Does Debt Matter?

On his ever interesting blog Steven Landsburg has posted a short piece on Debt and Taxes.  With attention around the world focusing on the debt and deficit problems of governments, Landsburg argues that it is not debt that is the problem but spending.  He concludes

This is why it’s so frustrating to hear talk of blue ribbon commissions assigned to the task of “debt reduction”. “Debt reduction” can mean less spending, or more taxes, or some combination thereof. But to raise taxes solely for the purpose of debt reduction is to mask the problem, not to solve it. Debt is not the problem; spending is. Hysteria about the debt is misdirection.

Read the whole thing.