Economics in the News – March 30 – April 5, 2026 

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

o   More borrowers are defaulting on their student loan payments, according to the Department of Education. More than 40 million Americans have outstanding student loans, and a record 7.7 million of those borrowers have defaulted on their payments.

Some of those borrowers have decided to move overseas, away from debt collectors, and have stopped making payments. Many who have done so said they chose to in order to relieve the psychological toll that student loans take, while enjoying a better quality of life. Of course, credit bureaus advise against stopping payments, as it tanks the borrower’s credit score and raises future borrowing costs. [The New York Times]

o   An increasing number of economists are beginning to take the threat of artificial intelligence (AI) to the job market more seriously. In a recent survey, economists suggested that they expect AI to boost the economy as the technology advances, but it could lead to the loss of millions of jobs if it improves at a rapid, faster-than-expected pace.

The loss of jobs would likely be concentrated among entry-level workers, potentially wiping out entire career fields and taking years or decades to play out. As such, economists warn that government leaders should put policies in place now to help displaced workers. If AI evolves gradually, that would give older workers time to finish their careers while younger workers can learn relevant skills or change careers. If the change is sudden, economists warn that it would give workers fewer opportunities to adapt. [The New York Times] 

o   Research shows that America’s middle class is becoming wealthier, and there is a growing divide between the upper-middle class and lower-middle class. From 1979 to 2024, America’s upper-middle class has grown from 10 percent to 31 percent of Americans.

The growing affluence of American middle-class families has a major influence on the economy, especially on the products and services that are offered. While many families have moved into the upper-middle class, they still feel the financial burden imposed by inflation, high interest rates, and unaffordable home prices. [The Wall Street Journal]

o   Gas prices hit their highest levels since 2022, spiking to an average of $4 per gallon in the United States. The price of gas has climbed by more than $1 in a little more than a month. The recent surge in fuel costs burdens small businesses, which are already facing challenges extending from tariffs, interest rates, and waning consumer confidence. As gas prices rise, Americans can expect grocery prices to follow suit due to higher transportation and manufacturing costs.

The last time gas prices were this high was in 2022, when Russia invaded Ukraine. During that surge, gas prices reached $5 per gallon, and many economists forecast a recession. In the current environment, many Asian and European countries that rely on oil from the Middle East are scrambling for alternatives and have announced emergency plans. [The Washington Post]

o   Mexico’s top tourist destinations are underfunded by the Mexican government, with 20 percent budget cuts for the country’s Culture Ministry, which oversees artifacts and plays a role in preserving language and dance. Meanwhile, the National Institute of Anthropology and History’s funding has been slashed by 40 percent.

Tourism is a major driver of the Mexican economy, especially the historic sites. Visits to those sites – including ancient Mayan ruins -- account for nine percent of Mexico’s annual gross domestic product (GDP). The ancient Mayan city of Chichrén Itzá welcomed more than two million visitors last year, while Teotihuacán – once the largest city in the Americas – saw more than 1.6 million visitors. Many are concerned about what the spending cuts mean for the future of tourism in Mexico, as business tourism leaders worry that more travelers may choose to visit other places, such as Jamaica or the Dominican Republic, instead of Mexico. [Bloomberg]