McCain Adviser: Stop Whining, America!

By David Knowles
Jul 10th 2008 10:53AM

Filed Under:eRepublicans, John McCain, Featured Stories, Economy, Gaffes

Via The Washington Times and TPM comes yet another embarrassment for John McCain's campaign. This time, McCain's "top economic adviser," Phil Gramm had the following to say about the lousy economy and its effects on American working men and women:
"You've heard of mental depression; this is a mental recession," he said, noting that growth has held up at about 1 percent despite all the publicity over losing jobs to India, China, illegal immigration, housing and credit card problems and record oil prices. "We may have a recession; we haven't had one yet."

"We have sort of become a nation of whiners," he said. "You just hear this constant whining, complaints about a loss of competitiveness. America in decline" despite a major export boom that is the primary reason that growth continues in the economy, he said.

While it's true that in technical terms--two consecutive quarters of negative growth--we have yet to see honest-to-God recession, the tenor of Gramm's comments illustrates a tone-deaf pattern from an out-of-touch campaign. Stop being so hysterical, Gramm is telling you. Things aren't really so bad! So you lost your house, canceled your summer vacation, are skimping at the grocery store. It could be a whole lot worse.

Phil, of course, knows a thing or two about foreclosures. After all, he's a lobbyist for a Swiss bank embroiled in the credit crisis, and was a chief player in the deregulation of the banking industry.

In fact, Gramm might just qualify as the single person most-culpable for what he calls our "mental recession":

Who's to blame for the biggest financial catastrophe of our time? There are plenty of culprits, but one candidate for lead perp is former Sen. Phil Gramm. Eight years ago, as part of a decades-long anti-regulatory crusade, Gramm pulled a sly legislative maneuver that greased the way to the multi-billion-dollar subprime meltdown. Yet has gramm been banished from the corridors of power? Reviled as the villain who bankrupted Middle America? Hardly. Now a well-paid executive at a Swiss bank, Gramm cochairs Sen. John McCain's presidential campaign and advises the Republican candidate on economic matters. He's been mentioned as a possible Treasury secretary should McCain win. That's right: A guy who helped screw up the global financial system could endu up in charge of US economic policy.

The more you know about the McCain team, the more you cringe.

UPDATE:

McCain knew this was bad for him. He has now repudiated Gramm. Maybe no Treasury post after all?

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