Short On Economic Understanding, McCain Brings Phil Gramm to Meeting

At a recent meeting with the Wall Street Journal editorial board, Republican presidential candidate John McCain admitted he "doesn't really understand economics" and then pointed to his adviser and former Senate colleague, Phil Gramm - whom he had brought with him to the meeting - as the expert he turns to on the subject, The Huffington Post has learned.

The incident was confirmed by a source familiar with the proceedings of the meeting.

On the campaign trail, McCain has often made light of his lack of economic policy understanding. But his concern over such a shortcoming may be even greater then he has suggested.

This is not the first time McCain has turned to Gramm as a buffer for criticism of his economic views - or lack thereof. Gramm, who regards himself as a budget-balancing, anti-government spending Republican, was brought on board a sputtering McCain campaign last summer. Since then, McCain has staged a political recovery and is now a serious contender for the GOP nomination.

After joining the campaign, Gramm has remained by the candidate's side to "vouch for Mr. McCain's fiscal and security bona fides," according to the Dallas Morning News. Even prior to McCain's flop, Gramm was advocating on his behalf, writing a flattering February 2007 oped in the Wall Street Journal on his behalf.

During his 18 years in the Senate, Gramm helped spearhead the Gramm-Leach-Bliley Act, which allowed commercial and investment banks -- like Citigroup-- to more easily merge. The Texas Republican ran for president in 1996, but dropped out prior to the New Hampshire primary, despite at one point having $25 million in the campaign coffers.

McCain and Gramm are two long-time colleagues, and Gramm shores up a political weak-spot that McCain readily acknowledges exists. In recent campaign stops the Arizona Republican touted his desire for a new round of tax cuts, as well as encouraging investment and economic stimulus by ending the alternative-minimum tax. But he also admitted that, "the issue of economics is not something I've understood as well as I should." Adding, "I've got [former Fed Chairman Alan] Greenspan's book."

Even as far back as 2005, McCain was admitting that he lacked depth in economic policy. Writing in the Wall Street Journal, columnist Stephen Moore offered a probing and at times blunt assessment of McCain's economic policies. "[He] readily departs from Reaganomics," Moore wrote. "His philosophy is best described as a work in progress. He is refreshingly blunt when he tells me: "I'm going to be honest: I know a lot less about economics than I do about military and foreign policy issues. I still need to be educated."

And to whom did McCain tell Moore he turns to for advise? "His foremost economic guru," wrote the columnist, "is former Texas Sen. Phil Gramm (who would almost certainly be Treasury secretary in a McCain administration)."

McCain's office did not return multiple requests for comment. The Wall Street Journal, as a company policy, does not comment on meetings that take place privately with their editorial board.

"People around the table were sort of taken back," said the source . "They thought McCain would have better answers."

Comments

[astockton]

This is Phil Gramm's idea of economics: he was once buttonholed by a constituent, an elderly black woman who told him her only income was Social Security and she was barely surviving on that pittance. Gramm's reply: "Have you ever thought of getting married again?" He's also the same guy who opposed more food aid to the poor, insisting that Americans already had plenty of food. The proof? "This is the only country in the world where all the poor people are fat."

[factanonverba]

During his 18 years in the Senate, Gramm helped spearhead the Gramm-Leach-Bliley Act, which allowed commercial and investment banks -- like Citigroup-- to more easily merge.

FDR decoupled investment banks and commercial banks back in 1934. It was a good move.

I started my career at investment bank, Alex. Brown & Sons, the nation's oldest investment bank. We had a niche and highly profitable business providing investment banking services to clients in the consumer, tech, health care and transportation sectors and providing brokerage services to high net worth individuals. But once the Gramm-Leach-Bliley Act was passed in 1993, the writing was on the wall. We were sold to Bankers Trust and they so mismanaged the business that we were sold again in 1999 to Deutsche Bank AG who only made things worse. I left for Goldmans Sachs and many of my colleagues left as well for pure breed investment houses. Financial conglomerates have fared poorly because in trying to serve both short-term commercial paper and long-term equity financing the latter has been sacrificed for the short-term financial gain. It is time undo the Gramm-Leach-Bliley Act and restore the wall of separation between commercial and investment banks.

[mellene]

That's just what we need is an former Senator acting the role of an economic hack. Get someone who really understands economics and not just politics.

[Gary47]

Whoa, now there's a team for you. I'm sure they'd be favored to start a successful ditch digging company, but please keep them far away from our economy.

[CindyKay]

This Confirms He Is SCUM!!
Gramm was partly caught up in the Enron scandal when it emerged that his wife Wendy had part written an exemption for Enron from federal oversight while she was serving on the Commodity Futures Trading Commission. She then accepted a directorship at Enron. Gramm was personally involved further when it came to light that he had helped to turn the exemption into law as well as push through the deregulation of energy markets that led in part to the Enron scandal. During this period
Enron was a major contributor to his campaigns

[CindyKay]

Great ! Another SCUMBAG !
In 1981, Gramm attended Democratic Caucus budget meetings and then secretly shared their strategy with Republicans to help pass newly inaugurated President Ronald Reagan's budget. In response, the House Democratic leadership stripped him of his seat on the committee. Following this action, Gramm resigned his House seat, forcing a mid-term special election.

[baghdadjoe]

Corporate tax cuts will fix it!

Cut corporate taxes!

Corporate tax cuts are what America really needs!

BAWK!!!

[bbbbmer]

Isn't Phil Gramm the guy who used to brag that he flunked out of grade school, high school, and college??? With advisors like that, along with other Reagan era failed fossils like Thomas "Laffer curve" Laffer, and the late 'if only he'd died 40 years earlier' Milton Friedman, John McCain will be about as electable as Millard Fillmore..­.if Millard Fillmore still drew breath....

[Honeybun]

Well, Ronnie had Laffer with the Laffer Curve and now McCain has Gramm who evidently still believes in the Laffer curve Laffer abandoned long ago. In fact prior to Ronnie's second term run Laffer saw the light and realized it would not work. So much for economic policy drawn on a luncheon napkin-that was Ronnie by the way with the old tax cuts pay for themselvesthat he ran on in 1980. Laffer drew the curve on a napkin for Ronnie.

[clumberfeet]

Bringing in new blood will help stimulate change.

[felixrandom]

and as treasury secretary will he invest in porno movies as he apparently did in the past?

[Doofus]

You could cut McCain some slack. Before Gramm
was a politico, he was an economist. Maybe he works cheap.

Wikipedia:'Gramm often noted in his political campaigns that he had repeated three grades in school but had overcome his academic deficiencies by hard work. In 1967, Gramm received a Ph.D. in economics from the University of Georgia. While at UGA, he was a member of the Phi Kappa Literary Society. After earning his Ph.D., Gramm taught economics for 12 years at Texas A&M University (1967–1978­)'...

[getoffmedz]

If McCain is the best the Fake Republicans have to offer then Kucinich has a real chance?

No matter what MSM is told to think.

[bitabingbitabangbitaboom]

Sorry, Wrong Choice