>We developed chronic overspending habits when interest rates were historically low

Weird, they were historically low because the money printers went brr. So the "We" you're talking about is both Republicans and Democrats, and not much else.

So basically, the interest rate is meaningless, so everything that follows is probably just as meanginless.

>The government needs to shrink

Just because the government makes bad choices doesnt mean whatever fills the vacuum with make good choices.

Yes, both parties have objectively failed their mandate to look after the long-term interest of the American people and instead focused on short-term wasteful policies focused on their own party goals.

Governments that consistently make bad choices eventually die one way or the other.