I was thinking about this when I was coming home from work, and I think I have a plausible explanation for how bankruptcy could lead to the dissolution of Kerbin's space program (based off of nothing but circumstantial evidence and rampant speculation, of course). I submit to you that the Kerbals may (in fact) need the space program to survive. Consider the following: * Kerbin is apparently sparsely populated, and all Kerbals that share the last surname. * The Kerbals understand enough about rocket engineering to achieve rudimentary spaceflight (despite the fact that airplanes or even that the wheel constitute groundbreaking research). * The sole mission of the Kerbals we have seen is discovery. This goal seemingly happens at the exclusion of any other endeavor. * The Kerbals absolutely refuse to manufacture munitions (at least according to the Wiki). * Year 1, Day 1 coincides with the beginning of the Kerbal Space Program. * Money is apparently a new concept and reputation never seems to have mattered before. One can speculate that at some point in the past, the Kerbals were actually incredibly war-like; perhaps they had the capacity to employ mutually assured destruction and did so successfully. If that is the case, then maybe Kerbin is a post-apocalyptic world and the Kerman lineage really represents the last of their kind; this lineage is maintained either through natural means (like binary fission) or cloning. Because Kerbin is recovering from the apocalypse, accessibility to knowledge is scant, and their manuscripts on basic rocket science were one of the few things they could recover. The space program is merely a distraction to keep the Kerbals from recognizing their true nature; should the space program suddenly become insolvent, there is nothing left to unify the remaining Kerbals, and the descent into utter extinction would begin (perhaps irreversibly). Yes, this conclusion is about as far reaching as it gets, but hey, it could happen!