A look at the percentage of GDP being spent may reveal some answers. The US does outspend everyone else...no doubt. But it is a very small part of the entire GDP.
Despite whatever economic troubles going on now in the US (and I live here and am experiencing them), they are mild when compared to a lot of the world, and they are addressable as soon as the US public makes up its mind it wants to address them.
IMHO, the US has huge oil reserves in the Dakotas, in ANWR, off the Pacific and Gulf coasts and elsewhere. We have huge low sulfur coal reserves tied up in national monument areas, and certainly has the technology to excel in nuclear power plants.
The US is also very capable of building more refineries.
The American public simply has to reach a point where they are willing to commit to these things and force their political leadership through the ballot box to comply.
For whatever reasons (and there are several), the US public hasn't reached that stage yet...but the US has the resources to make good on it once they do.
Again, all of this is strictly my opinion.
GDP is not the issue though is it Jeff? Its about the Federal Budget, the Federal Deficit and tax rates. To contain and shrink the deficit, Washington needs to reduce expenditure and raise taxation, not the opposite.
I stand with RedMercury on this. If the Federal Govt establishment in washington cannot understand these basic economic realities, maybe the American people need a new establishment. Maybe based in one or more different locations.