Under a gold standard where you don't have a fractional reserve lending on steroids like we have with central banks, debt is really a 4 letter word that everyone tries to limit.
This means that a house could lose slightly its value in gold over a 10 year span (depending on neighborhood changes, etc) This means, you better pay off your debt and you better not take a huge mortgage initially. In such case paying either cash or with a minimum of 30% down payment would be the norm.
So, to say it's bad is wrong. It's good for the savers. Because we have built this system of inflation where it is bad to save, the concept of taking debt became dominant which reinforce the believe that deflation is bad. Yes of course deflation doesn't look good in such case.
Another reason to start clean and plan to go on a gold standard.
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