Economics in the News – July 13-19, 2026
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o Taylor Farms is at the center of the cyclosporiasis outbreak across the US. The outbreak has caused more than 1,600 people to become sick. Taylor Farms, a California-based company, is one of the top producers of leafy greens and fresh vegetables in the United States. The Centers for Disease Control and Prevention linked the outbreak to iceberg lettuce that Taylor Farms supplied to Taco Bell.
Taylor Farms sells more than $7 billion worth of produce each year to grocery stores and restaurant chains. It says that it provides more than 40 percent of the salad kits sold in American grocery stores and 265 million servings of fresh vegetables each week. The company sells its products to food distributors, who’s tasked with selling to grocery stores and restaurants – casting doubt over which grocery stores actually sell its products. The CDC has cautioned consumers against eating at Taco Bell in Indiana, Kentucky, Michigan, Ohio and West Virginia. [The New York Times]
o Americans filed 5.7 million applications last year to start new businesses, according to data from the Census Bureau. It marked the most in the two decades since the bureau has tracked new business applications. The strong run on start-ups is a continuation from the start of the COVID-19 pandemic when mass layoffs and remote work led to new business ideas. Since, artificial intelligence (AI) has accelerated the boom.
Business creation helps drive innovation and productivity. The role of AI has led to new businesses being created around the technology and making it less expensive to do so, with nearly 50 percent of business founders saying they used AI technology. The labor market that has persisted could be leading to unemployed workers to start their own businesses and create their own revenue. In addition, high home valuations and record-high stock market prices could be encouraging business investments, while AI could be making it easier to fill out applications. [The New York Times]
o Sunday brought the end of the World Cup, as Spain scored the game’s only goal in the 106th minute to prevail over Argentina. Many of the World Cup’s host cities are ready to declare the event an economic success, with cities such as Kansas City, Mo., or Philadelphia seeing significant boosts in tourism. In those cities, consumer spending spiked as fans flocked to bars, restaurants, and booked hotels.
According to Bank of America, credit-and-debit card spending rose 6.3 percent in June compared to June 2025, marking the strongest growth rate in four years. The data doesn’t account for international travelers. Hotels made out as big winners with host cities seeing an average of 35 percent higher revenue and higher-than-usual occupancy rates. [The Wall Street Journal]
o Many American businesses are preparing for long term higher inflation. Between President Donald Trump’s tariff policies, the US war in Iran that is keeping oil markets on edge, and artificial intelligence (AI) infrastructure making electronic components more expensive, experts are warning that prices will be elevated for some time. While a round of 10 percent tariffs is set to expire in late July, businesses remain on edge with what happens next.
According to the Federal Reserve Bank of New York, nearly half of companies that paid tariffs expected to raise prices in order to make up for the tariff costs. Some plan to raise prices when contracts expire, while others plan to take a gradual approach to avoid backlash from consumers. [The Washington Post]
o Many start-up businesses are faced with a dilemma when it comes to artificial intelligence (AI). It is becoming increasingly necessary for them to invest in, but doing so with an American company is becoming increasingly expensive. So, some companies are turning to cheaper Chinese AI alternatives that experts suggest are six to 10 months behind the top American AI companies.
Many companies are wary about using Chinese models due to geopolitical tensions, but that tension is somewhat eased by the models becoming available on aggregators and inference providers outside of China. While the Chinese models provide a less expensive alternative, some entrepreneurs are staying with the more advanced American models out of necessity for their companies. Experts suggest that US companies will continue to adapt, keeping prices in check or introduce new models to stay ahead of the Chinese rivals. [NPR]
