> In a stable economy, we spend money as we received it, and take on loans for large purchases. In fact the economy was that way before.

You used to be able to save for most large purchases without going into debt. Even cars.

But no, these days cars tend to be so goddamn expensive while at the same time being so low-margin products for the dealerships that even if you theoretically can pay in cash, the salespeople do their best to force you into some sort of debt because the kickback from that is the only way they make money. And practically, rents suck up so much of your income you can't save anyway.