Economics in the News – May 4-10, 2026
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o Meta has reshaped its company with artificial intelligence (AI) at the forefront, incorporating its technology into Facebook and Instagram. However, its strategic use has angered many of its employees, as Meta recently announced that it would track their every move on their computer – where they moved a mouse, what they typed, and their browser information. According to Meta, the reasoning was to enhance their AI models into learning how people handle day-to-day tasks involving computers.
For Meta employees, they believe the move invades their privacy. The company has fully embraced AI but has announced its intention to layoff 10 percent of its work force to enhance its spending in AI. Meta could be paving the way, as other tech giants with large AI infrastructures could cut costs to increase its investment in AI. [The New York Times]
o President Donald Trump travels to China for a heavily anticipated summit alongside China leader Xi Jinping. While the rise of geopolitical tensions, tariffs, and other sanctions will get discussed, the United States and China are seeking to position themselves in an escalating currency war. There is growing skepticism in the safety of the dollar as the world’s reserve currency due to the US debt load and aggressive use of sanctions. That has led to greater global demand for gold and cryptocurrencies. Analysts are skeptical that a change to the world’s reserve currency will happen anytime soon despite growing interest in alternative currencies.
More oil transactions are being made using China’s renmimbi. The Trump administration is increasing the number of swap lines, ensuring that allies would have a sufficient amount of US dollars. Swap lines have historically been used by the Federal Reserve to ease market pressures during times of a turbulent economy. China has also been extending more swap lines in recent years, signing agreements with more than 40 countries since 2009. China is focused on using the lines to help bolster developing countries and build up more prominent use of its currency. The US has six active swap agreements with major American trading partners. [The New York Times]
o A recent study found that many Americans are less generous in tipping during their weekend outings compared to during the week. The study revealed that diners at restaurant chains tipped one percentage point less on Saturday and Sunday in comparison to the rest of the week. Experts suggest that busier dining rooms throughout the weekends means more impersonal service. In addition, with diners spending money on other experiences and items, they are cutting back on tipping habits.
It revealed that the average amount tipped 20.25 percent on Saturdays and 20.44 percent on Sunday. Patrons are most generous in their tipping on Tuesday and Thursday, with the average tip on Thursdays being 21.47 percent while the average tip on Tuesday was 21.45 percent. Overall, tips during the week throughout the study were 21.3 percent. [The Wall Street Journal]
o Ted Turner, a TV mogul who transformed cable television in America, died at the age of 87. The pioneer behind TBS and TNT, Turner turned a small Atlanta-based station that showcased old movies and shows into a media empire. In addition, Turner started CNN, turning it into a 24-hour news station that provided wall-to-wall coverage of global events. CNN was the first of its kind station, before the likes of NBC, CBS, ABC and Fox all created their own cable news outlets. It was also seen as a major gamble, before viewers gravitated to its coverage of stories such as the 1986 Challenger explosion or the demolition of the Berlin Wall.
Turner sold his Turner Broadcasting System to Time Warner in 1996, banking nearly $7.5 billion in the deal. Turner also played a pivotal role in Atlanta’s sports scene, including the Atlanta Braves and Atlanta Hawks. Turner bought the Braves for $10 million in 1976, receiving backlash for pouring resources into his team and pursuing other teams’ players. [The Washington Post]
o Despite many Americans feeling anxious about the economy and seeking ways to cut back on spending, they are still splurging on mom. A forecast from the National Retail Federation projected that spending on Mother’s Day would soar to $38 billion, a record and an 11 percent year-over-year increase.
Mother’s Day is typically the busiest day of the year for US restaurants and ranks as one of the busiest days for florists. Resy – a platform to book restaurant reservations – said that year-over-year bookings were up 30 percent prior to the weekend. That’s despite prices to dine out in restaurants increasing at a 3.8 percent clip – double the rate as grocery prices. [NPR]
