I think you are implying the companies and people borrow money for shits and giggles. The reality is that most companies borrow money only when the availability of extra capital would help them generate more revenues or capture addtional market share. So they would take into account the cost of servicing the debt and repaying the loan.
However, there are cases like IBM raing debt to buy back shares and boost share prices. I have no idea how that will work out for them.
However, there are cases like IBM raing debt to buy back shares and boost share prices. I have no idea how that will work out for them.