they buy a company and put it in a cabinet tinker with it and make it better and then like seven seven years they'll trot the company back out and it's better and more expensive but you're not going to experience the fluctuations of the market which might just be like down thirty percent like you don't have to deal with that. You'll just bypass. I pass that entirely I gotta say it's interesting to me that there was a standardized to in twenty feet structure in the first place because I would just assume that if a hedge fund and has really talented managers and does a great job of investing money on behalf of its investors that hedge fund would be able to charge more than two in twenty. Wani and hedge funds at aren't as good or less experience would have to charge less wiser more variety in the fee structures. There's actually you hit on something interesting. The two and twenty legend kind of came to be in the dark ages of hedge funds. What are now considered the grandfathers of the industry were pioneering it and generating crazy returns doing really really well along the right like the seventies eighties right around there exactly so since then you know with any market when it becomes very popular a lot of people enter it? Maybe some of those people or less talented the performance deteriorates so as a result of these kind of other people joining that are less talented. They can't charge as much. They're not as good so today there or is this great dispersion between fee structure. If your past performance is stellar you can still charge two and twenty in fact. You can charge a lot lot more because investors are more than willing to pay it. They want that performance and they want your specific talents to generate it and then there are other hedge funds that just aren't the same amount of talented and they just can't charge as much to twenty then it's fair to think of it as more of an average right is representative of any Hedge Fund that you put your money into. It's a colloquialism that functionally it represents the industry but but it's not actually true thanks thank you this episode of the indicator was produced by Rachel Cohn special shout out to Rachel by the way she's been with us for the last couple of months and will soon be starting new rule reply all this amazing podcasts that we all love She's been a total rockstar forest. Thanks for everything Rachel this. This episode was also fact checked by Nadia Lewis and edited by Paddy. Hirsch indicator is a production of N._P._R.

Hedge Fund Mary Child Cardiff Garcia N. P. Google Rachel Cohn Baron Asia United Kingdom Stephen Murdoch Cambridge Quin NPR Hirsch representative Nadia Lewis
The R-Word

The Indicator from Planet Money

09:21 min | 2 years ago

The R-Word

"You're listening to n._p._r. Cardiff indicator from planet money and joined once again by daniel kurt slaven n._p._r. Politics correspondent and yell what's going on. Are you panicking over for what like what what's the economy oh that there's a lot of things panicking over especially because you've just gotten back from the campaign trail. Yeah i mean i know i was more saying that i haven't seen the new fast and furious movie but that is worth panic over actually <hes> but anyway i'm a little worried about our listeners right now because our inbox is blowing up up with people worried that there might be a recession on the way right now and a lot of this had to do with the events of last week when the stock market was going down then it was going up. It was very tumultuous. Other countries were having real economic troubles that might feedback to us. People were kind of freaking out a little bit and aside from that. I don't know if have you heard cardiff. Another part of the yield curve inverted i had her was some news yeah and people who have been listening to the show happen to know that an inverted yield curve when it lasts it has predicted all seven of the last recession so i know i mean if if people are freaking out i personally blame you my fault yup. It's a that's all you. You heard it here. First america a fair point and actually that's a good reason to do this. Show which is to clarify a simple point. Yes i am utterly fascinated fascinated by the yield curve and yes an inverted yield curve has an excellent recent track record of predicting recessions but that does not guarantee that the track record will continue. Can you forever so today on the show an attempt to step back a little tell you wide there are reasons to be nervous about the economy but also to share a few reasons why it's just not clear where it's headed and how listeners can prepare for any outcome good or bad. You're going to get a warm podcast. Hug oil like that yeah yeah ah support for this podcast and the following message come from google domains google domains helps make your business a reality with the tools and partners for building your website like a pro and premium security features and included for free make it happen at domains dot google slash n._p._r. Okay nervous listener number one. Here's the question hi this is leslie hyman from san antonio texas and i have a question why is the inverted yield curve a predictor of a recession. Isn't it equally likely to be a self fulfilling situation where some investors are worried about the future economy and others see the inverted yield curve and start a sell off which causes a bigger sell off which leads to a recession. That's such a good question so to be totally clear just because something something like the yield curve or other indicators have a good track record doesn't mean it's always going to apply. We just think the tracker so good that you shouldn't be dismissive of it right absolutely absolutely now. We should also add though like now that we have said hey everybody calm down. There are still a few reasons to be nervous. I mean there are still some things happening like for example in other countries like germany and china. There are some troubling signs the yes their economies are slowing down and by the way our economy is very much linked linked to other large developed economies so we can't ignore that other things happening too though right so economic growth in the u._s. is slowing down. Yes the amount of jobs created every month this year. It's about one hundred and sixty something thousand right that is fewer than last year solid but fewer solid yet fewer fewer so we have to pay attention to these things right and yes. We should not get complacent but at the same time you know what the american consumer still still spending money and not because they've stopped saving money right. They're still saving money. It's just that a lot. More people are getting jobs and so there's more money to be spent that is a healthy sign and that is still happening so we don't know what's going to happen. We just know what has happened to this point. Okay okay hold on. We haven't really answered leslie question in here because she's asking true like does talking about the inverted yield curve as a predictor of recession itself increase. The chance of a recession recession possibly is the answer. Is it that if enough people freak out about it and talk about it and go on about it then maybe it causes me to spend less money next month on clothes or food or whatever which in its own tiny tiny tiny way maybe contributes to a slowdown it. Could i mean it's absolutely absolutely the case that the economy is partly about psychology not totally but partly which is also good reason that out of guilt. We're doing this episode episode so that people don't associate us with saying oh for sure recessions alright way. We don't think that's the case we just don't know right right and this gets at another another important point which is if if if if if we have another recession coming. It isn't necessarily going to be like the last one which did reflect something that was fundamentally fundamentally wrong in the economy. It doesn't necessarily mean the next as a financial crisis. Yes <hes> yes exactly. It doesn't mean that this recession is going to be as long or as deep as the last one which which was really bad as you all remember yeah and i'll end are answered this question and actually positive note which is that yeah okay it could be. He's self-fulfilling in the wrong direction but you can also get the reverse result which is that policymakers are now paying attention to the inverted yield curve and they might move move more aggressively to stop a recession from coming than they had in the past for example the federal reserve has already started lowering interest rates and the president and maybe some other people in congress are at least contemplating another tax cuts to boost the economy as well hard to say that any of that's going to happen but they're talking about got it so policymakers might move shirt okay second question hi. This is nicole from antioch illinois. I was hit hard by the last recession and now now the yield curve has inverted again. I'm wondering how someone like me could prepare for another recession. So what you i wanna do is a bank run. You've got to go one of the nearest brand jordan. She's joking for see the answer to question one but second of all it is a good question and even if we we are in the best of times even if the economy is poised to grow a lot. There's still some wisdom in being prepared for the worst situation right sure yes. I mean recessions didn't happen. It's just a sort of fundamental thing that happens in our economy business cycles. Go up and down but i mean the thing about it is is that preparing for another recession session to me. Looks awful lot like what you might wanna do anyway. I mean there's a reason that you are often counseled by personal finance people to have you know three to six months or however many months of emergency savings for example like you can weather the storm if you lose your job or something like that right whether that job job losses created by a recession or not i mean it's just so you can deal with whatever bumps might be in your particular road. I mean similarly. You know there you you have a bunch of of money saved up in your 4._0._1._k. It's a good idea to not withdraw it. Don't panic. Sell all your stuff yes. It's a good idea with your 4._0._1._k. To just set it and forget it. I mean the the other thing is also that you know our listeners asking about preparing for another recession. We've talked a little bit about job loss here. I guess one thing you could do. You know if you are worried. Ah about your job for whatever reason make yourself indispensable. It's possible for you to go out and get some new skills to make sure your resume is up to date. Get some new certifications that sort of thing. It's the sort of thing where you can really point to it to your bosses or whoever and say yes. You really need me here. Yeah that's great advice. Never a bad idea to have a plan. Keep that resume updated. Keep looking around. Keep your contacts updated and i'll add a couple more things first. We recognize that. It's just not always possible for families to take these precautionary measures. I mean if you're already struggling to pay rent or to feed your kids. It's not gonna be easy to save save for a long emergency. We have to recognize that and that also gets us to our final suggestion and it's not the kind of thing that has an immediate payoff but it's still not a terrible idea the <hes> which is you can call your local political representatives and you can make it clear to them that you care about the business cycle that you want policymakers here's locally and in congress and the presidency who are gonna keep the economy going who believe in really strong vigorous economic expansion expansion and who make that a priority and you can make it your priority okay so if you want the right policymakers in place like get involved. That's cool to politics and economics are actually related. This is why you're here. Daniel i get in this episode of the indicator was produced by rachel cohn fact check by emily lang edited by patty hearst indicators a production of n._p._r.

daniel kurt slaven leslie hyman congress google Cardiff america germany texas rachel cohn nicole san antonio china president patty hearst antioch illinois emily lang
Finance Friday With Mary, Volume 3: Snack-Sized Questions

The Indicator from Planet Money

09:37 min | 2 years ago

Finance Friday With Mary, Volume 3: Snack-Sized Questions

"You're listening to n._p._r. Everyone this is the indicator from planet money. I'm cardiff garcia and this is finance fridays with mary our third installment of these episodes in which my friend mary childs the finance reporter at barons. Answers are listener questions about all things to do with the financial sector mary welcome back hi thank you so. This is a snack sized episode yet right or three questions three bite-sized answers these questions that we thought were very good questions warranted wanted answering but the answers weren't long enough to be like a whole segment and so we're just going to snack on just gonna get too quick low answers. I think it's just because you're so smart. You're able to dispatch spach. These questions really quick. I'm up at that and i'm like just just bring like yeah. I'll be honest. That made me a little hungry. Though i have a york peppermint patty my bag. Do you need it. Okay i do actually i needed during the ad break and when we come out of the ad break i will be satiated and mary will start answering questions from our listeners <music>. This message comes from n._p._r. Sponsor squarespace squarespace is the all in in one platform to build an online presence and run your business create your company's website using customizable layouts along with features including ecommerce functionality. The and mobile editing and squarespace offers built in search engine optimization go to squarespace dot com slash n._p._r. For a free trial and when you're ready to launch use the offer code n._p._r. To save ten percent off your first purchase of a website or domain don't touch it. You ate the whole thing. Well not just that with me. Oh so this is the episode where cardiff cardiff steals the snacks. Yes delicious okay listener questions for mary. Let's go hello this. Is tom dickson from eagan. Minnesota your finance fridays. He's got me wondering about a question why are public companies so fixated on their share prices are they actually out in the marketplace selling additional shares to generate cash so we should actually break down the question a little bit so public companies. These are companies that trade on stock exchanges so you can buy their shares and when a company's shares go up. It's obviously good if you own those shares but also it might tempt the company to issue new shares. They can get a lot of money from it right right so that's the fundamental purpose here is a company company wants to sell news slices of ownership in itself so it can go fund doing something awesome like buying another company or pouring money into research and development building a new plant any any of these things that requires money they can go out and sell more shares and new shares that did not exist before correct so they had a pool of <unk> shares outstanding and there's going to add more to the pool which means if you're an existing shareholder. You're kind of on the losing end of this because suddenly the party that you attended. It was just like a hundred. Have you got a lot more crowded yeah so now you have to split your ownership of the company with more people which means your little slice of the ownership is worth a little bit less basic economics. Thanks there's more supply okay and tom's question was about the idea that once a company's shares go up that company will be more likely to issue more shares because it can raise money. How often does that happen. These follow on share offerings so last year american companies raised one hundred and forty three billion dollars in these types of follow on offering a lot which is kind of insane because especially you compare that with initial public offerings where a company isn't publicly go public and that only raised fifty four billion dollars last year. It was actually a lot more and hardly anybody talks about it. I think we just get so excited about i._p._o.'s because it's like a it's like fresh meat. Hey i don't know those those figures are according to p. w._c. Great answer mary. Thank you so much. I did a lot of work on that diligence. Next question is from listener chris. This is chris from santa clara california. Do you think the people in finance are inclined to fall victim to a self serving bias leaves them to think their success is due to their own on hard work when there's more due to external factors like luck. What do you think yes yes. They are inclined to fall to self serving bias where they attribute their success to their brilliant genius and hard work and not to other things like circumstances or look. I think there are a lot of people that don't see perhaps all of the very very many things that went into their own successes and that's a normal human thing. I think we all do that yeah. Of course this happens to people in the financial sector just because they are people this is something that happens to all of us. We tend to like look at people out in the world and we say well their success is a result of like lock and all these other things but for us we like to believe it's our own talent and genius right and there's this debate in the market as to whether confidence can actually help or hurt you because sometimes you do have to really fully believe in yourself and the trait that you're putting on in the market when no one else will sometimes you have a time you buy a stock and everybody hates. It and it's going down. You know this thing's going to go up right and you can be wrong for a long time. Hi and you might be losing money for a long time like for example there was this hedge fund manager michael berry who before the financial crisis knew that housing was doomed and this is actually all in michael lewis's book the big <unk> short <hes> he was super sure he knew it he put on all these bets but he was really early and housing kept going up and he was like just sitting there short just betting against it waiting down right. It looks really bad for a long time and it's not clear at that point you know the thing hasn't happened yet so he could just be wrong and have lost a ton of money of course as we no no. No the housing market did indeed fall made a ton of money. He was proven super correct but that confidence served him really really well to get through the kind of tough period where the market was going against him right but not everybody's michael berry to be clear for every real michael berry actual hetero manager with an insight actual traitor who knows something and just really confident in god it it thoroughly ninety nine to a million people who really think they got it but don't actually because quite a range i find very few people who are michael berry a lotta. A lot of people put on bats and everybody goes against them and there's a good reason and get some those people just gonna end up losing their money right there just wrong. It turns out okay. Next question comes from listener darren who did not send us his audio file so producer. Rachel cohn is gonna read it in her best darren voice. I guess why not i. It's it's me darren. I wanna know how shareholders benefit from share buybacks. Why would shareholders prefer an action that could increase stock prices but is not guaranteed to a dividend that is real cash in a shareholders hand. Thank you okay first of all. We should explain what a share buyback actually is mary. Oh that's one company buys back some of its shares and the way this works is at a company might have a bunch of cash right and they're not sure what to do with it. I'm not sure what to do with the and they see that in the market. The shares of that company are underpriced. They think the managers of the company are like wait a minute why are shares trading waiting for so cheap we should use the company's own cash to buy back those shares that's right and so they go into the market and they just kind of zip up their own shares which has the effect of reducing kind of overall number of outstanding shares which means that the ones out there that are left are worth mortgage. You're still kind of owning that same slice of the company because is you end up owning like a bigger piece of the company. If you keep your shares after those other shares are hoover up correct okay so if you own shares of a company and the company does a share <unk> buyback the value of your shares will go up so yeah the mary the second part of listener darren's question is why if you are a shareholder. Would you prefer that a company do a share sure buyback instead of just offering dividend which is when a company essentially just gives cash directly to shareholders so to be clear. The idea here is that this company has is all this extra cash but rather than buying shares back why not just give out that cash so effectively in some ways it ends up being the same thing whereas dividend do you have the stock and then you have some cash but with a buyback you have the stock that just became more valuable. There is a tax difference as the shareholder receiving a dividend. That's just cash anytime. You just get cash like that. That gets taxed so that same year you get the dividend you gotta pay taxes money coming into your pocket. The government wants them in the case of share buybacks. Though oh the stock just went up and you can kinda just hang on and not have to sell it and you only have to pay taxes on that now higher stock when you actually sell it okay so you can and basically hold onto it and avoid paying taxes for a while yes although you are taking the chance that the stock might plummet at some point so it's a little bit less in your pocket yeah. It's more risky mhm mary. Thanks so much for having a pleasure i._o._u. Peppermint patty go. I'm gonna go by you that right. Now this episode of the indicator it was produced by richard cohn fact check by emily lang and edited by patty kirsch indicators of production of n._p._r. Um i have a request. You know that part when i'm fiddling with my bad trying to find my peppermint patty and i'm like we have to split it did you. I'm not sure you said that rachel. Oh producer rachel. Can you be the tiebreaker here. Actually i went back through the audio because i wasn't sure myself what it is. They're mary says it do.

