View source for Phil Gramm

{{Short description|American economist and politician (born 1942)}}
{{About|the American politician|other persons of a similar name|Philip Graham (disambiguation)}}
{{BLP sources|date=May 2019}}{{Use mdy dates|date=October 2012}}
{{Infobox officeholder
| name                = Phil Gramm
| image               = PhilGramm (1).jpg
| office              = Chair of the [[United States Senate Committee on Banking, Housing, and Urban Affairs|Senate Banking Committee]]
| term_start          = January 20, 2001
| term_end            = June 6, 2001
| predecessor         = [[Paul Sarbanes]]
| successor           = Paul Sarbanes
| term_start1         = January 3, 1999
| term_end1           = January 3, 2001
| predecessor1        = [[Al D'Amato]]
| successor1          = Paul Sarbanes
| jr/sr2              = United States Senator
| state2              = [[Texas]]
| term_start2         = January 3, 1985
| term_end2           = November 30, 2002
| predecessor2        = [[John Tower]]
| successor2          = [[John Cornyn]]
| state3              = [[Texas]]
| district3           = {{ushr|TX|6|6th}}
| term_start3         = February 12, 1983
| term_end3           = January 3, 1985
| predecessor3        = ''Himself''{{efn|Gramm resigned his seat in protest of being thrown off the House Budget Committee and successfully ran in a special election 39 days later, caused by his own resignation, as a Republican.}}
| successor3          = [[Joe Barton]]
| term_start4         = January 3, 1979
| term_end4           = January 5, 1983
| predecessor4        = [[Olin E. Teague|Olin Teague]]
| successor4          = ''Himself''
| birth_name          = William Philip Gramm
| birth_date          = {{birth date and age|1942|7|8}}
| birth_place         = [[Fort Benning, Georgia]], U.S.
| death_date          = 
| death_place         = 
| party               = [[Democratic Party (United States)|Democratic]] (before 1983)<br>[[Republican Party (United States)|Republican]] (1983–present)
| spouse              = [[Wendy Lee Gramm|Wendy Lee]]
| children            = 2
| education           = [[University of Georgia]] ([[Bachelor of Arts|BA]], [[Master of Arts|MA]], [[Doctor of Philosophy|PhD]])
| module              = {{Listen |pos=center |embed=yes |filename=Sen. Phil Gramm Questions Fed Chairman Alan Greenspan at his Renomination Hearing.ogg |title=Gramm's voice |type=speech |description=Gramm questioning [[Alan Greenspan]] at his renomination hearing for [[Chair of the Federal Reserve]].<br>Recorded January 26, 2000}}
}}
'''William Philip Gramm''' (born July 8, 1942) is an American economist and politician who represented [[Texas]] in both chambers of [[United States Congress|Congress]]. Though he began his political career as a [[Democratic Party (United States)|Democrat]], Gramm [[Party switching in the United States|switched]] to the [[Republican Party (United States)|Republican Party]] in 1983. Gramm was an unsuccessful candidate in the [[1996 Republican Party presidential primaries]] against eventual nominee [[Bob Dole]].

== Early life and education ==
Gramm was born on July 8, 1942, in [[Fort Benning, Georgia]], and grew up in nearby [[Columbus, Georgia|Columbus]].<ref name="bioguide.congress.gov">{{cite web|url=http://bioguide.congress.gov/scripts/biodisplay.pl?index=g000365 |title=Biographical Directory of the United States Congress |publisher=Bioguide.congress.gov |access-date=2009-08-09}}</ref> Soon after his birth, Gramm's father, Kenneth Marsh Gramm, a career Army sergeant, suffered a stroke and was partially [[paralyzed]].<ref>{{Cite web|url=https://www.nwitimes.com/uncategorized/early-lessons-help-gramm-bounce-back/article_5a636a1d-6120-50d4-86e5-8332137d01fa.html|title=Early lessons help Gramm bounce back|agency=Associated Press|website=nwitimes.com|date=February 4, 1996 }}</ref><ref>{{Cite news|url=https://www.nytimes.com/1995/02/19/magazine/tough-texan-phil-gramm.html|title=TOUGH TEXAN; Phil Gramm|first=Richard L.|last=Berke|newspaper=The New York Times|date=February 19, 1995}}</ref> He died when Gramm was 14. Gramm's mother, Florence ({{Nee|Scroggins}}),<ref>{{Cite web|date=2005-03-20|title=Florence Gramm, mother of former senator, dies at 91|url=http://archive.decaturdaily.com/decaturdaily/news/050320/gramm.shtml|website=archive.decaturdaily.com}}</ref> worked double shifts as a nurse to supplement the [[veteran]]s [[disability]] pension.

Gramm attended [[Public school (government funded)|public schools]], graduated in 1961 from Georgia Military Academy (now [[Woodward Academy]]),<ref>{{cite magazine | url=https://www.csmonitor.com/1996/0206/06101.html | title=Phil Gramm | magazine=Christian Science Monitor }}</ref> and graduated in 1964 from the [[University of Georgia]], where he was a member of the [[Phi Kappa Literary Society]].<ref name="bioguide.congress.gov"/><ref>{{Cite news |last=Solheim |first=Nathan |date=1998-02-09 |title=Campus neighbors rival for over 175 years |url=https://gahistoricnewspapers.galileo.usg.edu/lccn/gua1179162/1998-02-09/ed-1/seq-7/ |access-date=2025-11-08 |work=The Red and Black |pages=7}}</ref> He received a doctorate in economics from the [[University of Georgia]]'s [[Terry College of Business]] in 1967.

