Supply-Side Silly Season

The above title comes from Paul Krugman's 1999 book, "The Accidental Theorist…," in which Krugman points out the many absurdities associated with supply-side economics.

Over the last 15 years, defending supply-side doctrine has become increasingly difficult.  After Newt Gingrich and Phil Gramm warned of a severe recession prior to the 1993 Clinton tax increase, the US economy instead experienced unprecedented prosperity.  President Bush cut taxes in 2001 and 2003, yet the economy has deteriorated dramatically during Bush's presidency.

Taking the events of the last three decades  into account, for one to continue to preach supply-side doctrine requires a certain disconnect from reality.  Of course, one person who has always seemed to be disconnected from reality is the WSJ's Stephen Moore. 

Moore appeared on The Colbert Report on November 13 to promote his new book, "The End of Prosperity," which Moore co-authored with fellow supply-side charlatan Arthur Laffer. 

To appreciate Moore's new book, one has to enter a fantasy world where the Clinton years were a period of economic hardship, and the Bush years a period of economic prosperity.

The message of Moore's book?  A grave warning: If the Obama administration and the Democratic Congress raise taxes, they will reverse our current economic prosperity.  Everybody got that?

As one would expect, Colbert made a fool of Moore ("It does not matter if the economy crumbles, you and I have a theory to protect!").  You have got to love the WSJ crowd.