Save money by paying down the debt, and don't let default happen (or else interest rates rise, and the US debt will crush us!). The equation is taxes on income are source of funding for Govt. Currently govt is working on the wrong part by thinking to reduce Soc Sec, Medicaid, which help people, while ignoring the fact that TWENTYFIVE PERCENT of workers are UN/UNDER-EMPLOYED!! (9% unemployed, 17% underemployed = 26%) Now there's some pain that needs fixing. Get them working in jobs of value and you fix the deficit and start paying down the debt (what was happening pre-9/11).
The catch-22 is that businesses are cutting costs (including laying off and off-shoring). Why: they'd (individually) go bankrupt if they increase production. Why: people won't buy more. Why: people don't have money. Why: no jobs (oh, yeh, that 25% un/under-employment). Why: businesses not hiring. Why: they're cutting costs, including jobs.
But when jobs were lost, "what people want" didn't change, only that they could no longer buy. So now there are no funded customers able to reward the businesses that make what people want. ("unvested demand") Meanwhile, businesses are rigging laws (Enron, "cheaper to pay law suits than do right in the first place" etc.)
Our economy is supply-based: until businesses supply goods, demand cannot say whether a particular business is on the right track and should up production. We're waiting for businesses to produce, and they are not about to.
1-ask people to register how they would spend a big (say $150,000) salary [note: do NOT just give them the money - we first only need to know what's wanted].
2-Aggregate this info as an "ultimate basket of goods" (i.e. what we really want)
3-Enlist CAD/CAM gurus to design the means to produce the stuff, and educate others to provide the rest.
4-train/support the un/under to be ready for the needed jobs.
5-Incentivize and support businesses in the demanded industries. And let unwanted businesses fail!