Policymakers understand that we need credit for growth. So their policies encourage credit-use.
And if economic growth turns out to be less that they want, policymakers encourage more credit-use. But if it is true that debt can be a drag on growth, the policymakers' plan presents a problem: Their policies can end up undermining growth.
The problem is not that we use credit. The problem is that we let debt accumulate.
Yes, we need to use credit for growth. But we don't have the sense to fight inflation by getting debt paid off quickly. Instead, our anti-inflation policy limits the amount of non-credit money in the economy, which -- good grief! -- is the reason it's such a struggle to get the debt paid off.
The policy mistake is so dumb it would be funny, if it didn't cause such problems.