The same as when you don't have a budget at home and you spend more than comes in from your paycheck. Your bank sends you a piece of paper saying you are overdrawn and better get your ass down to the bank and cover all the fees you've just been charged. In the government's case it's the Treasury.
If i spend everything that i make, and rack up all my credit cards, and then at the end of the year i get a statement telling me how much i spent, does that mean i had a budget?
When you continually spend more than you take in, and somehow manage to stay afloat, you really don't have a budget, you have a shell game. Works till it don't.
http://hosted.ap.org/dynamic/storie...ME&TEMPLATE=DEFAULT&CTIME=2013-03-27-07-01-19 STUDY: HEALTH LAW TO RAISE CLAIMS COST 32 PERCENT BY RICARDO ALONSO-ZALDIVAR ASSOCIATED PRESS The estimates from the Society of Actuaries could turn into a political headache for the Obama administration at a time when much of the country remains skeptical of the Affordable Care Act. The administration is questioning the study, saying it doesn't give a full picture - and costs will go down. Actuaries are financial risk professionals who conduct long-range cost estimates for pension plans, insurance companies and government programs. The study says claims costs will go up largely because sicker people will join the insurance pool. That's because the law forbids insurers from turning down those with pre-existing medical problems, effective Jan. 1. Everyone gets sick sooner or later, but sicker people also use more health care services. "Claims cost is the most important driver of health care premiums," said Kristi Bohn, an actuary who worked on the study. Spending on sicker people and other high-cost groups will overwhelm an influx of younger, healthier people into the program, said the report. ***************************** If you increase the demand for healthcare without increasing the supply of healthcare, costs will increase. ****************************** Here's another side effect: Study: Nearly A Third Of Doctors Won't See New Medicaid Patients http://www.kaiserhealthnews.org/Sto...-Of-Medicaid-Doctors-Say-No-New-Patients.aspx
Yes. Your credit limit set the upper limit on your spending. Your income was constrained as well. It's not a formal budget, but it is a de facto budget.
Yes, we do, it's a de facto (actually, the BCA of 2011 is de jure) budget. Republicans cite it often when they're trying to block spending they don't like.