"Distortionary and Dangerous"

"If you remember only one thing I say -- this is actually the most important thing to remember -- enlarging a budget deficit is an especially distortionary and dangerous form of taxation."

Why? Because you can’t escape the laws of arithmetic. Because public borrowing is deferred taxation (with interest), and the Devil of Taxation that you know here and now is not as bad as the Devil of Taxation that you don’t know at some point in the uncertain future.

The relevant commentary begins at 9:47