I can't believe this isn't talked about more. Seems so obvious.
Why, at a time of "peak oil" and never-before-seen technological advancement, are nations and their citizens bankrupt?
It's because corporations and extremely wealthy individuals control a crippling amount of the wealth in the world. Wealth doesn't just disappear except through inefficiencies (for example when an arsonist sets a perfectly good home on fire, insurance, fire, and police costs are incurred to fellow homeowners and society at large). Basically this is a zero-sum game. Individuals and nations are running deficits. Someone must be running a surplus.
Here's who's running surpluses: Corporations, extremely wealthy individuals, China, several oil-exporting countries.
When government's pursue "austerity measures" and cut social spending or government programs, yes, that's one (painful) way to get rid of their deficit - but isn't it short-term? That type of action hurts the lower and middle classes. And the corporate tax rate that affects the extremely wealthy? Lowered.
I've always suspected that we need a corporate stimulus package not a government one. They're the ones with the money. Thankfully we don't have to ask for one. We live in a democracy. Elected officials can simply raise taxes on the extremely wealthy.