Planet Money

Economists at the World Bank calculate that 2.5 billion people live on $2 a day, but what exactly does that mean? In the developed world, living on so little would be almost unthinkable. For 40 percent of the global population, $2 a day is a reality that must, somehow, be made to work. In their book Portfolios of the Poor, Daryl Collins and co-author Jonathan Morduch uncover the surprisingly complex financial lives of the most destitute people.

Should good teachers make more than bad ones? The Obama administration says the nation needs to start rewarding merit, and economist Michael Podgursky of the University of Missouri agrees. It's just that there's no simple means of carrying that out. Plus: A listener has an economic riddle. If colleges compete for students by making it easier to get degrees, then employers can't necessarily tell who's better qualified. What would an economist call this problem and how can it be fixed? Robert Frank, author of the Economic Naturalist's Field Guide, has an answer.

South Carolina Governor Mark Sanford made a decision last month — stay home and fulfill his public and family roles, or sneak off to Argentina for a visit with his mistress. Sanford chose the latter, of course, and economist Tim Harford argues it must make some kind of sense. Harford writes the Dear Economist column for the Financial Times and is the author of the Undercover Economist. Plus: They paid off one mortgage and are considering another.

It can be hard to find someone who has actually paid off a 30-year mortgage these days. Be it low interest rates, college tuition for the kids, or an opportune refinancing moment, there are plenty of reasons most people never get there. One Seattle couple tells the story of how they managed to pay the whole thing back. Plus: Many people are pleased that Bernie Madoff will spend the rest of his life in prison. WBUR's Curt Nickisch tells us why the city of Boston is patting itself on the back at the news.

New York state is in the midst of an investigation into a pension scandal involving alleged kickbacks, but the trouble with pension funds doesn't stop at corruption. WNYC's Lisa Chow, who has been reporting on the scandal, explains how public pension funds get invested in private equity. Once your money goes in, good luck finding out where it is or how it's doing.

New York state is in the midst of an investigation into a pension scandal involving alleged kickbacks, but the trouble with pension funds doesn't stop at corruption. WNYC's Lisa Chow, who has been reporting on the scandal, explains how public pension funds get invested in private equity. Once your money goes in, good luck finding out where it is or how it's doing.

When most Americans think about financial collapse, they flash back to the Great Depression. The Germans are haunted by another ghost — hyperinflation. As countries around the globe pump money into the world economy to try to fix it, fears of inflation are once again growing. Josef Joffe, editor of Die Zeit, explains why history is still haunting German chancellor Angela Merkel. Plus: these days even safety net jobs are hard to come by.

President Barack Obama's plan for overhauling regulation of the U.S. financial system calls for eliminating the Office of Thrift Supervision. David Kestenbaum visits the OTS to get the mood from employees, but only finds one person willing to talk, spokesman Bill Rubbery. Plus, our podcast about tariffs last week prompted a lot of you to ask "Are they really so bad?" Today economist Arvind Subramanian of the Peterson Institute weighs in.

President Obama's new plan to regulate the banking system may sound different from the moves of the 1980s and 1990s, but it echoes the Presidential responses to earlier crises. Plus: arguments on the role of regulation from two economics professors.

President Barack Obama unveiled his plan for overhauling regulation of the U.S. financial system. We get responses from two bank lobbyists, two lawmakers and an actual economist.

You may have heard something about the new iPhone. But have you heard about the Harmonized Tariff Schedule? That's the giant book of guidelines by which import specialists like Brett Ewing and Jim Henderson classify everything from wood flooring to handheld gizmos for importing into the United States.

Iran's Presidential election might come down to the country's economy, and Iran's economy might come down to one book by the Ayatollah Mohammed Baqir al-Sadr. Sayed Mohsen Naquvi of the non-profit Independent Visions says Sadr's book will influence Islamic thought on government and economics for centuries to come. Plus: why investing in space isn't just for NASA anymore.

Chapter 11 bankruptcy is a wonderful tool, says GM CFO Ray Young, whose company is now in the process of restructuring. And hey, it went so well for Chrysler. If you happen to be one of the jilted creditors, bankruptcy doesn't seem quite so wonderful. Clown Mandy Dalton says a mall operator that went bust still owes her $200 for a family fun day. She talks it over with bankruptcy lawyer Jay Strock.

Voters in Lebanon picked a coalition backed by the U.S. over one supported by Hezbollah in elections on Sunday. In the weeks before the vote, Ben Gilbert of Executive magazine says he began hearing reports of people offered plane tickets and even cash to vote a particular line. Gilbert says both sides seem to have been courting voters, at an eventual cost of $1,000 a vote. He explains the economics of buying someone's ballot. Plus: Robert Frank on why automakers turn bigger profits on big vehicles like the Hummer.

We're launching our fourth special on This American Life this weekend. The show covers the people and agencies who were supposed to be watching out for the economy, and why all that watching failed to stave off the financial crisis. Chana Joffe-Walt and David Kestenbaum reveal two fascinating bits you won't hear anywhere else. The first concerns Darrel Dochow, a regulator whose tenure stretched from a bank at the heart of the Keating Five scandal to the collapse of IndyMac. The second is about Mabel Yu, a bonds analyst who warned her company to stop buying mortgage-backed securities. Plus, an interview with Jon Swan, one of the Harvard students behind the MBA Oath, and a farewell to our fabulous editor Jonathan Kern, who's retiring. He has some advice for you.