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mk · 4719 days ago · link · · parent · post: Teaching the Fallacy of Composition: The Federal Budget Deficit
I think there is a lot of truth in this article, but he takes an admitted simplification, then and turns it into an explanation of pretty complex events. Notice that he assumes that the foreign sector was balanced when he explains the Clinton surplus would lead to recession (by identity)? It's quite possible that this component ruins his whole argument. Also, he ignores the fact that the deficit following Clinton was a matter of policy (massive tax cuts and war spending) as they were due to the bubble that popped.
Finally, debt needs to be serviced. The amount of debt that needs to be serviced makes a big difference as to whether a surplus or a deficit is tenable.