Uncle Sam needs a lesson in economics.

As seen in The Oakland Press

August 30th, 2026

Uncle Sam needs a lesson

in economics.

by Ken Morris

There’s no question that there are many pocketbook issues facing families these days. And I believe family financial concerns will get top priority in the discussions leading up to the November elections. Many people judge the economy by the cost of filling their gas tanks and grocery carts. These are legitimate financial concerns, and it’s appropriate that they should be discussed.

As a financial advisor, I see two big picture financial issues that aren’t receiving the news coverage they deserve. One concerns our nation’s Strategic Oil Reserve. Although the price of a gallon of gas is front and center every day, most people aren’t aware that, according to data released by the Department of Energy, the Oil Reserve is at its lowest level since the early 1980s.

As recently as 2022, we had about 600 million barrels of oil in reserve. In March, just after the war started, there was just a little more than 415 million in reserve. Current estimates have the number at just under 300 million barrels.  And it’s almost certain that the cost at the pump would be even higher if the Reserve had not been tapped.

Oil is a worldwide commodity, and the price is determined by the international marketplace, essentially based on supply and demand. The ultimate price is not set or established by domestic oil companies. The price of refining oil into gasoline is also factored into the price. Even such things as state and other taxes can have a meaningful affect.

Summing up, it concerns me that the price of gasoline remains high and would likely be even higher if the Strategic Oil Reserve wasn’t tapped. Even the fact that we needed to tap it is concerning. The lower the Reserve gets, the more vulnerable we become as a nation.

The other item that continues to concern me is our nation’s national debt. As a country, we have spent well beyond our means for many years. Not only that, but we have also done a poor job managing that debt. The best way to explain that mismanagement is to compare it to a home mortgage. Mortgage interest rates have been trending higher. A 30-year mortgage is currently about 6.5 percent. Meanwhile, many households are holding 30-year mortgages at rates between 2 and 3 percent.

Having these ultra-low rates is one of the reasons so many people are reluctant to move. Back when rates were lower, people flocked to lock in long-term fixed rates for their mortgages. Adjustable rate loans weren’t even on the radar because rates were so low. But, when rates were low and our national debt needed to be financed, our Treasury didn’t lock in low long-term rates. Instead, they utilized short-term rates, which is like getting an adjustable-rate mortgage.

Guess what. Approximately 10 trillion dollars of our national debt is now coming due, and it must be refinanced at today’s higher rates. In other words, in addition to overspending as a nation, we have not been managing our existing debt in the most efficient manner. Very sad.

Keeping my clients and readers ahead of inflation and maintaining their purchasing power is a challenge in today’s economic environment. If we don’t cut back on spending and manage our debt efficiently, prices will continue to increase across the board.