In 1930, the economist John Maynard Keynes wrote an essay in which he predicted that by the time his children were grown up, people would be working just 15 hours a week. Today, in some countries, people do work a bit less than they did fifty years ago, but Keynes’s prediction was essentially wrong. There is a counter-intuitive response to incentives, and that is one factor that keeps people working long hours. According to his descendants, Keynes himself was a workhorse who couldn’t slow down. Listen to this audio story to learn more about Keynes and why making money doesn’t necessarily free us to work less.
Story Length: 3:59
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What should the government spend its money on? With a growing national debt this has become an important question. Economists see the government’s role in providing goods and services to be one that fills a need. The government should pay for things that make our lives better but that the private market cannot or will not provide. Listen to this story from Planet Money to learn the reasons why government has decided to pay for public goods such as lighthouses and autopsies.
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The Federal Reserve System is the central bank of the United States. It is responsible for the effective operation of the U.S. economy and conducts the nation’s monetary policy, stabilizes prices and moderates interest rates, and promotes the safety of individual financial institutions. In 1907, J. P. Morgan organized other leading financiers to backstop a run on banks and bring an end to a nationwide financial crisis. Later, with the encouragement of a powerful senator, a group of New York bankers went on to develop a plan for a central bank that was eventually adopted and that is still in effect today. Listen to the story to learn more about the formation of the Federal Reserve and America’s central banks by Congress.
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Scarcity is a basic economic problem: people have unlimited wants and needs, but the world has limited resources. Resources in that equation include materials, capital, and labor. A pasta factory in southern Italy faced a very particular sort of labor shortage. The Barilla pasta factory in Foggia, Italy had enough employees to keep up with production schedules, but the employees weren’t showing up to work. The absentee rate among workers threatened the survival of the plant. Listen to the story to learn how bosses and managers changed employees’ attitudes and behavior and solved their scarcity issue.
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Chances are, you’re wearing something made from cotton. You can check the label on most garments to find out where they were made. But where was the cotton grown that was the starting point? This story tracks down the source of the cotton that went into a T-shirt. A spinning mill in Indonesia is where the fabric may have been made, and the cotton fields of Mississippi is where the cotton may have been grown. But cotton is grown all over the world. Why would a textile mill in Indonesia buy cotton from the U.S. when they can get it from much closer? Listen to this story to find out how technology and subsidies give American cotton farmers an advantage in international trade.
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