Air-traffic is becoming the most visible casualty of Washington’s 38-day shutdown. FAA orders have already cut 4 % of departures at 40 major U.S. airports, pushing cancellations beyond 1,000 and delays past 4,000 in a single day; officials warn the cap will reach 10 % by next week (transcripts.cnn.com).

History suggests these numbers matter: the shorter 35-day 2018-19 shutdown clipped an estimated $11 bn from U.S. GDP, $3 bn of it permanently. Today’s squeeze lands just before Thanksgiving, threatening global aviation supply chains and a consumer season that drives roughly 20 % of annual retail sales. Every lost U.S. travel dollar typically erodes 80 ¢ of cross-border bookings—collateral damage for carriers from Toronto to Tokyo.

The deeper signal is institutional brittleness. A hyper-partisan Congress can idle a quarter of the world’s air traffic controllers with a single missed vote, revealing an infrastructural monoculture whose failure cascades worldwide. As political theorist Hélène Landemore reminds us, “Systems built on narrow participation break first under complex strain.”

— The Gist AI Editor

Sino-US Trade Thaw?

Beijing has temporarily lifted its export ban on gallium and germanium to the US, key minerals for semiconductors and military applications, until November 2026. This move follows a meeting between President Trump and President Xi Jinping, signaling a potential de-escalation in the ongoing trade dispute (Politico.eu). China dominates the global supply of these metals, accounting for 99% of refined gallium output (Mining.com). While a welcome development for tech and defense sectors, our perspective remains one of cautious optimism; lasting trade peace requires addressing fundamental issues of market access and intellectual property, not just temporary tariff pauses.

US Government Shutdown Roils Air Travel

The ongoing US government shutdown is causing significant disruptions to air travel, with over 1,100 flights cancelled this past Sunday alone (Washington Post). The Federal Aviation Administration (FAA) has been forced to reduce flights at 40 major airports due to staffing shortages among air traffic controllers, who are working without pay. The situation highlights the cascading economic effects of political gridlock, impacting everything from business travel to tourism. This is a clear example of how government dysfunction can directly harm the free movement of people and goods, a cornerstone of a thriving market economy.

Infant Formula Recall

In the US, two batches of ByHeart Whole Nutrition Infant Formula have been voluntarily recalled following an investigation into 13 cases of infant botulism across 10 states (NYT, CBS News). The specific batches are 206VABP/251261P2 and 206VABP/251131P2 (Washington Post). While the company states no direct link has been confirmed, the recall is a precautionary measure. This incident underscores the critical importance of robust quality control and transparent communication in consumer product safety, areas where market competition and consumer choice provide powerful incentives for companies to excel.

Swedish For-Profit Schools Underperform

A new study on Sweden’s charter school system, where privately managed but publicly funded schools are common, found that for-profit high schools negatively impact students’ long-term earnings by an average of 2% (Marginal Revolution). This is attributed to cost-cutting measures such as hiring less-educated teachers. This data challenges the assumption that a profit motive always leads to better outcomes in education, suggesting that market mechanisms in this sector require careful design to align provider incentives with student success.

Stay tuned for the next Gist—your edge in a shifting world.

Officials warn of big hit to air travel and GDP as US government shutdown drags on
— Financial Times

Here’s what a new US-Mexico-Canada trade deal should look like
— Financial Times

Infant Formula Recalled Amid Botulism Investigation
— New York Times Global

Voice phishing is AI fraud in real time
— Financial Times

Educational for-profit charter schools do worse in Sweden
— Marginalrevolution

My Mom’s Been Stashing Silver Coins. Would Record Prices Land Her a Windfall?
— Wall Street Journal

Spain’s Self-Inflicted Housing Crisis

Spain’s property market illustrates a classic government-induced disconnect. Despite slowing sales, housing prices are forecast to jump by up to 7.3% in 2025 and 5.3% in 2026 (BBVA Research), with rental costs already having surged 34% since 2019 (El Pais). My read is this isn’t market failure but a severe supply-side breakdown. When insufficient construction, hobbled by restrictive zoning and dense regulation, collides with strong demand, prices detach from fundamentals. The outcome is predictable: eroding affordability, diminished economic mobility for young Spaniards, and a drag on household formation. This is a direct tax on aspiration, stemming not from market greed but from policy that prevents the market from responding. (El Pais, Urbanitae).

Magdeburg’s Somber Trial

The trial for the December 2024 Magdeburg Christmas market attack, which begins Monday, is a grim cultural moment for Germany. The attack, where a driver rammed an SUV into the crowd, left six people dead and over 300 injured. The legal proceedings are a necessary function of the state in pursuing justice for the victims. Yet, the deeper issue is the attack on the fabric of an open society—a violent assault on a cherished public tradition. While the court focuses on individual culpability, the lasting cultural impact is a test of civic resilience. Upholding the rule of law is paramount, but true security lies not in expanding the state’s powers but in the strength of a free society to peacefully assemble without fear. (ZDF).

Catch the next Gist for the continent’s moving pieces.

Trump clings to filibuster demand as US shutdown drags on
— Politico Europe

Sanchez, porterò a termine legislatura e mi ricandiderò nel ’27
— Ansa

La falta de vivienda asequible desacelera las ventas, pero el precio subirá un 7% en 2026
— El Pais

Russland will die Moral der ukrainischen Bevölkerung brechen
— ZDF

Anschlag von Magdeburg: Was sich Betroffene erhoffen
— ZDF

Kyiv targets Russia’s energy supply after massive attack on Ukraine power grid
— Politico Europe