The boom which so many enjoyed under Bush was financed through debt eventually there was no one left to borrow from and spending dropped drastically with great pain to everyone. The government debt will work the same way. The massive size of the economy and the dollars status as the worlds reserve currency will prolong the inevitable but eventually no one will trust the country to support its debt burden and deficit spending will end over night.
The way that our financial system works right now obviously needs to change. If it didn't, we wouldn't be in a recession with such a bad economy at the moment. A healthy fiscal policy would lead to a lowered debt and a much more healthy economy and an end to the recession.
There are some questions if the fiscal policy we are playing with right now make a difference in the grand scheme of things we have not recovered the way we should of. I think the question needs to be what can we do now that we know we are in this crisis?
We certainly are not having a good time right now but I think we are in a slow recovery. What we need is more jobs. In my city the unemployment rate is at 14%. The federal government has begun funding for street repair and those workers have good jobs. I think the government needs to look at simultaneously repairing our infrastructure and providing more employment. It would take the ability to actually pass some measures through congress, which to my mind has been the biggest problem. Honest people do not like to be on the dole, they like to have a job, get paid and have a pizza on Friday night. There is plenty of work to be done in this country, but they have to fund programs to do that. People having money to spend would stimulate the economy. I don't know why our congress doesn't see their way clear to do this.