That’s the Fallacy of Composition - the economics of a government are not the economics of a grocery store or a household:
https://amp.theguardian.com/business/2013/nov/21/post-crash-...
https://amp.theguardian.com/business/2013/nov/21/post-crash-...
Ultimately the way these ideas about economic theory are approached is a lot more philosophical/religious-based (for the Atheists, please read that 'strong belief-based') and a lot less math based than some would be willing to admit. Honestly the math itself is usually statistical, which in turn is a lot more difficult to comprehend and analyze properly.
Just ask...are there are very fundamental differences between the finances of an individual and the government? There are. For starters, the government can simply print money and pay off debts. They can also choose, by their actions, to inflate away nominal liabilities.
So then it is reasonable to consider that "being in debt" may have different ramifications for the government than for an individual.
I can only agree ramifications look different when an inappropriately narrow timespan is in focus. Thinking through history, what nations have been able to ultimately avoid ramifications from significant debt – the same sort of scenario that would in proportion cause ‘ramifications’ for individuals or businesses?
I can think of several historical instances where a nation having significant debt appeared to have no ‘ramifications’ early on but were unable to avoid the inevitable (and inenviable) outcomes.
I mean, even an individual may get deeply – horribly - in debt yet avoid ramifications for a time. But the bills will come due. No doubt a government is not the same thing as a business or an individual. But to dismiss government debt as playing by different rules than debt elsewhere is foolish.
It’s actually central economic thought. If you disagree, it’s on you to prove otherwise.
Governments can print currency, create taxes - actually inter generational (government bonds). Households cannot.
Economist Mark Blyth explains it quite clear: