“Debt Crisis”: The Myth Behind the Myth

While the two major parties plot strategy for the next battle in the federal debt-reduction war, another war rages among economists over the question, “Is debt really the federal government’s biggest problem?” Some insist that unless Washington cuts spending substantially to reduce the debt quickly, we are headed for disaster. Others insist with equal fervor that growth is the number one priority: Aggressive pro-growth policies will reduce the debt in the long run with far less pain.