(11-20-14) As Ronald Reagan famously said during his debate with Jimmy Carter, “there you go again.” The same could be said about Paul Craig Roberts, another discredited so-called Reagan-Bush era supply-sider which would also include David Stockman, Larry Kudlow and Arthur Laffer, inventor of the so-called Laffer Curve.
“Supply side economics,” is defined by Investopedia as “an economic theory holding that bolstering an economy's ability to supply more goods is the most effective way to stimulate economic growth.”
In his column called “A Global House of Cards,” Paul Craig Roberts writes, “As most Americans, if not the financial media, are aware, Quantitative Easing (a euphemism for printing money) has failed to bring back the US economy.” He’s certainly right about that.
However he leaves out an important point -- without QE, the United States and the rest of the industrialized countries would have collapsed.
In other words, the term “House of Cards” is correct, but guys like Kudlow and Roberts and all the old economic supply-siders who pooh-pooh Quantitative Easing and say that it does not produce the economic growth it promised are correct in saying that, but what they leave out of the equation – because they’re so anti-QE to begin with – but the fact that it did not bring back the economic growth as promised tells you how deteriorated the global fiscal situation really is.