Keynes was not the only one who suffered a shock. Just think about the main points in functional finance: I'll list them. (1) There is no greater virtue in having a surplus (in the Federal budget) than in having a deficit; it all depends on the state of the economy. (2) Taxes should be collected _only_ to prevent or to reduce inflation. (3) A government could function without imposing any taxes so long as there was no threat of inflation. Has a greater heresy ever been propounded?
Evsey D. Domar