mary childs michael berry Rachel cohn darren squarespace tom dickson producer Minnesota cardiff garcia reporter richard cohn york chris i._p._o. eagan fund manager santa clara california
The Gender Gap Series: Working Women- Why the U.S. is Behind

The Indicator from Planet Money

09:55 min | 2 years ago

The Gender Gap Series: Working Women- Why the U.S. is Behind

"You're listening to n._p._r. Cardiff here. We are back with another installment of our week long series on the gender gap. This is the second episode in our series in which we are looking at the way gender influences price and pay in the economy and today we are looking at the trend of workforce participation the patient by women in the u._s. Economy stick around for an update at the end of the show back in january. The indicator was in atlanta for the big annual conference. That's put on by the american economic association. This is one of the big biggest meetings of the year for economists animists the no not one the this is it just in case there was any ambiguity there were thirteen thousand economists there you could spot the conference goers because they were all rushing around in their suits and they had name tags around their necks unlike these red lanyard and also kind of spot them because they were mostly. They're mostly men. They were mostly dudes. Economics has been an overwhelmingly male occupation for a long time. Francine blau is a female economist at cornell. I got my p._h._d. In the one thousand nine hundred seventies and at that time i think women were getting being about seven percent of economics and now it's way up there at thirty five percent or something like that. How many years have you been coming to this conference over forty years yeah. Has it changed yes. Yes i mean it looks so much more female yeah so i guess it's your standard of reference but you know sometimes now there are lines in the female restrooms lines minds for the ladies room in economic indicator all its own sign of progress source. This is the indicator. I'm stacey vanik smith and i'm garcia this so you're a lot of the discussions at the conference were about gender and about the metoo movement within economics but francine has been studying gender and economics for decades. She's he's done. Groundbreaking work on women in the workplace and on the gender pay gap francine says there's this particular economic indicator. That's been on her mind lately. It's the female labor labor participation rate for instance. It's been kind of stuck for years now and after decades of leading the pack the u._s. has started falling behind. This message comes from n._p._r. Sponsor fund rise innovating the way people can invest in real estate fund rise makes makes it simple to build a portfolio of high quality real estate affordably visit fund rise dot com slash built and get your first six months of advisory fees waived achieved support also comes from google domains google domains helps make your business idea a reality with the tools and partners for building your website like a pro pro and premium security features included for free make it happen at domains dot google slash n._p._r. The labor force participation asian rate. That is the percentage of u._s. Adults within a given age group who either have a job or who don't have a job but are looking for one so you can break down the labor force participation rate in a bunch of ways including by gender and that is what francine blau has been doing so if you take all the women in the u._s. Ages twenty five to fifty four the percentage percentage of them who are in the labor force is it's seventy five percent. That is today's indicator about seventy. Five percent of women ages. Twenty five to fifty four in the u._s. Are in the labor force. The comparable figure for men would be about ninety percent so ninety percent of men aged. Twenty five to fifty four are in the labor. Perforce seventy-five percent does represent a huge gain by the way back in the nineteen seventies. Fewer than half of women were in labor force that number climbs steadily up in up for decades until about the year two thousand but after that it kinda flattened off for a while. We've stopped <hes> progressing in the u._s. While other countries countries have continued to see rising <hes> female labor force participation and the u._s. used to have one of the highest female labor force participation the patient rates and now we have one of the lower ones of the advanced economies denmark u._k. Canada australia all have higher female labor participation patient rates than the u._s. in fact so do china and thailand which lead us to the question why what is going on why is labor force participation rate for women in the u._s. so much lower than it is for men well. There's a lot of reasons but i'd say the major reason is probably the family family more than eighty percent of women will become mothers at some point in their lives and when they do they hit a bunch of different obstacles in the workforce the first optical being employers discriminate against mothers. It was a fascinating experiment where they sent resumes to employers and they indicated indicated in the resume that a woman was apparent by saying her extra activity was p._t._a. Whereas they suggested <hes> the woman was not apparent by i saying <hes> her extra activity was block association neighborhood association so these were just <hes> fake resumes that were equally requalify people that the ones that the employers believe were mom's got got lower call backs an francine says this did not happen for men and in fact meant and to see their salaries go up after they have children whereas women tend to see their pay fall relative to women who don't have children so the result is that it's harder for mothers to get hired but once they are hired or if they already have a job when they have a child they face a different kind of discrimination. Women with kids are less is likely to be promoted or to get signed important projects. This is especially true for women with advanced degrees in higher paying professions like finance and then there's just a pure home economics of it. All the other thing is childcare childcare. Francine says the u._s. is one of the only developed countries that does not have free care for young children as a result women will often stay out of the workforce to care for their child also mentioned to get paid more than women even for the same job so if there's a man and a woman making this decision decision together it often makes more economic sense for the women to stay home while the man works then add to that the fact that the woman is likely to be held back from promotions and bonuses own is's when she does go back to work and you have a system where a lot of women just choose to stay out of the workforce entirely francine says that to change this the u._s. could try doing what other developed countries have done. Countries like france sweden germany in the u._k. And offer state-funded care for young children. I think these initiatives initiatives to provide free public preschool care would be very intriguing so i mean i care hear about this issue because i am a woman but is this an important issue economically. We talk a lot about economic growth but one way we grow oh is really by bringing more people into the paid labor force where they produce items that are counted in gross national product also if he working within the home producing things of value that aren't counted so that there's a little trade off there but basically economic growth is furthered <unk> by the entry of people into the labor force but i think the most fundamental thing is by not fully utilizing all the talents of a major segment of our population. We're not fully realizing our efficiency and productivity francine says this is especially really true in fields where there aren't many women in the first place like tech and economics where a whole part of the population that could be contributing isn't at least not on the level that it could could be the women who preceded me who i look up to and i think she was entered the field in the nineteen fifties and she said her husband dropped opt often an an american economic association meetings and he said karun this is this is five thousand men and you so. It's kind of hard to be when i was first coming in. It was very hard for me. I was very small minority and it just is not hard for me now <hes> because there are just a lot more women than than there used to be and it looks like there will be more women ages. Twenty five to thirty four have seen a big jump in labor force participation in the last couple of years. Young men no have actually seen a decline during that period we recently reached out to francine to see if she had any updates for us and she told us there haven't been any major changes to the number of women entering the u._s. workforce since january but there have been some important updates to the way the field economics and specifically the american economics association is attracting women at the end of june ben bernanke who was then the president of the e._a. E-eh sent a letter to members announcing several policies designed to crack down on gender discrimination in the economics discipline. There's a new harassment and discrimination policy and a new task force. It's reaching out to women in high school and college who might be good candidates to enter the field of economics if these policies with their intended to perhaps the next eight conference francine will experience even longer lines for the women's room matters. That is the indicator of choice. It's true. Today's episode was produced by rachel cohn. The original episode was was produced by constanza guy. Ardo editor is paddy hirsch and the indicator is a production of n._p._r.

Francine blau american economics association Cardiff atlanta google rachel cohn cornell paddy hirsch harassment Canada Perforce stacey vanik smith denmark editor france ben bernanke china
122 Author Susan Kaplan Carlton

What Book Hooked You?

