Phil Gramm
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William Philip Gramm (born July 8, 1942) is an American economist and politician who represented
Texas Texas (, ; Spanish language, Spanish: ''Texas'', ''Tejas'') is a state in the South Central United States, South Central region of the United States. At 268,596 square miles (695,662 km2), and with more than 29.1 million residents in 2 ...
in both chambers of
Congress A congress is a formal meeting of the representatives of different countries, constituent states, organizations, trade unions, political parties, or other groups. The term originated in Late Middle English to denote an encounter (meeting of a ...
. Though he began his political career as a
Democrat Democrat, Democrats, or Democratic may refer to: Politics *A proponent of democracy, or democratic government; a form of government involving rule by the people. *A member of a Democratic Party: **Democratic Party (United States) (D) **Democratic ...
, Gramm switched to the Republican Party in 1983. Gramm was an unsuccessful candidate in the 1996 Republican Party presidential primaries against eventual nominee Bob Dole.


Early life education

Gramm was born on July 8, 1942, in
Fort Benning, Georgia Fort Benning is a United States Army post near Columbus, Georgia, adjacent to the Alabama–Georgia border. Fort Benning supports more than 120,000 active-duty military, family members, reserve component soldiers, retirees and civilian employees ...
, and grew up in nearby
Columbus Columbus is a Latinized version of the Italian surname "''Colombo''". It most commonly refers to: * Christopher Columbus (1451-1506), the Italian explorer * Columbus, Ohio, capital of the U.S. state of Ohio Columbus may also refer to: Places ...
. Soon after his birth, Gramm's father, Kenneth Marsh Gramm, a career Army sergeant, suffered a stroke and was partially
paralyzed Paralysis (also known as plegia) is a loss of motor function in one or more muscles. Paralysis can also be accompanied by a loss of feeling (sensory loss) in the affected area if there is sensory damage. In the United States, roughly 1 in 5 ...
. He died when Gramm was 14. Gramm's mother, Florence (née Scroggins), worked double shifts as a nurse to supplement the
veteran A veteran () is a person who has significant experience (and is usually adept and esteemed) and expertise in a particular occupation or field. A military veteran is a person who is no longer serving in a military. A military veteran that has ...
s
disability Disability is the experience of any condition that makes it more difficult for a person to do certain activities or have equitable access within a given society. Disabilities may be Cognitive disability, cognitive, Developmental disability, dev ...
pension. Gramm attended public schools, graduated in 1961 from Georgia Military Academy (now
Woodward Academy Woodward Academy (also known as Woodward or WA) is an independent, co-educational college-preparatory school for pre-kindergarten to 12th grade on two campuses located in College Park and Johns Creek, Georgia, United States, within the Atlanta ...
), and graduated in 1964 from the
University of Georgia , mottoeng = "To teach, to serve, and to inquire into the nature of things.""To serve" was later added to the motto without changing the seal; the Latin motto directly translates as "To teach and to inquire into the nature of things." , establ ...
. He received a doctorate in economics from the
University of Georgia , mottoeng = "To teach, to serve, and to inquire into the nature of things.""To serve" was later added to the motto without changing the seal; the Latin motto directly translates as "To teach and to inquire into the nature of things." , establ ...
's
Terry College of Business The C. Herman and Mary Virginia Terry College of Business is a constituent college of the University of Georgia in Athens, Georgia, United States. The business college offers undergraduate programs, MBA programs, specialized master's programs and ...
in 1967.


Career

Gramm taught economics at
Texas A&M University Texas A&M University (Texas A&M, A&M, or TAMU) is a public, land-grant, research university in College Station, Texas. It was founded in 1876 and became the flagship institution of the Texas A&M University System in 1948. As of late 2021, T ...
from 1967 to 1978. In addition to teaching, Gramm founded the economic consulting firm Gramm and Associates (1971–1978).


