In 2011, PBS put up another interesting video to watch. The then President and Congress discussed how they would deal with the National Debt, which may be the one thing that might cause the U.S. to decline badly in the future (the Debt, not reducing it).
Canada’s Debt is real, but the American Debt is beyond enormous. It is like a band of 800-lb gorillas that are not just in the corner of the room; they have taken up the room (and you don’t want to know what they are doing in there). Governmental debt in Europe is causing a lot of the current monetary issues, but the U.S. must get its Debt under control soon, or the worldwide economic system will be in for a very bumpy ride.
Either spend less, increase income (i.e., raise taxes) or do both, but something must be done soon.
If a family consistently spends more than they earn, they will go bankrupt. Governments seem to think that they are exempt that possibility, until it actually happens.
Almost every plan I’ve seen for the US is the equivalent of a family that overspends every month by thousands saying something like “I guess we don’t need HBO after all”, cutting 8 bucks out of their spending and thinking that will make it all ok.