Does a credit based society discourage saving and raise prices for those who are willing to save?

Yes.

Since the recession, American savings rates have increased for the first time in many years.

I personally believe this ongoing behaviour over the last 10–15 years has been a lot of the cause of the recession.

Definitely. I’m a little afraid of owning a credit card; handing over cash makes my heart squeeze uncomfortably (“But I could buy a sandwich/box of chocolate/cheaper shoes instead!”). Credit cards are easier to spend with; the physical aspect of handing over money is removed, and you don’t have to have the money on hand, in the bank, or even in a future paycheck to buy something.

I think saving & spending might be due more to personalities and upbringing, though. I grew up with frugal parents who did all three R’s; not just recycling, which is the sexy part of environmentalism right now (all that useless recycled or ‘organic merchandise you buy, just because you’re supposedly doing good for the earth?), but also reducing and reusing.

I think at heart I’d probably be one of those people that spends more than they can afford, but my upbringing stops me from stupid financial decisions.

But does it raise prices for savers? I don’t know. I guess ultimately the ‘savers’ are also paying the price for people who overspend in society, so it does lead to some bitterness. (Insert comment about taxpayer money here.)

Yes it does, very much so, though I wouldn’t say it’s a credit based society, I would say it’s a consumer society, and most consumers don’t have enough money to “keep up with the Jones’” thus they resort to credit cards.