In simple terms, it means that we will continue to pay more of our budget toward servicing this debt. Currently, it doesn't matter that much, since money is cheap (low interest rates). But interest payments could become a bigger chunk later on, at the expense of more important things. Ideally, when you are spending beyond your means, you want to be investing in some infrastructure or something that creates a future benefit. I doubt that's happening right now, though one could argue that this health care plan may cost something to get started but should save some money down the road.
Democrats are accused of spending, spending, spending, which is a fair criticism, but they will say in their defense that the bigger problem is on the revenue side of the balance sheet; there isn't enough coming in there, since the rich are not paying their fair share. Republicans are accused of wanting to cut, cut, cut, many programs (which some others believe are needed), yet they see lower taxes as stimulating the economy, etc. Also, the last time the Republicans were in (under Bush), they spent a shitload of money themselves (a couple of wars and handouts to their corporate friends). Of course, these are extreme stereotypes and there are plenty of politicians who don't squarely fit these, but most do.
Everyone's corrupt, since basically you cannot get elected without being beholden to special interest groups who dictate where you spend the money. Things definitely are a bit out of whack.