>They are buying cash and paying for it with future income. Yes, that's what interest is, and it often makes sense. There's a lot of value of having something

>They are buying cash and paying for it with future income. Yes, that's what interest is, and it often makes sense. There's a lot of value of having something (that you buy with money) available to you now rather than in a couple of years - especially if the means to make money depends that item (be it a car, education, a tractor, a musical instrument, set of tools, or what not). Also, there was a lot of value for me to travel when I was a grad student and had a much more flexible schedule - and, frankly, was younger. I wish I took out loans for that, paying them off now that I'm working full time would not be a burden. But while you rob your future self by taking a loan, you can't donate anything to your former self no matter how much you have. TL;DR: there's value for people in having the right things at the right time.