27:20 min | 2 years ago

122 Author Susan Kaplan Carlton

"This is what book you? I'm Brock Shelley and thanks for listening. Well, our episode this week. I have Susan Kaplan Carlton who newest book in the neighborhood of true comes out on April, the ninth and in this episode. We talk about her career as a writer, and what went into this book would inspired this book. So listening. So Susan what book hooked you? When I was growing up all the young adult novels that had choose characters seemed to be about like, very important Jewish issue. Very heavy. The holocaust, which of course, we all need to read about need to keep front of mind the trauma of immigration, which are also important stories, but I didn't feel like I probably felt the most so much or at least I wanted a break from some of that. And so for me, it was like thank God for Judy Blume and loved her books normal American Jewish kids doing with more model in mice. Are you there? God, it's me Margaret, so honest about periods, and bras and boys, and like many people I loved forever, which was so honest about sex. So so definitely the Judy Blume cannon and other kind of. Of different lead that really has stayed with me Harriet the spy. Because she's a bit of an outsider, and because she's a writer, and she's observational security, turn up book everywhere. She goes and scribble things down even though sometimes that's not sticking with you. Feel like she would be like just great the Twitter. It was the right now. And I'm not that. She was an observer that the way she out the world was serving people people she spied on granted. But also have friends who are also a feathers too. So I really really related to hair. And so they wanted very much to be Harriet into have tomato sandwiches for lunch that and so as a kid as you're reading these books where you always trying to were you always seeming to gravitate towards books that you could sort of, you know, find yourself in or relate to some way, you know, you weren't more you weren't into SCI fi adventure any type of those things. It was more like T our girl protagonists and just the adventures that she might have and just away that you kind of examined maybe your own life or kind of see the world. And related to someone that may be going through some listen mo- things that you might be as a kid. Interesting hemp thought about it. But the way you phrase it, I think that it's true. I am not as drawn to fantasy or to Fifi. I feel like I don't appreciate it as much as I appreciate just like a really detailed fresh feeling neurotic contemporary. That's more my lane. And I think I was really drawn to realistic fiction didn't have to necessarily be contemporary, but realistic that seems to be where I found like I saw myself in the page. And so you know, that was more kind of when you may be as a as a kid and preteen Judy Blume, Harry this by so when you got into high school because high school, you know, there's more homework there may be more social aspect or activities involved were books. Do you? Remember books still being important or were there memorable books from when you were a young at all? I think that stayed a reader even when the reading was assigned reading I generally liked it in high school. I got really into interested in journalism, and I was on the paper and on the yearbook my state interested in journalism. So I think I was still drawn to things that were like up divisional. I have a lot of appreciation for nonfiction when I lived in kind of creative nonfiction when I lived in high school, but but these these are interesting questions, I hadn't really considered that. I think that my taste my taste grew up. But it kind of phases thing. And so at this time are may was it around this time because you kind of mentioned the journalism aspect that. You really got more focus maybe on your writing. Yeah. I think I can to writing as a journalist I and I definitely did I worked in Taiwan time, and I liked writing other people schooling. And it took a while for me to figure out that I wanted to write my own. I was I was and I think actually being journalist is really good training for novelist, except, you know, turning up the later on the observational and sort of development era for what's interesting in that kind of stuff. So I I was one of those kids who knew, but she always wanted to be a writer of books and kept meticulous diaries. And I was more someone to had given up. My can petrified to open because going would write something that will be there forever. So so I. Have to kind of feel my way into the into novels. And so when then did it change for you that, you know, you're still got that journalistic I, and that's when what you were writing. But when did it come to the point what was that realization that maybe wanted to try your hand at writing fiction? Actually from me. The magazine was working when out of business, and so that was a turning point. We're headed to what I wanted to do mocks and our family had actually just moved from Maine to Atlanta. And I found that I was really missing. And so I decided to write a novel that was set in Maine. It was sort of a way to not the novel but going to talk about today, but it was a way to serve like my Valentine this place. I was missing. And then I kinda family see if I can think there was this. You know, you said you, you know, journalism has helped you a lot just kind of finding the story and as a writer than do you find that just technically you're kind of discipline about hell, you know, with writing that you journalism, you have these deadlines that, you know, you need to meet does that help you then when it comes to your fiction writing your novel writing the. Discipline of of having novels in having to have sort of more of a work ethic by trade help you when it comes to hear creative writing. Well, I think that wants my hope because because you know, a journalist generally worked under a tight deadline, even the monthly magazine journalist for to what I was mostly even still month come around pretty quickly, and you'd have to predict you're three thousand one piece or whatever. But I just and I am disciplined. I do I write every day. But I'm just low. I it turns out I'm just a flow fiction writer on I feel like each time each morning when I'll sit down and write come. Think about how to write what forming we think I could ever do this writing? So so the although the discipline is transferable I have not yet cracked the code of how to be as a fishing of fiction writer of I as I am a nonfiction writer. I'm waiting I'm hoping. But it hasn't happened to me. And so when you started writing these stories. Did you write them? With an audience in mind, an audience being a young person a teenage towards an oral did kind of the story. Come and then you were kind of thinking, you know, who this audience would be for this book. I worked in women's magazines. And and my favorite job was at a magazine. Now now in the dust pile of magazines called Mademoiselle, and it it's written for a young woman at the time. It was like written for college age women, and I just felt like that was like that was the reader, I always had in mind. I feel like I'm still that reader myself Miller some point have arrested development now in my teens. So I feel like that voices is the voice in my head. And that's always been the voice. I wanted to point your latest book in the neighborhood of true comes out on April, the ninth. So let's start talking about this book and tell me what what it's about the story of it's historical. It's a story of love and loyalty and fitting in and speaking out, my character Ruth room moves in the summer of nineteen fifty eight she lives in New York City to Atlanta and finds herself suddenly in this land of sweet pea deputy dances and the q-quick plan. And so to get in with the popular group and her. Cool. She decides to keep the fact that she's Jewish to herself. She's just not gonna mention that. And soon she's falling in love falling in love with a foreign phone with life in the foul on them love with the country club. And and if he keeps this secret until one night when her sort of two worlds, come into conflict, and she has to decide if she is gonna stand up and leave everything she must about her view. You. So what was the inspiration then for in the neighborhood of true? Person. But the story is sort of have a personal connection to it. You know, even though I wasn't here. I'm in the fiftieth, but our family moved to Atlanta in the early two thousand and the novel is sort of inspired by an event that really happened in Atlanta in nineteen fifty eight when I the largest synagogue in in the city, and we are family members at the synagogue, and we got the like sh- Salaam yellow is as New England worth each the fast. And then I discovered about this hate crime. But have changed the congregation really change of city that when and our daughter attended Sunday school in one of the press rooms that had been decades before and now one of our daughters lives insurance, go for gin, where of course, unfortunately, that, you know. You know, anti-semitism is so church and so horrifying, and so for me, I feel like you can draw a line from Atlanta in nineteen fifty concern with Phil twenty teen. You know, because this story is based on you know, historical events in store time and also is personal to you was this. What was the difficulty for you in in writing this? What was the challenge for you? I just find it right away. I was gonna super fiction wise it, but I didn't want it to be, you know, a nonfiction account, which is interesting a half is non for Tim background. But I really wanted just to take this this. I think what I heard about what had happened in the fifty years later. It's so so. Painful to me, and it upset me so much that I wanted to find a way to kind of capture that emotion, and it seemed like the best way to do that with fiction wise, it so I think the challenge was being true with Syria of what happened, and I did do a lot of interviews with people who member including the rabbi's wife is very much alive at age ninety five now too much hear what that day was like for them. But then I also wanted to make sure that I made it, you know, a full fledged full-blooded novel. And so I I guess balancing this too is always on my mind. And. When you are writing. This story are ones like it. Because you kind of mentioned there at the beginning of you know, Jewish stories are stories where the main character is Jewish. How important is it that when you're writing you're able to give maybe those characters those examples those voices to to young people today that that you had trouble finding when you were their age. Oh, that's interesting. I think. In this book. I definitely set out to write a Jewish character for sure that was like the heart of the novel in my other books the characters sort of just so happen to be Jewish and kinda feel like kind of feel like that's how I am. Like, I just don't happen to be Jewish. But in in this book, I really wanted to front and center in the site. Dear of. Dining if you wanted to hide a piece of yourself really channel for I remember in college. I was dating this adorable preppy boy who sets me, and I didn't really even think too much about it. Something about me. But he said to me before you meet my grandfather, I just want you didn't know don't mention that you're Jewish and I thought about that in a while. But if I was writing this novel, I was remembering what that's out like to be tempted to hide part of yourself. So I think I think that idea of hiding what I had in mind more in case, she's hiding she's Jewish. But I think there are other parts of ourselves we sometimes are tempted to hide until I was interested in that idea or was falling. So deeply in love with a person or with a pray gut attempted to lose part of yourself. And what was it like in your process of writing this book? You know, while it's has historic roots with the setting in some of the events, the the real world that's going on around you and the news events that you mentioned Charlottesville, and there's been others. Of course, what was it like having to trying to tell this story and composed this story in a modern day time now where they're still very visible and real prejudice and just events that Meer the setting of a story, maybe. Just this shocking and upsetting. Frankly, you know, I kept thinking I'm getting the story of the happened sixty years ago, and yet it feels so contemporary. Which felt both. Interesting that it made it in a way feel modern. But of course, upsetting to think that sixty years later, we're still having a conversation. One thing that was interesting about the what happened in Atlanta is that there was sort of aftermath in in in Atlanta. What really happened with fifty six nine and my were put in the temple on a Sunday morning. Nobody was killed. But it. Caused a lot of damage and it shocked the city and in talking reading about it and in talking to people who member it. What came through with the city through came together. After that in a way that reprise people that the in it was white supremacist tour accused of the bombing. But never the intention was to tenor the city of part, but the people felt that in some ways that brought it together. And in fact, that the rabbis video turning mischievous, Bloomberg she wrote a memoir about the blast and titled it the bomb healed. So in a weird way. There was like this moment of hope that out of of violent act to come. You know, fellowship and friendship. So on the one hand, that's inspired her anything sixty years later. I'm sure someone Pittsburgh. And it seems like maybe not yet. Sure. On top of being a writer for not only the you know, books and journalism you also teach writing. And so when you're able to find time to read books that aren't your own what types of books, do you typically gravitate towards? I I have a huge teetering YouTube red pile of insurance all clever is do and there's all kinds of stuff in there. Definitely contemporary. Why a but also creative nonfiction I teach writing in in a college of communication, which is. Not fiction. You know, it's it's not kind of stuff. So I do read a lot of nonfiction style. And I love my strong defense action. And I've read. No, whatever novel is new. Catching my eye or whatever on your library half. Or you know, whatever. Yeah. Like like must writers though, I try to read a whole lot. And since you, right. Why? What are some why authors are books that? That have maybe over the years really have grabbed you an and really have stuck with you. So many. And I think like I started to think about writing wine that was the time of like the Megan McCafferty books, and I was in love with those would you know, kind of bad ass. Jessica, darling. Sloppy first second helping others. I love those. I'm John green fan. But I was particularly a fan of looking for Alaska that no I hadn't read anything like that. When I first runs out, and it seems so smart, and I remember all the talk about the great perhaps that seem to me just new fall in Rachel Cohn. Gingerbread those were all the books that I was for point over as I was thinking about doing my own writing for the first time, you know, since you mentioned you teach writing. Could you give maybe me or some listeners like what is your? What is your kind of main alcohol it an anthem that you try to drive home with your students when it comes to writing. And whether it's nonfiction, or maybe it would be fiction, or whatever case may be. What is you know, the common feedback are the the the major point that you're you find yourself commonly stressing to writers, and and maybe young developing writers that you might face. So this is like super pragmatic. I try to embrace when I call the beauty of the TK in in journalism, the capital letters, t and k are like a placeholder for something that has to come. And I don't know some weird thing about how it's intentionally misspelled. So that a copy editor will catch it. And I find for me and also for my students. The biggest problem to overcome is just staring at a link page and either being afraid to write from him that is gonna fence stupid or being a procrastinating or whatever. And so I just encourage a whole lot of peaking for the sometimes a student will turn in the beginning of peace, and then they'll be like three or four paragraphs that are just like TK potatoes exchange. Found information they know to be there, and it will come it. Just isn't there yet? And so that's maybe it sounds silly. But I think there is great freedom in just being able to know that something will having the faith that once will appear there and not being so wedded to I don't know how word count or even an assignment that you get yourself sort of in a net doubt spiral about it. Just do that. And then move on when and somehow magically the words will income it's like that. So a few questions as we want things down here. The first one being what is your favorite movie that's based on a book? I would say. Going back to my Chris school reading list. I would say the great Kathy in all its interational. No. And I I think a lot of very smart people think the gasman movies are terrible. But but another one from the seventies with Robert Redford, and the pharaoh and the more recent one hundred cap rail and carrying mall again. And I see that I see they're heavy handed or whatever. But I don't care. I love them love and left them. I think it's like the world of of the world and the booze and the lust and that toughness, I just I'm in for an in for that. And then the next question is there a book or a series that you're willing to admit you, either never read or never finished? Well, I would say it's a long list of never finished or or never finished yet. Maybe so right because it's like a fine line between never finished and. Could read. It's just like a bookmark. And so for me a lot of the classics. I like USC's, I don't I don't know. I don't know if I can. But even think of selling off of the sun also rises, which plenty of people. You know, it's short book. It's hemingway. It's not very hard. But I remember throwing that across the room in high school in being so upset about the violence in it. So that's one I'm not going to go back to you. And I think. I think sometimes I used to feel guilty about not finishing and throw. It was kind of a point of pride to make myself finish something like power through it and finish it even if I didn't like it. Now, I try to give a book like maybe a fair shot many seventy five pages or something before being like, this just isn't from me. And then finally, what is the last great book that you've read? So. About just a few weeks ago. I finished you'll miss me when I'm gone, by way, Chilin Solomon. And it's laid me it's the why that came out last year about. Twins fraternal twins show at age eighteen tape a genetic test to determine if one or both of them have Huntington's disease and disease that has devastated their family and run test positive on tests negative toll from the dole an alternating for personal point of view. And it's just eighteen maybe to fall if if all end, I just started, and she has a new book that came out this month. Call a year of maybe. And I'm you know, I'm a few pages in ready hooked. I actually did read you miss you when I'm gone. She did the podcast back last year. And yes, I agree. That is. Oh, yes. While Susan in the neighborhood of true comes out on April ninth. I want to thank you for sharing the story around this book, and and some aspects of your life, and I wish you and his book all the best. Thank you so much. It was really nice to talk to you. Thanks. And that wraps up this episode of what book do you? I wanna thank Susan Catherine Carleton for joining me, again, her book in the neighborhood of true is out on April the night, if you like this soda hope you'll check out some of our many other ones, and please tell a friend. I'm Brock Shelley. And until next time keep reading.

writer Atlanta Judy Blume Brock Shelley Susan Twitter Harriet Susan Kaplan Carlton holocaust Margaret country club Maine Syria monthly magazine Megan McCafferty YouTube Rachel Cohn Taiwan Alaska
What Separates Urgent Care And The ER? Your Bill.

The Indicator from Planet Money

09:57 min | 2 years ago

What Separates Urgent Care And The ER? Your Bill.

"N. P. R. There are currently about ten and a half thousand urgent care centers in the US and that number is about to grow by ten percent over the next few years that number comes from Kalorama a market research firm that looks at the medical industry and I am a big Fan of urgent cares because I go to the doctor way too much and they're very convenient but in case you don't know urgent care centers live in this kind of gray area. They fall somewhere between your doctor's office and an emergency room oftentimes. They're unlike storefronts like next to starbucks or a pet store. They've often got longer hours than your regular doctor open earlier. Stay open later and unlike at your doctor. You don't need an appointment. You could just walk in. I mean that is huge. Yes according to a recent study from dock more than seventy percent of Americans think it's easier go to the ER to get a doctor's appointment urgent. CARE centers have been around since the seventies. The last time we saw this much growth was after the affordable care act was passed and more people had insurance and they could pay for healthcare so all these new urgent care centers started opening but here is the mysterious thing about urgent in care. They offer some of the very same services. You get an e R but they're cheaper like so much cheaper. Yeah that is one of the reasons why a couple all of years ago when I had a nasty incident with a bike I wanted to ride the bike. The bike did not want to be ridden. I ended up with a broken wrist and when I was deciding where go I went to an urgent care center. Not The emergency room there was a doctor there she examined me she took an x ray and my bill was only seventy five dollars and you do not need a medical degree to know that is so much cheaper than if I'd gone to the Er yeah and compare that to the average emergency room visit which is and get ready for this more than two thousand two hundred dollars per visit that is thirteen hundred percent more than the average urgent care visit that data by the way comes from Kalorama and that is today's indicator thirteen hundred how how is it possible that an x ray can be so much cheaper or a doctor doctor is adopter right an X-ray by any other price. You know I'm Doris Rafi on I'm Sally Herships in for Stacy Vanik Smith today indicator why are all these urgent care centers opening and how is the treatment at Virgin Care so much cheaper than at an emergency room this message comes from NPR sponsor fund rise innovating the way people can invest in real estate fund rise makes it simple to build a portfolio of high quality real-estate estate affordably visit fund rise dot com slash built and get your first six months of advisory fees waived support also comes from Google Domains ogle domains helps make your business idea a reality with the tools and partners for building your website like a pro and premium security features included for free make it happen at domains dot google slash. NPR Okay in order to answer our questions why are so many urgent care centers opening and how are they so so much cheaper than at the Er we need to look at what urgent care centers are there this weird hybrid of Doctor's office and an emergency room but but they are neither instead they are their own distinct thing an urgent care despite the name. You're not coming in on stretcher. Bruce Carlson is with Colorado. He's the lead author author on a study about the urgent care industry and he says urgent cares therefore weird rashes the flu broken wrists and he says there's an important wouldn't distinction between urgent care centers and emergency rooms so the first thing you're going to do when you walk into an urgent carries is a range of business portion is arranged that payment this comes down to a federal law called 'em. Tala the emergency medical treatment and Labor Act was enacted in Nineteen eighty-six and it mandates that any entity or any emergency department that takes Medicare or Medicaid is required to see patients regardless of their ability to pay but a lot of urgent care centers. I don't have to follow this mandate that means they can turn patients away and patient access to healthcare. That's a big reason that urgent care centers are becoming so popular pillar often patients even when they have health insurance and can pay for medical care are still not able to get care when they need it. That's because we have a shortage of doctors and nurses. Alexi acce- Wagner teaches emergency medicine at Stanford Medical School and he knows a thing or two about this. He is an emergency room doctor himself. Most regular doctors aren't set up to take patients. It's four same day appointments. They have long wait times. They have large panels of patients that they need to see so you may have to wait one three five two weeks thanks to get an appointment for the ear infection or the sore throat and patience just aren't willing to wait that long so urgent care centers can be a popular option. According leading to the Urgent Care Association seventy percent of patients we less than twenty minutes at urgent care. I mean come on. That sounds amazing. Heavenly and doctors can be fans of care to the pay can be lower ben say at an emergency room but there's no real perks residents who need a side hustle to pay their bill else from medical school can pick up extra work on evenings and weekends and Ers are notorious for crazy long hours so doctors who WanNa have lives the families or just not working a nightmarish hell scape of sleep deprivation and caffeine might opt to work at an urgent care instead urgent care centers are also also popular with hospitals. They can open them off site to that when patients get sick are deciding where to go. They have other options before they resort to the ER and Alexi says hospitals they want the very sickest patients to go to the ER obviously but often that's not what really happens so you have patients who have a complaint they have pain in their throat and they think some of them very naturally the this is the scariest thing thing that's ever happened to them that. I'm GonNa die this cancer. My friend of a friend had the same complaint and I think I have the same thing but they don't have cancer. They are not dying but they do go to the emergency room and that is not what hospitals want so by opening urgent care. Centers hospitals are creating an alternative summer. They can steer those patients to get the care they need but at the same time keep the wrong patients from cluttering up emergency rooms. There's always a disconnect between the patient's understanding of the concern for how sick they actually are and then actually how sick they actually are to the doctor and that disconnect can sometimes make patients go to the wrong place to get care. Are you saying that we are not as sick as we think we Alexi says. Let's face it. Sometimes we're not maybe you're not. I am and if we're not when we're deciding where to go. We should know that we have the option to go to urgent care instead of the emergency room because it'll probably save us a lot of money big fat caveat out here Sally. You and I obviously are not doctors. We're not trying to tell you not to go to the hospital if you are experiencing a medical emergency and are in distress dial nine one one go to the emergency room. Don't take medical advice from podcasters so let's get back to economics where we are on firmer ground the same services like an x thread or a blood test could cost you more at the Er than at urgent care and this is a weird concept right because usually scale means efficiency lower costs. That's why would an X-ray the our costs more than the same x Ray a few miles away at an urgent care center. Alexi says large medical systems they may have signed a contract with the Nurses Union so they may be paying higher salaries. They may have to meet certain staffing ratios or have rates that have been pre negotiated with labs APPs which are charging them more bruce from Colorado says there's another reason that hospitals are more expensive. Some of it is just basically that emergency rooms in hospital. All systems are charging more for the service but they actually provide and have at the ready a much higher level of staff and a higher level of service. Can we just back up one second you mentioned. Did you say that one of the reasons ers charge more is because they can well. I think that's that is that has some factor in there. In other words there's limited competition for their only competition they have is with other emergency rooms so going to at the Er can be more expensive and as a patient. It's important to keep this in mind because if you make what Your Health Insurance Company decides is the wrong decision. You get slapped with a giant bill. Alexi says there is a new trend in health insurance insurers refusing to cover bills for emergency room visits they decide side are unnecessary and Lexi says more people have been signing up for high deductible health insurance plans that means they're paying more out of pocket so there's an incentive to shop around around for the lowest cost option. They don't WanNa get stuck with giant bills so urgent cares might be a good option and we may see more of them opening up in the future so How are you feeling. I'm feeling like a little under the weather while I'm feeling great and I'm not going to the doctor the ER or urgent care anytime sued I think I might go to the are an urgent care just to be safe. Had your vets. This episode was produced by Rachel Cohn edited by Paddy Hirsch. Nadia Lewis is our intern in fact checker and the indicator is a production of N._P._R.

