Gramm was born on July 8, 1942, in Fort Benning, Georgia, and grew up in nearby Columbus.[1] Soon after his birth, Gramm's father, Kenneth Marsh Gramm, a career Army sergeant, suffered a stroke and was partially paralyzed.[2][3] He died when Gramm was 14. Gramm's mother, Florence (née Scroggins),[4] worked double shifts as a nurse to supplement the veteransdisability pension.
Gramm taught economics at Texas A&M University from 1967 to 1978.[1] 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, which stretched from the Fort Worth 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, and from 1980 to 1982 he garnered the highest rating from that body of any Democrat in the Texas delegation.[5][6][7][8] In 1981, he co-sponsored the Gramm-Latta Budget which implemented President Ronald Reagan's economic program, increased military spending, cut other spending, and mandated the Economic Recovery Tax Act of 1981 (the Kemp-Roth Tax Cut).[citation needed]
Just days after being reelected in 1982, Gramm was thrown off the House Budget Committee. 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 primary, the then newly elected State Senator Chet Edwards of Waco, and later U.S. Representative for the 11th and the 17th congressional districts of Texas (January 3, 1991 – January 3, 2011). Another special election opponent was Texas State RepresentativeDan Kubiak of Rockdale, Texas. 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.
United States Senate
In 1984, Gramm was elected as a Republican to represent Texas in the U.S. Senate. He defeated Congressman Ron Paul, former gubernatorial nominee Henry Grover, Robert Mosbacher, Jr., of Houston, and several of other contenders in the primary. He then faced the Democratic nominee, State SenatorLloyd Doggett of Austin 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.[9]
In October 1985, Gramm, Fritz Hollings, and Warren Rudman 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 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 James Baker: "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."[10]
Gramm served on the Senate Budget Committee from 1989 until leaving office in 2002. Gramm and Senators Fritz Hollings and Warren Rudman 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. 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 IraqInternational Law 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. 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.[11] In the end, the bill passed the Senate without Gramm's amendment only a week before Saddam HusseininvadedKuwait.
Gramm won his second Senate term in 1990 with a victory over Democratic State Senator and former Fort Worth Mayor Hugh Parmer. 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.
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, Texas, and is a longtime Gramm supporter".[12] 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 in his state, which would have cost billions of dollars of taxpayer money.[13]
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.[12] 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 to nickname him "Porno-Gramm".[14][15][16] Consequently, he lost the Louisiana Caucus on February 7, 1996, to Pat Buchanan (the final delegate count was 13–8). New Orleans Times Picayune 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."[17] At least part of this was because James Dobson 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 of Kansas. Gramm, a proponent of free trade, also lashed out at Buchanan, arguing that Buchanan was a "protectionist".
After abandoning his presidential bid, Gramm refocused on his bid for a third Senate term. He defeated Victor Morales of Dallas 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.[18] One provision of the bill is often referred to as the "Enron loophole" because some critics blame the provision for permitting the Enron scandal to occur.[19]Wendy Gramm was an Enron Board member and her husband was the second-largest recipient of campaign 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, could gain seniority over other newly elected senators. However, Cornyn did not gain additional seniority due to a 1980 Rules Committee policy.[20]
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—was significantly to blame for the 2007 subprime mortgage crisis and 2008 global economic crisis.[21][22] The Act is most widely known for repealing portions of the Glass–Steagall Act, which had regulated the financial services industry.[23] The Act passed the House and Senate by an overwhelming majority on November 4, 1999.[24][25]
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".[26]
In its 2008 coverage of the financial crisis, The Washington Post 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".[28]
