Thoma Wonders If Recessions and Depressions Are Necessary

He believes that they are not:

Why do I think this is unnecessary? The entry and exit of firms driven by innovation and the development of new products can be part of a full employment equilibrium, that is, cycles are not needed to clear out old firms and spur innovation.

I think he's right. I examine the data and discuss the argument in more detail here: Are recessions good for the economy?