David Kestenbaum

Lady Gaga Writing A New Song Is Like A Factory Investing In A New Machine

David Kestenbaum — Thu, 25 Apr 2013 07:30:00 +0000

I spoke yesterday with Dan Sichel, a Wellesley economist and a Lady Gaga fan. Both of these facts are relevant for this story.

The U.S. government is about to tweak the way it measures the economy, and some of the biggest changes will affect the entertainment industry.

Under the current system, Sichel told me, Lady Gaga's sales of concert tickets, online songs and CDs all count toward gross domestic product. But the value of the time she spends in the studio working on new songs isn't counted.

When A Famous Hospital Didn't Want An Expensive New Drug

David Kestenbaum — Thu, 28 Mar 2013 07:41:00 +0000

Last year, a new drug called Zaltrap was approved as a kind of last-chance therapy for patients with colorectal cancer. Studies suggested Zaltrap worked almost exactly as well as an existing drug called Avastin. In fact, the main difference between the two drugs seemed to be the price.

"I was rather stunned," Dr.

Three Ways To Totally Transform U.S. Immigration Policy

David Kestenbaum — Thu, 21 Feb 2013 08:05:00 +0000

With immigration policy in the news again, I asked three economists, "Dream big: If you could create any immigration policy for the U.S., what would it be?" Here's what they said.

1. The Best And The Brightest

Dean Baker of the Center for Economic and Policy Research would give out more visas to highly skilled workers: scientists, engineers, computer programmers and doctors.

In this universe, with fewer low-skill immigrants, low-skilled labor would be more expensive. So, food would cost a bit more. Child care might, too. There could be fewer restaurants.

'Give Me The Money Or I'll Shoot The Trees'

David Kestenbaum — Thu, 07 Feb 2013 08:34:00 +0000

Ecuador's Yasuni National Park is one of the most diverse ecosystems on Earth. But there's a complication: The park sits on top of the equivalent of millions of barrels of oil.

This creates a dilemma.

Ecuador prides itself on being pro-environment. Its constitution gives nature special rights.

An International Battle Over One Of The Most Boring Things In Finance

David Kestenbaum — Fri, 01 Feb 2013 08:38:00 +0000

This week saw the end of a years-long, international, multi-billion-dollar battle over one of the most boring things in finance: savings accounts.

At the center of the battle was Iceland, a tiny country where the banks grew into international behemoths during the credit bubble.

The banks got so big partly by convincing foreigners to open up online savings accounts. In particular, lots of people in England and Netherlands opened up "ICESAVE accounts" with a bank called Landsbanki.

Why Is The Government In The Flood Insurance Business?

David Kestenbaum — Thu, 24 Jan 2013 08:35:00 +0000

There's a quick, one-word explanation for why the federal government started selling flood insurance: Betsy.

Hurricane Betsy, which struck the Gulf Coast in 1965, became known as billion-dollar Betsy. Homes were ruined. Water up to the roofs. People paddling around streets in boats. Massive damage.

This would be the time when you'd expect people to be pulling out their flood insurance policies. But flood insurance was hard to come by. You could get fire insurance, theft insurance, car insurance, life insurance.

Hedge Fund Titans Bet Billions On Success Or Failure Of 'Herbalife'

David Kestenbaum — Fri, 11 Jan 2013 21:53:00 +0000

A pair of prominent hedge fund managers have taken opposing positions on the nutritional-supplement company Herbalife. Bill Ackman of Pershing Square Capital Management says the multilevel-marketing company is a pyramid scheme and a bad investment. He's shorting the stock. Dan Loeb of hedge fund Third Point says Herbalife is a good investment. He's taken an 8.2 percent stake in the company and is betting that its shares will rise. Melissa Block talks with David Kestenbaum of the Planet Money team.

The North Dakota Town Where A One-Bedroom Apartment Rents For $2,100 A Month

David Kestenbaum — Thu, 10 Jan 2013 08:27:00 +0000

A plain, one-bedroom apartment in Williston, N.D., rents for $2,100 a month. For this price, you could rent a one-bedroom apartment in New York City.

Williston is not New York City. There are 30,000 residents and one department store. The nearest city is two hours away.

Rents are so high in Williston because the town is in the middle of an oil boom. Unemployment is below 1 percent, and workers are flooding into town.

But the workers, by and large, don't want to stay in Williston.

What A Former FBI Hostage Negotiator Can Teach Us About The Fiscal Cliff

David Kestenbaum — Fri, 28 Dec 2012 17:28:00 +0000

The tortuous negotiations involved in the "fiscal cliff" talks are like a chess game.

To shed some light on the kinds of negotiation techniques that members of Congress might be using during the talks, we asked two negotiators to walk us through their tactics with examples from their everyday lives.

Adam Galinsky teaches negotiation at Columbia University's business school. He was recently at an airport in North Carolina, waiting to fly home.

The 'Fiscal Cliff' And The Art Of Negotiating

David Kestenbaum — Fri, 28 Dec 2012 11:50:00 +0000

The tortuous negotiations involved in the "fiscal cliff" talks are like a chess game. The opponents follow rules and techniques. Negotiating is part science, part art, and everyone does it in their daily lives.