Let's make sure we're clear. Government is often incentivized (or better yet, forced) to be fiscally responsible. I have a government job and I absolutely can't spend past my budget. However, you are right that politicians aren't necessarily incentivized to be fiscally responsible.
I've often said that we have a terrible system where we allow our government to be run by politicians, but I can't think of a better way to do it.
Your clarifications are correct. I was writing about legislators and executive branch - the politicians.
It is probably heresy to some, but we need more than two political parties.
Instead we're saddled with entrenched extremists on both sides who prioritize their uncompromising agendas (and themselves) ahead of the nation.
The first flaw to correct is to allocate the federal House of Representatives based on percentage of the vote for each party in each state.
This would enable minor political parties to establish a foothold in the largest states and go from there.
Of course, the two existing parties will never allow it - as the money pours in and they enrich themselves fighting the same stupid battles eternally, backed almost entirely by corporations and wealthy donors.