In 1933, the government resolved to ensure that business got on board by giving them a commitment to balance budgets over the whole cycle rather than over a given financial year. By 1936, this commitment spawned an economic commission that advocated the creation of a budget-balancing fund that would use accumulated surpluses to reduce government deficits. Countercyclical fiscal policy had arrived. Meanwhile taxation was structured in such a way that it stimulated investment. These reforms were in turn coupled to a policy of centralizing labor market institutions and promoting the increasing concentration of business to ensure trust and cooperation over wages among labor market partners.

Mark Blyth, Austerity, loc. 522