The answer is we should deal with the problem, but we won't until the system forces us to. Cutting spending and reducing the size of gov't does not have to be as impactful on economic activity if it is done efficiently, which it won't be. The ultimate problem is that the items that have the largest impact on the Federal budget are the entitlement programs. And very few politicians have the stones to tell the population the truth. They actually prefer a society more dependent on that which they seemingly provide.
The problem can't be resolved via taxation. The revenue to the gov't never really changes as a share of GDP regardless of tax rates. Nor are their enough people in higher income ranges to tax our way out of this situation. So, the problem will not be sufficiently addressed until the debt markets force the hand of Washington DC. For now the Federal Reserve and other central banks are attempting asset price inflation via expanding the monetary base, This is not a healthy form of asset price inflation. It means financial markets and other assets are appreciating on a very shaky foundation of anemic economic growth.
Ultimately, the Fed will have to attempt an exit strategy some years down the road. Unfortunately, the debt market is much smarter than the hubris of beurocrats. A bond fund manager will be way ahead of anything the Central Bank is planning. Personally, I believe rates will begin to rise beyond the control of the central banks. They will lose control of the yield curve in the bond market and inflation will begin to become a serious problem. It won't be the type of inflation that occurs from growth, but more likely the 1979 type of stagflation. This type of forced interest rate hike by the debt markets will mandate that the politicians implement far more extreme cuts than anything currently proposed. In the meantime the cost of all of this will paid for by further weakening of all global currencies, which will hit those on the lower end of the economic scale the hardest. All of this may take some time, since I believe central banks have only just begun their asset purchase programs. And the larger the asset purchases get, the harder they will be to unwind. All of this is because our weak in the knees political leaders would rather slowly peel a band aid off rather than rip it off and be done with it.