Doctor Urgent Care Association Alexi Virgin Care starbucks Colorado US Sally Herships ER Bruce Carlson Kalorama N. P. R. NPR cluttering Rachel Cohn Kalorama
Finance Fridays With Mary, Volume 4: The Worry of Wall Street

The Indicator from Planet Money

08:55 min | 2 years ago

Finance Fridays With Mary, Volume 4: The Worry of Wall Street

"This is n._p._r. Everyone one this is indicated from planet money. I'm garcia and today is our next installment of finance fridays with mary when my friend mary childs barons finance reporter tells us all about banking wall street hedge funds the world of investing you name it mary welcome back. Thanks for having me samari. You brought us. This story about a trend that you you noticed was really picking up in the last couple of years. That's right as part of my job. I ended up interviewing a lot of financiers including some who happened to be billionaires and quite yes. I started noticing that a lot more of them are talking about income inequality and wealth inequality now more than the yuzu right and i thought that was kind of curious because these are really really the people that have one right their biggest beneficiaries of inequality so i started looking into why okay we're going to hear more about this trend of billionaires discussing inequality and how that affects the rest of us which happens to be the most of us right after the break. This message comes from n._p._r. Sponsor microsoft studying snow leopards helps us understand their ecosystem mm-hmm microsoft a i quickly and elisas thousands of remote camera images so researchers can understand these animals and their environment microsoft dot com slash a._i. Okay everybody. We've got married child's in the studio. Mary <hes> this trend of billionaire. Financier is increasingly talking about inequality is a trend that you've noticed from the last year or two but actually wanna start with the way that billionaire financiers used to talk about inequality so so they kind of didn't they would often say what really matters is that people with lower incomes or middle class incomes have opportunities to rise up to lift themselves selves up inequality was sort of an unfortunate byproduct of not having access to the system or capitalizing on that access often would say things like look. Here's what i did you too can do it and what about economic growth then they usually emphasize that instead of policy ideas that would reduce inequality directly their big fear about the policies that reduce inequality are aimed at reducing it is that they would actually impede economic growth which truly is the way in their opinion to change people's outcomes to change destinies and allow people to become rich and i'm very successful to have a different philosophical approach to dealing with inequality okay so that's how the us to discuss inequality. What about the last year or two what is happened. I've been what have you noticed so went to a conference in may in l._a. And it's this collection of the biggest names in finance and hedge funds private equity. You've got steve schwartzman ritzman. Who's you know blackstone. <hes> robert smith vista equity all these people that are very important in the world that i cover the milk conference named after the billionaire financier himself off michael milkin sherwin and only <hes> yeah and people were on stage and there was this unmistakable tone at the conference which i tell you i have never heard before of people talking talking about this urgency that we need to fix this problem then equality and we need to do it now and what they were saying was. They cited all these stats on the panels. They talked about the difference. You know different different <hes> outcomes for people the lack of access the lack of wealth <hes> the lack of access to capital markets was a big one that people didn't have the ability lead to make money on any money that they had these are things that they think about as emergencies ray dallaglio the founder of bridgewater which is one of the world's biggest hedge funds most accessible hedge funds. He's a billionaire and he is extremely concerned about this and he's calling it. He saying that if he were president he would declared a national emergency all right. Let's listen to a quick tape of what radio said earlier this year. We can call it a a wealth gap. You can call it an income gap. What i would do is recognize that this is a national emergency. It's a huge huge issue. I also want to note by the way that even though economists and other people can have reasonable disagreements and debates about just how much inequality matters they do largely agree that both income inequality and especially wealth inequality have gone up in recent decades so right now this is according to the saint louis fed the richest ten percent of households in the u._s. more than three quarters of all the wealth and the bottom fifty percent so that is half of american families they own just one percent of the wealth mary these trends that are driving this change in attitude amongst these billionaire financiers yes but it's not just these trends. There's also been a huge shift in public discourse and they're responding to that. I think that's been the more immediate catalyst they've seen that there's been this change in tone politically for example there are members of congress that are from the democratic socialist party and they are pushing for policies that these billionaires see as quite radical and frankly dangerous so these billionaires want to kind of offer their own solutions solutions that they think would reduce inequality but not fundamentally threatened the capitalist system that they think works pretty great overall yeah so in other words inequality has also been a bigger part the national conversation in the last decade and in the last few years it absolutely is i think the billionaires themselves have seen benefited from this rise in asset prices and they i mean assets like stocks going on. They own stops. They own real estate. They own art and the arthur owning every year. There's this ridiculous spate of like oh. Everything reached a new record. That's bananas. Everything shouldn't reach a new record every minute. They feel that they see that. They know that other people don't own a medical yanni they know that there's there they can kind of look in review mirror and see that everyone else is not benefiting and while that may be like oh good. I did a good thing like yay. I bought a smart art. They also a smart. They doing good job. Trademark that please externally this this new feeling that something's going to change and they probably wanna be ahead of that okay so they've noticed that that it's becoming a bigger part of the conversation. They're participating now in that conversation. What do they actually want to do about an equality right so rather than just talking about it today. Ah actively favor any policies that would actually address inequality. They have not organized on this. I know you're surprised there is some sort of disparate opinion nyon on what should be done so robert smith the private equity founder you might recognize his name because he recently forgave all of the student debt of an entire graduating class at morehouse college which was it's incredible in his own way of chipping away at this larger issue. He does a lot of other things as well. He also does a lot of work to offer internships and underserved communities in these kind of on ramps as he calls them. Radio and others have suggested kind of convening a bipartisan group very smart and or skilled people to talk about these issues and brainstorm. I hate eight to tell them that. That's the government that we tried but it sounds like from these examples. A lot of these billionaires are still recommending. Ideas is that would come from like individual initiative rather than from government solution yet. There are some that say that higher taxes. They should be paying higher taxes. Absolutely some people think that and some people are putting that forward but it's not the popular opinion among billionaires. There isn't appreciation that perhaps there's some levers that we should pull dally also suggest a lot of public private partnerships to do stuff off <hes>. It seems like there are a couple of different possible. Interpretations of this trend right one is it these billionaires trying to catch up to the public conversation and and show that they also care <hes> possibly as a way of stopping some of the more as they see radical policies that would come after their their own wealth right <hes> the more generous more charitable interpretation though is that they've been made aware of something that really matters if a trend that really matters that they may not have recognized was as important to people as it really is and so now that they've seen that they wanna talk about it. I actually think that that's true. I don't think you're being overly generous. I think there is an exposure question. Where if you're a billionaire you hang out with other billionaires. You're talking about like what jets better. You're not exposed to people that are struggling and having a hard our time as much as you know. Everyday people might be so. I went to a dinner with a billionaire the other day and he was like mary. How serious is the socialism thing. How seriously should i take take. It and i was kind of taken aback because i'm not really journalism but i'm not a huge expert on this and i was like oh i think you should. I think you should pay attention. I think i think it's real so that was actually early telling to me because there is things and i just think it did lack the culture a bit because they don't necessarily they're not in the mix roker mary charles thank you so much. Thank seen this episode of the indicator was produced by rachel cohn fact check by emily lang and edited by paddy. Hirsch indicator is a production of n._p._r.

robert smith microsoft founder mary childs garcia mary charles saint louis reporter steve schwartzman congress rachel cohn l._a socialist party president Hirsch michael milkin sherwin
Jobs Friday: Summer Slowdown Edition

The Indicator from Planet Money

08:58 min | 2 years ago

Jobs Friday: Summer Slowdown Edition

"Everyone. It's card. If this is the indicator from planet money, Stacy's traveling today. She'll be back on Monday. So for this episode, I'm joined by indicator, producer and social media savant. Constanza gherardo. Cocoa. Hello. Hi, gurdev. Happy dumps right? Your job title, right? Producer and social media savant. Of course. Yeah. Kogo this summer has in fact started summers when a lot of people slow down. They go to the beach. They work bit less. Except maybe for Americans. But most people work a bit less. And today, we have a summer, slowdown indicator for listeners, but it's kind of sad one. Yep. Today's indicator is seventy five thousand. That's how many jobs they Konami created in the month of may was not a great month now number. And it confirmed that the labor market really has slowed down this year, though, as usual, we at the indicator liked to look at these slightly longer term trends, but even then there are signs at labor market really is weakening. So today on the show is that something to worry about, or is that just normal, given that we are now ten years into the economic recovery, but I go, I think this is missing. Oh, yes. Definitely our listeners know it too from what I understand. We're trying out a new kind of sad kind of. Moderately disappointed in the jobs report air horn today. Okay, let's go to brain where we card if so actually just fried. He's one of my favorite episodes to produce. And I thought it was time for you to have something. So you ready? Have something yet. Here you go something. Yeah. All right. All right. Oh, it's an actual air horn an actual air. Really loud, this little tiny thing is really loud. Yes. Oh. It's the thought that counts. One was. Very bitter horn. I will never. Trevor. Support for this podcast and the following message come from fund rise, the future of real estate investing access private market real estate projects from high rises in DC to multifamily apartments in LA. Get your first three months of fees waived at fund rise dot com slash indicator. Okay. So again, this was not a great jobs report for the month of may. We wouldn't say there is a positive way to read it necessarily, but there's a negative way to read it. And then there's a slightly less negative way to read it. Yeah. So here's the bad news. Okay. So far this year, the US economy has created an average of one hundred sixty four thousand jobs per month, including last month's low number. That's not bad. But last year, the economy was creating two hundred twenty three thousand jobs per month. So that's quite a slowdown in job growth is not the only indicator that has slowed down. Maybe even more of a problem is that wages are growing more slowly than they were last year. This is a specially disappointing because everyone had hoped that as the labor market got stronger and companies had to compete more to find workers that companies would have to offer higher and higher salaries at a faster and faster pace. And for a while last year that was happening. Ng, but that progress seems to have stopped at least for now. So what's going on Cardiff? What explains the slowdown cocoa? You told me why are we so bombed the first job? So I of the summer exactly. Well, there are a few possibilities. The first is that the trade worst are starting to have an effect on jobs. Remember the US and China had been raising tariffs on each other. And now the US is threatening to raise tariffs on Mexico starting on Monday and terraced hurt American companies because they now have to pay more to import the components that they need to make their products. And companies also now, find it harder to sell their goods to other countries obviously, because those countries have raised terrorists on US goods. So how much is this hurt the job market? Well, our old friend, Martha MU who leads economic research, at the indeed hiring lab also could not join us in the studio today. Everybody's bailing on us today, summer's started cocoa Neier here grinding away. But Martha did Email some interesting data. She notes that the parts of the economy, most exposed to the trade wars are the sectors that make goods physical stuff like the manufacturing sector and those sectors are creating jobs at a much slower pace than they were last year. So the trade wars might be having some effect there, not for. Sure. But the data or at least consistent with that possibility the second possible recent that the labor market is lower down is that it's not clear. What the Federal Reserve will do next. The fed can give the kinda me a boost by lowering interest rates. But nobody knows if that will happen so far this year, the fed has been signaling that it wants to wait to see what happens in the economy before deciding what to do. So there has been a lot of uncertainty about what the fed will do. And it's possible that this uncertainty has also slowed down the economy. Yup. And the final possible. The reason for the slowdown in the labor market. That it's normal that it's expected that the economy has been expanding for ten years, and that enough, people have been hired already. So you would just expect the number of new people getting hired to slow down a little bit each month because there, just aren't that many people left to hire, plus the economy, got a temporary spark last year from the tax cuts that were passed at the end of twenty seventeen but that spark was always expected to fade, and maybe we're, we're experiencing now. Is that fading? And so the economy is just transitioned into a new phase. And we left out one final possibility that this is just a little blip, and everything will be fine that we didn't leave it out anymore. We're gonna be okay. So taking a little break. Yeah. Summer break. Because these kinds of slowdowns have happened several times in the last ten years, and then the economy, continued recovering, so maybe everything will turn out fine. Yup. And I think that means we can also close today's show, KoKo with the slightly less negative reading of today's jobs report. When be clear. This is not a positive reading report. Okay. But here it is the trend so far this year may not be good. But let's say that you were totally unaware of the trend and you could only take a snapshot of where the labor market is right now without seeing what happened before last month. Well, not case, the picture wouldn't be that bad, and what I mean, is it overall unemployment is still pretty low. There are still a lot of job openings and wages are still going up at a pace. That's. Yeah. Not great. But still decent now. I'm not saying that's the right interpretation of this jobs report. But if you're looking for a silver lining, that's kind of all I've got. So it's too early to know if things really are getting worse, or if the labor market is just getting a little break. Yep. Summer, siesta. Yeah. A summer staff, but we also want to note what you the listener thinks. So go to planet money's Instagram page and tell us what you think or the indicator on Twitter, we are at the indicator. Do that. You'll make cocoa very, very very, very happy. Finally, our friends on the planet, when he podcast last week, did a great episode of how workers gain more power when the economy gets closer to full employment, which at least before this new jobs report did seem to be happening that episode was hosted by our pal Kenny Malone and it's called quit threat. Go check it out. This episode of the indicator was produced by Rachel Cohn and fact, checked by Emily Wang indicator is a production of NPR. Human behaviour doesn't always make a ton of sense. At least on the surface, I said, what do mind if I give the dogs a little piece of cracker with some hot sauce on and without and see what they choose hidden brain a spicy podcast about science psychology. And why people do what they do. I'm so excited to hear what the, the funky new air horn is this study the summer air horn. It's going to be the best. That is not an Arab floor. What is that, that sounded like one of the passing passing by because the jobs month was the jobs report was good. I guess the air horn is stuck. Okay.

