In fact the two policies, Keynes's on the one hand and traditional capitalism's on the other, cannot be reconciled. The essential nature of capitalism is to reduce prices.
Capitalism depends upon competition.
The greatest businessmen that have lived in the United States have concentrated their business attention on one problem, reduction in costs, giving more perdollar charged. Those men have had a fever in them, like malaria, to reduce costs. That in turn permitted them to reduce prices, or if they maintained prices, to give an improved quality or otherwise better product for the same amount of money. Under capitalism, therefore, the natural tendency would have been not forprices to increase but to decrease. It is easily possible that in a genuinely capitalist economic structurenot only prices would drop but wage rates might also drop,but in lesser amount.