Well of course what is possible for the government is not possible for you as an individual. You can go bankrupt, the government can't. You can not run permanent deficits, the government can. You can not dictate what is acceptable as payment for taxes and enforce it. The government can. (That's how fiat money is defined. It is what is acceptable to the government for payment of taxes. And that is why you will work for fiat money. You need it to pay your taxes.) In a closed economy, Household savings equals business investment plus the governments deficit. When deficits are too small actual savings will fall short of the desired level, and when they are too large, savings will exceed the desired level. The first case causes deflationary pressure and the latter causes inflationary pressure. The situation is not all that much more complicated for an actual economy which includes foreign trade, banking and finance.I wonder what would happen if everyone in the US carries the same philosophy: We should all have deficit spending beyond what we make, year after year. Our family budget should not be balanced on some arbitrary time scale, a fiscal year for example. And we should not be ask to balance our budget every year or at all, just like our Government...
Just wondering, and what if no one can ever pay them back? Perhaps we can try print our own currency.
Up until full employment is achieved deficits should increase allowing incomes to rise and generate more savings. At full employment however, additional private sector income generated by further deficit spending will cause inflation. In other words, once full employment is reached, a reduction in taxes or increased government spending will result in inflation.
This is all fairly standard, modern economic policy stuff. In other words proper regulation of the economy necessarily includes the government acting countercyclical to the private sector to stabilize prices and maintain full employment. It is much easier said than done though.