You CAN use chainsaws, flamethrowers, etc.
The restriction is for heavy ordinance -- artillery, mortars, RPGs, Mark 19 grenade launchers, basically military-grade stuff that could destroy property. I'm talking about buildings, infrastructure, etc. The point is to kill people, not to destroy cities.
Even with small-arms, a real life Purge would wreck the economy with all the damage, the health care and emergency services costs, the lost labor from the victims, the loss of all physical commerce, deliveries and shipments for the duration of the Purge itself. You'd have to shut down airports, docks and mass transit systems. You'd have at least another day of stalled commerce with all the wreckage and damage to the roads.
On the other hand, weapons manufacturers, security systems manufacturers and media would make a killing, along with alcohol sales. People self medicate during times of extreme stress, that's a fact. And I'd imagine a purge would be the reality TV event of the year, with the millions hunkering down at home watching the carnage.
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