Economics in the News – March 9-15, 2026
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o The ongoing war in the Middle East is threatening the supply of a range of goods, with the price of a container ship rising. The longer the conflict lasts, the greater the effect it will have on the global economy. Some economists are warning of potential stagflation if energy prices remain elevated because the cost to transport goods increases dramatically.
Farmers are dealing with elevated costs for fertilizer, meaning that could lead to issues in transporting foods and other goods to food-insecure countries. Other products made with aluminum are effected as well, and helium – a key element to make computer chips – could soon see its prices soar. Some companies during the supply chain issues during the COVID-19 pandemic, moved its manufacturing closer to home to limit the vulnerability to the hazards that may persist in the global supply chain. [The New York Times]
o It’s harder than ever for people to afford new cars. According to auto research firm Edmunds, the average car payment in the United States has ballooned to $774 as of January. That’s an increase of nearly $200 from January 2021. Even more worrisome a record number of new car buyers -- more than 20 percent -- agreed to pay more than $1,000 per month.
Add in the cost of insurance premiums, maintenance, and gas, it’s easy to see why more lower-to-middle income Americans are falling behind on their car payments. The delinquency rate on auto loans has climbed 28 percent over the last three years and more borrowers are opting to trade-in their vehicles at values lower than what they owe. More Americans are opting for longer-term loans or dropping their car insurance, despite being illegal in many states, in order to afford their car. [The New York Times]
o Iran is letting select ships pass through the Strait of Hormuz. A ship carrying a Pakistani flag was the first ship to sail through the strait while broadcasting its location. The more oil that is let out of the Persian Gulf to India or China, the more prices should ease due to less competition for barrels from other oil producers.
According to ship tracker Kpler, only 17 oil tankers sailed through the strait since the second day of the war through Sunday. Before the war, 125 ships passed through the strait each day. According to experts, more than 1,100 ships and 250 tankers are stuck in the Gulf. [The Wall Street Jounral]
o The United States issued a temporary dime to commemorate the upcoming 250th anniversary of America gaining its independence. However, its unique design is causing controversy. The back of the temporary dime replaced the olive branches with an eagle with an empty right talon clutching arrows in its right claws – a symbol of war. It is also inscribed with the phrase “LIBERTY OVER TYRANNY.”
The temporary dime was designed prior to President Donald Trump being reelected and the symbol is intended to commemorate the Revolutionary War. The artist – Eric David Custer – has said it is inspired by the Great Seal of the United States. However, it first started to go into circulation shortly after the US captured Venezuelan leader Nicolás Maduro. Critics believe that the symbol depicts the aggressive nationalism advocated by the Trump administration. The first dime was minted in 1796 and in 1946, the US Mint started to mint dimes depicting former President Franklin D. Roosevelt on the front. The US mint has stated that the US dime will return to its usual design at the start of 2027. [The Washington Post]
o Did you know that 2025 saw fewer natural disasters in the continental United States? No hurricanes made landfall in the US last year, bringing into question if some homeowners will get a break on their insurance premiums. In Florida, private insurers have been fleeing the state due to the number of high-risk natural disasters and going bankrupt, leaving homeowners to rely on the state’s insurance as a last resort option. However, some private insurance companies have returned and some homeowners that are still covered by the state-backed plans should see their premiums go down.
Nationally, the average premiums will rise between three to five percent, according to industry forecasts. And while disaster costs were lower last year, it did mark the fourth time in five years that extreme weather losses amounted to more than $100 billion, as California and Alaska dealt with wildfires, while Texas dealt with severe flooding. [NPR]
