BTW, the above is exactly what’s been happening to most working families over the past ~30 years, and it’s been accelerating over the past 10 years.
The only way to increase purchasing power (and asset prices for the rich) was to expand credit. People have been “living beyond their means” for a long time because cost inflation has been rising so far and fast, even though many of these working people are just buying basic necessities.
This is why we have a credit bubble. There is no lack of credit. The problem is the inability to pay off the debt already accumulated — on all levels.
