Economics in the News – Oct. 27 – Nov. 2, 2025
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o Builders have been brutally impacted by President Donald Trump’s tariff and immigration policies. Construction costs have skyrocketed due to higher import costs on steel, copper, lumber and other essential materials. In addition, the industry is faced with worker shortages due to immigration enforcement. Many immigrants who work in construction fear immigration agents targeting their job sites, causing even those who are in the United States legally to fear being deported.
Economists warn that the two issues will stall any progress that should be gained as the Federal Reserve begins to lower interest rates. Homeowners are also delaying projects due to higher prices, causing revenue for companies to dwindle. It is estimated by the National Association of Home Builders that Trump’s tariff policies have caused the building of a typical home to increase by $10,900. New home construction fell six percent in August compared to a year earlier. [The New York Times]
o Millions of YouTube TV subscribers woke up Friday without access to channels owned by Disney, including ESPN and ABC after the contract between the two expired. YouTube maintains that it would be forced to raise its prices if it agrees to Disney’s terms and cited that Disney is benefitting from the dispute with its streaming services, including the new ESPN app that features all of ESPN incorporated as one.
For its part, Disney maintains that it must increase fees in order to keep up with increasing maintenance costs and that contract-renewal talks with YouTube have become increasingly difficult. ESPN is the top cable news channel among adults under the age of 50, per Nielson. If the dispute persists, subscribers to YouTube TV will be offered a $20 credit. [The New York Times]
o More cities are turning to robots to do its labor-intensive work. Throughout the United States, cities are asking robots to do anything from assisting with firefighting to mowing the lawn.
Kansas City, Mo., has been using robots to deliver water for large-scale fires, as it has the capability to expel 2,500 gallons of water per minute while fighting fires and navigating obstacles. Meanwhile in Englewood, Colo., robots are used to assist visitors navigate a co-working space and serve as a backup concierge when human staff are unavailable. In Irvine, Calif., robots are being hired to assess public infrastructure, such as curb ramps, sidewalks, transit stops and paved trails. The robots can complete the work in a fraction the amount of time it would take a city staff member. Meanwhile, Sanford, N.C., is using robots to assist with lawn-mowing projects near its City Hall and water towers. The battery-operated robots can cut grass continuously up to 23 hours in programmed patterns. Lastly, in Detroit, robots are being used to clean beaches on a popular island park in the Detroit River. [The Wall Street Journal]
o Two courts have ordered the United States Department of Agriculture to release Supplemental Nutrition Assistance Program (SNAP) for the 42 million Americans that count on them each month. However, President Donald Trump’s administration said it would only release enough funds for a half-month worth of food assistance amid the ongoing government shutdown.
SNAP benefits cost the government roughly $9 billion per month. However, Congress has not appropriated new funds for the benefit and only about half of the amount is held in a contingency fund. Experts say that there will be no funds for new applicants for the SNAP program in November. [The Washington Post]
o Since the COVID-19 pandemic, car prices have far outpaced inflation. According to Kelley Blue Book, the average price of a new vehicle in the United States is more than $50,000. In addition, used car prices have also increased at a record pace, costing $25,000 on average. As Americans are struggling to afford the vehicles, they are taking on more debt to do so. Nineteen percent of car loans are now over $1,000 per month, according to Edmunds.
In addition to car prices spiking, the prices of ownership – including insurance, maintenance and repair costs -- have soared. The spike in car prices is due to supply chain disruptions during the pandemic, leading to a reduced supply of new vehicles and automakers to focus on their highest-margin vehicles. Cars are viewed as necessities in most American cities. Americans spend 17 percent of their household budgets on cars, compared to 12.5 percent in Europe. [NPR]
