Austerity implies a sacrifice felt across the board. We need to solve a few problems that cannot be solved by hitting the middle class harder.

We need to decide how to tax and spend based on the behaviors and conditions we wish to change. And part of that means restoring and supporting middle class values in the middle class.

Consider this: A savings account, capped at 100k, that pays 12% interest. If you have 100k in it, you get a $1000 check every month. If you have credit card balance, they raid your high interest savings, or, maybe you just treat it like debit.

The high rate would be taxpayer funded. If true interest rates are 4%, that means about $8000 of 12k in earnings will have to come from additional taxes heaped on the rich. So, the well-established upper middle class citizen would be paying $8000 extra in taxes and recieve an $8000 subsidy but also have a very nice 100k emergency cushion.

The creation of these cushions would change the credit risk profiles of American citizens dramatically. If your cushion is full, risk is low, if you have no cushion, it makes no sense to borrow.

Only two types of debt need be unable to raid the cushion: owner-occupied mortages and school loans. All further borrowing(cars, furniture, consumer credit) should be actively discouraged by the government. Small business debt, of course, may also need special treatment, but can be managed by a different head of hydra.