I think it would be worth it to find out! I would expect an initially rough period of adjustment and then a move to much more stable long-term prosperity. Just like Switzerland, really, but on a larger scale and with fewer mountains.
If that was the case then American would be even more screwed then we already are. No one would be able to afford anything except for maybe the ridiculous amount of taxes that we have to pay.
Lots of people do. It's the credit card debt that gets them into trouble. A home mortgage with a fixed rate, or a car loan are known costs. It is the credit cards that sink most of them, or that unforeseen medical bill. However, your point is very valid. Since the access to credit is more limited now, people are buying less on credit and are paying for it at the time of purchase now. With lower paying jobs, that will slow the pace of their spending.
It would probably destroy the economy of this ugly materialistic country, but people should live within their means. I do.
the entire system of economics needs to be overhauled.