US Federal Reserve producer Stacy Konami Martha MU Kenny Malone Twitter Rachel Cohn Trevor LA Ng NPR Mexico Cardiff Emily Wang China
Listener Q&A, Policy Wonkout Edition

The Indicator from Planet Money

09:42 min | 2 years ago

Listener Q&A, Policy Wonkout Edition

"<music> this is n._p._r. Everyone it's card. If welcome to the indicator from planet money joined today by daniel kurt slaven from the politics says hello danielle hello. I love being here yeah. It's great to have you here. You're feeling i stacy vanik smith while she's away writing a book we miss stacy by the way and we solicited from our listeners a bunch of questions for you to answer while you're with us because you're a policy wonk a nerd if you will i don't. I don't like that. I feel like calling yourself. A nerd is like it's a humble brag is brag yeah. We're that drawn yeah john on okay they <hes> kirkland. Who does her job. Yes today that includes answering our listeners questions about policy because that's your thing ping that oh we've got three questions all about economic policy and its impacts coming right up after the break. This message comes from n._p._r. Sponsor microsoft studying snow leopards helps us understand their ecosystem microsoft a._i. Quickly analyzes sizes thousands of remote camera images so researchers can understand these animals and their environment microsoft dot com slash a._i. Okay our first question comes from listener matt blue. Hello indicator team. This is matt blue from chicago. I hear president trump and his administration claim a lot a lot of responsibility for much of positive economic news. Is there any way we can actually measure the economic impact of the three major economic policies. They've enacted tax tax cuts regulation cuts and tariffs then yeah. What do you think all right so we have a lot being asked here. We have three different parts. Let's start with tax cuts. Also known as the tax tax cuts and jobs act passed at the end of twenty seventeen. I remember yeah right. One of the best places to go is the congressional research service that put out a report just this last june soon or other at updated a report about tax cuts and jobs act. We're just going to call it the tax okay so <hes> that report said that look the tax cuts that were enacted whatever affects there were if any the report said we're pretty small at least in the first year so throughout calendar twenty eighteen last year this tax act would live boosted the economy a little bit or maybe but that effect was temporary according to this report right yeah and one of the things that report said was listened a lot of the tax cut was directed at businesses people who were higher income and those people are less likely to spend the money right because they have money to spend as if you give to someone with very little money they very much would spend it because they need that money much more salsa. According to the analysis i saw two this tax act was largely regressive in other words. It's benefit disproportionately to people with means already. I just wanna make also and to corporations. I wanna make the point here by the way that you can see this effect in savings rate which is still at about eight point something percent so it's still pretty high in other words if the goal was to get people to spend the money honey that might not have been what happened right. I mean that that's possible yeah. I mean long story short. Thus far despite the fact that president trump does claim claim a lot of great things of the tax act thus far at least last year. We didn't see anything huge. Come from it okay in terms of growth so that's the tact all right and some of this question also asked us about <hes> other economic policies lake tariffs right so we got a report from the congressional budget office and this report came out it just last week. It said that the tariffs that have been put in place thus far are projected to lower economic output. <hes> you know it's gonna make goods more expensive expensive. It's inspired retaliatory tariffs from other countries and makes businesses less certain there are all sorts of effects of them but the long story short is that they said that by i twenty twenty the tariffs will reduce the level. This is a quote of real u._s. g._d._p. By roughly point three percent which might sound abstract to our listeners but this is less abstract that it would also reduce average real household income by five hundred eighty dollars. That's a lot of actual money are not going to see because because i want to make a point here by the way because you cite the congressional research service and it's reports the congressional budget office and it's reports these are great resources obviously for you when me as economics reporters but these are publicly available and they are meant to provide nonpartisan analysis so our listeners can go and find these reports themselves right yes and they are written relatively plain language so people listening. I highly recommend if you want to learn more definitely go to the c._b._o. They are an awesome resource. Yes i love the c._b._o. They're great <hes> the final question here regulations that is a lot trickier because they're so many regulations in so many areas is <hes> and this administration yes has promised to cut regulations and they have but on any given regulation there can be so many different effects i for example zampa. There's been recent reporting on the trump administration relaxing fuel efficiency standards for cars well that might make it cheaper for ford or chevy to manufacture manufacturer a car but also once. I buy that car then. I have to pay a whole bunch more for fuel so maybe it's better for the company worse off for me. I mean there any any number of effects you can come up with regulations any number of think tanks the left-leaning center for american progress. The more business oriented competitive enterprise institute think tanks like those they've they've put out different reports on what the deregulation affect have been you can definitely go and read those but the point is that this is all very complicated and we'll probably really see the knock on effects from these as the years go on possibly trading economic growth now for economic growth later or vice versa right okay great so let's go to our second question which it's comes from allison yates <hes>. We don't have audio so instead rachel cohn on producer is gonna read that question and what the heck do it in her best. British accent okay can into my british accent literally literally. Where does all the political donation money actually go. How much goes to campaign staff versus travel costs versus advertising versus physical goods like fliers buttons banners etcetera who actually prophets of campaign donations. Where does the money go. Oh that's quite an accent yeah. I know yeah okay so the l. political donation money. I actually have no clue about this. This is all in your turf so that's where it goes at. That's it next. I mean i mean this is a simple answer here is this is that yeah if you're looking at presidential races the majority of what the campaign spend their money on is media of some sort t._v. Ads online videos banner ads print advertising mailers that might end up and you're like the there are all sorts of things that they spend this money on but a lot of it does go to ads if you listen to our show from monday. You know that big difference. It's not that they don't make a difference is that it's it's not always clear you. It's hard to tell what a difference. They make. You might raise someone's name. Recognition doesn't necessarily mean that that male or you put in their mailbox really got them out to vote. Yeah yeah yeah so most of it is ads. I think a lot of people actually might be surprised by this because you think of a campaign you think guide. You need to pay all those staffers offices offices all throughout the country. There's overhead costs like office space and you think well a lot of the money would go that but no actually the majority of the money goes to advertising housing right so i looked at some data from the center for responsive politics which is at open secrets dot org in two thousand sixteen around fifty eight percent of both clinton and trump spending so really close roughly the same share of their campaign. Spending in two thousand sixteen was ads and this is where it really gets interesting where the two campaigns diverge because depending running on how you run your campaign. You're gonna totally different. Things like hillary clinton in two thousand sixteen head a much bigger staff than donald trump. She spent nearly twenty percent nearly twenty percents of all of her money on salaries seventy four million dollars. Donald trump reported spending nearly eight point three the million dollars on salaries. Now he had a much leaner campaign staff wise at least but he spent his money on other things he spent much more on administrative things he's like rent like travel airplane tickets hotel rooms all of that he also spent much more on strategy and research so for example pulling that sort of thing now. I wanna give one caveat here. These numbers are subject to how the campaigns kept their records. They're counting what trump classified as a strategist strategist or what trump classified as administrative so different campaigns might keep the records differently but these are at least ballpark ideas to get a sense of just the shape of the campaign so yeah depending on the campaign you can spend way more on fundraising or less it totally every four years <hes> nice little boost to the advertising housing industry <hes> for that kurtz ivan. This was fun. Yes thank you if you want to send any more questions. Maybe we'll squeeze one more of these sessions before you go. Where can they get a hold of you. I would say find me on twitter. You can find me at at tonga t._i. T. o. n. k. a. also the name of a really lovely town in iowa that i'm from but yet find me on twitter. This episode of the indicator was produced by rachel cohn fact check by. Emily wang edited by paddy. Hirsch and indicator is a production of n._p._r.

donald trump rachel cohn microsoft president twitter matt blue stacy vanik smith daniel kurt slaven hillary clinton chicago tonga t._i kurtz Emily wang iowa allison yates Hirsch ford producer seventy four million dollars
The Skyrocketing Cost Of Air Ambulances

The Indicator from Planet Money

09:57 min | 1 year ago

The Skyrocketing Cost Of Air Ambulances

"N. P. R.. I'm Rachel Cohn. How are Ya High Cardiac? How are you good good so you were for a little while a producer on the indicator I was is yeah? You're now helping out at one of our favorite podcasts rival podcast but you still love it called reply. All you've come back because you've brought us this really intriguing story about air ambulances. Yeah Right. Where does the story begin so the story takes place back in two thousand and eight back then? This man named David Jones got into a terrible the accident on a New Jersey highway. He was driving with his girlfriend at the time now. His wife Juliet when their car flipped over and tumbled at sixty five miles an hour onto onto the highway shoulder so badly injured. I take it really badly injured. So what happened. was actually first responders called an ambulance. That's like the helicopter that comes to the side of the highway highway when you're in a terrible bad traffic and you can't get them out any other way. They call exactly so David was flown out. I so I remember that hearing the ambulance unplanned completely out of the car getting. It's actually still trapped in the car so emergency services had to cut her out which took awhile and so they ended up calling a second air ambulance a few hours later. You said that eventually they made a full recovery. Yeah but there was a nasty surprise involves here. I tell us about that exactly so they were actually going over their bills for their treatment together when they realized that they were charged. Different amounts for their area blitz transports like very different amounts had at a note written Com contemporaneous. Lee that like I. It's funny just looking at the no it says Seventeen hundred for me and thirteen thousand for Juliette. Seventeen hundred for David and thirteen thousand dollars for Juliette even though they were transported the exact same distance since from the same accident site to the same hospital. Yeah I mean there was one difference aside from the price and that's who flew them so David was flown by public provider fighter but Juliet was flown by a for profit company. Okay and that is the topic of today's show. This is from planet money. Everybody I'm Carlos Garcia and I'm Rachel Cohn yes on today's show we are talking about ambulances. This part of the American healthcare industry where prices have skyrocketed and where the normal laws of supply and demand. Don't don't seem to apply a support for this podcast and the following message come from salesforce. A customer relationship management solution committed to helping you deliver the personalized experiences that customers want salesforce bringing companies and customers together visit salesforce dot com slash. Learn more to understand how Aaron ruined services became so expensive you actually have to go go back to a time when they were cheaper a time when hospitals were the largest provider of the service air ambulances really grew out of emergency rooms that decided. Hey we have a way to get people here faster. They were owned by hospitals. They were part of the hospital system. They were on the master hospital bill and often covered covered by insurance because it was a hospital service. So that is Dr Marty mccarey. He's a surgeon and professor of Health Policy and management at Johns Hopkins University. Dr Doc mccarey wrote about the air ambulance industry in a book. You recently published called the price. We pay appropriately enough. Actually he says that for a long time hospitals roles were not making money from their ambulances in fact some hospitals were even providing air transport at a loss air ambulances traditionally have not been a real real revenue center for hospitals because they make money on the patients once they arrive at the hospital from all the services provided and so throughout the nineteen eighties and nineteen nineties. And that was the business model. Hospitals were not trying to make money on the air transport itself. They provided that services because they start charging patients once they got to who the hospitals so hospitals provided air ambulances for the majority of air transports and so although there were some government groups and independent private. Have IT companies who were providing this service. In addition to hospitals there were virtually no for profit providers companies that were trying to make a profit but in two thousand and two. This began to change that year. The government rolled out a new policy. That changed the amount of money that area means providers could make from transporting Medicare and Medicaid patients. Basically what you need to know. Is that the new policy made it more lucrative for independent ambulance providers that's groups other than hospitals to offer the service so under the previous system. Independent providers typically made less money for transporting Medicare and Medicaid patients than hospital providers but under the new system all all providers were paid at the same rates. And what this did was to incentivize outside group's thinking of investing in air ambulances. Because now they were assured more money for transporting Medicare and Medicaid patients but also they could now provide these services for this whole other group of patients. People not covered by Medicare and Medicaid aid. Other words people who had private insurance and private companies and private equity firms in particular realized if those patients could be billed independently of the hospital an outside of their insurance network there was virtually no limit to what they could be charged and so quickly this second back industry grew of private equity companies buying these air ambulances from hospitals managing the services and price gouging patients going around the Master Hospital Bill. The result is that the number of Aaron balances in the US nearly doubled in the vast majority today are owned by for profit providers. And so here here is where the normal dynamics of supply and demand start to go askew they start to get a little weird see in a normal market that big increase in supply. The supply of air ambulance providers would usually mean a good thing for consumers because consumers have more choice means more competition between those providers and usually means it's cheaper prices for consumers but in the area milli- market. That's not what happens. That's because customers in this market can't shop around and compare prices and services says in an emergency situation. The customer doesn't choose which air ambulance provider to call. I mean the customer might even be unconscious rate the first responders or hospital workers. There's are usually who call an ambulance so this big increase in supply. It doesn't bring down the price for people getting air transported instead the exact opposite happen. Prices have gone on way up so the medium price for example charged by an air ambulance for a helicopter transport in the United States. That is now more than thirty. Six thousand dollars dollars an air methods which is the name of the largest air ambulance provider. It went from charging an average price of thirteen thousand dollars per air transport in two thousand seven in two charging fifty thousand dollars in two thousand sixteen now to be clear. These are the prices that fall on people with private insurance. If you get into an accident and you're on on Medicare or Medicaid you're bill will be covered by the government but if you're one of the millions of people with private insurance you could be stuck with a very expensive bill. I mean many private insurance companies only pay ambulance providers roughly the same amount that the government pays them which is like between three to five thousand dollars and that it means that the remainder of the bill maybe tens of thousands of dollars is left up to you to pay. I think the natural question there Rachel is. How did this happen? Why did the price go up so much? Even though all these new air ambulance providers got into the business well if you ask the Association of Air Medical Services About this and we you did there the industry group that represents ambulances. They suggest that Aaron balances have become more expensive to provide. They say there's been an increase in the number of Medicare patients as well as an increase in the number of rural hospitals that have closed which means air ambulances have to travel a longer distances and operate in less populous areas which which brings greater costs but Dr mccarey he sees things differently so he says that the main reason these companies are charging so much for their services is because they can. There's nothing to stop them. Not the patients who in that moment are at their most vulnerable and not even insurance companies who typically would act as the interface between patients and the provider seat unlike costlo's independent private providers of air. Ambulances usually do not have pre negotiated rates with insurance companies. The Government Accountability Office did a major study recently where they looked at over. Twenty Thousand Air Ambulance transports that took place in two thousand seventeen and they found that more than two thirds of those transports they were not in the patient's insurance network in other words. Those patients were not covered for their transports. And when that's the case in other words when a patient is out out of network the only thing that constrains the price that they can be charged by an ambulance company is what they believe. The accident victim will be able to pay they send a bill for ten million million dollars. A penny of it will never be paid. But if they set the bill at just above what's considered payable then they'll be a mass effort for it to try to pay these bills and in fact that's exactly what we see. Yeah we see a situation where people might have to go into a lot of debt and really strain their finances just to. I would pay off that bill. Rachel thanks so much for bringing us. This super interesting story Cardiff deserted indicator was produced by Lena Sons. Scary fact check out. Lewis our editors Patty Hirsch in indicator is a production of N._p._R..

