Economics in the News – Nov. 17-23, 2025
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o Is the United States economy relying too much on the artificial intelligence boom? What happens if it falters? Companies with large projects centered around AI are doing extremely well. Investors have seen strong returns. They are building large data centers and utility companies are racing for the opportunity to power the facilities to meet surging electrical demand. However, the rest of the economy paints a picture where unemployment is increasing as hiring has slowed and consumer sentiment has slumped amid high prices.
If the AI bubble bursts, it could have major ramifications. Consumer spending has been dominated by high-income households leading to what could happen if AI falters leading to a downward spiral in the stock market. And if the wealthy cut back on spending, then the lower-income Americans would see major ramifications in the form of additional job losses as businesses seek to cut costs. [The New York Times]
o American meat industry titan Tyson Foods is shutting down its Nebraska-based processing plant that employs more than 3,000 workers. The decision to scale back is due to the high beef prices in the United States and the lowest cattle inventory in decades.
In addition, President Donald Trump accused the nation’s largest meatpacking companies of artificially inflating prices and threatening the country’s food supply. A pound of ground beef is up 11 percent from 2024 to $6.32 per pound, according to the Bureau of Labor Statistics. The number of cattle has dwindled since 2019, down 13 percent and at its lowest level since 1952. [The New York Times]
o Bitcoin’s bad week means that the largest cryptocurrency is on track for its worst week since June 2022. The cryptocurrency lost more than 10 percent of its value, dropping below $81,000.
Bitcoin had earlier this year reached an all-time high, as brokerage firms such as Blackrock and Fidelity bought up Bitcoin for their ETFs. Despite remaining too volatile for the broader market, portfolio managers have become more accepting of it. The most recent selloff saw investors sell around $4 billion of bitcoin and ether ETFs from issuers, according to JPMorgan. Despite the downturn, many crypto enthusiasts remain enthusiastic about the future of cryptocurrencies. [The Wall Street Journal]
o Americans are increasingly putting off big-ticket purchases and scaling back on nonessentials, as the outlook for the United States economy becomes murkier. More shoppers are moving away from Target – historically, a store that has attracted the middle and upper classes – for more affordable options like Walmart.
Analysts have said that Americans are continuing to spend as the holidays approach, but with more tariff-induced price hikes likely on the way after the holidays, little reprieve is in sight for Americans. And the National Retail Federation projects holiday spending to top $1 trillion, an increase over the same period last year. In addition, the income inequality continues to grow between the higher-and-lower classes, with low earners increasingly concerned about a slowing job market, rising housing costs and electricity costs. [The Washington Post]
o It’s Thanksgiving week and that means that Americans are set to hit the road to spend time with family and friends. An estimated 82 million people are expected to travel this year -- a record number according to AAA. That amounts to an increase of 1.6 million compared to Thanksgiving a year ago.
More people will be traveling via car than previous years with 73.2 million expected travels anticipated to hit the road – a 1.8 percent increase from last year. Despite concerns over recent flight delays and cancellations, air traffic is expected to increase by two percent compared to a year ago. For flights, the FAA has said it anticipated the busiest Thanksgiving travel day in 15 years on Tuesday, while motorists are expected to hit the most congestion on their commute Tuesday and Wednesday afternoons. [NPR]
