As if the pandemic hasn't already affected every other aspect of people's lives, now there's taxes. But in this case, the effect is positive.

The specter of inflation has long been absent from the American economy. In fact, inflation, as measured by the Consumer Price Index (CPI), has remained below 4% since 2008, has averaged only 1.74% in the past 10 years, and came in at a tepid 1.36% for 2020.1 Rather than inflation, policy makers in recent years have been more concerned with the prospect of deflation -- a drop in prices -- especially at the outset of the pandemic, when the inflation rate dipped below zero for three consecutive months.

But the tide may be about to shift. With the end of the pandemic in sight, renewed fears of inflation have emerged, as fiscal stimulus kicks in and the economy bounces back.

“Social Security benefits currently represent approximately 33% of the aggregate total income of Americans aged 65 and older, according to the Social Security Administration. For future generations of retirees, Social Security may represent a much smaller percentage of retirement income.”

“For growth stock investors, it's been a heady time. Growth stocks recorded a total return of 33.5% for the year ended December 31, 2020, significantly eclipsing value's 1.4% showing. And over the past five years, growth has outperformed value by an average of over 8 percentage points.1”

As the new year dawns, most Americans are probably happy to bid good riddance to 2020, a year marked by the COVID-19 pandemic, lockdowns, political brawls, and challenging economic times. Many have had to take on debt to tide them over. If you’re among them, or one of the many other Americans who pay an ever increasing portion of their paychecks to service debt, now may be the ideal time to reassess your finances and take steps to manage and reduce your debt.

For years, the mounting federal debt burden has been a major point of contention between political parties, economists, and fiscal planners. Some claim the escalating debt is a time bomb -- a mortgage on America’s future. Others see it as justifiable and sustainable -- even helpful in stimulating long-term growth. Over time, both sides have flip-flopped, so that today, fiscal conservatives and spending hawks can be found on both sides of the aisle.