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.
If you enjoyed this article, please consider making a tax-deductible donation today. For over 30 years, The American Prospect has delivered independent reporting that exposes corporate power, investigates political corruption, and analyzes threats to our democracy. Unlike many media outlets, we’re not owned by billionaires or corporations—we’re powered by readers like you.
Today’s independent journalism faces unprecedented challenges. Your support makes our reporting possible and keeps our work free and accessible to all. Whether it’s $5 or $50, every contribution helps sustain our nonprofit newsroom.
Join our community of supporters and make a donation today to help keep independent journalism thriving.
Copyright 2025 | The American Prospect, Inc. | All Rights Reserved
