McCain Adviser Says U.S. In A "Mental Recession," Not An Actual One

Phil Gramm, a former senator and top economic policy adviser to presumptive GOP nominee John McCain, has suggested in an interview with the Washington Times that the U.S. is in a "mental recession" as opposed to a real one.

"You've heard of mental depression; this is a mental recession," he told the newspaper. "We may have a recession; we haven't had one yet."

"We have sort of become a nation of whiners," he added. "You just hear this constant whining, complaining about a loss of competitiveness, America in decline" despite a boom in exports.

"Misery sells newspapers," said Gramm, who argues the U.S. has never been more dominant. "Thank God the economy is not as bad as you read in the newspaper every day."

The economy is the number one issue for U.S. voters, and most have a dark assessment of the present situation. In an April CBS News poll, 78 percent of respondents said things are worse now than they were five years ago - the highest percentage since CBS News began asking the question in 1986. Sixty-six percent of those polled said the country is in a recession.

The Times writes that Gramm noted that "growth has held up at about 1 percent despite all the publicity over losing jobs to India, China, illegal immigration, housing and credit problems and record oil prices."

The newspaper added that the McCain advisor "expects Mr. McCain to inherit a sluggish economy if he wins the presidency, weighed down above all by the conviction of many Americans that economic conditions are the worst in two or three decades and that America is in decline."

UPDATE: The McCain campaign has released a statement distancing itself from the comments.

"Phil Gramm's comments are not representative of John McCain's views. John McCain travels the country every day talking to Americans who are hurting, feeling pain at the pump and worrying about how they'll pay their mortgage. That's why he has a realistic plan to deliver immediate relief at the gas pump, grow our economy and put Americans back to work."

[rob416]

Former Senator Phil Gramm is quite an asset to Barrack Obama. Keep the stupid comments coming Phil. You were a jerk when you served in the Senate and I can see nothing is different in private life.

It may be easy for John McCain to distance himself from Gramm''s remarks, but since he is an econonmic adviser to the McCain campaign it may be a little difficult. One can''t help but wonder what judgement John McCain used when making the appointment.

[ibzjem]

As far as taxes go. I think most of us just want fair taxes across the board. If you make more, then you are in a hight tax bracket. Why is it that CEOs pay %20 tax while secretaries pay %28+ tax?

while I agree you can''t make poor people rich by making rich people poor, you can tax the rich appropriately!!!

[jd2408]

The accross the board Bush tax cuts stimilated the economy for six years. It''''s time to lower the burden on both individuals and corporations to invigorate a slowing economy.

Posted by mbcsmith at 09:58 AM : Jul 11, 2008
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WRONG.....Tax cuts put America in debt at a time of war along with Republican spending.

What stimulated the economy was construction and housing. We found out all that stimulation was done on fake credit and a very poor Federal Reserve policy.

We want this country out of debt, stop jobs from being outsourced, control our borders and implement alternative fuel policies, implement environmental protections.

Many of us are the middle of the road Americans. We care about our country.

True conservatives I have found are for low taxes, no welfare or help of any kind to the poor, open borders for cheap labor in the US, free trade agreements for cheap slave labor outside the US. Polution of the air and water by no environmental standards, and most of all WAR FOR OIL.

[mbcsmith]

These are the same old tired George Bush policies that created our economic problems in the first place.



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Posted by IndyVet66 at 08:09 AM : Jul 11, 2008


It just amazes me how LIBS desire higher taxes, knowing that Obama will raise taxes on everyone as his stated policies have shown. The accross the board Bush tax cuts stimilated the economy for six years. It''s time to lower the burden on both individuals and corporations to invigorate a slowing economy.

[chrisl45]

John McCain is at the head of a winning campaign. God bless America and our troops abroad

[indyvet66]

I take John McCain at his previous word when he admitted to not knowing much about economics.

Now Phil Gramm (McCain''s top Economic Advisor) believes that our economic woes are merely psychological.

These are the wrong guys to lead America in a 21st century global economy.

[indyvet66]

One more thing...Phil Gramm is an idiot - and he is John McCain''s Chief Economic Advisor.

That should tell you all you need to know about John McCain.

[indyvet66]

As for Tax Policy, John McCain opposed President Bush%u2019s tax cuts for the wealthy in 2000. Back then, McCain accurately said %u201CWe had an opportunity to provide much more tax relief to millions of hard-working Americans. I cannot in good conscience support a tax cut in which so many of the benefits go to the most fortunate among us, at the expense of middle-class Americans who most need tax relief.%u201D That was the old John McCain %u2013 the %u201CMaverick.%u201D

Now, McCain endorses these same trickle down George Bush economic policies that have been failing the middle class and escalating our national debt since 2000. Now, in 2008, John McCain wants to make those tax cuts permanent. That is just a classic flip-flop and political pandering to get votes.

These are the same old tired George Bush policies that created our economic problems in the first place.

[indyvet66]

McCain has no concrete plan to meet our economic challenges that are adversely impacting and threatening most Americans and rapidly eroding our way of life.

We must create a sound and competitive economy - and to do that, we must address global economic challenges (such as creating innovative energy policies, creating and exporting advanced (clean-tech) energy technologies & industries to places like China and India, and becoming energy independent).

[indyvet66]

John McCain and George Bush started an unnecessary war that has drained more than $1 Trillion from the U. S. treasury and driven the dollar to record lows.

Now he wants to start a third war in the Middle East with Iran. That does not seem like the road to economic prosperity.