What's Happening?
Economist Kurt Couchman has raised alarms about the United States' $38.5 trillion national debt, suggesting it is suffocating the American Dream and could potentially lead to an economic depression. Couchman, a senior fellow in fiscal policy at Americans
for Prosperity, highlighted that the national debt is a significant barrier to economic prosperity, with the government spending $276 billion in interest in the last quarter of 2025 alone. He argues that the debt-to-GDP ratio is a critical measure, as excessive debt can slow economic growth by diverting funds from necessary government investments. Couchman testified before the House Judiciary Subcommittee on the Constitution and Limited Government, emphasizing the risk of a bond market reckoning with dire consequences for the American people. He also noted that the affordability crisis, exacerbated by inflation, is linked to the explosion in monetary supply during the pandemic.
Why It's Important?
The national debt's impact on the American Dream and economic stability is significant, as it affects various aspects of life, including housing, education, and retirement. Couchman warns that if the debt crisis materializes, the U.S. could face a severe recession or even a depression, with global economic instability posing security risks and threats to political systems. The debt burden could lead to fewer opportunities and suppressed productivity, affecting the overall economic growth. The situation calls for urgent attention from policymakers to prevent a potential crisis that could have widespread implications for the U.S. economy and society.
What's Next?
Couchman suggests that transparency in government spending and revenue is crucial to addressing the national debt issue. He advocates for a comprehensive budget that includes all spending and revenue, allowing for informed discussions about trade-offs and priorities. This approach could help restore fiscal responsibility and democracy within Congress. However, finding a solution to the national debt problem remains challenging, as it requires political will and cooperation across different administrations. The future of the American Dream and economic stability depends on the actions taken by current and future policymakers to manage the debt effectively.