Medicare Rachel Cohn Thousand Air Ambulance David Jones Dr Marty mccarey Master Hospital Bill Medicaid Aaron Juliet United States Association of Air Medical Ser New Jersey N. P. R Juliette producer Johns Hopkins University
Jobs Friday Meets Listener Q&A

The Indicator from Planet Money

09:53 min | 2 years ago

Jobs Friday Meets Listener Q&A

"This is N._p._R.. And everyone this is the indicator from planet money. I'm Cardiff Garcia and today's Day one of my co host Stacey Vanik Smith being away on book leave for a couple of months. She's writing a book. We miss you already stacey. Hurry back. Today's also jobs Friday these job Friday. We've got three three listener questions that are going to be answered by Martha Jimbo our old friend the economic research director at the indeed hiring lab Martha how are you. I'm doing well. It's jobs day it. It is indeed <hes> before we actually do that. Let's analyze today's report real quick. I though okay hundred sixty four thousand jobs created in the month of July Ma- matt but fine I mean what we're seeing is the job growth is slowing down from last year which we all kind of knew was going to happen but it's still emotionally personally difficult to process but it still enough jobs created to keep up with the population growth so it's still pretty decent number for this point in a recovery now that his lasted more than ten years right. It's an astonishing number at this point in the recovery. It's just down from last year when frankly the numbers were juiced a little bit by government government spending so still a lot of jobs being created each month a little bit less than last year but not bad okay well after the break. Martha is going to answer some listener questions. We solicited those questions about a week ago you sent them in and Martha is going to answer them very exciting stuff. This message comes from N._P._R.. Sponsor Microsoft studying snow leopards helps us understand You send in some questions. We've got Martha Gimmel Economic Research Director of the indeed hiring ladd and all around labor market expert. She's going to answer those questions. Let's get right to the first one this Bryson from Denver Colorado in a slowing economy. Is there a sector of jobs that gets hit. I gets hit hardest so now there's two answers to this so I is that recessions. Don't just happen. They happen for a reason and so whatever sector is involved in the reason why the recession recession is happening is going to get hit first and hardest so we saw this with construction right because the housing market collapsed before the last recession exa- -struction jobs fell off a cliff okay exactly and and it took a really long time for the unemployment rate for construction workers to recover because the construction market had really suffered so I it's just a questioned about where the next recession is coming from and right now. None of us really know so none of us. It's a hard thing to predict hard thing to predict okay. The other answer is that in general the good sector tends to fall first and hardest so when I say good sector I mean industries like mining and logging manufacturing and construction the industries that make physical tangible stuff exactly and those are industries that in general just tend to be more volatile and they tend to be more responsive the headwinds the other thing is that there are industries that tend to hold up well in recessions so for instance during the last recession education health services it didn't have a single month of negative job growth to people in healthcare sector like doctors and nurses and then I'm assuming in education. This would be teachers or school administrators. Those kinds of jobs actually teachers and school administrators <hes> can fall into a different category of government because they're they fall into the public sector so we're really talking about any kind of private educational national service that you might pay for a tutor excellent all right. Let's go to the second listener question. Hello indicator this is Everett McEwen in Morrison Colorado and my question about the the labor market is as a freelancer our jobs still being created for freelancers or is job growth hurting freelancers news and the GIG economy. This is an interesting question because we've heard a lot about how companies have been essentially outsourcing some of the roles that they we used to hire permanent jobs for this question seems to be our companies now bringing back some of those jobs into their own fold into their own companies as permanent jobs. Jobs yet so I love this question because the Gig economy is actually incredibly hard to measure so we've had some group looking into this catch the J. P.. Morgan Chase instituted a great report on the GIG economy in two thousand eighteen for anyone who's interested and what they found was that people were really using it to smooth income of you know for some reason. My income is lower this month than I expected. I'm going to go and drive for Uber for awhile so that most people were doing it as a kind of side hustle. That's most of the GIG economy exactly okay now. The bureau statistics has tried to measure this but they haven't had the funding to run what we refer to as the contingent workers supplements for a while so they ran it in two thousand seventeen and they ran it in two thousand five and they looked at specifically the number of independent contractors such a card. If I'M GONNA ask you a question okay if you had to. I guess if the percent of workers who were independent contractors was higher in two thousand seventeen or in two thousand five. What would you guess I would probably guess a little higher yeah because we've heard so much about this and I would be wrong absolutely wrong? I was totally setting you up so it was in fact slightly higher in two thousand five then in two thousand seventeen but that also doesn't necessarily mean that the story about growth and freelancing growth in contracting is wrong. The economy was really different in two thousand and five than it was in two thousand seventeen and so because we haven't had that survey run consistently. It's really hard to separate out how much each of that change was about an actual structural change or just a different cyclical point in the economy. Okay <hes>. Let's go to question number three. My Name Is Jessica. I am a college student and as someone about to enter the workforce I find one predicted trend particularly terrifying and that is the number of U._S.. Workers at risk of being replaced raced by technology. When do I have to start worrying about the robots taking over? There's been so much hype about this issue about the robot since the automating away all of our jobs and then while most of us are unemployed the only people making any money or the people who own all the robots is this. Is this a legitimate thing to worry about so I think the narrative around automation job loss has been really overblown. There really isn't evidence that automation is coming for our jobs. Actually we know that productivity growth which is one way of measuring kind of technological progress has actually been low and not at the levels that you would expect to see if Two giant robots if you ask most economists they're much more worried about low productivity growth than robots coming for our jobs so I wanna be clear here though because there are some sectors within the economy specific sectors that probably are more vulnerable to automation than other sectors specifically. I'm thinking of like factory jobs. I mean those those jobs can be automated right if you come up with better machines better robots or better technology yeah and be L._S.. Actually goes out and Bureau of Labor. SPHERE OF LIP statistics goes out and projects which jobs are going to go fastest in the future and those tend to be things like personal care air services healthcare computer mathematical occupations so the jobs that are going to be working on the robots or jobs that are going to be working with humans and the jobs actually predict are going to go away. groomer slowly tend to be things that are like production jobs so manufacturing or agriculture so I think the thing that worries a lot of people about the idea that technology might replace their jobs is that in the past technology tended to automate away jobs that required a lot of muscle movement picking things up right factory jobs whereas now technology is being worked on that is intended to replace what happens in our heads right mental to work and so if that technology gets really great then maybe even some jobs that look like they're you know completely impregnable to automation. -Ation <HES> we'll start to be chipped away at by automation as well and one of the occupations that be less projectable grow the most slowly over the next ten years is his office and administrative support so a service occupation but one that is more routine and might be more susceptible to those kinds of technological innovations but I do want to point out that the part of technological progresses some jobs go away but then we get new ones as well and jobs specifically <hes> that arrived arrived the new ones that work alongside the technology might even make us better at our jobs than <hes> we were in the past exactly robots can be our friends Artha Artha Gimmel. Thanks so much for being here of course if you want to hear more specifically about today's jobs report for Martha go to our instagram pays that is at planet money where we also have some frankly really adorable surprises in store for you. Today's indicator episode was produced by Rachel Cohn edited by Paddy Hirsch and fact check by Emily Lang the indicators a production of N._p._R..

Martha Martha Gimmel Economic Researc Artha Artha Gimmel Martha Jimbo Stacey Vanik Smith Cardiff Garcia Bureau of Labor Microsoft Denver instagram Rachel Cohn Bryson Morgan Chase Colorado Everett McEwen research director ladd
How China Transformed The Luxury Goods Market

The Indicator from Planet Money

09:21 min | 2 years ago

How China Transformed The Luxury Goods Market

"N. P. R. Everyone this is the indicator from planet money. I'm Cardiff Garcia and I'm joined today by Amy Kean the host of the behind the money podcast at the Financial Times but more importantly my my former chief collaborator back when we started Alpha chat together when I was at the F. T. Amy Houria headquartered here yeah. It's awesome to have you in your brought us a story sorry and it's about an industry that I know nothing about the luxury goods market and you know that I had known nothing about it because of how address I guess that's not a Louis Vuitton assure you're wearing so kick us off. Where did this story begin so it all started back at my desk at the F. T. I had been following my colleagues reporting on the luxury market doc it and I was hearing about these big luxury conglomerates that house these brands brands like Gucci and Louis Vuitton and I was looking at what they were earning and I noticed something same each quarter executives talk about the growth they were seen and how it was mostly coming from China. Take Listen Congress would rugby. Hey we double digit increase in all markets led by mainland China Asia Pacific was a key driver and finally averse from Asia Mornings for businesses so those are executives from carrying. LVMH Riche Mont all talking about China brands exactly luxury the conglomerates that has these luxury serie brands but here's what stumped me. I wondered how could China be responsible for growth in sales of these personal luxury goods if the Chinese economy was also suffering. We've we've all heard about what the U. S. China trade dispute is doing to the economy cover that at length shot and so I wondered how could this be. The place where people are spending more money money on pretty expensive thing right. You'd think that slowing economic growth in China would also start to have kind of adverse effect on Chinese people buying goods exactly exactly but it turns out that not only China account for a growing share of these high end purchases. It's actually transformed much of the way that personal luxury goods industry works so the Chinese consumer changing the way that all of these brands from outside of China do business so to find out how you gotta wait till after the break and then he's going to tell tell us all about support for this podcast and the following message come from Google Domains Google domains remains helps. Make Your Business a reality with the tools and partners for building your website like a pro and premium security features and included for free make it happen at domains dot google slash. NPR Amy you didn't just bring us a story. You also brought with you. An indicator did an indicator. My indicators do it all right. Today's as indicator is thirty three percent as in thirty three percent of all the money spent on personal luxury goods last year it was spent by Chinese buyers and that number or is going up fast by the year twenty twenty-five it's expected that half of all the money spent on these goods is GonNa be spent by people from China. That's according to painting any company that worth noting here also that Chinese buyers are already spending more on personal luxury goods than American shoppers are now because even though the Chinese economy me is not yet as big and certainly not as advanced as the US economy China does have almost four times as many people as the US and so is the Chinese middle class has grown in the last few decades decades so has the purchasing power of all those buyers exactly so Robert Burke is a former luxury retail executive with Bergdorf Goodman and he now runs his own consultancy cincy here in New York. He does analysis about the industry here's what he had to say about the rise of China's luxury shoppers when you think every day in China there to new Billionaires Liam. There's so I think what's happened with. The luxury brands is it's not about the the the number of customers but it's about the strength of the customers customers you have so it's the strength of the customer but amy it is also a little bit about the number of the customers to right. I mean these brands aren't just appealing to the billionaires. They're also appealing to the middle and the upper classes. So what are these brands doing to appeal to this rising number of Chinese people who just have more money to spend now so what brands have been I'm doing is they've actually started producing and selling more accessibly priced items and it used to be that it was a bit of a taboo in the world of luxury goods. These brands is are known for having handbags in the thousands of dollars and now maybe they've got a flip flop or a small leather wallet. That's a little bit more affordable dollars right the hundred dollars okay exactly here's Robert Again today. It's it's recognized as if you have a four hundred or a five hundred dollar item and your luxury brand. That's there's nothing wrong with that in fact that's that's a good thing because that may be the entry level for this consumer. It doesn't mean that the consumer that you're going to do harm the brand though today so with more Chinese shoppers looking to get a taste of luxury these small relatively less expensive items are the perfect place to start relatively being the important term here relatively expensive but a lot cheaper than those super tens of thousands of dollars expensive items exactly but demand from China hasn't just changed the products that these brands sell. It's also altered the way these brands interact with their customers online. How has social media played a role in this social media has been everything so. It's not just it's not just a bit little so brands have tapped into the most popular social media sites in China think we chat which is kind of like this hybrid social media site where you can both chat with friends and make payments so it's like what's APP. You can pay for stuff basically basically but there's also a site called the Little Red Book and these brands of even talking about. They're all on these sites we as as as Westerners can sometimes sometimes we very arrogant that the customer the consumer should understand us and and and the brands have realized today. Hey that have been successful that you have to understand the Chinese customer okay so we've now established that even with all the anxiety about the global economy right now the Chinese consumer at least is still keeping the luxury goods industry in a reasonably healthy place. It's also changing the nature of the industry itself. Amy This kind of reminds me what started to happen in the movie industry a few years ago so like China started to become a bigger and bigger share of box office sales for movies the stories in those movies and and their settings of some of these big Hollywood blockbuster films they also started to adjust to the perceived wishes of the Chinese moviegoer so like they started incorporating cooperating more Chinese plotlines there was even Chinese product placement like I remember Stanley Tucci Sipping on a carton of yearly milk. That's his Chinese milk brand in one of the transformers movie in just a really obvious way and it just all kind of makes me wonder whether this trend also applies to other industries as well. What do you think yeah so. I mean luxury the good movies entertainment these are all categories where it's pretty clear that the specific circumstances and the tastes of Chinese consumer. It's affecting how these various brands ends do business right but there are others. There's been a ton of research about how foreign brands should market their products differently. China what they can do to appeal specifically to this customer for example Chinese buyers they tend to use online reviews of products including those from people they know more than say those of us in other countries and there's been stories worries about how Chinese customers have increasingly become interested in foreign art also foreign wine and alcohol so there's a pretty good chance that it's having an effect on those markets as as well yeah that makes sense Here's another question worth asking. Isn't it a little bit dangerous in the case of luxury goods industry than it has become so dependent on China enough for growth. Yes so what if the Chinese economy continues to slow down exactly well that was my original question but Robert at least says maybe not the luxury luxury sector of luxury goods are not going to slow down and and I don't say that in an arrogant way and you know for the high luxury brands for for the for the customer that's buying these products because they wanna be distinguished socially. There's not going to be a slowdown in other words. Analysts say that the pool of potential luxury shoppers in China is just so big and China does have a lot of inequality so it's possible that even if some some parts of the Chinese economy slowed down premium designer brands just might not be affected yeah now for the best of reasons right because of that inequality but at least in terms of how it affects ex- disposition industry might continue Amy King. What a pleasure this has been? It's been a lot of fun. Thanks where can people find more of your work. Yes so behind the money the podcast that I produce one of my faves biweekly podcast. Yes thank you you can get wherever you get the rest of your podcast and of course aft. Dot Com perfect ZAP ZODIAC indicator was produced by Rachel Cohn fact check by Emily Lang and edited by Paddy. Hirsch indicator is a production of N._P._R.

