This is how I run my house

[EternalOptimist]

I think it's pretty naive to think we should live in a world without debt.

aha.

Now we get down to the nitty gritty. IMHO this is what its all about

So is it naive for a household, a country, or both? Also please explain why It's naive

[BrilloPad]

If you're in debt but paying it back, you're temporarily poor.

If you're in debt and not paying it back, you're permanently poor.

If you're in debt and continually increasing it, hand the purse strings to someone else.

Depends on what the debt is secured on (if anything). Anyone who bought a house between 1992 and 2000 is unlikely to see negative equity. Another buying opportunity will be along.