system
Given the following post, respond as if you're commenting on Reddit:
human
CMV: The availability of credit is bidding up the cost of so many important things in the US.

And some consumers are so financially illiterate that they only think of what the “note” will be, so they just buy things they can’t afford.


The most obvious example is phones. Do you know how expensive smart phones are? $1,000 is the new normal. And the smartphone sellers’ response: “don’t worry, you don’t have to pay it up front. If you choose a 2 year plan your payment is only $50! 


Been to a car dealer recently? New cars are more expensive than ever before. $30,000 in 2019 gets you what would have been $17,000 in 2004.  But no worries. You can just do a 10 year payment plan. Heck, make it 15. 


Homes were the first example of this. Banks used to turn people away who couldn’t put down 20% and do a 15-year fixed mortgage. Now homes are twice what they should be, but you can do a 30 year variable rate with no money down. Now all consumer products are turning to the mortgage model, which has been just a bottomless gold mine for financial institutions. 


Meanwhile people like me who want to take a Dave Ramsey approach, are left paying huge sums out of pocket. Because the consumers are screwing themselves by permitting the industry just raise prices forever. And this is all without mention of student loans. Maybe it would help our economy to teach people in school not to use debt. Or maybe some regulations to help the consumer. 


Is there any real reason apple can’t sell their top iPhone for $500? Or is it just a matter of “why would we?”
gpt
What you are describing is certainly true for housing lots, but it's not quite true for cars or phones or for housing structures.  Credit isn't straight up making them more expensive but is moving people to more deluxe models.  The 2019 car is safer and less polluting than the 2004 equivalent.  The iPhone is more powerful than a $300 phone would be.  If not for easy credit the price would be lower but so would the features.  For a phone you are probably actually benefiting because you can easily buy a cheaper commodity smartphone.  For the car you aren't because the law mandates the better safety/cleanliness.