Economics in the News – Sept. 28 – Oct. 4, 2026
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o A venture capital start-up Dorm Room Fund was created more than a decade ago by college students as a way to invest in their peers. That investment is now paying off, as some of the fund’s alumni have gone on to have successful careers in major companies at the center of the artificial intelligence boom. Others have gone on to successful careers of their own as well.
Dorm Room Fund chooses college students by choosing students from a pool of undergraduate and graduate school applicants. It creates a team of 60 investors on an estimated 30 college campuses, where students are trained on venture capital basics and meet regularly to go over potential deals. The student investors often land jobs at venture capital firms or become their own successful entrepreneurs. The fund’s portfolio holds eight start-ups now worth at least $1 billion and a total of 30 companies worth more than $300 million. [The New York Times]
o The closure of the Strait of Hormuz, stemming from the US war in Iran, has severely crushed the Asian energy market as it has cut off half of the supply Asia typically receives from the region. In the early days of the conflict, some Asian countries declared state of emergencies, as motorists braced for a fuel shortage. As a result, Asian markets have become more reliable on outside producers such as the United States and Russia, while also using some of their reserves. US shipments to Asian countries increased to 2.3 billion per day in July, compared to 1.5 billion per day in July.
Asian countries were able to receive some oil from the United Arab Emirates and Saudi Arabia, which have pipelines directly to Asia and bypass the strait. China has also aided the effort by buying less oil, importing one-third less than it did in the same period last year. They have also opted to draw on their oil reserves, reducing refinery operations. It is estimated by Kpler that the war has reduced oil demand by about two percent. The poorer Asian countries have struggled to replace natural gas supplies from the Gulf, with some countries having to ration power and conduct rolling blackouts. [The New York Times]
o Climbing diesel truckers are making it more expensive for truckers to fill up their rig, as prices at the pump have soared to $6.53 per gallon – an increase of nearly double last year. Independent truckers have little to no choice but to fill up their 18-wheeler with fuel, even with the extravagant cost. They are searching for other ways to cut back, such as cooking meals inside their cabs, sleeping where they unhooked their trailers, or avoiding the $100 wash.
Some of the small operators have filed for bankruptcy, with experts warning that more could be on the way if prices don’t correct. One disadvantage of smaller carriers is the lack of bargaining leverage for fuel surcharges that protect some carriers from price increases. [The Wall Street Journal]
o Government officials up for re-election this midterm season are seeking to enact gas holidays ahead of election day. Both Democrat and Republican candidates are supporting the idea of a gas tax holiday. In Massachusetts, the Democrat governor has proposed a two-month gas tax following an advertisement calling for it by the Republican challenger.
Regular gas is up to $4.49 per gallon, an increase from $2.98 earlier this year, due to the US war in Iran leading to a disruption in oil supplies in the Strait of Hormuz. By lowering gas taxes, policymakers are taking one of the actions that they can to aid the American consumer. However, gas taxes are a large part of state budgets to fix roads and bridges, and providing a prolonged gas tax holiday can wreak havoc on state budgets. [The Washington Post]
o Accessory dwelling units (ADUs) are increasing in popularity due to their potential to ease shortages of lower-cost rental units and helping to cool rising rents nationwide. An ADU suite can be a converted attic, garage or basement. Or even its own standalone mini house. They are living spaces with their own entrances, kitchens and bathrooms.
Some are adding ADUs to their properties in order to generate additional income. In New York, mayor Zohran Mamdani has been a proponent of ADUs across the city as a part of efforts to provide additional affordable housing. While ADUs are an affordable housing solution, the cost to build them are not. And the process often comes with many obstacles due to restrictions. [Bloomberg]
