Why is it harmful to the economic prospects of people? Our economy literally relies on consumption. High rates of consumption.
> The free money will be paid for in the years to come and it will be a long lasting burden.
First thing: I reject the notion of "free money." It is money that is borrowed by people at time of crisis. Government works for the people, in theory, so it is the people borrowing the money from their descendants in order to weather a storm today without having a complete collapse.
Secondly literally everything in our economy runs on debt. The idea is you outgrow your debt. If you want to have the whole "abolishing capitalism" conversation, that's a big suggestion to say the least, but the two ideas you're suggesting are either criminal or history defining:
1.) Just let all the poors die
2.) We have nothing to lose but our chains
> But if not, the future looks painful.
Were a sovereign nation we can literally just write it off.
The debt can be written off. But it will have consequences. It means no more living on debt, because no lender will be willing to lend anymore. It will be very bad for the economy, at least in the short term (who knows how many years). However, it may lead to a more sound economy in the long term, assuming the capitalism survives.