By Scott Lincicome
Thursday, June 25, 2026
As briefly mentioned in my last
column, World Cup tourists’ repeated astonishment with everyday American
abundance has become a viral sensation—and in a very good way. Seemingly not a
day goes by without some happy foreign soccer fan raving on social media or to
the press about quintessentially “American” things—free drink refills,
bottomless chips and salsa, ginormous sports stadiums, fancy cars, big houses,
ranch dressing, frigid air conditioning, shiny hospitals, etc.—that we consider
relatively mundane features of daily life in the United States. (Buc-ee’s,
Costco, and Texas Roadhouse have been particularly big hits, and for good
reason.)
These viral posts have delighted American onlookers and
captured endless
media commentary on how the foreigners’ innocent—and often
hilarious—observations have helped unite a divided U.S. and remind us locals of
just how good we have it. In an era of endless grousing about the U.S.
economy—reflected in various surveys of American “sentiment” and sometimes even
justified—the ongoing episode has been a welcome, optimistic change of pace and
a loud, folk-libertarian reminder that a nation’s capital, policies, and
political class are most definitely not the same as its communities and
citizens.
The scenes have also raised several noteworthy
economic policy points—some good, some ominous—that deserve more attention.
Yes, we have it pretty darn good.
For starters, the amazement of relatively wealthy
foreigners—you don’t take weeks off touring America if you’re dirt poor—at
relatively middle-class American environments is real-world evidence of our
nation’s immense everyday wealth.
The timing couldn’t be better (and, no, I’m not talking
about the A/C-less heatwave in Europe).
As The Economist just documented, earlier this year Nobel laureate Paul Krugman
and several other elite economists got into a heated (and very wonky) online
debate about whether Americans’ living standards really were zooming ahead of
those of our European counterparts. The
main point of contention was how to measure individuals’ purchasing power in
both places, with one approach showing an increasing wealth gap and the other
(Krugman’s) a relatively steady one. You can see the difference in the chart
below: Using a constant “purchasing power parity” adjustment shows France’s GDP
per capita—a standard way to measure individual wealth—to be declining versus
that of the U.S., while using a “current PPP” adjustment shows little long term
change, and thus a different wealth narrative.

As someone who loves both visiting foreign countries and
returning home to my American creature comforts, I freely admit my biases in
this debate. But both sides do raise some legitimate issues about how we should
measure living standards across countries, as well as what should be measured.
Overall, the debate has been delightfully intense and catty—at least for nerds
like me.
Yet, as The Economist points out, both sides also
seem to agree on a few things: First, Europe is growing more slowly than
America, thanks in large part to the economic dynamism and tech-fueled
productivity here. Second, even Krugman’s pro-Europe data (see chart
above)—along with many other sources—show Americans to have higher average wages
and more disposable income (yes, even after accounting for out-of-pocket
healthcare costs) than the average European in most places (yes, there are
exceptions), due to our superior labor productivity and their leisure choices.
Third, and most importantly, both sides want to support their reading of the
data with an “eye test”—i.e., visiting each place and just looking
around—that the economists believe will confirm their own American/European
wealth story.
Hilariously enough, thousands of European World Cup
tourists—along with ones from Japan and other countries, too—have performed
just that test, mere days after the economists proposed it. And the
result is an absolute rout for Team America:


There are many reasons for the foreigners’ astonishment.
(A big one, in my opinion, is that these folks are seeing parts of Real America, especially in the Sun Belt
and Midwest, that foreign tourists rarely visit, yet—as we’ve discussed here
repeatedly—allow not-rich Americans to live very comfortable lives.) And, to be sure, not all the
astonishment is genuine.
But a lot of it obviously is, and at its root lies the Great
American Prosperity Machine. Deal with it, haters.
Capitalist ‘charity’ is still good.
Another fascinating and wholesome part of the foreigners’
U.S. experience has been the outpouring of support they’ve received from both
normie Americans—workers, neighbors, random passersby, etc.—and a wide range of
American celebrities and companies. Most notable in this regard has been German
soccer (fußball) fan Freddy, whose daily adventures in Middle America
have earned him a giant online following and a Forrest Gump-like amount
of in-kind support from pro sports teams, hotels, airlines, and a smattering of
famous athletes, entertainers, and politicians (including at
least one sitting governor who volunteered to help Freddy attend Germany’s
game in Toronto after a flight cancellation). Freddy’s experience is unique,
but only in terms of its magnitude: A wide range of U.S. businesses,
municipalities, and influencers have rolled out the red carpet for these happy
foreign visitors, greatly adding to the entire feel-good experience.
Unsurprisingly, this support has led dismissive cynics to
explain that, actually, a lot of it is just a selfish attempt to boost
sales, brands, and online engagement instead of genuine generosity and
kindness. Some of those allegations are clearly false, but the correct ones are
hardly worth complaining about. Instead, they evoke yet another lesson from Adam Smith:
It is not from the benevolence of
the butcher, the brewer, or the baker, that we expect our dinner, but from
their regard to their own interest.
Scholars (ahem) often apply this quote to explain that
“selfish” market transactions among free people are not only mutually
beneficial but also can have broader social benefits and generate the wealth individuals need to perform charity (which
Americans do a lot of, by the way). But Smith’s famous line also
often applies to many “charitable” acts by corporations and celebrities: While
maybe not motivated by pure altruism, these efforts are often a strategic effort to drive long-term profitability by
improving brand reputation, attracting customers and workers, and generating
more sales.
There’s little reason to view such motivation as
unseemly. First, the act still makes people better off in some way (and often
entertains and encourages onlookers, too), so who cares whether it was
done for “benevolent” or “selfish” reasons? “Dinner,” in Smith’s terms, still
gets served. Second, it’s usually impossible to say why these “charitable”
people and firms decided to help Freddy (and any others in need)—and it’s
usually a combination of both sympathy and self-interest/promotion. On
the latter motivation, see point 1 and Smith above. On the former, check out his other book.
Tourism as a massive U.S. services export (and source
of ‘soft power’).
Admittedly, the World Cup visitor story isn’t all wine
and roses, and there are—as noted—some less-optimistic policy lessons buried in
here, too. For one thing, all these visitors are a stark reminder of the
economic and geopolitical value of foreign tourism—and its recent,
policy-driven decline here in America.
As we discussed last year, one of the more interesting
and unfortunate results of Trump’s tariff wars, deportations, and related
overseas antagonism (threatening to invade Greenland, calling Canada the “51st
state,” etc.) has been foreigners’ independent retaliation against U.S.
goods and services. And tourism—a U.S. services export—has been the
trend’s most conspicuous victim. According to a May 2026 Congressional Research
Service report, in fact, international visits were down in 10 of 12 months last
year, with the only increases coming before Trump took office (January) and due
to an abnormally late Easter (April):

