Greece has pretty much already reached that point, it seems. The economy has been contracting for the past four years (already one of the worst post-war depressions) and still shrinking and the national government is already in shambles and paralysis.

The unemployment rate is very high (officially 20%, 50% for the younger generation) but many people are technically still working but just not getting paid. Many Greeks have endured significant pay cuts and many others have gone on for many months unpaid based on the promise of eventually getting paid. Eventually, I suppose many of these workers are just going to stop going to work and then the wheels of society are really going to fall off. Who knows if there will be much of a safety net left at that point for all the unemployed and people needing health care.