The U.S. is spending much more money than it earns every year. The debt is already equal to its entire economy, and in 30 years it could be much worse. The money of the government is mostly used to pay for old promises like pensions and healthcare for retired people, and now, just paying interest on the debt will soon eat up 1 out of every 5 tax dollars
At the same time, politicians are making decisions to win quick votes, not to fix long-term problems. They cut taxes without paying for it, fight trade wars that make everyday things like cars, clothes, and food more expensive, and cut healthcare for millions of people. Some families lose $2,000+ a year, which hurts the poor most. Healthcare cuts mean millions could lose insurance, while expensive “private doctor clubs” for the rich are growing fast. If you are not rich, it will be harder to see a doctor. The country is fighting over energy: Less support for clean energy means higher electricity bills, fewer jobs, and maybe even power shortages just as technology companies need more electricity than ever. Big companies are moving their factories to “friendlier” countries, and many scientists and business creators are now choosing to leave the U.S. for more stable places
Rich people are buying gold and Bitcoin to protect themselves if the dollar loses its power. Regular people, though, feel the pain: higher prices, fewer good jobs, less healthcare, and more stress
This can be a rather elastic situation, as you say - it requires politicians to make hard choices and impose them on the population that ultimately decide whether they get into power next time. While I love democracy and think it is the best way, it is cursed by the relatively short 4-5 year timescales and seems to have evolved into simply preparing for the next election. That means that painful decisions are forever kicked down the road, because they might mean lost votes and it is much easier to "bribe" citizens with things like tax cuts. It's not unfixable but it does require more actual politics with the main parties coming together to back sensible policies on debt reduction, instead of constantly trying to find the extremes without any compromise.