2008 Nobel Laureate in Economics Paul Krugman, a supporter of Barack Obama and former President Bill Clinton, 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 behind only Alan Greenspan.[29][30] On October 14, 2008, CNN ranked Gramm number seven in its list of the 10 individuals most responsible for the current economic crisis.[31]
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.[32]Time included Gramm in its list of the top 25 people to blame for the economic crisis.[33]
Career with UBS
As of 2009, Gramm is employed by UBS AG as a vice chairman of the Investment Bank division. UBS.com states that a vice chairman of a UBS division is "...appointed to support the business in their relationships with key clients."[34] He joined UBS in 2002 immediately after retiring from the Senate.[35]
John McCain 2008 presidential campaign
Gramm was co-chair of John McCain's presidential campaign[36] and his most senior economic adviser[37][38] from the summer of 2007[39] until July 18, 2008.[36] In a July 9, 2008 interview on McCain's economic plans, Gramm explained the nation was not in a recession, 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."[40] Gramm's comments immediately became a campaign issue. McCain's opponent, Senator Barack Obama, 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."[41] McCain strongly denounced Gramm's comments.[42] 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."[43] In the same interview, Gramm said, "I'm not going to retract any of it. Every word I said was true."[44]
2016 Republican presidential primary
After the Iowa Caucus, Gramm referred to the 2016 presidential election cycle as "scary". He said of Donald Trump, "I'll have to admit I don't find Trump much more reassuring" than Hillary Clinton or Bernie Sanders "in terms of economic policy", but did not believe Trump would be the nominee.[45] 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."[46] Upon Rubio's withdrawal from the race, Gramm endorsed fellow Texan Ted Cruz, calling him "a fearless leader and fighter for conservatives all over the country".[45]
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.
Gramm, William P. (1974). "Laissez-Faire and the Optimum Quantity of Money". Economic Inquiry. 12 (1): 125–132. doi:10.1111/j.1465-7295.1974.tb00232.x.
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.
Gramm, Phil, Robert Ekelund, John Early. “The Myth of American Inequality: How Government Biases Policy Debate.” Rowman & Littlefield, 2022.
↑ Gramm resigned his seat in protest of being thrown off the House Budget Committee and successfully ran in a special election, caused by his own resignation, as a Republican 39 days later.
Related Research Articles
John Sidney McCain III was an American politician and United States Navy officer who served as a U.S. senator from Arizona from 1987 until his death in 2018. He previously served two terms in the U.S. House of Representatives and was the Republican Party's nominee in the 2008 U.S. presidential election.
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 the market among banking companies, securities companies, and insurance companies that prohibited any one institution from acting as any combination of an investment bank, a commercial bank, and an insurance company. With the passage of the Gramm–Leach–Bliley Act, commercial banks, investment banks, securities firms, and insurance companies were allowed to consolidate. Furthermore, it failed to give to the SEC or any other financial regulatory agency the authority to regulate large investment bank holding companies. The legislation was signed into law by President Bill Clinton.
The Glass–Steagall legislation describes four provisions of the United States Banking Act of 1933 separating commercial and investment banking. The article 1933 Banking Act describes the entire law, including the legislative history of the provisions covered.
John Cornyn III is an American politician, attorney, and former jurist serving as the senior United States senator from Texas, a seat he has held since 2002. A member of the Republican Party, he served on the Texas Supreme Court from 1991 to 1997 and as the attorney general of Texas from 1999 to 2002.
Kay Bailey Hutchison is an American attorney, television correspondent, politician, diplomat, and was the 22nd United States Permanent Representative to NATO from 2017 until 2021. A member of the Republican Party, she was a United States Senator from Texas from 1993 to 2013.
Byron Leslie Dorgan is an American author, businessman and former politician who served as a United States Representative (1981–1992) and United States Senator (1992–2011) from North Dakota. He is a member of the Democratic Party.
Spencer Thomas Bachus III is an American politician. He is a former U.S. Representative for the state of Alabama, serving from 1993 to 2015. A member of the Republican Party, he served as ranking member (2007–2011) and chairman (2011–2013) of the House Financial Services Committee. On September 30, 2013, Bachus announced his retirement from Congress. His term ended in 2015.
