On any given day, I feel much less oppressed by a perceived lack of "individual liberty" than I do by the out of control spending by my government. I'm more afraid of my children's future due to that spending than I am of anything else.
Also, a significant chunk of our out of control spending contributes to our lessening liberties (DHS, ATF, EPA, etc).
This is a problematic idea.
Germany is about to balance its budget. So is Italy. Yet both of these countries are oppressive welfare states. German gun control has been elaborated on and discussed here extensively. So is Italian gun control. Russia is aiming to balance its budget within 3 years. Russia is sometihng between a fascist state and Tammany Hall, ruling forever.
America could balance its budget immediately by reducing spending to the levels seen in 2006 (where the Federal government reduced to spending 'only' 2.6 trillion dollars a year); this would allow America to gradually outgrow its debt, and blah, blah, blah.
This has nothing whatever to do with the price of tea in China.
You would still be living in a state that can arrest people and ruin their lives forever for attaching shoelaces to their guns. That imprisons marijuana users, growers, salesmen, and distributors. That... you know the drill, and I do not bother repeating it for you. Suffice it to say that all of those institutions existed in 2006 and they can persist at 2006-level spending.
Nor is imprisoning people and feeling them up at airports all that expensive. The TSA – including its actually-useful function – costs the American taxpayer, or his mythical children, 8 billion dollars a year. This is 58,000 people. America's military budget is 692 billion dollars, and I doubt you feel your freedom seriously threatened by the Marines, sailors, soldiers, and airmen. Far more money is spent on welfare of various kinds that is spent on the salaries of agents, regulators, etc.
For a comparison, BATFE budget is slightly over a billion dollars. TANF (Temporary Assistance for Needy Families) is five billion. Except that billion-dollar budget does almost nothing but fund salaries for people whose job is to badger you, your children, and everybody else over the shape of their guns. In terms of oppressing the most Americans I'm quite sure BATFE wins out.
So is balancing the budget important? Sure. Very much so. But it is not the most important goal.
As for the debt... it's actually fairly easy to outgrow, but failing that America can just default. Default does not necessarily equal – as we have seen in Iceland – terrible starvation and people dying in the streets. Likely there'll be several years of economic malaise and then America will be prosperous again.