Credit spending up again. . . . .

In March, Americans decreased their credit spending---that is, the amount of spending based on credit cards and other types of financing. At the time, I thought this might have been evidence that we're finally starting to live within our means and actually pay cash for our purchases.

Now, CNN is reporting that credit spending for items like new cars, vacations, and education increased at a rate of 6.6% in June, up from a "sluggish" 1.5% increase in May. Call me crazy, but the tone of this article almost makes it sound like putting what I would consider 'luxury' purchases like cars and vacations (not education) on credit is a good thing! Am I reading this wrong? How can going into debt, especially during a recession, be a good thing?

Well, I suppose if you're the organization financing all of these loans, any increase would be a good thing. All that borrowing adds to the corporate bottom line. And if one considers the 'big picture', if the financing companies are doing well, that should at least add to the general well-being of the economy? I add a question mark at the end of that sentence because I'm not really sure about this at all.

It just blows me away that the media and the government seem to think that an increase in credit spending is OKAY. And not only is it okay, we should be doing even more of it! It seems to me that the economy would be healthier (and would also reflect a more realistic view of the financial health of our citizens) if we were encouraged to purchase things with cash, or at least with a very sizable down payment.