This is a postulation in absence of contemplation of the deterrence effect. I would suggest that if the consequences were known and obvious, the will to behave improves dramatically.
Something I have learned about people is that they respond very well to negative feedback. The problem with our current system is that we have politically disconnected the negative feedback system that improved stability.
The 24th amendment made it possible for non-taxpayers to vote, and they have no incentive whatsoever to vote for anybody but those who promise them federal dollars. The 26th amendment also made it possible for a new group of non-taxpayers to become attached to the "give away party" before they had much real experience in paying taxes. Both amendments removed an aspect of financial stability from the system, and it is no accident that the worst excesses were subsequent to these two amendments.
People have since been "kicking the can" down the road, content in the belief that by the time the sh*t hits the fan, they will have gotten theirs. It reminds me of John Maynard Kenyes' fallacy. "In the long run we are all dead anyway."
It discounts the notion that the social compact that is our government is not meant to be mortal, and is intended to live beyond the life of any individual. What they have done is created an Achilles heel through which they have been bleeding it to death.
Restore "pain" for behaving financially irresponsible, and you will likely prevent the occurrence of it.