653. Does Horse Racing Have a Future?
This episode of Freakonomics Radio visits the Keeneland September yearling sale to explore how thoroughbred racehorses are bred, evaluated, and sold, and how record auction prices coexist with a shrinking foal crop and declining racing industry. Breeders, buyers, economists, and horseplayers explain the economics of stud fees, the risk-reward profile of buying unproven horses, and how simulcasting, legal sports betting, and computer-driven wagering have transformed the gambling side of the sport. The episode closes by examining racinos, historical horse racing machines, and regulation as key forces that may determine whether horse racing has a viable future in the United States.
Buy now, pay dearly? (update)
Planet Money explores how buy now, pay later (BNPL) services work, why they have spread so quickly, and what risks they pose to consumers and the broader financial system. Through the story of college student Emilia Schmarzo and interviews with Federal Reserve researchers, the episode explains BNPL's business model, its appeal to merchants and younger shoppers, and the dangers of debt "stacking" when usage is not reported to credit bureaus. An update looks at how BNPL has expanded to everyday necessities, who is using it most, and how it may soon affect credit scores.
652. Inside the Horse-Industrial Complex
This episode examines the modern thoroughbred horse industry, from elite breeding operations in Kentucky to the lived experience and economics of being a jockey and a backstretch worker. Former jockey Richard Migliore describes the physical and psychological demands, risks, and rewards of his nearly 30-year riding career, while industry participants like economist Jill Stowe and farm operator Mark Taylor explain the business structures, sales markets, and breeding strategies that underpin the sport. The conversation also explores how immigration rules shape the racing workforce and how long-standing breeding rules, especially the ban on artificial insemination, help keep Kentucky at the center of the global thoroughbred economy.