...does not mean bankrupting the entirety of the U.S., just the ability (the wiggle room) of Congress to fund collectivist solutions that benefit the many of us to the benefit of the few.
Our State can function as a brake against the unfettered aggregation of advantage into the hands of the already advantaged. Bush, and GHWB and Reagan before him, by starving the beast -- "bankrupting" the federal government --, makes it impossible to solve social problems such as education, healthcare, retirement security, etc. Note that these same people effecting these policies are not recommending that the USG diminish its imperial military, nor ending corporate subsidies (even to move jobs overseas) -- funding the Security State is no problem.
Why, for example, destroy social security, a program funded solely by the people that benefit from it? It's no skin off the rentier class that lives off of interest, dividends, and capital gains. The answer is simple: Control. It forces the many of us to turn to the cash nexus from which they benefit. Who would clamor for higher wages when one is wholly dependent on the largesse of the corporation for one's food on the table?
Ditto with healthcare. Why not allow us to implement a desired universal payor healtcare distribution system? Because, those of us with insurance, are again dependent on the largesse of the corporation for access to doctors and medicine. It again tames the worker, makes it less likely that he'll bolt from the job when the owner accelerates the assembly line or asks the accountants to work half-days on Saturdays.
The less we are able to solve our problems collectively, the more dependent we are on the owners of capital for our welfare, thus the right-wing dismantling of the FDR welfare state.
How do they get so many people to go along with the program? Many ways. One of my favorites is to leverage the unfortunate Calvinist ethos that states he who has things has God's favor, is good; he who has not has God' wrath and deserves what they've got. Given this ethos, the advantaged argue that they are righteous in their accumulation and to help the disadvantaged would be to act at cross-purposes with God. That this entirely misses Jesus' Gospel is beside the point, propogation of the error serves the purposes of the powerful. Kind of like a post-mercantile version of the Divine Right of Kings...
Anyway, I ramble...
(Note, however, the Great Depression does show us that the creditor class benefits greatly when the many of us are bankrupt; wealth did transfer up hierarchy then.)