Wealth and Wisdom: Week of May 11, 2026
- 2 days ago
- 4 min read
America’s economy is the largest in the world. The companies that power that economy – and lead the world in innovation – are growing at impressive rates. The dollar continues to hold its position as the global reserve currency. U.S. Treasury securities are still classified as risk-free investments. Many of the things Americans think of as daily necessities are considered luxuries in most of the rest of the world.
But increasingly, the federal government is relying on borrowed money to finance its operations. We now owe more to our creditors than the country produces in goods and services each year (see Item 1 below), and we now spend more on interest each year than we do for the national defense. That’s money that could be spent more productively, or – perish the thought – returned to taxpayers who could use it to meet the rising cost of gasoline and groceries.
Some argue that it’s a tax problem, that the wealthy aren’t paying their fair share (see Item 2). Others blame it on wasteful government spending that continues to grow faster than the economy itself.
But there’s one thing nearly everyone agrees on: the debt crisis is likely to get worse before it gets better. And no one seems to be talking about how to fix it, probably because reversing course won’t be a painless process.
In my household and yours, if you spend money you haven’t earned yet for long enough, you go broke. In Washington, you get re-elected.
The federal government now pays more in interest each year than it does to keep us safe and healthy. The debt could also be adding to inflation. (Reading time: 5 minutes)
The government collects more than $2.1 trillion a year in individual income taxes – and spends way more than that. Here’s who is paying the bills. (Reading time: 3 minutes)
Most new-car loans today are for 6 years or longer – and nearly a third of cars traded in are worth less than what’s still owed on them. (Reading time: 4 minutes)
How to decide what cards to get rid of – and which to keep – without sacrificing your credit score. (Reading time: 3 minutes)
Baby boomers still have most of the money – but millennials are now farther along financially than any other generation at their age. (Reading time: 5 minutes)
Giving cash away is easier than you might think – and these simple strategies can help you to do it without taxes and paperwork. (Reading time: 6 minutes)
My favorite article by far this week. It’s nice to see some of the top minds in personal finance coming around to our way of thinking. (Reading time: 5 minutes)
Remember a few years back when pundits told us the traditional balanced portfolio was obsolete? The numbers show it still works for conservative investors. (Reading time: 4 minutes)
Nearly half of Americans who retired last year say it was earlier than they had planned. (Reading time: 4 minutes)
Health savings accounts have grown into a viable alternative spending resource in retirement – especially if you give them a chance to grow. (Reading time: 5 minutes)
Words to the Wise
“Only the party that's out of power seems to care about government debt - until they come back into power.”
– Ben Carlson
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