[1]I grew up listening to Motown and saw Smokey Robinson and the Miracles at the South Park Fairgrounds in 1967. I keep hearing the Lyrics of Marvin Gaye’s hit song “What’s Going On [2]” over and over in my head:
Mother, mother
There’s too many of you crying
Brother, brother, brother
There’s far too many of you dying
You know we’ve got to find a way
To bring some lovin’ here today, yeah
Marvin’s lyrics captured the unrest at the time, drug abuse, poverty, and the Vietnam War. Not much different from “What’s Going On” today! Middle East conflicts and the Ukraine War, the fentanyl crisis, and poverty. Unfortunately, all of these topics are still prevalent today. The more things change, the more they stay the same.
The Federal Sector on the Move
Federal employees and annuitants alike were impacted by what transpired over this past year. Everything from major federal workforce reorganizations to the elimination of WEP and GPO [3], the acceptance of online federal retirement applications [4], the new two-page federal resume format, the economy, TSP accounts hitting new highs throughout the year, and the recent announcement that 90% of the federal workforce is now back in the office compared to 30% a year ago.
Significant Changes Impacting Federal Employees [5]
It’s hard to keep up with all that is going on today. The moment I focus on one subject, another pops up. The cabinet Secretaries are making significant changes across the board, including restructuring and selective reorganizations.
There isn’t a week that goes by without major announcements, and before I’ve had time to cover last week’s activities, more land on my desk. All in all, a good thing; it’s about time the federal government’s leadership took decisive action not only to improve its internal operations but also to provide better services and implement major changes that are long overdue.
Measurable Improvements
Violent crime in the U.S. has decreased dramatically, according to recent reports. Homicide rates fell by over 20% to the lowest level since 1900. Major city data shows significant drops in carjackings (-43%), robberies (-23%), and gun assaults (-22%), with violent crime falling below pre-pandemic 2019 levels. The only category that increased, up 7%, was drug crimes.
This can be attributed to a combination of factors, including the normalization of life after the pandemic, dramatically reducing the supply of illegal drugs entering the country, the American Rescue Plan Act funding, the Administration’s concentrated effort to reduce crime, the deportation of criminal illegal aliens, and stopping the influx of illegal border crossings. Other accomplishments include:
- GDP exceeded expectations and in Q3 measured 4.3%, Q4 GDP [6] measured 5.4% on January 21. Most economists were projecting a significantly lower GDP for 2025.
- Inflation is now running at 2.4%, a 70% reduction from the previous peak. I filled up my gas tank this morning at Sam’s Club in Pennsylvania for $2.73 a gallon!
- Our trade deficit decreased significantly in October 2025 for the first time since 2019.
- The 2017 Tax Cuts and Jobs Act individual rates were made permanent, and a “No Tax on Tips” and “No Tax on Overtime” policies were implemented. It is taking TurboTax some time to update its tax preparation software to accommodate all of the payroll tax changes.
- Approximately 54% to 60% of U.S. households have some form of retirement account, such as a 401(k). The major stock indexes are on a tear, new highs were reached over a dozen times in 2025, and they are continuing on that path so far this year.
- 654,000 private-sector jobs were created, with the largest increase in blue-collar wages in nearly 60 years.
- The government negotiated favored nation status with major drug manufacturers to dramatically reduce prescription drug costs [7] for all Americans.
- Take-home pay is increasing in 2026 primarily due to IRS inflation adjustments to tax brackets (raising them by about 2.3%) and a significant increase in the standard deduction.
All of these accomplishments are commendable, but the excessive inflation we experienced over the past 4 years has driven prices higher, and prices for essential items aren’t going down anytime soon. The government has increased 2026 take-home pay by reducing taxes and by modifying or eliminating tariffs to lower costs. It’s helping, but it is difficult to erase the stigma of inflation when you walk into a local grocery store or restaurant.
Local Grocery Store Coffee Display
You see firsthand just how many staples are out of reach for many. Coffee that was selling for $7 a container three years ago now costs over $22.48, on sale for $13 to $18.99! Prices for meat, cereals, and even candy are through the roof. Many other staples, such as pasta, dairy products, produce, and canned goods, haven’t increased significantly, but those major items listed cause all to pause.
Restaurant meals are also unrealistically high. My wife and I were out and about recently and stopped at McDonald’s for a hamburger, one medium fry, and a soft drink. It cost over $18!
The government must find ways to moderate prices on these essential items to convince the public that things are improving.
Conclusion
Typically, politics gets in the way, great plans go astray, and major projects are put on the back burner as both parties quibble over the path forward. Compromise isn’t a cornerstone of the Legislative branch, as it should be.
Wouldn’t it be amazing if parties used common sense and compromised to improve all of our lots? OK, I’m dreaming here, back to reality.
In the fifth stanza of “What’s Going On,” Marvin laments, “Oh, you know we’ve got to find a way, to bring some understanding here today.”
Hopefully, our Representatives, on both sides of the aisle, can put aside partisan politics and find a way to address the many problems we face in America today.
Helpful Retirement Planning Tools
[8]
- Financial Planning Guide for Federal Employees and Annuitants [9]
- TSP Guide [10]
- Budget Worksheet [11]
- Retirement Planning for Federal Employees & Annuitants [12]
- The Ultimate Retirement Planning Guide – Start Now [13]
- Deciding When To Retire – A 7-Step Guide [14]
- 2026 Federal Employee’s Leave Chart [15]
- Medicare Guide [16]
- Social Security Guide [17]
[18]The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.
Last 5 posts by Dennis Damp
- The Federal Workforce Data (FWD) Release – OPM Update [19] - January 23rd, 2026
- Savings Bond Calculator & Treasury Direct Inefficiencies! [20] - January 15th, 2026
- Tax Forms Availability – What to Expect This Year [21] - January 9th, 2026
- The 2026 Landscape: What to Expect and Outlook [22] - January 1st, 2026
- Long Term Care Insurance - Future Purchase Option [23] - December 12th, 2025
- Open Season Coming to a Close – Last-Minute Checkup [24] - December 2nd, 2025
- I Rolled Over My TSP Account to an IRA – Should You? [25] - November 21st, 2025
- The 2026 FEHB & PSHB Open Season Selection Guide [26] - November 6th, 2025
- Medicare & You 2026 – Significant Changes on the Way [27] - October 31st, 2025
- A 30-second Check Could Change Your Retirement Plan [28] - October 20th, 2025
- Prescription Drug Costs – Major Price Cuts Coming [7] - October 17th, 2025
- Government Shutdown Continues – Suffering the Consequences [29] - October 15th, 2025