Clark Howard has expressed worries about the concept of “buy now, pay later” in the recent past. Is it safe to say that the SFGATE article in question brings up a Clarkrageous situation?
It’s not unique to the Tik Tok generation. Credit Card debt is at record levels.
Debt is an American feature from long ago. The 1929 stock market crash was due in part due to stocks bought on margin (borrowed money).
You are right. However, buying durable goods on credit did not really blossom until the 1920s, when everyone wanted three big-tickets items at nearly the same time- a car, a radio, and a refrigerator. Factories geared up to meet the demand, but when people were loaded up with debt, they could buy no more, and demand collapsed.
That is what Austrian economists mean when they say demand and credit should be fueled by savings, NOT credit created out of thin air by a central bank. We never have learned this lesson.