The case for fiscal policy and for governments to manipulate on their budgets as appropriate with the specific objective of achieving high levels of employment arises from Kaleckian and Keynesian propositions. Put simply, the latter argue that no market mechanisms are in place to ensure that the level of aggregate demand is sufficient for high levels of economic activity (Kalecki, 1939; Keynes, 1936). Even so, many lines of argument have been developed to the effect that budget deficits and fiscal policy are ineffectual and/or have undesired (and undesirable) effects. Indeed, a great deal of work has been undertaken recently on the significance of fiscal consolidation. Countries only have to balance their budgets, run surpluses during the upswing, and expansion is in place (we have rehearsed and rejected many of these arguments in Arestis and Sawyer, 2003).