Someone down voted that comment, and understandably so as it probably came off a bit flippant...
So here are some numbers. The US, with ~320 million people is nearly 25% of world GDP. The US has public/private debt of ~146 trillion dollars. Consumption fueled by this debt contributes greatly to economic activity around the globe.
So yes, debt should be avoided. But if everyone avoided debt at all turns it would not be good scenario for the global economy. And, there has to be losers for the system to keep working as it is. Back on topic, there are no shortage of homeless who became so because of assumption of debt and inability to service it.
America is not set up on a pay cash and live within-your means basis. Sure, you can try to do this, but it will be hard, you will be the exception, and you definitely won't be emulating your neighbors nor your government.
I feel it's a bit of a messed up system that causes problems and is not infinitely sustainable. But for right now, it is what it is.
>But if everyone avoided debt at all turns it would not be good scenario for the global economy
With the government debt over 100% GDP and unsustainable personal debt levels in the US, it is not going to end well, no matter what.
In an ideal world, governments should be required to run 1-2% budget surplus, to be spent in cyclical recessions (which was the original Keynes' idea, completely hijacked by supposedly Keynesian economists (like Krugman), who insist on more government spending, despite being in debt to the eyeballs - complete lunacy.
An why not? The economic cycle has been known since biblical times (7 years of prosperity, 7 years of famine). The preaches of "saving for the rainy day" have been present in most fables/folk stories in many cultures.
BTW, the US is not in a cyclical recession, but a structural one and it may take years to get things fixed (see Japan).
> America is not set up on a pay cash and live within-your means basis.
To be fair, neither is Europe. But from what I'm seeing younger generations (all of us currently in our 20's) are almost pathologically afraid of taking on debt. People avoid it at all cost. Yes, I understand Americans normally start life with student debt, but it doesn't seem like they're in any hurry to take on additional debt after that. Completely unlike our parents and our parents' parents generations.
I wonder what that will do to the economy at large.
I mean.. if it weren't for my GF's credit card, how would that Bangladeshi clothing sewer buy rice?
But ya, it's a messed up system that seems to work mostly for the credit card company.