<i>but we know from the 70's double-shot of inflation and unemployment that the Keynesian model is wrong (the question is, "just how wrong?").</i><p>Whoa: way, way, way oversold.  Your making a blanket argument on a <i>very</i> complicated subject from a single data point.  What about the sustained growth in the 40's through 60's due to New Deal, WWII, and Great Society spending?  Economics is hard, and poorly suited to ideological statements like that.<p>Anyone sane would look at the evidence and say that Keynesian stimulus works sometimes, and not others, and that the details matter a lot. Only political partisans would make a statement like yours.