Does Market Rigidity Respond to Market Forces? Should It?

Among the arguments leveled against Keynesians is that swift government intervention in response to recessions contributes to wage and price rigidity. Were flexibility rewarded by higher returns, so it is argued, then flexibility would quickly enter the market place. However, when governments intervene, easing the supply of money, decreasing its cost, or directly providing it to producers (e.g., defense, education, transportation or health industry contracts), then they contribute to the very rigidity that demands their intervention.

This raises the question whether government intervention is counterproductive. But even supposing that government intervention is counterproductive, how long should families be permitted to forgo food, clothing, housing, healthcare, transportation waiting for the market to shed its rigidity?