An increase in taxes and a dramatic inflation will lead to the economy coming to almost a stand still causing a depression. This will not be a worst economy since the depression mentality when things go south for a bit, but rather a full on depression that caused American of the past to hoard food and valuables and treasure a scrap of fabric. Businesses would close, the stock market would fully tank and the unemployment rate will be that of the 1930s. All of this and the government would not be in the position to help.
In America we are used to a certain standard of living. If the government goes bankrupt and a true depression does hit, it will leave us in utter misery. Being poor under the best of circumstances is hard but when you are forced into it, it will be much worse. Our concerns will not be about getting the latest and greatest smart phone but rather how we can harvest more vegetables and stay warm during the winter.
Critics will argue that the US government is technically already bankrupt depending on how you define bankrupt. The government is currently borrowing money just to pay the interest of its debt. The only other reason our government is able to service its debt is because the Federal Reserve keeps printing money to buy up US debt. Obviously this is not a sound fiscal strategy and things will need to change before we can no longer stay ahead.
The other side of the excessive debt and money printing is the inflation that is already in the works. We are seeing a record high on prices of food insurance and other retail goods. A majority of Americans spend a majority of our income on living expense with a bare minimum left over. With the cost of living increasing, we are now looking at completely destroying the minimal savings we may have which leads to us being forced into reducing our standard of living.