The problem is the nature of the creditors. Basically, creditors are proxies for "the rich and the powerful", and the social programs are "benefits for the poor

The problem is the nature of the creditors. Basically, creditors are proxies for "the rich and the powerful", and the social programs are "benefits for the poor and the powerless". If we simply decided to call for a jubilee and a nullification of all national debts what would happen? The "rich and powerful" would be instantly much less rich and powerful, and everybody else would probably be a lot better.