McCain and Gramm: Recession is in your Head, Whiner

Senator Phil Gramm, economic advisor to John McCain and close friend who McCain supported for President in 1996, as well as the author and chief promoter of deregulation laws that led to Enron and the subprime mortgage crisis, and all the lost pensions, bankruptcies, foreclosures and other disasters they caused, said on Thursday:

"You've heard of mental depression; this is a mental Recession...We have sort of become a nation of whiners."

John McCain later repudiated these remarks, but he was already on the record--at least twice--asserting that the current recession is largely "psychological."

To be fair, they both are talking about the causes of falling stock market prices and other indicators that in part do reflect confidence, etc. and not directly about people's perceptions of the effects. But the tenor of their remarks, and their blindness to economic problems that are hurting if not completely ruining millions of low and middle income Americans--while their wealthy and super-wealthy friends make more money than ever--is accurately suggested by these remarks. They say the "fundamentals" are strong, which is just another way for them to say that the economy is working just great for their super-rich friends, so don't touch it! It's a view of the economy that in his column today E. J. Dionne says is being universally discredited, even among conservatives.

In response, Barack Obama said: "We don't need another Dr. Phil! We need solutions! It's not just a figment of your imagination. It's not all in your head. When people are struggling to buy gas and groceries....When people are losing their homes...It's not a figment of your imagination. And it's not too much to ask for the government to step in and give you some relief. It's time to have a president who doesn't deny our problems or pretend they don't exist. It's time we had a president who takes responsibility."