Several years ago, I was listening to an economic update with Schwab’s Chief Investment Strategist, Liz Ann Sonders. Someone asked: “What keeps you up at night?” Her answer surprised me and I have never forgotten it. She didn’t mention current events or market volatility — she said it was “the national debt.”

This week I read that the national debt hit a record $39 trillion — just five months after crossing the $38 trillion mark. It took the U.S. nearly 200 years to accumulate the first $1 trillion in debt. Now the Treasury Department pays that much just to service the debt each year. 

How did we get here?

In the early 1990s, Warren Mosler laid out the core idea of Modern Monetary Theory (MMT), arguing that if the economy grows faster than the cost of borrowing, the debt takes care of itself over time. Mainstream economists have debated versions of this idea ever since.

Really?

If I ran up personal debt assuming my raises would always keep pace, I still would not be able to save or invest — and I’d likely end up in serious financial trouble.

I’d rather see us investing in an economy that supports people and drives real growth — not one that services its own debt.

The national debt is a genuine concern. I can see why Liz Ann Sonders answered the way she did. I hope our leaders find the will to address it — because the longer they wait, the fewer good options remain.

Plan well,
Barbara


April 19, 2026
Source: 
https://www.crfb.org/press-releases/gross-national-debt-reaches-39-trillion

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