Debt is easy to deal with for a sovereign. Just dilute the currency. That will obviously happen before a debt crisis is allowed to materialize. And so the rich will get richer.

The real problem is not the debt, but the social instability caused by the measures taken to address the debt.

This would also make countries that constituionally prevent that level of debt look smart. At least if we see the state as an institution that should serve its citizens. If taking on debt requires making your citizens worse off to the point that it causes social instability that didn't serve them very well

If you see the state as an institution to allow the rich and powerful to extract resources from the rest of the population, then it's all fine. Just take out some debt to give a contract to your nephew, then pay it back by devaluing the currency