Current-Account-Deficit Country: Budget Surplus and Tax Receipts

current-account-deficit country: And the main driver of my thinking here is deeply rooted in Bill Clinton presidency, according to Market Watch. Back in the late 1990s, the U.S. government ran a brief budget surplus. The reason I say that is because I suspect that her economic plan will not be very stimulative, and I think that four more years of weak economic growth will be intolerable. It was heralded as an act of fiscal responsibility at the time. As Wynne Godley outlined in the late 1990s, the fiscal position was never all that sustainable because, as a current-account-deficit country, the flows were unsustainable. Of course, when the economy tanked immediately following the surplus, the government was driven back in the red as tax receipts cratered and automatic spending jumped: Caption outside of wrapper for normal article images So was the surplus, followed so closely by a sharp recession, just a coincidence I suspect not. (news.financializer.com). As reported in the news.