China China Asia Pacific U. S. China Louis Vuitton F. T. Amy Houria Asia Amy Kean Financial Times N. P. Cardiff Garcia LVMH Riche Mont NPR Google US Robert Burke Robert Again Rachel Cohn Bergdorf Goodman
The Gender Gap Series: The Problem With The Pink Tax

The Indicator from Planet Money

09:57 min | 2 years ago

The Gender Gap Series: The Problem With The Pink Tax

"You're listening to n._p._r. This week we have been revisiting some of our favorite stories from the last year about women and the economy and each episode so help us answer this much bigger question about why women earn less than men why there are fewer women in the workforce than men why women pay more for things than men and we're calling the series. The the gender gap in this episode of you're about to hear is the last in the series it was originally reported back in november of two thousand eighteen aw karen duffin. I have lured you over from planet money today to talk about a story that is close to my heart and mine the pink tax straight the pink tax refers to this idea that products for women tend to cost more than products for men new york actually did a really comprehensive study including everything from like toys for for little kids and home healthcare products for seniors and clothing and the works and they found a women paid more in about thirty thirty five product categories and in some cases it was a a lot more. This is the indicator planet money. I'm karen deafen and i'm stacey vanik smith today on the show the pink tax why women pay more for things and why a lot of the communists say this is a good thing support for this podcast broadcast and the following message come from google domains google domains helps make your business a reality with the tools and partners for building your website like a pro and premium the security features and included for free make it happen at domains dot google slash n._p._r. Support also comes from fund rise innovating the way people can invest in real estate fund rise makes it simple to build a portfolio of high quality realestate affordably visit fund rise dot com slash built and get your first six. Six months of advisory fees waived. Today's indicator is thirteen percent in york. City's report on the pink tax the price women were paying in for things like clothes and home health products tended to be about seven or eight percent more than the price that men were paying for comparable products but there was one category eight were women were paying way more thirteen percent more personal care products that is deodorant razor shampoo body wash women. We're paying on average thirteen percent more than men for the same product and you know when i saw this. I was like that is not true. There is no way that's true. Women are paying thirteen percent more women would notice this. We would never stand for this so we went to see for ourselves. Yes we went to the walgreens in times square and we started needed in the razor section. Okay this appears to be the dividing line. Okay yeah you can tell because there's blue on one side and pink on the other we figured we would look for the most bruce basic the most barebones razor for both men and for women and we would see how the prices compare here. We go about these <hes>. This has ten razors. Thor's okay six dollars. We have to look at look at the price per unit or unit christ men's razors fifty nine point nine cents per razor. Okay the price per unit for the the daisy razor which is basic super basic. I mean there's yeah. It's the same it has the same. They have a little strip thing on top note no but those due to price per units a dollar twenty five that is infuriating. That's double. Oh my god i now these are literally the exact race who seem reeser so this is a classic example of what economists call price discrimination jennifer for dole eac is an economist who studies crime and discrimination and she says this particular kind of price discrimination happens when companies divide market up into segments spend charge a different price to each segment we compare the prices at walgreens and a nearby twain read shampoo body wash face lotion deodorant men versus women and and it is clear companies have divided the market up into men and women and they are charging women more economists cool with this yeah. I think a crisis formation is super efficient but why is it more efficient for women to pay more. How is that good for the economy. How is this okay. It's okay and and actually better than a situation without price discrimination because price discrimination allows the firm to charge different prices different people and more of those people who want to buy the good are able to buy it so basically there is more variety more kinds of razors in the world pink ones that are centred with white t and have five blades and costs twenty bucks yellow fix that costs four dollars for a twelve pack and so overall in the world there are more kinds of razors and those razors are also offered at a cheaper price than they would be if the market weren't segmented so overall cheaper or some cheaper razors for men for men. Yes cheaper razors for men so like for the market as a whole. This is great. It just isn't so great if you happen to to be in the pink razor the economy right exactly and that is an efficient market maximum options for all razor buyers feels feels like really unfair that were earn like women earn less and pay more album it kind of is our fault to the extent that it's our promo dictate. You know i mean ultimately like you you don't have you don't have to pay that price. How do you feel about women getting charged more for products addicts. It's really really irritating but as an economist. I love that firms can do this. It's just such a beautiful example of how markets can ultimately lead to more efficient outcomes. Jennifer says the solution is for women to stop buying pink razors and just get really really diligent about researching gender price differences and then give your business to places that don't have gender differentiated pricing. I mean karen. I thought what about this a lot and i was like listen. I have loved and reported on economics for like more than a decade. How good economics be celebrating this. I mean at been with economics for all these years and i just thought there's got to be another way of looking at this. You're going to give him a second chance. I well. You know we have a history together and so i started looking around and i found a different approach. It comes from female economist from the thirties. A contemporary for in friend of john maynard keynes woman named joan robinson linda you profile joan robinson in her book. What would the great economist do and linda says joan robinson would have have a different view of this price discrimination situation. If you think about markets being perfectly competitive then you really shouldn't have price discrimination shitu because if you try to sell your razor for a sent more than <hes> they'll go buy from the next person. Linda says the market values a particular good or service a certain way that is the perfect price and a more expensive product should have more features. It should be qualitatively different but in the case of the deodorant and razors that we looked at it is clear that women are not paying more because their version of the products are better. They're paying more because of marketing. If it's a case of a pure marketing making you feel you need to buy a certain kind of product even though really not much different than the cheaper one a measure that economically economically efficient so take the cell phone market yes at the high end. You've got a thousand dollar phone with tons of apps and features and accessories at the bottom of the market. There's like a two hundred dollar phone that does not have that but it is way more affordable and you can make calls with it and this is economically efficient because all of this innovation happened because people were willing to pay more for a phone and companies had to find reasons to charge more they had to make it better than the two hundred dollar phone but in the case of raisers raisers there's no difference difference is the heartless marketing machine that has been devouring our souls since birth karen duffin. This is not created a better razor. Sir and it's economic efficiency is therefore questionable unless you know it creates doubled the enjoyment of a men's razor but it doesn't. I don't think so no for sure. It doesn't linda this is joan. Robinson might say that razor makers are taking advantage of a captive market of sorts a market. That's been made captive by marketing and in cases like these as linda says joan robinson actually recommended government regulation markets left on their own without thinking about the institutions really. We don't work that well and in fact. That's why you need to have institutions that make sure that <hes> markets operate fairly in fact california -fornia florida and new york are some of the states that have put regulations in place that make it illegal for certain vendors like dry cleaners and hair salons and some of the cases to charge different prices says based on gender razors though have never made the cut. I don't know karen you just like. I think we might have just stopping pig-raisers. Uh in new york though this might change in june bill passed the new york state assembly that would find companies for pricing their male and female products differently. If they share ninety percent of the same materials ingredients the bill has not been brought for a vote in the state senate yet but if it does make it through the legislature your could become the first state to ban pricing racing based on gender not just for services but also for goods. Today's update was produced by rachel cohn. The original episode was produced by constanza guy ardo. Our editor is paddy hirsch. Our intern and fact checker is emily lang and the indicator is a production of n._p._r.

joan robinson karen duffin new york walgreens Linda karen google karen deafen rachel cohn senate york paddy hirsch Thor stacey vanik smith dole california john maynard keynes Jennifer intern
Why The Cost Of Air Ambulances Is Rising

NPR's Business Story of the Day

05:10 min | 1 year ago

Why The Cost Of Air Ambulances Is Rising

"In two thousand and two the. US Government introduced a new policy that allow private players to enter the air ambulance industry. This decision brought more competition into the market yet. The cost of an air ambulance trip sword. So why do the normal rules of supply and demand not apply. Here's Cardiff Garcia and Rachel Cohn from our daily Economics podcast the indicator from planet. Money to understand how air ambulance services became so expensive. You actually have to go back to a time when they they were cheaper a time when hospitals were the largest provider of the service ambulances really grew out of emergency rooms that decided. Hey we won't have a way to get people here faster. They were owned by hospitals. They were part of the hospital system. They were on the master hospital bill and often covered by insurance because it was a hospital service. So that is Dr Marty mccarey. He's a surgeon and professor of Health Policy and management at Johns Hopkins University. He says that for a long time hospitals were not making money from their air ambulances. They provided that service is because they could start charging patients. Once they got to the hospitals there were virtually actually no for profit providers companies that were trying to make a profit but in two thousand and two this began to change. The government rolled out a new policy. That change just the amount of money that area meals providers could make from transporting Medicare and Medicaid patients. But basically what you need to know. Is that the new policy made it more lucrative for independent independent ambulance providers that groups other than hospitals to offer the service and what this did was to incentivize outside group's thinking of investing in air ambulances. Silence is because now they were assured more money for transporting Medicare and Medicaid patients but also they could provide these services for this whole other group of patients. People not not covered by Medicare and Medicaid in other words people who had private insurance the result is that the number of air ambulances in the US nearly doubled in the vast majority today are owned by for profit providers and so here is where the normal dynamics of supply and demand start to go skew. They start to get a little weird see in a normal. Oh market that big increase in supply. The supply of air ambulance providers would usually mean a good thing for consumers because consumers now have more choice means more competition competition between those providers in usually means cheaper prices for consumers but in the area relents market. That's not what happens. That's because customers in in this market can't shop around and compare prices and services in an emergency situation. The customer doesn't choose which air ambulance provider to call the ritual. You spoke to a a couple who experienced this firsthand so the story takes place back in two thousand eight back then. This man named David Jones Scott into a terrible accident on a New Jersey highway. He was driving with his girlfriend at the time now. His wife Juliet when their car flipped over and tumbled at sixty five miles an hour onto the highway shoulder. First responders honors arrived at the scene and called an ambulance. David was flown out. I so I remember that hearing the ambulance land I was completely out of the car. Getting entreated to Juliette was actually still trapped in the car so emergency services had to cut her out which took awhile and so they ended up calling second air ambulance a few hours later eventually vincent. They made a full recovery but a nasty surprise awaited them exactly so they were actually going over their bills for their treatment together when they realized that they were charged. Different announce for their area blitz transports had a note written contemporaneous. Like it's funny just looking at the the no it says You know seventeen hundred for me and thirteen thousand for Juliette. Seventeen hundred for David in thirteen thousand dollars for Juliette even even though they were transported the exact same distance from the same accident site to the same hospital. I mean there was one difference aside from the price and that's who flew them so David was flown by a public provider but Juliet was flown by a for profit company. So this big increase in supply. It doesn't bring down the price for people getting air transported so the medium price for example charged by an air ambulance for a helicopter transport in the United States. That is now more than thirty six thousand dollars if you ask the Association of Air Medical Services About this there the industry group that represents air ambulances. They suggest that ambulances have become more expensive to provide but Dr mccarey he sees things differently so he says that the main reason these companies are charging so much for their services is because they can. There's nothing to stop them and so quickly. This second back industry grew of private equity companies. Buying up these air ambulances from hospitals managing the services services and price gouging patients going around the Master Hospital Bill. This has created a situation where people have gotten into a lot of debt and are straining straining their finances just to be able to pay off their hefty air ambulance Bill Rachel Code Cardiff Garcia N._p._R.. News.

