Economics in the News – Oct. 27 – Nov. 1, 2026
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o Artificial intelligence (AI) has enabled retailers to alter the prices of goods at a moment’s notice, allowing the price to fluctuate depending on demand. And shoppers and regulators are suspicious. According to a survey from product information management firm Akeneo, only 32 percent of consumers in the United States trust retailers to offer fair prices. And the number decreases if a consumer finds out that prices change based off an individual’s personal data.
Dollar General is the subject of a lawsuit filed by the Federal Trade Commission which alleges that the store charged customers more than advertised. Prices differ from those that the store distributes in its clippings. Dollar General has denied the allegations. More retailers, such as Walmart and Costco, are falling under intense scrutiny over surveillance pricing, adjusting prices based on what an individual may be willing to pay. [The New York Times]
o Many small trucking operators are struggling to deal with sky-high diesel costs stemming from the US war in Iran. At least 40 small trucking companies filed for bankruptcy in September, according to bankruptcy analytics firm BKwire. That marks a 38 percent increase from a year ago, as truckers are faced with paying 70 percent higher costs for fuel than they were a year ago. The national average for diesel in September, according to AAA, was $6.05 per gallon – the highest national average ever recorded.
Small trucking companies saw rapid expansion during the early days of the COVID-19 pandemic but has become oversaturated in recent years. Prices impact smaller truckers more because large trucking companies use their own contracts with fuel surcharges that allow them to pass the bill onto customers. At smaller operators, they have less bargaining power and an oversaturation has occurred. [The New York Times]
o A greater share of health care costs is being passed from employers to employees, with the share coming out of employee paychecks averaging $7,471 – an increase of nine percent since 2025.
According to experts, employees can expect more increases next year. That’s because the high-cost drugs, such as cancer and weight loss drugs, are driving up the prices. Hospitals have also been able to raise some of their prices and use artificial intelligence (AI) for billing. As the out-of-pocket costs continue to rise, more workers will likely opt to forego their health coverage. [The Wall Street Journal]
o Economists are warning that some of the forces that have aided in sustaining economic growth are beginning to fade, as the federal debt has surpassed the size of the United States economy. The debt-to-GDP ratio reached 100.3 percent in the fiscal year 2026.
Tax refunds and stock market gains have led to sustained consumer spending, especially among wealthier American households, but the economy could slow in the coming months due to some of the support drying up. Some economists worry about the implications for long term interest rates, as mortgage rates are at their highest levels in several decades. [The Washington Post]
o Food delivery company DoorDash is offering to purchase its competitor Instacart in a $17 billion deal. A deal would position the two companies to better compete with rivals such as Amazon and Walmart, using DoorDash’s global reach and expertise in logistics with Instacart’s technology and relationships with grocery stores. A deal is expected to be finalized by late 2027 or early 2028, pending approval.
DoorDash has said that Instacart’s name and app would remain, allowing Instacart’s independent contractors to continue to fulfill orders. Initially, DoorDash mostly delivered food orders from restaurants to deliver to diners who ordered on their app. However, they moved into grocery delivering during the COVID-19 pandemic, hurting Instacart’s business. A merger is subject to regulatory approval, which could present anti-trust issues with DoorDash potentially controlling Instacart’s technology. [Associated Press]
