Economics in the News – Aug. 24-30, 2026
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o Perhaps the most forgotten female economist of all-time Maria Edgeworth — an 18th century Anglo-Irish author who tied economic concepts into her writing. She was regarded by her peers, such as Jane Austen, Sir Walter Scott and Lord Byron. In her fictional books, Edgeworth would write about economic concepts, such as monopolies, price setting and land management. It’s clear that she believed that economics was for everyone.
She parallels Adam Smith’s early concepts and argues on behalf of women that the economy was being held back because men had gendered the labor market. Her goal seems to have been to spread and educate economic concepts beyond elite circles. She inspired other writers and had many in skeptics in her era wondering if it was appropriate for a woman to write on economic concepts. She became a forgotten voice in the economics community as second and third generation economists distanced themselves from women and the fiction that sought to explain their ideas. [The New York Times]
o More Americans are trying to stretch their dollars, with some of the biggest winners being discount stores. Dollar General has seen an uptick in store traffic across its 21,000 store footprint, with store sales up 3.5 percent in the most recent quarter. Executives have stated that they are seeing more higher-income earners shop at their stores as well.
The three top dollar stores in the country — Dollar General, Dollar Store and Family Dollar — have had a difficult time in recent years in keeping their prices at rock-bottom. Another concern is big box stores like Walmart and Target aggressively slashing prices, potentially eating into the target demographic of dollar stores. [The New York Times]
o Scientists in June declared the strongest El Niño in a generation. Ocean temperatures are at record highs and experts suggest that it will continue into 2027, with 2027 likely being the hottest year on record. El Niño events can cause a significant amount of economic damage, especially in more tropical locations. Economists are widely projecting less growth and more inflation, especially in Asia’s top emerging economies.
This El Niño has brought drought to the Panama Canal, as its top source of replenishment Lake Gatun’s levels are down with rainfall in the region between May and August being 34 percent less than historical average. That has created a bottleneck in the canal for shipping companies. Canal operators have already reduced the maximum number of vessel transits from 36 to 32 by mid-September. In addition, Panama recently hired the US Army Corps of Engineers to upgrade the canal to divert as many as four rivers into the waterway. One positive is that a strong El Niño tends to reduce the number of Atlantic hurricanes. It could also aid Europe if a mild winter reduces the need for imported liquefied natural gas. [The Wall Street Journal]
o Following years of lawsuits and public opposition, the prospect of building housing on San Francisco’s Treasure Island and Yerba Buena Island have become a reality. Builders have already completed eight new buildings with roughly 1,000 apartments and condos. In addition, there are plans to build another 7,000 units across the two islands with it taking until at least 2040 to complete.
Treasure Island is a man-made that was created to host the 1939 World’s Fair. It is adjacent to the natural Yerba Buena Island. The Navy used both islands during World War II and trained soldiers from there until 1997. Since then, leaders have seen the two islands as a place to help the city in desperate need for additional affordable housing. The development was delayed due to environmental concerns and questions on the economic feasibility of the project. Another concern as the area is built is traffic congestion. [The Washington Post]
o Earlier this year, the Supreme Court ruled that many of President Donald Trump’s tariffs were illegal, meaning that the federal government would need to refund more than $160 billion that it collected. However, none of that money is expected to go back to consumers, instead it will go to the businesses that paid the tariff fees directly. The cost that consumers paid were higher prices that were passed down.
Shipping companies may be the exception because the fees they passed off were the same that they were charged directly, so UPS, FedEx and DHL have all pledged refunds based off what they receive from the federal government. While retailers likely won’t pass along refunds in the form of cash to customers, some, such as Home Depot and Walmart, have pledged to use the refunds to cover additional costs in an attempt to keep costs lower for consumers. [NPR]
