Sure, but the reality is I have greater access to debt (credit) with a greater salary. I can buy a house in the small town I grew up in, in cash, but instead I'

Sure, but the reality is I have greater access to debt (credit) with a greater salary. I can buy a house in the small town I grew up in, in cash, but instead I'm going to get a mortgage and buy a tiny place in this expensive big city (and participate in this big city's increasingly expensive housing market). I don't think it follows that if you pay everyone more, the appetite for debt goes away. I think you'll just get inflation, and the same amount of debt after adjusting for inflation.