Well the problem will be when financial obligations rise to the point where the work force doesn't generate enough taxes to pay for it.
It's coming, SS and Medicare/caid is supposed to reach 20% of GDP in the 2020s. The other factor is that at the same time people that rely on those programs will be a very prevalent voting group.
Yikes!!
Burning it at both ends of the stick.
Debt financing is a part of modern society and it's done all the time by both people and corporations, quite successfully, and far more people have been enriched by it than hurt by it. It's called the time value of money, and time is on the U.S.'s side. That is, anyone can finance their debt if they're a generally strong country that has smart inflation policies and sensible gov't controls on taxes and wealth creation. We've been slowly inflating away our debt for a good few decades now and despite decades of overly debt-happy admins the current crisis can be rather tidily resolved with a good 5-10 years of economic growth along with reined-in spending and sensible tax policy. It won't take anything particularly magical to do politically, economically or socially.
Besides, obligations come due have been coming due since the 30's and 60's for said entitlement programs, so it's not something that's particularly new, interesting or staggeringly unmanageable. SS will take 40 years to become insolvent if we do absolutely nothing. For anyone to call that a crisis is to tell people you're not capable of basic arithmetic. It's something that needs addressing, sooner rather than later, but is nowhere near dire or urgent as the entitlement alarmists have been saying for 80 years. Hopefully we cut spending, raise taxes (by cutting loopholes via subsidies), and continue the current admin's pro-growth policies to their so far successful conclusion, as evidenced by both GDP and employment improving immensely in the last year.
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