Anybody else is welcome to chime in if I'm incorrect on this.
if you took a trillion dollars/yr out of the US economy tommorrow, life would suck.
It really depends on which funds you cut. If we cut out all the free food we're giving away to other countries, all the bail-out money to other countries, the weapons we're giving to other countries, etc. life in the US would probably be much nicer. If we (the US) stopped trying to rule/fix the world and focus on ourselves we could become more stable and eventually be in a position where we could graciously assist other countries if/when they asked for it.
In a consumer society there are inevitably two kinds of slaves: the prisoners of addiction and the prisoners of envy.