This is where you revert typically - and incorrectly - back to the false comparison with household budgets. OF COURSE, you never spend more than you earn! The issue is carrying deficits, i.e. you can legitimately - and should - carry deficits because of economically important forward spending investments! Have you never heard of bonds!!!! That is the point of why 'debt' can actually be a GOOD thing because it allows you to invest money now so you earn it back LATER - exactly how an economy grows.