The escalating U.S. national debt, currently standing at $38.5 trillion, is increasingly viewed as a significant threat to the nation's economic future, potentially triggering a severe depression, according to a leading economist. Kurt Couchman, a senior fellow in fiscal policy at Americans for Prosperity, argues that the sheer size of the debt is suffocating the American Dream, limiting opportunities for citizens.

In the final quarter of 2025 alone, the U.S. government spent $276 billion on interest payments on its debt. This figure, flagged by figures like Bridgewater Associates founder Ray Dalio, is projected to rise, potentially crowding out crucial government spending on social programs, infrastructure, and other vital sectors. The rising cost of servicing the debt places a considerable strain on the nation's finances, diverting resources from investments that could foster economic growth and improve living standards.

The implications of this debt burden extend beyond domestic concerns, impacting the U.S.'s standing in the global financial landscape. A potential debt crisis in the U.S., the world's largest economy, could send shockwaves through international markets, triggering a global recession. Countries holding U.S. debt, including China and Japan, would face significant losses, potentially destabilizing their own economies. Furthermore, a weakened U.S. economy could reduce global trade and investment, impacting developing nations that rely on the U.S. as a major trading partner.

The debate surrounding the American Dream has traditionally focused on factors such as access to affordable housing and quality education. JPMorgan CEO Jamie Dimon, for instance, has highlighted these as key barriers. However, Couchman's analysis suggests that these issues are, in part, symptoms of a larger problem: the unsustainable level of national debt. The rising cost of living, including retirement, childcare, and transportation, further exacerbates the challenges faced by ordinary Americans striving for economic security. Many now believe that achieving the American Dream requires a net worth of $5 million, a figure far beyond the reach of most citizens.

Looking ahead, the trajectory of the U.S. national debt presents a significant challenge for policymakers. Addressing this issue will require a combination of fiscal discipline, strategic investments, and international cooperation. Failure to do so could lead to a prolonged period of economic stagnation, eroding the American Dream and undermining the U.S.'s position as a global economic leader. The situation demands a comprehensive and globally-minded approach to ensure long-term economic stability and prosperity.