The Keynesian model of public spending, where taxes are cut and spending hiked during recession, while spending is cut and taxes are raised otherwise, has held up pretty well. Very few economists, even from the Chicago School, dispute this generalization.
Except that politically, it's a lot easier to cut taxes and hike spending than to raise taxes and lower spending.
That's one reason unemployment taxes and benefits have been one of the most effective Keynesian programs ever implemented in this country. They can automatically revise taxes and spending to provide the desired countercyclical effects without requiring new laws to be passed.