This drop, in turn, hurt lots of American businesses and
likely reduced U.S. economic growth last year by billions of dollars:
According to the U.S. Bureau of
Economic Analysis, in 2023, travel and tourism (both domestic and
international) accounted for approximately 3% of U.S. gross domestic product
(GDP). According to the World Travel and Tourism Council (WTTC), a nonprofit organization
that advocates for and researches global tourism, international visitor
spending in the United States was approximately $176 billion in 2025, a 4.6%
decrease from 2024. WTTC further noted that GDP for the travel and tourism
sector increased 4.1% globally in 2025 from 2024 but grew 0.9% for the United
States.
On the bright side, CRS goes on to note that the World
Cup could boost foreign visits and GDP growth in 2026, and—judging from the
packed bars/restaurants and sky-high prices for match tickets, airline fares,
and hotel rooms—you can easily see why. Even with a few embarrassing
visa-related snafus, the monthlong event has been going pretty smoothly so far
and is forecast to attract almost 1.25 million international visitors, each expected to spend
more than $5,000 (nearly twice the typical international tourist). None of that
erases the roughly $12.5 billion in lost international visitor spending that
WTTC projected for 2025, but it’s still a welcome rebound—especially for the
smaller American businesses that depend heavily on foreign tourist spending
each year.
The scenes of international comity surrounding the World
Cup in 2026 are also a vivid, real-time reminder of how U.S. tourism is a
market-based source of America’s “soft power,” improving the United States’
image abroad and advancing U.S. geopolitical objectives without spending
taxpayer dollars (or doing stuff far worse than just that). Scholars call this
the “contact
hypothesis,” i.e., the notion that person-to-person encounters can affect
overseas perceptions of a country in ways that no government messaging campaign
or foreign aid package can match. World Cup visitors’ ecstatic consumption of
everyday Americana is soft power in (mostly) organic form, with our culture,
hospitality, and abundance doing the diplomatic
work that American government officials can’t (or won’t) do.
To be clear, the goodwill America earns from Waffle
House, Bass Pro Shops, Fenway Park—and the Americans who live and work near
these and other iconic spots—doesn't automatically translate into durable
shifts in foreign acceptance of U.S. policy. But at a time when America’s
global image has taken a few (ahem) hits, having a million-plus
foreigners document their travels and return home as amateur American
ambassadors is a welcome development, reminding people everywhere that the
words of one guy in the Oval Office don’t represent a 350 million-person country.
The only question is whether the foreign tourism
boost—and good vibes—can continue after the World Cup ends. The answer,
unfortunately, will probably not be in Costco’s hands.
Seeing the linkages between trade and peace.
Relatedly, all these good vibes are a nice reminder of
one of the ways that trade—in this case both foreign tourism and global sports
entertainment—can help encourage peace. As I documented in a 2020 paper, a wide body of research finds that heightened
foreign trade can meaningfully reduce (but not eliminate) the chances of armed
international conflict through several channels:
First, by making countries more
commercially interdependent, trade encourages these nations to avoid war or
other large-scale armed conflicts (which could impose substantial economic
losses). Second, trade and commercial bargaining are more cost-effective than
war as a means of resolving disputes with, or obtaining resources from, another
country. Third, trade increases material prosperity (e.g., goods, services,
investment, ideas) and promotes mutual tolerance and understanding. And fourth,
free trade can limit the political power of domestic constituencies that may
benefit from increased conflict.
Recent studies reinforce these conclusions. One finds a strong causal “peace dividend” from trade
generally, i.e., that a doubling of bilateral trade reduces the probability of
militarized conflict by roughly 30 percent. Elsewhere, a recent survey of almost 2,000 Japanese firms finds they
routinely pushed for diplomatic solutions to supply-chain disruptions involving
allies and adversaries alike—new support for the concept of “commercial
peace,” i.e., that global businesses have powerful incentives to oppose wars
that might harm their facilities (or, you know, kill their customers).
Regardless of the driver, however, the outcome is clear:
While global economic integration can’t eliminate armed conflicts, policies
that liberalize trade can make peace among nations more likely—especially when
compared to the isolationist, antagonistic alternative the U.S. government is
pursuing today.
In their modest but viral way, the million-plus
foreigners now cheering in American bars are making a similar point.