>Without well paid middle classes, who is buying all the fancy goods and services?
Rich people buying even fancier goods and services. You already see this in the auto industry. Why build a great $20,000 car for the masses when you can make the same revenue selling $80,000 cars to rich people (and at higher margins)? This doesn't work of course when you have a reasonably egalitarian society with reasonable wealth inequality. But the capitalists have figured out how to make 75% of us into willing slaves for the rest. A bonus of this is that a good portion of that 75% can be convinced to go into lifelong debt to "afford" those things they wish they could actually buy, further entrenching the servitude.
Money is just rationing. If you devalue the economy implicitly you accept that, and the consequences for society at large.
Lenin's dictum: A capitalist will sell you the rope you hang him with Comes to mind