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Having states go "bankrupt" means they'll be subjected to total oversight and control by banks and corporations and subject to unbelievable cruelty through austerity.

If you want to see where this is going, spend some time reading up on New York City in 1975.
So much of what we're currently going through with austerity measures and our myth of financial meritocracy originates from that period, where Ayn Rand disciple Alan Greenspan pushed Gerald Ford to tell New York City to "drop dead."
What Trump and Kushner and Republicans are doing by denying federal aid to states is creating a mythical version of "federalism" that manifests a shadow nation that has absolutely nothing to do with helping anyone. This builds off the idea that it's the government's money.
Again, like all things Trumpism, it's about malleability of ideology. The federal govt doesn't exist to help anyone except the people in the federal govt and their favored individuals and businesses. It literally bricks off the government from the people.
Malleable politics is the very essence of fascism, only it hides the cruelty of fascism behind a facade of financial inevitabilities. It is what makes Us vs. Them a game of death and cruelty.

We're going to see that play out on the national level if this pans out as planned.
If Trump/Kushner/GOP get their way on states going bankrupt, what happens is states no longer handle social concerns or social support. They'll become engines of profit and suffer crippling oversight by banks and corporations.

It could lead to tragedy on an unbelievable scale.
Because America has destroyed so many infrastructures, leading to mass tragedy, we don't often consider the mass loss of life that happens AFTER an incident.

Installing mass austerity after this pandemic and turning govt away from helping people will kill and ruin so many.
A nation of austerity means the poor continue to be denied necessary healthcare, are thrown out of their homes, are kept from education, don't receive assistance with bills or food.

It's the most massive faults of America as we know them now, only multiplied several times over.
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