Good morning. It's Thursday, May 21, and welcome to this week's Business & Finance newsletter. Today, given that the US consumer inflation rate recently hit a three-year high, we're covering the ins and outs of inflation. We're also covering the national debt, which surpassed US GDP this spring, as well as HSAs and FSAs, the savings vehicles for healthcare expenses.
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As always, thank you for being a reader!
—Phoebe Bain, 1440 Business & Finance Section Editor
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What is inflation?
One of the biggest challenges that can afflict an economy, inflation is a monetary phenomenon wherein prices broadly rise and consumer purchasing power declines. From a practical perspective, it means your dollar doesn’t stretch as far as it did the day before.
In principle, anything that increases demand (more consumers wanting to buy goods or services) relative to supply (the amount of said goods or services available) can be inflationary. In the US, the inflation rate has generally been around 2% to 3% per year since 1960, with a handful of notable spikes, and prices have risen nearly continuously since then. A dollar one century ago was worth $18 in 2024 terms.
Economists largely agree that some small, stable amount of inflation is desirable, and most central banks set inflation targets that they attempt to control via interest rates and the money supply. Still, global economies remain subject to large-scale events that can trigger inflation—wars, natural disasters, pandemics, supply chain disruptions, and more.
Explore everything else we've found on Inflation.
Also, check out ...
> See how the value of the dollar has changed every year since 1635. (Explore)
> How raising interest rates can help control inflation. (Watch)
> Is Domino's pizza inflation-proof? (Read)
> The rapper 50 Cent, adjusted for inflation. (View) |
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Health savings accounts and flexible spending accounts, explained
Created to address rising healthcare costs, health savings accounts and flexible spending accounts are two distinct tools that provide consumers with tax-advantaged ways to save. As of 2025, roughly 47% of US private employees had access to FSA benefits. Nearly 60 million Americans were covered by HSAs as of 2024.
Both HSAs and FSAs often offer their beneficiaries a debit card of sorts that they can use to pay for certain health-related expenses, such as prescription and doctor's appointment copays, a wide variety of pharmacy items like sunscreen and bandages, and more (although some FSAs require one to pay out of pocket first, then request reimbursement). People with FSAs or HSAs do not have to pay taxes on the funds they put into these accounts.
Generally speaking, any leftover FSA funds typically expire each year and can't be rolled over. HSA funds never expire, and the money can even be invested in securities.
Unlike HSAs, FSAs must be obtained through an employer. Employees can contribute money to their FSA throughout the year, and some employers contribute funds to employee FSAs as well. While employers can also provide HSAs, most banks or credit unions can open them for individuals as well. However, HSAs are only available to those with a high-deductible health plan.
Explore everything else we've found on HSAs and FSAs.
Also, check out ...
> Why HSAs are misunderstood and underused. (Watch)
> The history of HSAs. (Read)
> See how the cost of covering family health insurance has increased in the past two decades. (View)
> Explore a list of surprisingly FSA-eligible wellness products. (Read) |
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🫶 Humankind: A commencement speaker at North Carolina State University announced during his speech that he would pay off some of the graduates' student loans in honor of his father. |
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The national debt 101
The national debt is the total amount of money the federal government has borrowed, plus interest. This borrowed money supplements taxpayer dollars to fund government operations, from national defense to welfare programs.
While taxes help pay for these programs, government spending often exceeds the revenue collected. The US government primarily sells bills, notes, and bonds (collectively called securities) to domestic and foreign individuals, companies, and other governments to cover the gap. This is called public debt. The government also has intragovernmental debt, or money one government sector owes to another. In both cases, the government promises to pay back the original value of the security plus interest to make it worth it for the lender.
The US has accrued debt since its infancy. Only seven years into nationhood, debts from the Revolutionary War totaled $43M. In recent years, the wars in Afghanistan and Iraq, the 2008 recession, and the COVID-19 pandemic have significantly increased the national debt. It surpassed US GDP in spring 2026, when the country's public debt was estimated to be $31.3T.
Explore everything else we've found on the National Debt.
Also, check out ...
> Who was the first and only president to eliminate the national debt? (Listen)
> Why some economists argue the national debt is not a critical concern. (Watch)
> The US is one of only two countries that abide by a predetermined borrowing limit. (Watch)
> Why minting a coin that can pay off the national debt has been proposed as a quick fix to rampant borrowing. (Read) |
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One Story We're Taking Stock In |
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Between soaring gas prices, inflation rising back above 3%, and the general cost-of-living crisis in the US, it's no wonder that many Americans are feeling especially pessimistic about the economy. And yet, the S&P 500 stock market index has risen 29% over the past year, hitting an all-time high last month.
The below feature story—perhaps the most fascinating piece we read this week—helps explain the disconnect. As the story's author put it, "the stock market isn’t about the price of milk; it’s about how corporations are doing, and right now they are doing quite well." He goes on to pose several possible reasons for this, including market consolidation and inflation granting companies more pricing power, how the AI build-out has fueled tech profits, and more. |
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> Why stocks keep going up: The boom is not as untethered from reality as it may look. (Read) |
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We curate hundreds of resources into 1440 Topics each week. Here are some of our favorites from the world of business and finance.
> The states with the lowest weekly wages in the US, mapped.
> Why the number of Gen Z homeowners is surging.
> Nvidia CEO Jensen Huang's cousin is the CEO of a rival semiconductor company.
> What goes into the price of a gallon of gasoline.
> Activist investors, explained.
> What are futures contracts?
> How to calculate your net worth.
> Why credit unions were created.
> What is the 70-20-10 budget?
> How paper check usage has decreased over time, visualized. |
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"I always did something I felt a little unready to do. ... That's when you push yourself and when you grow." |
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