Continuing from here…

I think there is a political motive to promote debt and discourage savings.

I do not believe that this was a conspiracy because I don’t think the state is competent to carry out complicated plans that work. Probably, the initial motive for promoting debt had more to do with simply wanting to promote “industry,” and lobbyists on behalf of those in a position to most benefit from such policy (i.e. Wall Street).

While that plan is obviously self-destructive, once the ruling class pursues such a plan they may have discovered that they gain another advantage.

Consider how easy it is to rule over people who are desperately poor and who feel vulnerable.

Then ask yourself how you might be able to gain such power over middle-class people with a much higher standard of living.

What would make them feel poor and vulnerable?

Encourage them to go into debt as a normal and expected way of life. You would allow credit card companies to develop curricula for state schools (and to push into private and homeschooling). You would promote and underwrite loans so that it was easier for businesses and families to get stuck in a cycle of debt.

And so, when the economy tanks (as you have ensured it will) no one will have any safety net. Everyone will want to the government to “do something” so that Johnny can pay off his thousands in student loans by getting a job in a new bubble economy or Mr. and Mrs. Smith can stay in their house despite owing more than its value in an “home equity” loan.

In the midst of plenty you will have a population begging for a savior.