In 2008 the soon to be Obama administration was planning a stimulus package to combat the deepening recession. In planning however, they underestimated the severity of the recession. The 831 billion dollar stimulus package wasn't bigger because of that underestimation and Obama's political hesitancy to spend more. Still, as a result of the stimulus the recession is over. However, since then the GOP decided that spending and budget deficits were too high and needed to be cut. Saner voices claimed that such austerity was premature, but the GOP and deficit hawks didn't listen pointing to Rogoff and Reinhart as a justification to austerity. By and large the agreements they reached in 2011 were small spread out over 10 years, the sequester on the other hand has decreased GDP growth by at least 1 percentage point in 2013. Want less unemployment and higher GDP growth? INCREASE SPENDING NOW!
Each generation is brought up a little greedier, with high expectations for a small amount of work. Children watch their parents buy homes, new cars, gas, and see credit cards being used while shopping. This example is demonstrated by every set of parent living a fictitious life style. Look around at homes, the contents of homes, the new cars in driveways and expensive landscaping. Most of these possessions are borrowed, as when paying with credit, you do not own it until it is paid for in full.
Life was easier before credit cards and we did not experience the peer pressure there seems to be today. As charge cards became available, more people started using them, and even more people liked what the cards could buy them. We created a small financial crisis as Americans, and allowed ourselves to be sucked into the lure of a better lifestyle by promises and big banks. Our economic status as Americans and in American itself has become a never-ending ride on a hamster wheel trying to catch up with debt. We need to get back to basics, and be happy with what we can afford without using credit.
We're 17 trillion dollars in debt, going on 18, and we haven't changed anything. According to Albert Einstein, doing the same thing and expecting a different outcome is madness. Our government is here to give us protection and support, and now they're taking more money than they need to spend it on unnecessary things.
The United States government and its citizens all have a severe spending problem. Debt is a major crisis for individuals and the government, as both continue to spend well beyond their means. Debt is always passed down, so our children will be paying off today's debt with their tax dollars and our personal debts with our estates instead of gaining an inheritance.
No, America does not have a spending problem unless you consider the money wasted on the war in Iraq. America does not spend nearly enough money on education, on infrastructure, on programs for the poor, and for the lower middle class to dig themselves into a situation where they can pay their bills and contribute to the economy.