America Facing Financial Problems

Taxes.
 Federal taxes are around 18% of GDP today, what they have been since the 1950s. State and local taxes, however, have increased substantially over that period. Total taxes from all sources are now a bit more than 34% of GDP, up from a low of 26% in the mid-1950s, but below highs of more than 36% reached several times in the past 15 years. So by historical standards, total taxes are not especially low. On the other hand, there is room to raise taxes a bit without going into unprecedented territory. To have a substantial impact, however, tax increases would have to fall on the middle class as well as the affluent. Extending the Bush tax cuts for the middle class and allowing taxes to rise to Clinton-era levels only for households with incomes over $250,000 (and singles over $200,000) would raise enough money to cut the deficit by just around 10% over the coming decade.

Taking poor decisions in purchasing and investment.

Some American households are still feeling the sting of the recession. According to the Federal Reserve survey, "60% of respondents reported that their families were either 'doing okay' or 'living comfortably' financially; almost 1/4th of them said that they were 'just getting by' financially and another 13% said they were struggling to do so."

People who no longer feel the impact of the economic downturn still have to face the results of making their own decision. A large portion of the survey respondents (46% of men and 26% of women) acknowledge the impact of their financial decisions and say they would prefer to work towards making great investment or purchasing decisions.