McCain's scary economic advisor
But if Gramm's role as a banker and lobbyist is embarrassing to McCain, the greater harm is likely to be done by his economic advice. He and McCain have been friends since they were young congressional "foot soldiers in the Reagan revolution," as both like to say, and he is often touted (or was until lately) as a likely candidate for Treasury secretary should McCain win the White House.
Now that Gramm has resurfaced in national politics, he surely deserves to be arraigned for his long history of service to powerful interests, dating from the Enron scandal and beyond. But for most Americans, the dubious connections of McCain's lobbying pals, including Gramm, should be less worrisome than the likely results of yet another four years of Republican economic nostrums. Gramm's career stands for the false promises of right-wing ideology and the troubles that such schemes, embodied in legislation, have repeatedly inflicted on us.
The former Texas senator is less voluble these days than he used to be, perhaps unsurprisingly, but in years past he has boasted of his central role in key conservative legislation, especially in liberating major sectors of the economy and finance from public oversight and skewing taxation in favor of the wealthy.
So how has that worked out over the past few decades?
Back in the '80s, Gramm smiled upon the abrupt deregulation of the savings-and-loan industry, described by his idol Ronald Reagan as America's opportunity to "hit the jackpot" of growth. He used his political clout to protect the Texas operators whose crooked machinations eventually helped to bankrupt the S&L industry. In fact, the S&L debacle cost taxpayers hundreds of billions of dollars
