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.”
"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.”
The truth is that we were used to be in an overheated market due to false economic theories touted as fundamentals which fooled the public. That was "Mental Stimulus" AKA Bull????
Now we are experiencing backlash for all the years of falsehood. AKA ???? hits the fan.
Meanwhile, high earning industries (like War Contractors and Oil Companies) are reaping great benefits of a down market by purchasing low and then turning around to sell high. It%u2019s all been cooked by the Conservative free to manipulate market.
John McCain is attempting here to hypnotize his easily coddled base into believing that their money hasn%u2019t been stolen by the top 1% wealthy earners in the US and Dubai.
My response to Gramm....Rrribbitt!!!
I guess the gist of their views is that if you lose your house or your job, it''s all in your mind. The economy is just fine, we''re not going to change any of Bush''s fiscal policies. So stop your whining! Thanks, John McCain
CBS get on the ball and give this story the prominence it deserves.
When McCain announced his energy policy and still included $1.2 billion for Exxon/Mobil many of us cried.
I had to break into my children''s piggy banks just to put food on our table.
Senator McCain and Gramm are American zeroes, not heroes.
Alternative energy? McCain will harness the power of the subconscious, store it in a science-contest-prize battery, and use it to power your new ''horseless carriage''.
Go McCain!
http://www.womenforjohnmccain.com/
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I guess McCain campaign should carry a sign to signify when they mean something and when they don''t. I am getting tired of these statements saying they did not mean it. Then why the heck did you say it????
I''d offer that Mr Gramm can come run my shop, pay my bills, and feed my kids and then tell me how the economy is doing,
recession of the mind, what an absolutely idiotic comment
These are the wrong guys to lead America in a 21st century global economy.
Now he wants to start a third war in the Middle East with Iran. That does not seem like the road to economic prosperity.
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).
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.
That should tell you all you need to know about John McCain.
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.
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.
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.
while I agree you can''t make poor people rich by making rich people poor, you can tax the rich appropriately!!!
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by rob416
July 12, 2008 1:59 PM PDT
- 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.
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Reply to this comment
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See all 25 CommentsIt 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.