Master Hospital Bill David Jones Scott Dr Marty mccarey Juliette Association of Air Medical Ser Medicaid United States Juliet US Government Medicare Bill Rachel Code professor of Health Policy Cardiff Garcia Johns Hopkins University Rachel Cohn New Jersey daily Economics
The Gender Gap Series: Where The Gender Pay Gap Is Widest

The Indicator from Planet Money

09:58 min | 2 years ago

The Gender Gap Series: Where The Gender Pay Gap Is Widest

"You're listening to n._p._r. Everybody the indicator is taking a week off and we'll be back with all new original episodes starting a week from today but for this week we are going to be revisiting some of our favorite stories about one topic the gender gap in the economy. Why do women earn less and pay more for goods and services than men do right. This is an excellent question card. If this is actually true on both counts here the indicator we have talked about at these two topics a lot over the last year and we've observed how the effect not just women on an individual level but the whole global economy so this week we are combining the best of those episodes so into a five day series called the gender gap because they wouldn't let me call it lady week they want didn't get a chance to and to start us off. We are replaying episode that we originally reported back in april of this year. This is the indicator from planet money. I'm steve smith and i'm cardiff garcia. We've talked a lot on this. Show about the gender pay gap that is the difference in the pay that women get versus the pay that men get and the number you'll often hear quoted is twenty percents as an women get paid about twenty percent less than men do but economists will also note that not all all of that twenty percent is the result of straightforward discrimination or at least not discrimination alone for instance women will often take some time off for childcare that will affect their pay okay but it isn't discrimination. Another factor in women getting paid less job choice. Yeah in general women tend to choose less lucrative fields for instance. There are a lot more women than men in the fields of home healthcare worker and schoolteacher and those are fields the tend to have relatively lower pay conversely. There are a lot more men than women working in the tech industry and in engineering field where the pay tends to be higher now the reasons that women and men are choosing these fields has been the subject of a lot of discussion as the the reason that these fields tend to pay more or less respectively but whatever the reason this is happening plus. We should add that. It's not always easy to separate the discrimination nation from some of these trends for example when more women join a field. There is some evidence that sometimes that has the effect of holding down pay. This is the woah yeah. No it really is and there's also discrimination involved in the choices that people make when men and women tend to choose different fields so for example. It's true that men and women tend to choose different fields but part of the reason might be that women no they'll be treated unfairly if they go into certain occupations but this is all part of the reason that we got so excited about this new study from glass doors see this study looks at something different it compares the salaries of men and women within certain field wants to his choices have been made and then it compares those salaries today on the show jobs and the gender pay gap which jobs have the smallest disparity in pay between men and women and which have the biggest support for for n._p._r. And the following message come from transfer wise the revolutionary way to send money abroad join over five million people and businesses who save when they send money to over seventy countries tested out for free at transfer wise dot com slash n._p._r. Or download the app support also comes from google domains google domains make your business idea a reality with the tools and partners for building your website like a pro and premium security features included for free. Make it what happened at domains dot google slash n._p._r. Glass store economic research just put out a study looking at the gender pay gap in different fields. It's called the progress on the gender pay gap twenty nineteen and today we're talking to glass doors chief economist andrew chamberlain up so andrew for the study. You guys looked at the gender pay gap and how big big gap is across different industries industry by industry. Where are the biggest pay gaps okay so when i say i'm talking about like after i've accounted accounted for what jobs people work in their education experience so i'm making an apples to apples comparison okay. This is what i call the adjusted. Hey gap okay okay so industries with the biggest pay. Gap media came out on top. Oh my god okay so sorry to break. It's easy media though why would make you feel better better doesn't just include a broadcast radio. It includes like hollywood so there's companies n._b._c. universal but there's also disney. There's also so viacom gannett. All of these other things are counted as media including some video game companies like electronic arts is technically considered media. So what is the pay gap for media six point. Four percent was the pay gap when she do apples to apples comparison so what is going on with media. It's been where the metoo movement really gained momentum so. It's an industry that is like the old economy in some ways where it doesn't pay very much attention to formal credentials. It's more about who you know rather than. I want you know in some cases okay. What is the second worst so can worse the retail sector and then there followed by construction repair maintenance and then we'll gas gassan utilities so it's kind of a mixture here so in retail of course you know. It's very low paying job. This is like disproportionately women working in many of these positions and so what i believe is happening in those fields is similar to media. There's not a lot of attention paid to formal academic credentials and these are may have many jobs that are male dominated and the fact is is if you have mostly men in upper management or leadership positions they you don't create institutions that what women get ahead often so. Let's go maybe to the other end of the scale. <hes> what is the industry with with the smallest pay cap. The industry with the smallest pay gap was biotech and pharmaceuticals. The pay gap was only two point two percent when we compare similar men and women so almost gone part of it is they have a relatively young workforce right. Many of these scientific folks coming out a p._h._d. D programs. It's credential base like there's lots of p._h._d. Chemists and <hes> and and biologists in that field and also that field the that really does like have a decent work life balance in many of the big biotech and pharma companies. I think that attracts more women to that to that field so as women are moving more into stem fields they're being pushed into leadership roles in biotech and pharma so i think that's actually contributing to either to the small gap there. What is the job with the what is the industry with the second smallest pay gap so i guess malls was education so this includes z. Big universities both administrators and faculty and what we found there is an education only a two point four percent pay gap. That's a field old. Where first of all pay is quite transparent many big public universities yeah. There's no hiding which you earn. If you work at a big state school it's often published publicly quickly and i believe that helps crush the gap down because people know what people are earning and they they negotiate and and what about the third smallest of the third small aerospace recent defense okay so who is an aerospace defense <hes> that's like northrop grumman and lockheed martin boeing raytheon these these huge often contractors contractors. What was the biggest surprise for you in this study well. I think the biggest surprise to me is in much of a role occupation plays in how little vote of a role that experience education play the common misperception about the pay gap is <hes> is is that it's all just about education and experience or that or the women are just voluntarily early choosing low paying jobs. I think those are the most common misperceptions and what we found in this study is that education experience explained very little of the pay gap like eight percent or something like that and occupational differences explained like fifty six percent of the overall pay gap. I think what's important to recognize. There is that that <hes> women and men don't randomly sort into occupations partly because of influences early on what kind of jobs <music> get taught to people as being a male job or a female job and some jobs frankly just aren't friendly to family lifestyles. It's very hard to get the flexibility ability. You need to balance a family with a job in especially in c. Suite positions in many fast growing sectors and no question like the single best remedy for a pay gap is a strong labor market. I mean we've definitely seen the overall shrinking in recent years and i i think that's just letting the economy burn hard in its putting workers in the driver's seat and so i think that's what's going on in those fields has been really fantastic. Thank you yeah of course since we originally aired this episode. The gender pay gap has been getting a lot of attention politicians including senator kamala paris or campaigning on the issue here in the u._s. Members of the women's national soccer team just won the world cup for actually suing the u._s. soccer federation for equal pay in fact we. We just did an episode on that a few weeks ago. You can check it out online. This updated episode of the indicator was produced by rachel cohn. The original was produced by constanza gherardo and edited by paddy addi hirsch. Our current intern and fact checker is emily lang and the indicator is a production of n._p._r.

andrew chamberlain google steve smith rachel cohn soccer senator kamala paris viacom northrop grumman disney hollywood chief economist intern constanza gherardo lockheed gannett boeing emily lang u._s. soccer federation
Hooponomics

The Indicator from Planet Money

09:50 min | 2 years ago

Hooponomics

"The three point line was introduced into the National Basketball Association, then BA back in nineteen seventy nine partly as a way to give shorter players a better chance to compete with the tall players. The tall ones who'd been dominating. The sport by standing close to the basket and shooting, or dunking over the little guys score win for the little guys back then back in nineteen seventy nine making any shot was worth. Only two points from anywhere on the court and the idea was that, adding this three point option would incentivize players to take more long range, jump shots something even short players could do competitively. And that would add variety to the game. The three point line is about twenty four feet from the basket, except from the sides of the court where the line is a little closer, but the first year after it was introduced that nineteen Seventy-nine season, not any three pointers were actually tried. Only one out of every thirty three shots taken was a three pointer. But after that almost every year, that number of three pointers went up and started rising really sharply earlier this decade, so by laugh. Season or than one out of every three shots attempted was three pointer. And the game is now dominated by these three point shooting virtuosos, like Steph curry with Golden State Warriors, and James harden of the Houston Rockets stuff. The game. Splicing announcer. Mike Breen announcing pointers made like my favorite thing. Once I understand the rules, completely, I would love that job. I'm Stacey management. But I'm Garcia today on the planet money indicator, the story of the three point shots takeover of basketball the economic lessons of how it changed the game. And why it is now having unintended effects that could be a problem for basketball's future. Thang. Support for the indicator and the following message come from Michigan economic Development Corporation. See CYO Michigan is attracting top talent, an top businesses by searching, Michigan pure opportunity. Support also comes from snowflake the only data warehouse built for the cloud unlock deep data insights with the instantly scalable cloud built data warehouse start your journey towards data driven decision making at snowflake dot com slash NPR. For someone who specializes in basketball. Analytics and his worked for teams like the San Antonio Spurs, and the USA national team. Kirk gold's berry has kind of an unusual background, Agata puberty geography was a professor of geography for six years at Michigan state and Harvard, and then started applying Matt, making data visualization techniques to basketball data, which is the love of my life. Kirk is the author of the new book, sprawl, which tells the story of how the three point shot came to take over the NBA this decade, a big part of that story is the basketball teams had already been gradually embracing the new tools of analytics that Kirk is talking about, and they started hiring more people like Kirk himself people who could analyze where on the court players were making taking the most shots how to position players on the court to maximize their chance of scoring. And with these analysts pointed out was taking more three point shots made mathematical sense if teams wanted to win. And the reason for this is. Simple. So three points is obviously more than two points, but it is actually a lot more than two points. Three points is fifty percent more than two points. So even if the player makes slightly fewer of his three point shot attempts than of his two-point shot attempts, he can still end up scoring more overall points by shooting more three pointers. And here's what Kirk found when he analyzed the data other than shots taken really close to the basket. I mean like within five feet of the basket, where player almost can't miss it almost always makes mathematical sense for a team to shoot a three pointer instead of a two pointer. It's that wild margin inefficiency, that's driven sort of these cartoonish trends in shots election in the rapid increase in three point shooting, a across the area, and that is the first economic lesson that you can take from kirks analysis of basketball for a team to win efficiency matters a team has to make good use of the finite resources. It has the very division of economics. In fact, is the study of how choices are made. In a world of finite resources for most organizations that means making the best use of their workers or their equipment or their ideas. But for a basketball team, one of those finite resources is the number of shots that its players can take a number of shots is limited by the fact that basketball game is only forty eight minutes long plus possession of the ball switches to the other team after one team makes a basket and the shot clock. That's right. And to state the obvious to win a lot of games a team wants to get the most possible point out of its limited number of shot attempts, what analysts Kirk is this means taking more three pointers, but, you know, old traditions die hard, especially in sports. So in addition to the rise of analytics something else had to happen for the three point shot to really take off and become so popular. The sport had to develop the players who could make the three point shot consistently. And this took awhile, because new generation of players had to start practicing three pointers over and over again from an early age and a new generation of coaches had to let those players shoot more. Three pointers during games. And you know, maybe no player has embodied this change quite like Steph curry of the Golden State, Warriors, the Golden State Warriors, of course, are now playing against the Toronto Raptors in the NBA finals. I mean he's the MVP two times over and still playing. This is now is against their fifth finals in the last five or six years. And, you know, it's been a remarkable demonstration of how a great shooter can win championships in women MVP's, and that is the second economics lesson from kirks analysis, the skills that are in demand are the skills that will be rewarded making three pointers used to be this kind of knee skill, the specialty. But now it's a requirement players who can't shoot the three three point shot already bigger risk of losing their jobs. So it used to be maybe a dozen or two dozen MBA players could shoot three's now a dozen or two dozen MB can't shoot threes, and that took a generation for us to get to. But that brings us to economic lesson number three, the relentless pursuit of officiency can have some. Unintended consequences if think about it since the most efficient shots in the game or either the shots taken, right? Underneath the basket or very far away behind the three point line, the value of all the two point shots in between those places has diminished the fadeaway the elbow jump shot, the player who takes his man off the dribble before pulling up from ten feet away. Don't worry if you don't recognize the references. I making it is enough to know that this was a beautiful inartistically part of the game, those exact shots that we associate with Michael Jordan or virtually non-existent it's not to say mid range shots completely dead, but they're trending that way and turning that way, fast. And it's not just three pointers. Analytics has also shown that foul shots which player gets to take when he gets fouled in the course of shooting are also very efficient shots to take. So some players, especially James harden, now, try to bait their opponents into fouling them even without trying to make their actual shot. This is cynical. Unspoiled. Sportsmanlike behavior. But it also works, gone of like it. Pliers fouls by the result of this analytics is changing the aesthetics of the game Kirk says, and not necessarily for the better. If basketball keeps going in the direction that analytics, pointed, it the players all start looking the same loitering behind the three point line waiting to shoot or trying to get fouled. There won't be as many players dribbling hard to the basket using their athletic wizardry to get an open shot, or, you know, perfecting their mid range shots. The game could become less varied less interesting, a little boring, maybe and you can't really blame the teams or the players for this, by the way, they're just following the incentives provided by the rules of the NBA that is economic lesson number four incentives. Matter if you don't like how James harden plays the game was Kirk says you really should hate the game, not the player. Oh to stop these trends, and reinforce basketball's variety and dynamism, Kirk says the NBA might consider changing these incentives, changing the rules again just like it did when it introduced three pointer back in nineteen seventy nine maybe by moving the three point line farther away, making it a harder shot. I think what's going to happen in the next decade for analytics, particularly basketball is just that we're going to start to look at this, at the league level and try to optimize sport and encourage an incredible aesthetic by leveraging analytics at the league office, the willingness to change the rules to keep basketball. Interesting is after all big part of the NBA's heritage. That's partly why basketball can be so fun to watch. It's a fluid game that evolves over time combining art and science aesthetics, and analytics and dogs and understanding of economics, and, and understanding that economics is everything game five the NBA finals is tonight. This podcast was produced by Rachel Cohn, backcheck by Emily Lang and edited by paddy Hirsch. The indicator is a production of NPR. Stephon curry that one gets very time. I forgot actually I made a little note in my head. I was like, remember to tell us that stationed it Steph curry Steph curry Stephan, like it, doesn't it looks like Tony. I'm calling him Stephen.

basketball Kirk gold National Basketball Associatio James harden Michigan Stephon curry Golden State Warriors Steph curry Michigan economic Development San Antonio Spurs Mike Breen Stephen Houston Rockets Michael Jordan Agata puberty geography MVP Garcia Rachel Cohn NPR