> The increase in money lending us directly correlated with a vast increase in the standard of living for the average human.

You said it yourself, it's correlation, not causation. There are other factors that occurred in that time frame that increased the standard of living for people.

> Imagine if everything debt is used for had to be bought in full

That's how things were generally run back in the day, people saved up, then bought what they wanted. Also, people purchased on installments.

Your argument is basically that the ends justifies the means. That economic growth is the end goal, sell more cars, etc. so we need to put everyone in debt. We are already seeing the huge wealth gaps that exist in hyper capitalistic societies, due to no small part to running everything on interest and other immoral practices. I posit that if there were no interest, things would be more fair, and producers would have to reduce prices, making it easier for people to own stuff, compared to the inflation we see.