United States House of Representatives

In 1976, Gramm unsuccessfully challenged Texas Democratic Senator Lloyd Bentsen, in the party's senatorial primary. Then in 1978 Gramm successfully ran as a Democrat for Representative from
Texas's 6th congressional district Texas's 6th congressional district of the United States House of Representatives is in an area that includes Ellis and Navarro counties to the south and southeast of the Dallas/Fort Worth area plus the southeast corner of Tarrant County. As of ...
, which stretched from the
Fort Worth Fort Worth is the fifth-largest city in the U.S. state of Texas and the 13th-largest city in the United States. It is the county seat of Tarrant County, covering nearly into four other counties: Denton, Johnson, Parker, and Wise. According ...
suburbs to College Station. He was reelected to his House seat as a Democrat in 1980. Gramm's voting record was very conservative, even by Texas Democratic standards of the time. During his first four terms, he tallied an average rating of 89 from the
American Conservative Union The American Conservative Union (ACU) is an American political organization that advocates for conservative policies, ranks politicians based on their level of conservatism, and organizes the Conservative Political Action Conference. Founded on ...
, and from 1980 to 1982 he garnered the highest rating from that body of any Democrat in the Texas delegation. In 1981, he co-sponsored the Gramm-Latta Budget which implemented
President President most commonly refers to: *President (corporate title) *President (education), a leader of a college or university *President (government title) President may also refer to: Automobiles * Nissan President, a 1966–2010 Japanese ful ...
Ronald Reagan Ronald Wilson Reagan ( ; February 6, 1911June 5, 2004) was an American politician, actor, and union leader who served as the 40th president of the United States from 1981 to 1989. He also served as the 33rd governor of California from 1967 ...
's economic program, increased
military spending A military budget (or military expenditure), also known as a defense budget, is the amount of financial resources dedicated by a state to raising and maintaining an armed forces or other methods essential for defense purposes. Financing milit ...
, cut other spending, and mandated the
Economic Recovery Tax Act of 1981 The Economic Recovery Tax Act of 1981 (ERTA), or Kemp–Roth Tax Cut, was an Act that introduced a major tax cut, which was designed to encourage economic growth. The federal law enacted by the 97th US Congress and signed into law by US Preside ...
(the Kemp-Roth Tax Cut). Just days after being reelected in 1982, Gramm was thrown off the
House Budget Committee The United States House Committee on the Budget, commonly known as the House Budget Committee, is a standing committee of the United States House of Representatives. Its responsibilities include legislative oversight of the federal budget process, ...
. In response, Gramm resigned his House seat on January 5, 1983. He then ran as a Republican for his own vacancy in a February 12, 1983 special election, and won easily. One of his many special election opponents was the second-place finisher by only 115 votes in his 1978
Democratic Party Democratic Party most often refers to: *Democratic Party (United States) Democratic Party and similar terms may also refer to: Active parties Africa *Botswana Democratic Party *Democratic Party of Equatorial Guinea *Gabonese Democratic Party *Demo ...
primary, the then newly elected State Senator Chet Edwards of
Waco Waco ( ) is the county seat of McLennan County, Texas, United States. It is situated along the Brazos River and I-35, halfway between Dallas and Austin. The city had a 2020 population of 138,486, making it the 22nd-most populous city in the st ...
, and later
U.S. Representative The United States House of Representatives, often referred to as the House of Representatives, the U.S. House, or simply the House, is the lower chamber of the United States Congress, with the Senate being the upper chamber. Together they c ...
for the 11th and the 17th congressional districts of Texas (January 3, 1991 – January 3, 2011). Another special election opponent was Texas State Representative
Dan Kubiak Daniel James Kubiak (March 19, 1938 – August 30, 1998) was an educator and businessman from Rockdale, Texas, who served as a Democratic member of the Texas House of Representatives from 1969 to 1983 and again from 1991 until his death in off ...
of
Rockdale, Texas Rockdale is a city in Milam County, Texas, United States. Its population was 5,323 at the 2020 census. It is about 41 miles west of College Station. History In 1873, the town developed as the International-Great Northern Railroad ...
. Gramm became the first Republican to represent the district since its creation in 1846. After he left the House, the seat was retained for the Republican Party by
Joe Barton Joseph Linus Barton (born September 15, 1949) is an American politician who represented in the U.S. House of Representatives from 1985 to 2019. The district included Arlington, part of Fort Worth, and several small towns and rural areas south ...
.


