The problem is largely people buying things they cannot afford. Everyone wants a smart phone, a large television, a game console and a bunch of other junk. But

The problem is largely people buying things they cannot afford. Everyone wants a smart phone, a large television, a game console and a bunch of other junk. But what you want is not necessarily what you can afford. Now I am not necessarily disagreeing with your point. There are legitimate life needs that people cannot afford (e.g. the tires and car you cited), but nobody needs a $500-$1000 smart phone. Nobody needs a top of the line television, computer, internet connection or subscriptions to all the fancy on-demand media services... and yet by and large American's want these things.