Exactly.
But if they couldn't do that, they would have to fund everything out of turnover because they wouldn't be able to borrow money. So they would reduce spending first up.
Same with a country. Taxes will have to go up because the government will be unable to borrow money for infrastructure (or i suppose they could just put in a heap of speed cameras).
Government spending will have to decrease so you are looking at reductions in social security, health, road funding, police etc etc.....
Unemployment increases as the Government cuts jobs and decreases spending in the private sector.
Not a nice scenario.
Luckily, we have a fiscally responsible government here.............oh
