The US economy has shown impressive growth figures in recent years, with a seemingly strong labor market, record highs on the stock market, and GDP that continues to expand despite global challenges. However, behind these positive indicators, there are warning signs that may indicate structural vulnerabilities and latent problems.
While headlines highlight economic achievements, experts and analysts point out that the strength of the US economy hides worrying weaknesses. Although the US remains one of the most dynamic economies in the world, these red flags could affect its stability in the medium and long term. Let's take a look at them.
Public debt at unsustainable levels
One of the biggest structural problems in the US economy is its public debt, which has reached historic levels. Currently, the national debt exceeds $34 trillion and continues to rise at an alarming rate. Although public spending has been a key tool in maintaining growth and financing social and infrastructure programs, the cost of maintaining this debt has skyrocketed due to the Federal Reserve's interest rate hikes.
Interest payments on the federal debt already represent a significant portion of the government budget, reducing the capacity to invest in essential areas such as education, health, and security.
In addition, continued borrowing may reduce market confidence in the country's financial stability, which could lead to a crisis of confidence in the dollar and US Treasury bonds, affecting not only the domestic economy but also global markets.
Persistent inflation and loss of purchasing power
While inflation has shown signs of slowing, it remains a structural problem affecting millions of Americans. Although official data show a decline in the inflation rate from the peaks of 2022, prices for essential goods and services such as food, housing, and healthcare remain high. This has led to an erosion of the purchasing power of the middle and lower classes, who face difficulties in meeting their basic needs without resorting to debt.