United States Senate

In 1984, Gramm was elected as a Republican to represent Texas in the
U.S. Senate The United States Senate is the upper chamber of the United States Congress, with the House of Representatives being the lower chamber. Together they compose the national bicameral legislature of the United States. The composition and powe ...
. He defeated Congressman Ron Paul, former gubernatorial nominee
Henry Grover Henry Cushing Grover (April 1, 1927 – November 28, 2005), usually known as Hank Grover, was an American politician from the U.S. state of Texas best known for his relatively narrow defeat in 1972. He was a conservative Republican Election his ...
, Robert Mosbacher, Jr., of
Houston Houston (; ) is the most populous city in Texas, the most populous city in the Southern United States, the fourth-most populous city in the United States, and the sixth-most populous city in North America, with a population of 2,304,580 in ...
, and several of other contenders in the primary. He then faced the Democratic nominee, State Senator
Lloyd Doggett Lloyd Alton Doggett II (born October 6, 1946) is an American attorney and politician who is a U.S. representative from Texas. A member of the Democratic Party, he has represented a district based in Austin since 1995, currently numbered as ...
of
Austin Austin is the capital city of the U.S. state of Texas, as well as the seat and largest city of Travis County, with portions extending into Hays and Williamson counties. Incorporated on December 27, 1839, it is the 11th-most-populous city ...
in the general election for the right to succeed retiring Republican Senator John G. Tower. Gramm polled 3,116,348 votes (58.5 percent) to Doggett's 2,207,557 (41.5 percent). Gramm was the first U.S. Senate candidate in the history of Texas to receive more than three million votes. In October 1985, Gramm,
Fritz Hollings Ernest Frederick "Fritz" Hollings (January 1, 1922April 6, 2019) was an American politician who served as a United States senator from South Carolina from 1966 to 2005. A conservative Democrat, he was also the 106th governor of South Carolina, ...
, and
Warren Rudman Warren Bruce Rudman (May 18, 1930November 19, 2012) was an American attorney and Republican politician who served as United States Senator from New Hampshire between 1980 and 1993. He was known as a moderate centrist, to such an extent that Pr ...
sponsored an amendment to establish a budget deficits ceiling that would decline to zero by 1991 that was attached to a bill raising the
debt limit A debt limit or debt ceiling is a legislative mechanism restricting the total amount that a country can borrow or how much debt it can be permitted to take on. Several countries have debt limitation restrictions. Description A debt limit is a l ...
of the federal government by more than $250 billion. The amendment was approved by a vote of 75 to 24 and was stated as a possible prelude to a balanced budget in five years without a tax increase by
United States Secretary of the Treasury The United States secretary of the treasury is the head of the United States Department of the Treasury, and is the chief financial officer of the federal government of the United States. The secretary of the treasury serves as the principal a ...
James Baker James Addison Baker III (born April 28, 1930) is an American attorney, diplomat and statesman. A member of the Republican Party, he served as the 10th White House Chief of Staff and 67th United States Secretary of the Treasury under President ...
: "I think it's important that we recognize the Gramm-Rudman amendment is basically a process designed to give the legislative branch and in some degree the executive branch, the political will to deal with the deficit. It means it's going to force some action. Given the political will to make the hard choices you can reach balance without having to raise taxes." Gramm served on the
Senate Budget Committee The United States Senate Committee on the Budget was established by the Congressional Budget and Impoundment Control Act of 1974. It is responsible for drafting Congress's annual budget plan and monitoring action on the budget for the Federal G ...
from 1989 until leaving office in 2002. Gramm and Senators
Fritz Hollings Ernest Frederick "Fritz" Hollings (January 1, 1922April 6, 2019) was an American politician who served as a United States senator from South Carolina from 1966 to 2005. A conservative Democrat, he was also the 106th governor of South Carolina, ...
and
Warren Rudman Warren Bruce Rudman (May 18, 1930November 19, 2012) was an American attorney and Republican politician who served as United States Senator from New Hampshire between 1980 and 1993. He was known as a moderate centrist, to such an extent that Pr ...
devised a means of cutting the budget through across-the-board spending cuts if deficit-reduction targets were not met. They were successful in making the Gramm–Rudman–Hollings Act law, although portions were ruled
