Allan Meltzer has a WSJ column complaining that people have exaggerated the severity of the recession. Anyone wanting to evaluate his assessment should look at the Congressional Budget's Office unemployment projections for the next four years.
We will find out soon enough how bad this downturn ends up being, but on one item Mr. Meltzer is clearly wrong. He attributes the talk of the Great Depression to President Obama's efforts to push his stimulus package. Actually, the talk of the Great Depression first gained currency when President Bush spoke to nation to push the TARP to bailout the banks.
He warned of another Great Depression in his address and the media dutifully filled news shows and newspapers with accounts of the Depression. The comparison was well-established in public discourse more than 3 months before President Obama took office.
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