Thomas Chester Edwards is an American politician who was a United States Representative from Texas, representing a district based in Waco, from 1991 to 2011. Previously, he served in the Texas Senate from 1983 to 1990. He is a member of the Democratic Party. Edwards was on Barack Obama's vice presidential shortlist in 2008.
Wendy Lee Gramm is an American economist who led the Commodity Futures Trading Commission during the Reagan administration. She is also the wife of former United States Senator Phil Gramm. Gramm has gained notoriety for her role in the Enron scandal.
James Albert Smith Leach is an American academic and former politician. He served as ninth Chair of the National Endowment for the Humanities from 2009 to 2013 and was a member of the U.S. House of Representatives from Iowa (1977–2007).
Thomas Jeb Hensarling is an American politician who served as the U.S. representative for Texas's 5th congressional district from 2003 to 2019. A member of the Republican Party, he chaired the House Republican Conference from 2011 to 2013 and House Financial Services Committee from 2013 until 2019. The Los Angeles Times described Hensarling, "a fervent believer in free market ideology" and that he was "a pivotal player in the GOP effort to reduce financial regulation in the Trump Era". The Wall Street Journal called him "a driver of economic policy in the house". Hensarling has close ties to Wall Street, having received campaign donations from every major Wall Street bank as well as various payday lenders.
From January 29 to June 4, 1996, voters of the Republican Party chose its nominee for president in the 1996 United States presidential election. Senator Bob Dole of Kansas, the former Senate majority leader, was selected as the nominee through a series of primary elections and caucuses culminating in the 1996 Republican National Convention held from August 12 to 15, 1996, in San Diego, California. Dole resigned from the Senate in June 1996 once he became the presumptive nominee to concentrate on his presidential campaign. He chose Jack Kemp as his running mate.
John McCain ran for U.S. president in the 2000 presidential election, but failed to gain the Republican Party nomination, losing to George W. Bush in a campaign that included a bitter battle during the South Carolina primary. He resumed his role representing Arizona in the U.S. Senate in 2001, and Bush won the election. Bush was President of the United States from 2001 to 2009. McCain won re-election to the Senate in 2004, 2010 and 2016.
Peter Graham Olson is an American politician who served as the U.S. representative for Texas's 22nd congressional district from 2009 to 2021. His district included much of southern Houston, as well as most of the city's southwestern suburbs such as Katy, Pearland, and Sugar Land. He is a member of the Republican Party. On July 25, 2019, Olson announced that he would retire at the end of his term. He was succeeded by fellow Republican Troy Nehls.
U.S. Senator John McCain, a Republican Party politician from Arizona who was a member of the U.S. Congress from 1983 until his death in office in 2018, a two-time U.S. presidential candidate, and the nominee of the Republican Party in the 2008 U.S. Presidential election, took positions on many political issues through his public comments, his presidential campaign statements, and his senatorial voting record.
The 75th Oregon Legislative Assembly convened beginning on January 12, 2009, for its biennial regular session. All of the 60 seats in the House of Representatives and half of the 30 seats in the State Senate were up for election in 2008; the general election for those seats took place on November 4.
The US bear market of 2007–2009 was a 17-month bear market that lasted from October 9, 2007 to March 9, 2009, during the 2007–2008 financial crisis. The S&P 500 lost approximately 50% of its value, but the duration of this bear market was just below average.
Wall Street reforms are reforms or regulations of the financial industry in the United States.
The 1996 United States Senate election in Texas was held on November 5, 1996. Incumbent Republican U.S. Senator Phil Gramm won re-election to a third term.
The 1984 United States House of Representatives elections in Texas occurred on November 6, 1984, to elect the members of the state of Texas's delegation to the United States House of Representatives. Texas had twenty-seven seats in the House, apportioned according to the 1980 United States census.
This page is based on this Wikipedia article Text is available under the CC BY-SA 4.0 license; additional terms may apply. Images, videos and audio are available under their respective licenses.
