Former Senator Phil Gramm (R-TX) got himself in some hot water last month by commenting that the U.S. is in the midst of a ‘mental recession’ rather than an actual, structural economic recession, and referred to us as a ‘nation of whiners’ with regard to our current economic woes. Gramm, who holds a doctorate in economics from the University of Georgia, was the national co-chair of Senator John McCain’s (R-AZ) presidential campaign and was one of McCain’s top economic advisers, but stepped down from those roles about one week after making his comments. Senator Barack Obama’s (D-IL) presidential campaign seized quickly on Gramm’s comments in an effort to paint McCain as being out-of-touch with the economic realities in the U.S. today, and Gramm had become a liability.
President George W. Bush (R), always a fount of political wit, was caught weeks later at a private fundraiser saying that, “Wall Street got drunk—that’s one of the reasons I asked you to turn off the TV cameras—it got drunk and now it’s got a hangover. The question is how long will it sober up and not try to do all these fancy financial instruments.” Again, this was seized upon by the Obama campaign as an example of the Republican Party’s disconnection with reality.
The problem is that Gramm and Bush, while they did not present the facts in a particularly articulate or ‘politically correct’ way, were speaking the truth.