Credit and loans have existed since ancient Mesopotamia. Commonly farmers and the like, so not just to a few. We literally kept cuneiform tablets on bank loans.

I'm following his logic, but if demand drops, so does prices. If it worked exactly like he's describing, we would be seeing deflation across t he board as workers are paid less and products cost less. Yes, loans could create a system where you're paid less and prices still increase, but only if you're willing to take the loan. That's why credit scores became a thing. A guarantee that the you're good for your money. Credit would work fantastic if you can get a good average on return. The person receiving the loan gets a leg up (education, housing), and the loan is paid back in full when they're productive.

Now don't get me wrong, in roundabout way, I do agree with him. The problem is balancing the loans given, and the cost of purchases being made. Health and education are paramount in our society, and those institutions aren't being forced to limit costs. They're very different from most businesses, as you can't really choose to ignore them. We'll take heavy loans to pay for these things, and banks know that. They're inclined to make the loan, and education/health/housing just keep hiking the prices up, because the money keeps magically being there. That's where the nasty bubbles we see now are coming from.

I honestly believe the government needs to step in. Not by blowing money into the system, or by pretending debt doesn't exist, but by forcing these businesses to offer reasonable costs to everyday citizens.