Adopting Ron Paul's economic ideal - i.e. the complete absence of credit and credit financing - would destroy our modern economic system and plunge us back into the 10th century.
Ron Paul's view of credit finance is roughly the same as Mohammed's.
The problem isn’t credit, the problem is spending.
The more we spend, the more government needs. It can’t do with less, when the people can certainly do with less.
There is a reason that people, once upon a time, were forced to put down 20% or 40% of their homes first. There is a reason that China doesn’t allow for too much consumer credit (though, obviously, they have problems of their own that we can discuss).
The fact is, 20~40% down of a home encourages SAVINGS! Savings are used as the engine of the captilism economy, NOT ENDLESS CREDIT! It takes money to make money. However, that money needs something tangible in order for it to have any amount of real value (half the reason behind a gold standard, because it physically restricts the amount of money creation and keeps inflation in check).
If money is created without some sort of control, then at some point, the value of said money will be worthless. Bubbles happen, but if people had been forced to pay down what they could afford, the market would have self regulated it’s thresholds for what it deemed too “risky.”