RE: "You'd almost think the spending was the problem."
You would, if you ignored what the report you linked to said: "For the federal government, the sharply lower revenues and elevated spending deriving from the financial turmoil and severe drop in economic activity—combined with the costs of various policies implemented in response to those conditions and an imbalance between revenues and spending that predated the recession—have caused budget deficits to surge in the past two years." (itallics mine)
Their projections show unemployment dropping to 5.something by 2015? God help us if we can't do better than that.