The U.S. isn't nearly as broke as the right would have you believe.
If the U.S. was in fact broke would we be able to borrow essentially unlimited amounts of money at nearly 0% interest rates?
Let me repeat, the U.S. is not broke. We are in debt, the country is running a deficit but we are not broke and in fact should have probably spent more to get out of this recession (and without all of those tax cuts, only ~100 billion of the 850 billion stimulus was infrastructure spending and it should have been most of the bill IMHO...700+bil).
Wait, "we should have spent MORE?@!"
Yes. according to the Kaynesian theory, detailed in this 1936
Book by an economist named Kaynes we should have spent our way out of the recession because in fact, it is governments "role". Kaynesian theory was used to forge the New Deal and was the dominating school of economic thought until the 70's (more on that in a moment). During the 50's and 60's the middle class was created due to the applied principles of Kaynes theories, including but not limited to:
Regulations on the banking industry (1932)
The New Deal
higher taxes on the rich.
This created the Great Compression; A time in the U.S.'s history of surprising economic equality(excluding Blacks and women I guess). The rich were rich but certainly not swimming in green and every American could work for a decent wage and own a home and a car.
The 1970's brought some new ideas - or old ones changed up a bit - in the Neoclassical economic model similer to the Classical model that had been used from the 1700's till the late 1930's and replaced by Kaynesianism.
But enough of all of this, the point is this:
Kaynesian depression economics strive to lower the unemployment rate while also striving to protect the average Joes standard of living. This means stimulus spending to stimulate demand, regulation to prevent another crysis and low interest rates from the FED.
The Neoclassical model works supply side economics. A policymaker following this model strives to decrease costs to allow for more to be employed. This is achieved through deregulation, tax breaks, tax cuts and pay cuts. An example of this, as contended by Neoclassical economists says that if the city could hire 100 workers for $30 an hour they could alternatively hire 300 workers for $10 an hour. BAM! lower unemployment!
Kaynesian economists countered said example by pointing out that the standard of living for those $10 an hour workers is much lower than the guy who would have made $30 an hour and they also pointed out that many skilled workers would go elsewhere looking for better pay.
We've seen the Neoclassical model as the predominant force in action for the last few decades. How has it performed?
“during the past 20 years, 56 percent of all income growth went to the top 1 percent of households. Even more unbelievably, a third of all income growth went to just the top one-tenth of 1 percent.” - Sen. Al Franken (D-Minn.)
The income for us, the average joes, has barely kept up with inflation since 1982.
We are not broke, but the rich would like labor to be cheaper; And that's what it comes down to.
) then Korean war which ended up stalemate and still korea 60 yrs later are a force to be rekon with 
