At least the author's answer is to ramp up innovation and productivity, investing in education and research, trim spending .... not raise taxes.
Reduce inequality by greater investment.
A tricky political path to take
FT.com / Comment / Opinion - Debt is capitalism’s dirty little secret:
"Just why is there so much debt in the Anglo-Saxon world? Bankers and regulators know well that it is in nobody’s long-term interests to have allowed borrowing to escalate to a position where the US now owes far more, as a multiple of the economy, than at the start of the Great Depression.
The answer is capitalism’s dirty little secret: excessive lending was the only way to maintain the living standards of the vast bulk of the population at a time when wealth was being concentrated in the hands of an elite."