You're attempting to transfer your intuitive, everyday understanding of the situation of an individual household to the situation of an entire country or its government.
In doing so, you are making a mistake, especially when you apply it to the US.
Think about it: Why is spending more than you earn bad for a household? Because according to the rules of society you will eventually not be able to spend anymore.
The rules of society are different for the US government, and therefore your conclusion about spending vs. earning does not apply.
That's the real problem, and it's going to stop working eventually (even for the US)
Yes, pushing an agenda through ratings is bad. (But even worse is the mandatory obedience to ratings).