unconstitutional Constitutionality is said to be the condition of acting in accordance with an applicable constitution; "Webster On Line" the status of a law, a procedure, or an act's accordance with the laws or set forth in the applicable constitution. When l ...
. In the years following the passage of the Act, other sections were largely superseded by other budget-controlling mechanisms. In 1990, Gramm failed in an effort to amend the
Iraq Iraq,; ku, عێراق, translit=Êraq officially the Republic of Iraq, '; ku, کۆماری عێراق, translit=Komarî Êraq is a country in Western Asia. It is bordered by Turkey to Iraq–Turkey border, the north, Iran to Iran–Iraq ...
International Law International law (also known as public international law and the law of nations) is the set of rules, norms, and standards generally recognized as binding between states. It establishes normative guidelines and a common conceptual framework for ...
Compliance Act of 1990. An earlier amendment to the act, the D'Amato Amendment, prohibited the US from selling arms or extending any sort of financial assistance to Iraq unless the President could prove Iraq was in "substantial compliance" with the provisions of a number of human rights conventions, including the
Genocide Convention The Convention on the Prevention and Punishment of the Crime of Genocide (CPPCG), or the Genocide Convention, is an international treaty that criminalizes genocide and obligates state parties to pursue the enforcement of its prohibition. It was ...
. After reading the D'Amato Amendment, Gramm introduced his own amendment to counter the human rights sanctions in the D'Amato Amendment. Gramm's amendment would have allowed the George Bush administration to waive the terms of the D'Amato Amendment if it found that sanctions against Iraq hurt US businesses and farms more than they hurt Iraq. In the end, the bill passed the Senate without Gramm's amendment only a week before
Saddam Hussein Saddam Hussein ( ; ar, صدام حسين, Ṣaddām Ḥusayn; 28 April 1937 – 30 December 2006) was an Iraqi politician who served as the fifth president of Iraq from 16 July 1979 until 9 April 2003. A leading member of the revolution ...
invaded An invasion is a military offensive in which large numbers of combatants of one geopolitical entity aggressively enter territory owned by another such entity, generally with the objective of either: conquering; liberating or re-establishing con ...
Kuwait Kuwait (; ar, الكويت ', or ), officially the State of Kuwait ( ar, دولة الكويت '), is a country in Western Asia. It is situated in the northern edge of Eastern Arabia at the tip of the Persian Gulf, bordering Iraq to the nort ...
. Gramm won his second Senate term in 1990 with a victory over Democratic State Senator and former Fort Worth Mayor
Hugh Parmer Hugh Quay Parmer (August 3, 1939 – May 27, 2020) was an attorney, University professor, international humanitarian executive, and Democratic politician in Fort Worth, Texas. He served in both houses of the Texas State Legislature, on the Fort ...
. Gramm polled 3,027,680 votes (60.2 percent) to Parmer's 1,429,986 (37.4 percent), again receiving more than three million votes. Between 1999 and 2001, Gramm was the chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs. During that time he spearheaded efforts to pass banking
deregulation Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a ...
laws, including the landmark
Gramm–Leach–Bliley Act The Gramm–Leach–Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999, () is an act of the 106th United States Congress (1999–2001). It repealed part of the Glass–Steagall Act of 1933, removing barriers in ...
in 1999, which removed Depression-era laws separating banking, insurance, and brokerage activities. As a senator, Gramm often called for reductions in taxes and fraud in government spending. He employed his "Dickey Flatt Test" ("Is it worth taking it out of Dickey's pocket?") to determine if federal programs were worthwhile. Richard "Dickey" Flatt owns a family-run printing business started by his father and mother in
Mexia Mexia ( ) is a city in Limestone County, Texas, United States. The population was 6,893 at the 2020 census. The city's motto, based on the fact that outsiders tend to mispronounce the name , is "A great place to live, no matter how you pronou ...
, Texas, and is a longtime Gramm supporter". In Gramm's eyes, Flatt embodied the burdens that a typical Texas independent small businessman faced in the realm of taxation and government spending. In spite of his self-proclaimed opposition to Federal spending, Gramm voted to have the Federal Government build the
Superconducting Super Collider The Superconducting Super Collider (SSC) (also nicknamed the desertron) was a particle accelerator complex under construction in the vicinity of Waxahachie, Texas. Its planned ring circumference was with an energy of 20 TeV per proton and was ...
in his state, which would have cost billions of dollars of taxpayer money. Gramm ran unsuccessfully for the Republican Party nomination in the 1996 presidential election, for which he had raised $8 million as early as July 1994. Although he began the race with a full war-chest and tied for first place with Dole in the 1995 Iowa Straw Poll, his campaign was fatally wounded In 1995 when the scandal broke out that he had previously invested in the porn movies industry, which led the
