S6: English

If+ past perfect, would have+ past participle

1. If she had saved more money, she couldn’t have been in debt.

2. He could have had more money in reserve if he had spent less.

3. If she hadn’t spent so much on rent, she should have saved more.

4. He couldn’t have owed so much if he had been more careful with his

money.

5. If Kamana had had an idea about budgeting, she could have used her

money wisely.

6.4.6. Application Activity
Construct five correct sentences with the Third Conditional. Your sentences should
be related to the context of money.

6.5. Describing Government Debt and Annual Deficit
6.5.1. Reading and Writing: Debts and Budget Deficit
A budget deficit is when  spending  exceeds  income. The term usually applies to
governments, although individuals, companies, and other organizations can run
deficits as well. There are immediate penalties for most organizations that run
persistent deficits. If an individual or family does so, their creditors come in.
As the bills go unpaid, their  credit score  plummets. That makes new credit more
expensive. Eventually, they may declare bankruptcy. The same applies to companies
who have ongoing budget deficits. Their bond rating falls. When that happens, they
have to pay higher interest rates if they are to get any loans.

Governments are different. They receive income from taxes. Their expenses benefit
the people who pay the taxes. Government leaders retain popular support by
providing services. If they want to continue being elected, they will spend as much
as possible. That’s because most voters don’t care about the impact of the debt.
Government bonds finance the deficit. Most creditors think that the government is
highly likely to repay its creditors. That makes government bonds more attractive
than riskier corporate bonds. 

As a result, government interest rates remain relatively low. That allows governments
to keep running deficits for years. 
Each year the deficit adds to a country’s sovereign debt. As the debt grows, it increases
the deficit in two ways. First, the interest on the debt must be paid each year. This
increases spending while not providing any benefits. If the interest payments get
high enough, it creates a drag on economic growth, as those funds could have been
used to stimulate the economy.

Second, higher debt levels can make it more difficult for the government to raise
funds. Creditors become concerned about a country’s ability to repay its debt. When
this happens, they demand higher interest rates rise to provide a greater return on
this higher risk. That increases the deficit each year.

It becomes a self-defeating loop, as countries take on new debt to repay their old
debt. Interest rates on the new debt skyrockets. It becomes ever more expensive for
countries to roll over debt.

If it continues long enough, a country may default on its debt.