It’s “all too common” because it’s how most 1st world economies work (though to be fair: your fear-based view and false belief that it is anomalous is the true “all too common” viewpoint). Case in point is the US that has been running deficit budgets for decades - and yet it still exists! It is still an economic power house! The general disconnect is that nearly all discretionary spending is directed towards the military, which somehow eludes all those who ask the question “but how are we going to pay for that?” whenever anyone proposes providing money to people who definitively need it.