No, I didn’t say fall into debt. I said if its revenues exceeded its costs. Revenues are just earnings. If you didn’t have the ability to borrow, your business would fail.

Now if you want to bring debt into the subject, that doesn’t change anything, because banks are motivated by profit too. They will loan to a business, sure, but only if the business will pay back the loan with interest. That means at some point, your revenues have to exceed your cost (you have to make a profit) or the bank will not loan you money.

Now since a government doesn’t make profit, ever, you cannot extend the analogy. Since a government doesn’t make a profit, how can it afford to increase spending when it doesn’t increase taxes?

It can only do so by borrowing against future productivity, and then devaluing the debt in order to make it manageable. (or grow the economy)

Let me ask you. Why does the dollar decline in value every year? Why is it that college was affordable by working in the summers, and house prices were in the tens of thousands instead of hundreds of thousands? Why did candy, drinks, and burgers go from costing cents to dollars? (in spite of productivity increases!)

It’s because of inflation. It’s a stealth tax that most people can scarcely understand, let alone do anything about.