Normal people can somewhat cushion themselves from any severe crash.

Debt itself is not the problem. Lots of debt is actually fine - inflationary effects can and will whittle that debt away, assuming you are still servicing it.

No, the real issue comes down to single-family homes on arable land. If your home is debt-free and completely paid off, there is no legal way to take that away from you, and the land it sits on can allow you to grow food for yourself and even sell a little on the side. While a severe economic crash will be painful for most anyone not of the Parasite Class, those who have debt-free arable land have a chance to ride out that crash better than most.

Granted, the devil is in the details, but in broad strokes this is a truism. The difference is between virtual or physical assets that depend on appreciation, and those who can work for you.