New York Post The ''New York Post'' (''NY Post'') is a conservative daily tabloid newspaper published in New York City. The ''Post'' also operates NYPost.com, the celebrity gossip site PageSix.com, and the entertainment site Decider.com. It was established ...
to nickname him "Porno-Gramm". Consequently, he lost the Louisiana Caucus on February 7, 1996, to Pat Buchanan (the final delegate count was 13–8). ''
New Orleans Times Picayune ''The Times-Picayune/The New Orleans Advocate'' is an American newspaper published in New Orleans New Orleans ( , ,
'' political columnist Otis Pike noted the loss could be traced to the passion of the supporters for Buchanan compared to those for Gramm. "Gramm should have won the Louisiana caucuses – but didn't, because the religious right turned out to vote in larger numbers." At least part of this was because
James Dobson James Clayton Dobson Jr. (born April 21, 1936) is an American evangelical Christian author, psychologist, and founder of Focus on the Family (FOTF), which he led from 1977 until 2010. In the 1980s he was ranked as one of the most influentia ...
infamously said, "I walked into that meeting fully expecting to support Phil Gramm for President. Now I don't think I'd vote for him if he was the last man standing." This poor showing in a state adjacent to Texas plus placing 5th in Iowa's caucuses resulted in Gramm's withdrawal from the contest on the Sunday before the New Hampshire primary. He threw his support to a senatorial colleague
Robert J. Dole Robert Joseph Dole (July 22, 1923 – December 5, 2021) was an American politician and attorney who represented Kansas in the United States Senate from 1969 to 1996. He was the Republican Leader of the Senate during the final 11 years of his te ...
of Kansas. Gramm, a proponent of
free trade Free trade is a trade policy that does not restrict imports or exports. It can also be understood as the free market idea applied to international trade. In government, free trade is predominantly advocated by political parties that hold econo ...
, also lashed out at Buchanan, arguing that Buchanan was a "
protectionist Protectionism, sometimes referred to as trade protectionism, is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations. ...
". After abandoning his presidential bid, Gramm refocused on his bid for a third Senate term. He defeated Victor Morales of
Dallas Dallas () is the List of municipalities in Texas, third largest city in Texas and the largest city in the Dallas–Fort Worth metroplex, the List of metropolitan statistical areas, fourth-largest metropolitan area in the United States at 7.5 ...
in November 1996 to win what would be his final term in the Senate. Gramm was one of five co-sponsors of the
Commodity Futures Modernization Act of 2000 The Commodity Futures Modernization Act of 2000 (CFMA) is United States federal legislation that ensured financial products known as over-the-counter (OTC) derivatives remained unregulated. It was signed into law on December 21, 2000 by President ...
. One provision of the bill is often referred to as the "
Enron loophole The "Enron loophole" exempts most over-the-counter energy trades and trading on electronic energy commodity markets from government regulation. The "loophole" was enacted in sections § 2(h) and (g) of the Commodity Futures Modernization Act of 200 ...
" because some critics blame the provision for permitting the Enron scandal to occur. Wendy Gramm was an
Enron Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. It was founded by Kenneth Lay in 1985 as a merger between Lay's Houston Natural Gas and InterNorth, both relatively small regional companies. ...
Board member and her husband was the second-largest recipient of
campaign Campaign or The Campaign may refer to: Types of campaigns * Campaign, in agriculture, the period during which sugar beets are harvested and processed *Advertising campaign, a series of advertisement messages that share a single idea and theme * Bl ...
contributions from Enron, succeeded in legislating California's energy commodity trading deregulation. Despite warnings from prominent consumer groups which stated that this law would give energy traders too much influence over energy commodity prices, the legislation was passed in December 2000. In 2002, Gramm left his Senate seat (effective November 30) a few weeks before the expiration of his term in hopes that his successor, fellow Republican
John Cornyn John Cornyn III ( ; born February 2, 1952) is an American politician and attorney serving as the senior United States senator from Texas, a seat he has held since 2002. A member of the Republican Party, he served as the Senate majority whip for ...
, could gain seniority over other newly elected senators. However, Cornyn did not gain additional seniority due to a 1980 Rules Committee policy.


