A quick comment on debt:
Often the analogy of Government debt is made towards "Credit Card" debt. My Money Blog gives the example I have been seeing trolling around:
http://www.mymoneyblog.com/us-budget...old-level.html
It basically comapres IRS revenue to a personal income of $20K, and the US national debt to a $142K credit card balance.
If instead, you look at the debt as structural, say a home loan (which is debt as well), suddenly you have a much better scale and understanding. $142K total debt would be similar to a $130K home loan, $10K car loan, and $2K of credit card debt.
Yes, spending $36k/year while only bringing in $20K/year is probably not a good thing, but if you are in a growth model (like young folks buying their first home), then taking on debt can be a reasonable course of action. This to again put it at a persoanl level, it would be akin to taking care of your expenses, plus taking out a home loan (say new roof or furnace or ...), plus a fair amount of non-essential spending (trip, dining out, or...). While this may not be the way many keep there budget, it is not a terribly uncommon early career lifestyle. The base assumption there is that you are in a growth phase of your income, which in general US GDP/Incomes are on the rise. Following this model though only works out in the long run if you have a plan for the long term (retirement and paying down debt).
Much like home & car loans were figured out to generally be a good thing for many, running some level of national debt was figured out by economists to boost economic growth. While the principle is fairly sound, the devil is in the details that are practiced. Taking on too much debt at too high a rate can cause run-away debt that will ultimately end in a bankruptcy (think taking out a high interest loan to pay minimums on credit cards). Taking on "smart debt" like a $10K home loan to ensure to stop a leaky roof that could turn your $200K home into a $50K home due to mold and water damage... On a more micro scale, it might be using a credit card to fill the tank of your car instead of abandoning it when the gas tank is empty (I have driven cars where filling the gas tank increased teh value of the car by about 30% and thus this may not have been a bad strategy
).
Back on topic:
In my analogy, the "US Gov" could be looked at as a young married couple that a while back agreed to buy a house and a couple of cars and has a baby on the way and is fighting about how to handle their debt. One spouse is arguing for austerity or bankruptcy, while the other is suggesting taking out a line of home equity credit to add on a nursery (and won't pay bills until there is an agreement)... There needs to be a real discussion, and there is quite a difference in opinion.
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As for the workers not working and the "lucky governement job", many of those took a 20% pay cut this summer due to sequestration. Some had to dig into their savings to help make up the deltas due to those "temprary cuts". Now they are not allowed to work. The back pay will help when it comes, but if this goes on too long, many could get a credit hit as they have already spent some of their emergency fund on the summers lower revenue.