Freakonomics Radio

Roger Hochschild, CEO of Discover Financial Services, and Watise Gathings, a senior manager at the company, join Harvard economist Nathan Hendren to discuss impactful community initiatives. They delve into the launch of a call center in Chicago's Chatham neighborhood, aimed at creating job opportunities for Black residents. The conversation highlights the challenges of corporate responsibility, the significance of employment in low-income areas, and personal narratives illustrating the transformative power of local jobs. Empowerment through leadership and community ties is a key theme.

Jesper Kohl, an economist with expertise in Japanese politics, shares his optimistic view on taxation. He discusses innovative ideas for increasing tax compliance, like allowing taxpayers to allocate their funds or receive thank-you gifts. The conversation highlights Japan's unique 'hometown tax system', promoting local support and wealth redistribution. Kohl also explores the psychological factors behind tax avoidance and the potential benefits of citizen engagement in tax allocation. His insights offer a refreshing perspective on a seemingly tedious topic.

In a captivating discussion, Amy Finkelstein, an MIT economist and co-author of "Risky Business," dives deep into the flaws of insurance markets. She tackles the quirky topic of why divorce insurance doesn’t exist and suggests a rebranding as marriage longevity insurance. Finkelstein explores adverse selection challenges and the impact of regulatory frameworks on health coverage. Using personal anecdotes, she highlights the complexities of insurance and shares innovative ideas for improving market efficiency and expanding coverage options.

In this discussion, Katie Johnson, a data scientist, shares her challenging shift from contributing individual work to managing a team. Kelly Hsu, a Yale finance professor, dives into the Peter Principle, explaining how capable employees can falter in managerial roles. Steve Tadellis, an economics professor, discusses the significant impact of managers on employee productivity and satisfaction. Together, they explore the dynamics of ineffective leadership, the pressures of management, and how organizational promotion practices contribute to the prevalence of bad bosses.

Ed Bastian, CEO of Delta Airlines, shares his expertise on airline dynamics and pricing. He navigates the complexities of running a major airline, from volatile fuel costs to labor challenges. Listeners learn how air travel has shifted from luxury to mass accessibility and the implications of recent innovations aimed at reducing emissions. Bastian also discusses the transformative updates at LaGuardia Airport and the airline industry's recovery post-COVID, revealing critical insights into the evolving landscape of air travel.

Adam Yuhan, a commercial airline pilot and former Air Force pilot, along with Billy Nolan, acting administrator of the FAA, delve into the striking safety comparisons between flying and driving. They discuss how rigorous training and advanced regulations have made air travel significantly safer over the decades. The conversation touches on the potential to apply aviation lessons to improve road safety, the importance of flight attendants in managing turbulence, and the ongoing challenges posed by a pilot shortage in the industry.

Join David Neeleman, the innovative founder of Breeze Airways, and Matt Sparks, Delta Airlines' airport operations expert, as they explore the paradox of air travel. They discuss the surprising complexities behind how airlines shape consumer demand and the operational intricacies of airport management. You'll hear about the challenges of baggage handling and the balance between automation and personal service. The conversation reveals why flying, despite its miracles, can be an emotional rollercoaster for travelers.

Discover the surprising world of long snappers in the NFL, a position that epitomizes specialization in football. Their critical yet overlooked role keeps the game flowing, despite the challenges they face. Whispers of their journey from anonymity to million-dollar salaries reveal an evolution rooted in player safety and precision. Unpacking the rigorous training and dedication required, this deep dive illustrates why the most monotonous job in sports can lead to extraordinary financial rewards.

Ever wondered what happens to those tiny hotel soaps after your stay? Discover the fascinating history and evolution of these amenities, sparked by a traveler’s concern for waste. Learn about a nonprofit turning used soaps into critical hygiene products, with a founder overcoming obstacles to improve global health. Dive into the creative recycling process, guided by the 'soap whisperer,' and explore the innovative financial models driving this change. Plus, get a glimpse into engaging with niche communities and what's next on the horizon!

Join Gina Raimondo, U.S. Secretary of Commerce, and Brian Deese, Director of the National Economic Council, as they explore the Biden administration's ambitious push to reshape American industrial policy. They discuss the drastic budget increase for the Commerce Department and the challenges of revitalizing U.S. manufacturing in the face of global competition, particularly with China. The conversation also touches on the complexities of semiconductor supply chains and the socio-economic implications of the fentanyl crisis, highlighting the necessity for collaborative governance.