The solution is simple; tax and cut spending.
The problem; Congressional Democrats don't want to cut enough, Republicans don't want any tax increases.
Therefore you have gridlock because they can't compromise.
President Obama was working closely with Speaker Boehner to work out a deal. Obama could control the Democrats, but Boehner can't control the Tea Party. The Tea Party refuse to tax, period.
Boehner couldn't get the votes to pass a bipartisan Budget, and he has no choice but to support the Tea Party members.
Tea Party = Zero Compromise = Nothing gets done.
Furthermore, the private sector will not invest in workers if the government doesn't function properly. No budget means their interest rates will soar.