Reply #67: Very common mistake

[Spike89]

Yes, you are right that defaulting will hurt the rich the most. The problem with your argument is the very simple fact that it won't hurt them exclusively. Although the rich will "get hurt" the most, they really won't feel anywhere near the pain that the working poor will feel. Losing $1 million must surely smart, but the only ones likely to get hurt that deeply have many more millions to help salve their wounds. Working poor might only lose a $1,000, but that could be the difference between keeping or losing your house, which can affect employment, which can make them poor enough that in the future, stupid policies can't hurt them at all.