"The National Debt and Washington's Deficit of Will" by Joel Achenbach is a pretty good look at issues surrounding our perennial national debt problem - how it develops, and the factors that make it so difficult to solve. It's well worth reading.
As this article correctly points out, the real problem is more a political than economic one (politicians shy away from raising taxes); the long-term moral dilemma is burdening future generations; but the greatest danger of our failure to trim our profligate spending is that foreign governments and individuals may lose confidence in the solidity of our economy and stop investing in it. All true, and worrisome.
To Achenbach's summary I would add three considerations he seems to have omitted.
First, although the problem clearly involves politicians who lack political will, there is good reason for their reticence. That would be the voters, who by and large appear to believe that more and more government services can be had by paying less and less for them. How can that fairy-tale mindset be altered? Possibly through political leadership, as Achenbach hints, including better information efforts about what's at stake.
Second, our political system for years has been dysfunctional when it comes to dealing with tough issues. This has led us toward a lower standard of living and decreasing real incomes for a lot (let's say, a majority) of our citizens. But the reality is that we won't deal with a problem until it gets into crisis mode. That's why, for example, I have supported the changes President Obama has sought in health care reform, even while recognizing that much more needs to be done on the cost-control side. Only a shock to the system is likely to jar it into action.
Last, Achenbach notes fears that foreign investors may quail at our failure to make difficult decisions. That's possible, though wiser ones may rely, per my preceding paragraph, on our dealing with the problem just in the nick of time. More to the point, the article ignores that for many investors, the political stability of the U.S. makes it an attractive place to invest even when there's noticeable turbulence on the economic waters. This may give us a bit more margin than doomsayers predict.
The Commission headed by Erskine Bowles and Alan Simpson, which has been charged with making recommendations on the debt by December 1, has its work cut out for it, but it's not at all certain even its best suggestions will have any impact. Those weak-willed politicians who created it adamantly refused to accept any binding commitment to implement its ideas.
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