With things heating up about raising the U.S. debt ceiling, and with plans emerging left and right, it's getting interesting. Unfortunately, what is likely to happen is that we will see a plan that will — once again — have the most detriment to the middle class and the poor. With a tax increase off the table, it is obvious that there will be no extra revenue to help ease the deficit, so the poor and the middle class will get the shaft and sacrifice the most as programs are cut. Severely. Because, you know, the wealthy just can't afford tax increases.
As you might imagine, as a financial writer I've written about the debt ceiling, and the possibility of a U.S. default, quite a bit. So, in the interest of self-promotion, here's some of what I've written in the past few weeks about the national debt, and all that's going on:
- At Financial Highway, I wrote two posts. One is about the fact that even severe program cuts probably won't be sufficient to solve our problems (we'll eventually need to raise taxes), and one about how a U.S. debt default is likely to affect you.
- Way back in May, I wrote about the debt ceiling, and why you should care about it, on Free From Broke.
- Will the U.S. really begin defaulting on its debt? Probably not. But I look at the possibility over at Smart On Money.
- Over at Bargaineering, I wrote a little bit about how we ended up with a debt ceiling, and what is likely to come after Aug. 2. To solve this problem, we need to reduce spending and raise revenue. It's not either-or.
- What happens if the U.S. defaults anyway? Does it really matter? At Deposit Accounts, I explain why it does matter if the U.S. defaults on its debt.
- If the U.S. does default, and the world economy sees another crisis, you'll want your money in a smart place. At Dividend Stocks Online I take a look at investments that might possibly help you weather the storm.
- Everyone's bracing for what could happen if the U.S does default. At the GFT UK blog, I take a look at the inevitable credit downgrades that will start rolling in.
- If we do default, who is going to bear the brunt of the problems? A GFT Forex, I point out that the obvious answer: Not the wealthy. Most people, though, will see a de facto tax.