669. Why Is 95 Percent of the World’s Bourbon Made in Kentucky?

The Freakonomics Radio episode investigates the economics of the bourbon industry, particularly its concentration in Kentucky and current market challenges. It explores how time functions as a crucial investment input, influencing pricing and market dynamics. Economist Ken Troske explains the regulatory requirements for bourbon, including the aging process, and the three-tier distribution system's inefficiencies. Brad Patrick from the James B. Beam Institute discusses the industry's oversupply issues, the impact of changing consumer tastes, and potential strategies for distilleries. Master Distiller Danny Kahn details the bourbon-making process, emphasizing the importance of corn, US production, distillation proof, and new charred oak barrels for flavor and quality. The episode also touches on tariffs and barrel taxes affecting the industry's future.