The issue with loan forgiveness is that it is a massive wealth transfer from creditors to debtors. People who made bad bets by getting deeply in debt are rewarded, while people who saved and loaned money get shafted. That unbalances the economy and misallocates resources. Which could do even more damage. There isn't really a clean way out. If businesses started preparing & managed their money better while paying off their debts, that would probably be the safest way out.
Why would you prepare and manage your money better when you can always just get another loan at a great rate? It makes no sense to save when borrowing is more profitable.
