Actually what Keynes provided was a framework by which a surplus accrued in times of plenty could be brought to bear to prevent an overcorrection to the demand side in times of recession. An overcorrection that would need to be corrected when the stress of the moment subsided.
He never once advocated preventing recessions or preventing market mechanisms from price discovery. Those are bogeymen that are thrown out for political cover. Running deficits in times of plenty, going head over heels into debt in times of stress, and doing so to prevent price discovery are most certainly NOT what he envisioned.
Keyne's biggest sin was that he didn't account for human nature. He didn't account for those who would sacrifice the future of the nation for short term political/economic gain. The trouble isn't Keynes it is the fact that we follow Friedman when times are good and Keynes when times are tough. You cannot have that level of irresponsibility and expect long term success.
Will
