Because responsible people then have to bail these people out with their savings / taxes going up. It's a moral hazard. If there are no consequences for your actions / financial decisions, people will never learn and will continue making bad choices because why not.
Agreed. But simply letting responsibility run its course does not make the world a magically better place. Processes that lead to better global state often require catalysts, such as gov intervention (regulation, Fed actions, addiction treatment, etc).
