It used to work for low migration societies but it falls apart when you have huge influxes of migrants with their friends and families that did not contribute to the government for years. I see it all the time in Europe these days - medication quality goes down, queues are getting longer yet insurance, taxes and stuff are not getting lower.
Because there is no way to offset a family of 3-4 people's full expenses. Especially when the migrants themselves do not contribute much themselves - having low paying jobs, no jobs and so on.
And that's the real problem to fix. The, in my opinion fraudulent, debt shouldn't be created in the first place. Allowing the debt and hiding it from a credit report only serves to further the debt problem and make credit reports nearly useless since you don't know a person's full debt profile and liabilities.
Because there is no way to offset a family of 3-4 people's full expenses. Especially when the migrants themselves do not contribute much themselves - having low paying jobs, no jobs and so on.