[durh]

Keynes is right in the short run. The classical model is right in the long time. Short term recessions are caused by lag time between drops in consumption and corresponding deflation. In the long term, firms adjust their production and price schemes to match demand (so goods don't just sit on the shelf, unsold, costing money).
How long term the short term is seems to be the matter of debate. The great society programs stimulated demand which had been lacking for at least five years at the time the programs were instituted, but they went on too long and caused inflation when already recovered demanded was continually stimulated.
There is no catch-all, magic formula for economics. It is all about trade offs. There are some things you definitely don't want to do (inflationary policies that also encourage unemployment), but there are a number of relationships in econ where you can have a lot of either one of two things, and not both.

[setarcos]

Good reply and good article. The only thing I didnt understand was how taxing people and spending the taxes constituted increasing the money supply (creating money as the author said it). No money is created in taxing and spending as I see it.