2007 mortgage and 2008 financial and economic crises

Some economists state that the 1999 legislation spearheaded by Gramm and signed into law by President Clinton—the
Gramm–Leach–Bliley Act The Gramm–Leach–Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999, () is an act of the 106th United States Congress (1999–2001). It repealed part of the Glass–Steagall Act of 1933, removing barriers in ...
—was significantly to blame for the 2007
subprime mortgage crisis The United States subprime mortgage crisis was a multinational financial crisis that occurred between 2007 and 2010 that contributed to the Financial crisis of 2007–2008, 2007–2008 global financial crisis. It was triggered by a large decline ...
and 2008 global economic crisis. The Act is most widely known for repealing portions of the Glass–Steagall Act, which had regulated the financial services industry. The Act passed the House and Senate by an overwhelming majority on November 4, 1999. Gramm responded in March 2008 to criticism of the act by stating that he saw "no evidence whatsoever" that the sub-prime mortgage crisis was caused in any way "by allowing banks and securities companies and insurance companies to compete against each other". Gramm's support was later critical in the passage of the
Commodity Futures Modernization Act of 2000 The Commodity Futures Modernization Act of 2000 (CFMA) is United States federal legislation that ensured financial products known as over-the-counter (OTC) derivatives remained unregulated. It was signed into law on December 21, 2000 by President ...
, which kept derivatives transactions, including those involving
credit default swap A credit default swap (CDS) is a financial swap agreement that the seller of the CDS will compensate the buyer in the event of a debt default (by the debtor) or other credit event. That is, the seller of the CDS insures the buyer against som ...
s, free of government regulation. In its 2008 coverage of the financial crisis, ''
The Washington Post ''The Washington Post'' (also known as the ''Post'' and, informally, ''WaPo'') is an American daily newspaper published in Washington, D.C. It is the most widely circulated newspaper within the Washington metropolitan area and has a large nati ...
'' named Gramm one of seven "Key Players In the Battle Over Regulating Derivatives", for having "pushed through several major bills to deregulate the banking and investment industries, including the 1999 Gramm–Leach–Bliley act that brought down the walls separating the commercial banking, investment and insurance industries". 2008
Nobel Laureate The Nobel Prizes ( sv, Nobelpriset, no, Nobelprisen) are awarded annually by the Royal Swedish Academy of Sciences, the Swedish Academy, the Karolinska Institutet, and the Norwegian Nobel Committee to individuals and organizations who make out ...
in Economics
Paul Krugman Paul Robin Krugman ( ; born February 28, 1953) is an American economist, who is Distinguished Professor of Economics at the Graduate Center of the City University of New York, and a columnist for ''The New York Times''. In 2008, Krugman was th ...
, a supporter of
Barack Obama Barack Hussein Obama II ( ; born August 4, 1961) is an American politician who served as the 44th president of the United States from 2009 to 2017. A member of the Democratic Party, Obama was the first African-American president of the U ...
and former President
Bill Clinton William Jefferson Clinton ( né Blythe III; born August 19, 1946) is an American politician who served as the 42nd president of the United States from 1993 to 2001. He previously served as governor of Arkansas from 1979 to 1981 and agai ...
, described Gramm during the 2008 presidential race as "the high priest of deregulation," and has listed him as the number two person responsible for the
economic crisis of 2008 The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At t ...
behind only
Alan Greenspan Alan Greenspan (born March 6, 1926) is an American economist who served as the 13th chairman of the Federal Reserve from 1987 to 2006. He works as a private adviser and provides consulting for firms through his company, Greenspan Associates LLC. ...
. On October 14, 2008,
CNN CNN (Cable News Network) is a multinational cable news channel headquartered in Atlanta, Georgia, U.S. Founded in 1980 by American media proprietor Ted Turner and Reese Schonfeld as a 24-hour cable news channel, and presently owned by ...
ranked Gramm number seven in its list of the 10 individuals most responsible for the current economic crisis. In January 2009 ''Guardian'' City editor Julia Finch identified Gramm as one of twenty-five people who were at the heart of the financial meltdown. ''
Time Time is the continued sequence of existence and events that occurs in an apparently irreversible succession from the past, through the present, into the future. It is a component quantity of various measurements used to sequence events, to ...
'' included Gramm in its list of the top 25 people to blame for the economic crisis.


