A growing number of Americans are bracing for the worst.<\/p>\n
A recent survey by YouGov found 42% of Americans believe the country will experience a \u201ctotal economic collapse\u201d within the next decade, while more than a third think a civil war is likely (1).<\/p>\n
That level of pessimism reflects a broader sense that multiple risks \u2014 economic, political and technological \u2014 are converging.<\/p>\n
But what would a \u201ctotal economic collapse\u201d actually look like?<\/p>\n
The closest historical comparison is the Great Depression. During the 1930s, U.S. unemployment approached 25%, the stock market lost nearly 90% of its value, and it took decades to recover fully (2,3).<\/p>\n
While today\u2019s economy is far more resilient, the fear of a severe downturn is not entirely unfounded.<\/p>\n
A combination of overlapping threats has led to an increased anxiety among Americans. One of the biggest is the growing federal debt.<\/p>\n
According to the Committee for a Responsible Federal Budget, U.S. debt has reached about 100% of GDP, with deficits and interest costs continuing to rise. The group warns that without policy changes, \u201csome form of crisis is almost inevitable\u201d (4).<\/p>\n
A fiscal crisis could take many forms: a financial market shock, a surge in inflation, a weakening dollar or even a gradual erosion of living standards over time.<\/p>\n
At the same time, some economists see deeper systemic risks building.<\/p>\n
Financial risk expert Richard Bookstaber warned in The New York Times that the next downturn could be even more severe than the 2008 financial crisis (5).<\/p>\n
His concern is that today\u2019s financial system is tightly interconnected, linking markets, artificial intelligence, supply chains and geopolitics. That means a shock in one area \u2014 such as conflict involving Iran or tensions around Taiwan \u2014 could spread quickly across the entire economy.<\/p>\n
Energy markets are already showing signs of strain. A report from U.S. News & World Report noted that disruptions in the Strait of Hormuz, which handles about 20% of global energy trade, have pushed oil prices higher, raising concerns about inflation and the risk of a recession (6).<\/p>\n
Meanwhile, the rapid rise of artificial intelligence is adding another layer of uncertainty.<\/p>\n
Citrini Research outlined a hypothetical scenario in which AI-driven job losses trigger a negative economic spiral \u2014 reducing wages, weakening consumer spending and ultimately destabilizing financial markets (7).<\/p>\n
While that scenario is speculative, it reflects a growing concern: that technological change could reshape the economy faster than workers and institutions can adapt.<\/p>\n
Taken together, these forces help explain why so many Americans feel uneasy.<\/p>\n
Long-term pressure of rising debt.<\/p>\n
Near-term volatility tied to elections, inflation and global conflict.<\/p>\n
Uncertainty of how AI will affect jobs, wages and growth.<\/p>\n
No one can say for certain whether these risks will lead to a crisis\u2014or how severe it might be.<\/p>\n
Read More: 5 essential money moves to make once you\u2019ve saved $50,000<\/a><\/p>\n Even if a \u201ctotal economic collapse\u201d never materializes, it\u2019s still wise to prepare for economic uncertainty.<\/p>\n Here are some general recommendations:<\/p>\n Build an emergency fund: Set aside three to six months of essential expenses to give yourself a buffer if income is disrupted.<\/p>\n Tackle high-interest debt: Pay down credit cards and other costly debt, these can become much harder to manage during downturns.<\/p>\n Plan for income shocks: Think through how you\u2019d handle a job loss or reduced hours, and identify backup options in advance.<\/p>\n Diversify your investments: Spread your risk across sectors and asset types to avoid overexposure to any single trend.<\/p>\n These steps won\u2019t prevent a recession but they can help cushion the impact if one occurs.<\/p>\n The fear of a \u201ctotal economic collapse\u201d may sound extreme, but it reflects a real shift in public sentiment.<\/p>\n Americans are looking at rising debt, geopolitical tensions, technological disruption and market volatility.<\/p>\n Whether those concerns prove justified or not, being prepared is far more useful than trying to predict exactly what happens next.<\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n YouGov (1<\/a>); Franklin D Roosevelt Library (2<\/a>); Goldman Sachs (3<\/a>); Committee for a Responsible Federal Budget (4<\/a>); The New York Times (5<\/a>); BBC (6<\/a>); Citrini Research (7<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"A growing number of Americans are bracing for the worst. A recent survey by YouGov found 42% of…\n","protected":false},"author":2,"featured_media":556420,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[86148,28,226025,155,182634,101,69956,1168,214030,35364,247104,141426],"class_list":{"0":"post-556419","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-2008-financial-crisis","9":"tag-business","10":"tag-citrini-research","11":"tag-dave-ramsey","12":"tag-economic-collapse","13":"tag-economy","14":"tag-federal-debt","15":"tag-jeff-bezos","16":"tag-number-of-americans","17":"tag-robert-kiyosaki","18":"tag-systemic-risks","19":"tag-yougov"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/556419","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=556419"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/556419\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/556420"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=556419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=556419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=556419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}