Economics in the News – April 6-12, 2026 

Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.

o   Michigan is synonymous with the auto manufacturing industry. Now, the state wants to become the heavyweight in drone manufacturing. The state of Michigan spent at least $14 billion to boost the drone industry, including on projects to help deliver auto parts to car dealerships and resupply ships on Lake Michigan.

Michigan offers drone companies grants for prototyping and industrial automation, while also making it an easier process to obtain approval to fly autonomously. Because of their efforts, Michigan has become a major player in drone start-ups. [The New York Times]

o   According to Sanford University economist Neale Mahoney and Chad Maisel, a policy fellow from progressive research organization Groundwork Collaborative, the “annoyance economy” has an economic impact of up to $165 billion per year. Included in the annoyance economy are tasks that are said to be simple, but turn into hassles – such as canceling a service, changing a flight, or dealing with spam callers.

Companies that make it difficult to change a subscription or service can increase revenues by as much as 14 to 200 percent. In the health care industry, this has led patients to put off appointments and screenings. According to their research, some inconveniences in the annoyance economy are intentional, with artificial intelligence (AI) chatbots commonly impersonating people and enabling companies to mislead their customers. [The New York Times] 

o   The war with Iran has caused a global shortage of jet fuel. The Middle East supplies roughly 20 percent of the world’s jet fuel, which is a purer form of kerosene capable of handling freezing temperatures at the higher altitudes where airplanes fly.

Major carriers worldwide are trimming schedules and increasing fees. Some airlines, such as Air France, are charging business-class passengers more because of the heavier seats, while United Airlines has canceled several red-eye and midweek flights. Meanwhile, China has stopped exporting fuel across Asia to meet its own needs, leading to shortages in places such as Vietnam and Myanmar. Europe may soon face a severe shortage, as it receives roughly 25 percent of its jet fuel from the Middle East. [The Wall Street Journal]

o   American families are wealthier than ever before. According to the Federal Reserve, the average net worth of an American household exceeds $1 million, and roughly 16 percent of households have a net worth of $1 million or more. The top-10 percent of households hold two-thirds of total wealth in the United States and are worth an average of $8.1 million. For many newly minted millionaires, their wealth is tied up in illiquid assets, such as an appreciating home. They hold only 4 to 6 percent of their wealth in liquid assets, according to the Survey of Consumer Finance. Meanwhile, the 2.5 percent of households at the bottom of the wealth pyramid have an average net worth of $60,000. 

However, the costs for housing and other essentials have increased substantially along with their wealth, so that many families that have achieved millionaire status still feel like they are middle class. According to the Bureau of Labor Statistics, $1 million today is roughly equivalent to $480,000 in 1996. While investment portfolios have ballooned and home values continue to rise, the wealth gap between classes in America is widening. [The Washington Post]

o   Entry-level jobs are difficult to come by these days. The unemployment rate for college graduates between the ages of 22 and 27 was 5.6 percent at the end of last year, up from 4.1 percent at the end of 2022. A concerning factor in this trend is the impact of artificial intelligence (AI), which is making it easier for companies to replace those less experienced workers.  

Economists warn of dangerous economic consequences if younger generations cannot obtain jobs. It could stagnate career growth for workers while limiting the number of consumers paid well enough to stimulate demand. [Bloomberg]