If your neighbor has $50 million dollars in cash/assets and also a $1 million dollar mortgage on their house, but you only have $1,000 in cash/assets but no mortgage, does that mean that you are wealthier than your neighbor? No of course not. Your neighbors net worth is $50mm – $1mm = $49mm, while your net worth is $1,000 – 0 = $1,000. Debt is just one part of the equation when it comes to determining wealth. The US has a lot of debt but it is also extremely rich in assets, income per capita, etc, which makes it among the wealthiest nations in the world.
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