Pretty much every first-world country other than the USA has at least partially solved it. Social safety nets, regulation of utilities/public goods (education for example), and a guaranteed standard of living.

But then, how predatory bankers will survive? Some country needs to protect them...

If there is an existing workaround no one will look for a different solution.

I don't think that's true. And I don't think wrecking some people's lives just as an incentive for others to look for solutions is easy to justify.

On this theory, they shut down mental health institutions. Now what happens is mostly that jails serve as ill-suited, ad-hoc mental health institutions. Turns out making things worse without having a plan doesn't always have salutary results.