The U.S. government spent $3.5 billion last year. It was in the hole to the tune of about $1.3 billion. It plans on spending $3.6 billion this year, again with another $1.3 billion of overspending estimated. The so-named sequester of automatic cuts is only a cut on the amount of increase of spending from 2012. If this can't be done without total panic from the government, then we are totally screwed.
It used to be that anyone with a household had to balance his spending to live within his means. This came with no expectations that the government would come to his rescue. Not today Many people want a free lunch, but the only thing we are going to get is a government-run lunch line worse than the Depression.