Wanna see how bad it is? Check out http://www.usdebtclock.org
Most especially, scroll down to the bottom to see the *unfunded* debt each of is owes. If your browser comes up with little f symbols, just click each one to get the numbers to appear. It has to do with your cookies setting.
If the free market were allowed to function, and we could restore our prosperity, then we might be able to handle it. But that's not happening.