[ineedasername]

...debt- legal, administrative, technical, financial...

If you're right, then you can institute devolution of any of those things and the issues you cite are going to build up over time. It will just happen at different levels in because it's spread around some many different systems.

The unemployment issue is an excellent example of this. You want to know the reason why Congress gave a flat $600 to all UI recipients even if it would be more than they were making before? Because there isn't a single unemployment system, there are 50 systems each unique, each with their own "debt", and trying to implement appropriate strictures in all of those systems would have delayed that part of the stimulus for months, if not longer.

The way you deal with those issues is by having infrastructure that is built to deal with the issue. Call it societal/social/legal "garbage collection". Whether or not we have such infrastructure, you don't get rid of the problem by shuffling it around.