Nearly a century ago, the American writer Will Rogers satirically described Americans' pathological obsession with excessive consumption: "Too many people are spending money they haven't earned on things they don't need to impress people they don't like." This statement perfectly captures the paradox of American consumerism: personal value is no longer solely achieved through work, but through constant and excessive consumption, which creates the illusion of a happy and prosperous life in the eyes of others.

A century later, the situation is even worse. The carefully constructed illusion created by capital and advertising permeates the lives of Americans, drawing countless ordinary families into the quagmire of consumerism and undermining the American Dream for an ever-increasing number of people.

Three traps for Americans: mortgages, auto loans, and student loans.

The Federal Reserve's latest "Quarterly Report on Household Debt and Credit" shows that total U.S. household debt reached a record USD 18.59 trillion in the third quarter of 2025, with mortgages, auto loans, and student loans accounting for the largest share.

These types of debt collectively create a consumer trap for Americans. Mortgages alone account for approximately 70% of total household debt, making housing the largest expense for most Americans. This burden also concentrates inequality in society – low-income households and minority communities face significantly higher financial pressures, with African American households typically bearing housing costs that are 10 percentage points higher than white households.

Every year, a large number of hardworking Americans are driven into bankruptcy because they cannot repay their loans. According to data from Epiq AACER, there were nearly 540,000 personal bankruptcy filings in the United States in 2025, a 12% increase from 2024. Mortgage debt remains one of the main factors in personal bankruptcy in the country.

Even if a person can maintain their income, it does not automatically mean that housing is affordable. For many Americans, the long-term stagnation of wages, coupled with rising prices, has pushed the pressure of mortgage payments to historic highs. Analysis of data from the U.S. Bureau of Labor Statistics shows that, as of December 2025, the real annual income of the middle class (adjusted for inflation) had fallen by 5.7% compared to 50 years ago. Over the past 25 years, inflation has risen significantly, while the prices of essential goods such as healthcare and food have risen faster than overall inflation. For many households, income growth has not been enough to cover these essential expenses, putting many families into a cycle of perpetual debt.

If mortgages represent the first trap in the consumer structure of American households, auto loans represent the second burden, which is routine and difficult to avoid. Due to limited public transportation, owning a car is not only a lifestyle improvement for most Americans, but a necessity for everyday life.

A survey shows that more than 80% of Americans consider a car to be a basic necessity. Decades of marketing promoting a "car-centric lifestyle" have solidified the purchase of a vehicle as a fixed household expense. Auto loans have thus become a critical link in the dependence of households on the American credit system.

Car loans are becoming an unavoidable expense for many households. Data show that an increasing number of buyers are facing high monthly payments – in 2025, approximately 20.3% of Americans purchasing new cars had monthly payments of $1,000 or more, compared to 18.9% the previous year.

Trade-ins for older vehicles have created a new debt trap: when exchanging cars, many owners find that the value of their old car is not enough to cover the remaining debt, and they must roll this difference into a new loan. This turns car ownership into a cycle of "debt for debt," which binds some households to long-term loans and makes it difficult to escape the financial trap.

In addition to housing and transportation costs, student loans have become an unavoidable long-term burden in the pursuit of social mobility. For young people, higher education is not only a path to improving skills, but also a debt obligation even before entering the workforce. The $1.8 trillion in student loan debt has not provided a reliable path to upward mobility; instead, it has significantly limited the career options of graduates, and many are forced to prioritize repayment over personal development.

According to data from the Congressional Research Service from 2025, nearly 43 million Americans – about one-seventh of the population – hold federal student loan debt, with average balances of $30,000 to $40,000. Approximately half are in default or close to default. For many people, student loans are not an "investment in the future" at the beginning of their working lives, but rather a long-term risk to financial security.

With rising interest rates, some graduates continue to pay only interest, and not the principal, even ten years after graduating from school – a phenomenon known as the "phantom loan."