Career with UBS

As of 2009, Gramm is employed by
UBS AG UBS Group AG is a multinational investment bank and financial services company founded and based in Switzerland. Co-headquartered in the cities of Zürich and Basel, it maintains a presence in all major financial centres as the largest Swis ...
as a vice chairman of the
Investment Bank Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing is ...
division. UBS.com states that a vice chairman of a UBS division is "...appointed to support the business in their relationships with key clients." He joined UBS in 2002 immediately after retiring from the Senate.


John McCain 2008 presidential campaign

Gramm was co-chair of
John McCain John Sidney McCain III (August 29, 1936 – August 25, 2018) was an American politician and United States Navy officer who served as a United States senator from Arizona from 1987 until his death in 2018. He previously served two terms ...
's presidential campaign and his most senior economic adviser from the summer of 2007 until July 18, 2008. In a July 9, 2008 interview on McCain's economic plans, Gramm explained the nation was not in a
recession In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various ...
, stating, "You've heard of mental depression; this is a mental recession." He added, "We have sort of become a nation of whiners, you just hear this constant whining, complaining about a loss of competitiveness, America in decline." Gramm's comments immediately became a campaign issue. McCain's opponent, Senator
Barack Obama Barack Hussein Obama II ( ; born August 4, 1961) is an American politician who served as the 44th president of the United States from 2009 to 2017. A member of the Democratic Party, Obama was the first African-American president of the U ...
, stated, "America already has one Dr. Phil. We don't need another one when it comes to the economy. ... This economic downturn is not in your head." McCain strongly denounced Gramm's comments. On July 18, 2008, Gramm stepped down from his position with the McCain campaign. Explaining his remarks, Gramm stated that he had used the word "whiners" to describe the nation's politicians rather than the public, stating "the whiners are the leaders." In the same interview, Gramm said, "I'm not going to retract any of it. Every word I said was true."


2016 Republican presidential primary

After the
Iowa Caucus The Iowa caucuses are biennial electoral events for members of the Democratic and Republican parties in the U.S. state of Iowa. Unlike primary elections in most other U.S. states, where registered voters go to polling places to cast ballo ...
, Gramm referred to the 2016 presidential election cycle as "scary". He said of
Donald Trump Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021. Trump graduated from the Wharton School of the University of Pe ...
, "I'll have to admit I don't find Trump much more reassuring" than
Hillary Clinton Hillary Diane Rodham Clinton ( Rodham; born October 26, 1947) is an American politician, diplomat, and former lawyer who served as the 67th United States Secretary of State for President Barack Obama from 2009 to 2013, as a United States sen ...
or
Bernie Sanders Bernard Sanders (born September8, 1941) is an American politician who has served as the junior United States senator from Vermont since 2007. He was the U.S. representative for the state's at-large congressional district from 1991 to 2007 ...
"in terms of economic policy", but did not believe Trump would be the nominee. Gramm endorsed U.S. Senator Marco Rubio in the 2016 Republican presidential primary stating: "He's the best prepared on national security. He can win the general election." Upon Rubio's withdrawal from the race, Gramm endorsed
Ted Cruz Rafael Edward "Ted" Cruz (; born December 22, 1970) is an American politician and attorney serving as the junior United States Senator from Texas since 2013. A member of the Republican Party, Cruz served as Solicitor General of Texas from ...
, calling him "a fearless leader and fighter for conservatives all over the country".


