According to Schick [ 2002, p. 46], “ The arrival of a surplus [ in the late 1990s] triggered a spending frenzy that vitiated the discretionary spending caps established by the 1990 Budget Enforcement Act and made a mockery of the BEA requirement that increased spending be offset by cuts in other spending or by revenue increases.” Discuss the relationship of this episode to Milton Friedman’s approach to thinking about the relationship between deficits and government spending.
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