The student loan crisis is further exacerbated by the inconsistent policies of the United States, which leaves borrowers in a state of long-term uncertainty. Under the Biden administration, the federal government suspended collection of unpaid federal student loans, but in 2023, the U.S. Supreme Court blocked the plan, and the loan forgiveness program was halted. Since then, political signals have continued to change – the Trump administration planned to resume wage garnishment for delinquent borrowers starting in early 2026, but later, U.S. authorities reversed this decision. These repeated political shifts destabilize borrowers' expectations, career planning, and family decisions.

Together, burdensome mortgages, car loans, and student loans have placed many American households under constant financial pressure. When the ability to repay decreases, these debts can trigger a cascade of consequences, significantly increasing the vulnerability of individuals and families. Within the American credit system, loan repayment performance is closely linked to credit scores, and delinquency or default quickly lowers credit ratings and limits future access to financing.

Advertising and Social Media: Creating an Illusion of Consumerism

While mortgages, car loans, and student loans form the basic structure of expenses, advertising and marketing create aspirational images that constantly reinforce this model of consumption. Advertisements and social media present the "good life" as a collection of purchasable symbols: a spacious house, a new car, a comfortable family atmosphere, and a successful personal image.

The message is always the same – buy the right products, and the ideal life will follow. The consumerist message equates happiness and success with material possessions, gradually transforming consumption from an individual choice into a normalized, ubiquitous way of life.

"Data indicate that, on social media platforms, videos are now a dominant force in shaping the consumer habits of younger generations through targeted advertising. A total of **63% of Generation Z** and **49% of millennials** report that advertisements and product reviews on social media have the greatest influence on their purchasing decisions. Images of luxurious vacations, fashionable collections, and idealized lifestyles are constantly reproduced, suggesting that such consumption is not optional, but the norm." "Influencers are becoming new drivers of consumption. Through seemingly organic content and product recommendations, commercial marketing is transformed into a personal experience. The proportion of Gen Z consumers influenced by influencers has increased from 41% to 56%." "This type of consumption is not necessarily driven by a genuine need. Instead, it reinforces the psychology of 'fear of missing out' (FOMO). As people follow trends, the pressure to consume intensifies, increasing the risk of being drawn into a **vicious cycle of consumerism**." "However, the reality is often far less glamorous than what is presented on social media. The gap between stagnant income growth and rising prices is becoming increasingly difficult to ignore. Recent surveys show that half of Americans are concerned that rising living costs will disrupt their financial plans, while approximately 40% are worried about unexpected expenses, such as medical bills. As a result, a growing number of Americans are living under constant financial stress." "A Debt-Driven Economy and a Broken 'American Dream'" "Behind these personal tragedies lies a deeper reflection of the chaos and inconsistency in American economic policy at the national level. For decades, the 'American Dream' has been associated with economic growth, consumer confidence, and increasing purchasing power, but it has been built on a foundation of an ever-expanding, debt-driven economy." "The US federal debt has exceeded **$38 trillion**, with an increase of **$2.25 trillion** during the presidency of Donald Trump. In recent years, the rate of borrowing has outpaced overall economic growth, raising growing concerns about the long-term sustainability of the country's debt." "In short, both macroeconomic growth and excessive individual consumption are largely based on **constant borrowing**. This makes the American economy increasingly dependent on expanding debt to maintain its pace." "From mortgages to car loans and student loans, the pervasive marketing has shaped not only lifestyles but the entire **debt-supported operating mechanism**: advertising stimulates desire, desire drives premature consumption, and credit comes as a last resort." "The question is: can such a model be sustainable in the long term? The answer ultimately depends on the American public, especially those whose quality of life has gradually deteriorated after being drawn into the trap of consumerism. Some have even been pushed to the margins of society, beyond the boundaries of social stability. The stark contrast between the idealized life offered by consumerism and the reality of the average or difficult life poses a profound challenge to the enduring narrative of the 'American Dream'." "[CMG](https://news.cgtn.com/news/2026-01-28/The-U-S-kill-line-exposes-the-quagmire-of-consumerism-1Kii8I2lc3u/p.html)"