Latest 'Freakonomics' episode weaves storytelling together with economic wonkishness

Every week on his podcast "Freakonomics Radio" (2010 - present), award-winning journalist Stephen Dubner takes his listeners behind the scenes of a phenomenon in our everyday lives that we may not give a second thought. But what distinguishes his podcast from others that investigate our world, like "99% Invisible" (2010 - present) for example, is the economic lens that Dubner and his guests employ to carry out their investigation. What sorts of things does "Freakonomics" investigate? If you’ve read any of Dubner and Levitt’s best-selling books you may have an idea.Topics range from the more economic in nature — the gender pay gap, interviews with top economists such as Ben Bernanke and education — to topics that may never have been associated with the discipline — handwriting, predicting the future and a cheeseburger diet.

This past Wednesday, "Freakonomics" released an episode entitled “The No-Tipping Point,”which explored Danny Meyer’s decision to implement a “hospitality included” program at one of his restaurants, Modern, in the bottom floor of the Museum of Modern Art in New York City. This episode does a great job of showcasing Dubner’s ability to balance the qualitative and quantitative aspects of his storytelling. In this episode, Dubner unpacks percentages, profit margins and other business metrics as well as interviews team members at the Modern. When discussing this new policy from a quantitative point of view, Dubner contextualizes any metrics he provides so that all listeners will understand the meaning behind them. For example, the Modern has a seven percent profit margin. Dubner explains the definition of this term — that for every dollar the Modern takes in, it only earns seven cents — and then goes on to explain the impact this low profit margin, common to the restaurant industry, has on the restaurant’s employees.

"Freakonomics" episodes are particularly enjoyable to listen to because they are often very story-like. “The No-Tipping Point” begins with a background, both of Danny Meyer and his restaurants, and our current tipping system, both its history and why many consider it problematic. Dubner, with the help of Meyer himself along with Abram Bissell, executive chef at the Modern, then dives headfirst into the hospitality included plan. He explores the economics of the system — whether it will allow the restaurant to increase compensation for back of the house staff, which includes dishwashers and chefs. He also examines whether it will increase employee morale by decreasing rifts between the front and back of the house staff and other potential benefits and consequences of the decision. Next, Dubner asks Meyer to provide us with an overview of the results of the program thus far, and we also hear about the changes from a server herself. The best part about "Freakonomics" is Dubner’s ability to think about all potential effects of the system, policy or phenomenon he is discussing, and to force the people he talks with to consider these consequences as well. In this episode, Dubner wants to know how the hospitality included policy will affect all staff members at the restaurant, as well as customers. He also considers the effect of supply and demand on future restaurant employees and customers and the restaurant culture in New York City at large. Meyer shares that the Modern has seen an increase in revenues since the change to the hospitality included system in December of last year. And Dubner does not miss a beat in questioning whether this revenue increase could be a result of the restaurant’s increased media presence and not the hospitality included system itself. This ability to question cause and effect relationships is essential to a podcast centered around economics, as finding these links lies at the heart of the discipline.