Personal life

Gramm lives in Helotes, Texas. He is married to
Wendy Lee Gramm Wendy Lee Gramm (nee Wendy Lee on January 10, 1945 in Hawaii) is an American economist and former head of the Commodity Futures Trading Commission for the Reagan administration. She is also the wife of former United States Senator Phil Gramm. Gr ...
, a native of Hawaii, who is associated with
George Mason University George Mason University (George Mason, Mason, or GMU) is a public research university in Fairfax County, Virginia with an independent City of Fairfax, Virginia postal address in the Washington, D.C. Metropolitan Area. The university was origin ...
's
Mercatus Center The Mercatus Center is an American libertarian, free-market-oriented non-profit think tank. Located at George Mason University and directed by the American economist Tyler Cowen, the Mercatus Center works with policy experts, lobbyists, and gov ...
in Virginia. They have two sons: Marshall Gramm, a professor of economics at
Rhodes College Rhodes College is a Private college, private Liberal arts colleges in the United States, liberal arts college in Memphis, Tennessee. Historically affiliated with the Presbyterian Church (USA), it is a member of the Associated Colleges of the Sout ...
in
Memphis, Tennessee Memphis is a city in the U.S. state of Tennessee. It is the seat of Shelby County in the southwest part of the state; it is situated along the Mississippi River. With a population of 633,104 at the 2020 U.S. census, Memphis is the second-mos ...
, and Jeff Gramm, a money manager, author, and previously a musician in the
indie Indie is a short form of "independence" or "independent"; it may refer to: Arts, entertainment, and media Gaming *Independent video game development, video games created without financial backing from large companies *Indie game, any game (board ...
pop band
Aden Aden ( ar, عدن ' Yemeni: ) is a city, and since 2015, the temporary capital of Yemen, near the eastern approach to the Red Sea (the Gulf of Aden), some east of the strait Bab-el-Mandeb. Its population is approximately 800,000 people. ...
. After the 1999 Aggie Bonfire collapse, Gramm offered the F-16 flyover reserved for his future funeral as a U.S. senator to be given instead to the Texas A&M community. The offer was accepted and a memorial flyover for the 12 killed was flown at a Texas A&M football game on November 26, 1999.


Works

* Ekelund, R.B., Jr., E.G. Furubotn, and W.P. Gramm, eds. "The Evolution of Modern Demand Theory: A Collection of Essays." Lexington, MA: Lexington Books, 1972. * * Anders, Gerhard, Phillip Gramm, and Charles W. Smithson. "The Economics of Mineral Extraction." New York: Praeger, 1980. * Gramm, Phil. "The Role of Government in a Free Society: A Collection of Speeches and Articles." Dallas: Fisher Institute, 1982.


See also

*
List of United States representatives who switched parties The following are members of the United States House of Representatives who switched parties while serving in Congress. See also * List of United States senators who switched parties *List of party switchers in the United States *Party switching ...


Notes


References


External links

* * , - , - , - , - , - , - , - {{DEFAULTSORT:Gramm, Phil 1942 births 20th-century American politicians 21st-century American politicians American businesspeople American Episcopalians Democratic Party members of the United States House of Representatives from Texas Enron Living people People from Columbus, Georgia Republican Party members of the United States House of Representatives Republican Party United States senators from Texas Texas Republicans Texas A&M University faculty Candidates in the 1996 United States presidential election Terry College of Business alumni Woodward Academy alumni Conservatism in the United States New Right (United States)