chapter  6
Keynes, Roosevelt, and the Complementary Revolutions
ByJohn Kenneth Galbraith
Pages 7

The Keynesian and the Roosevelt revolutions were, in singular measure, complementary. The Roosevelt Revolution and Franklin D. Roosevelt's own perceptions stopped well short of any developed design for the macroeconomic guidance of the modern economy. Some may have sensed that the Keynesian ideas were somehow symbiotic with Roosevelt reforms. They concealed their true and proper cost; nothing resists social-welfare expenditure like a tight budget. There are other problems of current policy where the world has moved beyond the age of Keynes. Keynes wrote at a time when interest rates, by modern standards, were at insignificant levels. It not being possible much to reduce interest rates, fiscal policy remained as the only active instrument of demand management. When capitalism finally succumbs, it will be to the thunderous cheers of those who are celebrating their final victory over people like Keynes.