Well, that's exactly the objection I tried to cover with the second half of my comment.

The thing is that you're assuming that it won't actually be paid so that there effectively is no debt or pay. Under that assumption of course it won't work, since you're not actually doing it.

The debt is not silly, it's a way of saving your country. If you have good debt collectors, and you owe enough you'll want to fight. Use your imagination.

In the few cases where the probability of dying is near one instead of near zero, being as productive as possible and getting just enough money to survive out (third world type real poor, not "poor" american kind) might still be better than dying. In these cases you'd basically have to punish people that can't pay instead of helping them pay as much as they can.