A large part of the problem is that the international financial industry has entirely too much quiet political power. So we end up e.g. subsidizing mortgage interest and student loan interest instead of subsidizing e.g. new housing construction and teacher salaries. The result is that people borrow more money, creating much greater exposure to interest rate fluctuations (but much higher profits for lenders).
Other countries don't have exactly the same policies but they follow the same trend. Income taxes rather than consumption taxes that encourage spending/borrowing and discourage savings, sold as "the rich wouldn't pay consumption taxes" even though they don't pay income taxes either, examples abound.
Other countries don't have exactly the same policies but they follow the same trend. Income taxes rather than consumption taxes that encourage spending/borrowing and discourage savings, sold as "the rich wouldn't pay consumption taxes" even though they don't pay income taxes either, examples abound.