All is vanity. -Ecclesiastes 1:2
Who is right about the current recession?
Most economists from the Austrian School of Economics have been saying since the beginning (before most mainstream economists admitted we were even in a recession) that this economic downturn would be long and prolonged, likely a depression. They are still saying this. None of the failed Keynesian economic policies will change this for the better. They will only prolong the agony, as Hoover and FDR’s interventions created and prolonged The Great Depression.
The Cold War taught us this: governments are not only unjust stewards of resources, but they are tragically inefficient as well. Tens of millions died, for instance, due to Communist failures to allocate food properly. If governments cannot even allocate food properly, the most basic of necessities, what makes us believe they are able to allocate capital, education, the environment, and health care (to name just four examples) more effectively than we as individuals are?
Mainstream economists have said, and some still say, that the recession will start to end this year. This is tom-foolery. We are already starting to see some mainstream shift in opinion (i.e. this news article). This shift will only continue, validating the conclusions of the Austrian School of Economics.