== Career ==
Gramm taught economics at [[Texas A&M University]] from 1967 to 1978.<ref name="bioguide.congress.gov" /> In addition to teaching, Gramm founded the economic consulting firm Gramm and Associates (1971–1978).

===United States House of Representatives===
[[1976 United States Senate election in Texas|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, Texas|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.<ref>[http://www.conservative.org/ratingsarchive/uscongress/1979/hse_rite.html 1979 American Conservative Union House ratings, Rhode Island-Texas] {{webarchive|url=https://web.archive.org/web/20140204054125/http://www.conservative.org/ratingsarchive/uscongress/1979/hse_rite.html |date=February 4, 2014 }}</ref><ref>[http://www.conservative.org/ratingsarchive/uscongress/1980/hse_rite.html 1980 American Conservative Union House ratings, Rhode Island-Texas] {{webarchive|url=https://web.archive.org/web/20140203233710/http://www.conservative.org/ratingsarchive/uscongress/1980/hse_rite.html |date=February 3, 2014 }}</ref><ref>[http://www.conservative.org/ratingsarchive/uscongress/1981/hse_rite.html 1981 American Conservative Union House ratings, Rhode Island-Texas] {{webarchive|url=https://web.archive.org/web/20140203233447/http://www.conservative.org/ratingsarchive/uscongress/1981/hse_rite.html |date=February 3, 2014 }}</ref><ref>[http://www.conservative.org/ratingsarchive/uscongress/1982/hse_rite.html 1982 American Conservative Union House ratings, Rhode Island-Texas] {{webarchive|url=https://web.archive.org/web/20140203231156/http://www.conservative.org/ratingsarchive/uscongress/1982/hse_rite.html |date=February 3, 2014 }}</ref> 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|date=June 2009}}

Just days after being reelected in 1982, Gramm was thrown off the [[United States House Committee on the Budget|House Budget Committee]]. In response, Gramm resigned his House seat on January 5, 1983. He then [[party switching|ran as a Republican]] for his own vacancy in a [[1983 Texas's 6th congressional district special election|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 (United States)|Democratic Party]] primary, the then newly elected State Senator [[Chet Edwards]] of [[Waco, Texas|Waco]], and later [[United States House of Representatives|U.S. Representative]] for the [[Texas's 11th congressional district|11th]] and the [[Texas's 17th congressional district|17th]] congressional districts of Texas (January 3, 1991 – January 3, 2011). Another special election opponent was Texas [[Texas House of Representatives|State Representative]] [[Dan 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 [[United States Senate|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 [[Partisan primary|primary]]. He then faced the Democratic nominee, [[Texas State Senate|State Senator]] [[Lloyd Doggett]] of [[Austin, Texas|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.<ref>''Congressional Quarterly's Guide to U.S. Elections'', p. 1353</ref>

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."<ref>{{cite news|url=https://www.nytimes.com/1985/10/14/us/treasury-head-defends-plan-for-ending-deficit.html|title=Treasury Head Defends Plan for Ending Deficit|date=October 14, 1985|newspaper=New York Times}}</ref>

Gramm served on the [[U.S. Senate Committee on the Budget|Senate Budget Committee]] from 1989 until leaving office in 2002. Gramm and Senators [[Ernest F. Hollings|Fritz Hollings]] and [[Warren Rudman]] devised a means of cutting the budget through across-the-board spending cuts if [[Government budget deficit|deficit]]-reduction targets were not met. They were successful in making the [[Gramm–Rudman–Hollings Balanced Budget Act|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 [[Iraq]] [[International law|International 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 H. W. Bush administration|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.<ref>Power, Samantha. ''A Problem from Hell: America and the Age of Genocide''. p. 236. Basic Books, 2002. {{ISBN|0-06-054164-4}}.</ref> In the end, the bill passed the Senate without Gramm's amendment only a week before [[Saddam Hussein]] [[Invasion of Kuwait|invaded]] [[Kuwait]].

Gramm won his second Senate term in 1990 with a victory over Democratic [[Texas State Senate|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.

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]] laws, including the landmark [[Gramm–Leach–Bliley Act]] in 1999, which removed Depression-era laws separating banking, insurance, and brokerage activities.
[[File:Philgrammnashua.jpg|thumb|Gramm at a campaign [[Nashua, New Hampshire]] in 1995]]
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".<ref name="esquire 1994"/> 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.<ref>{{Cite web|last=Jeffreys|first=Kent|date=1992|title=Super Boondoggle Time To Pull The Plug On The Superconducting Super Collider|url=http://www.cato.org/pubs/briefs/bp-016.html|url-status=dead|archive-url=https://web.archive.org/web/20060103230028/http://www.cato.org/pubs/briefs/bp-016.html|archive-date=2006-01-03|access-date=2021-05-03|website=cato.org}}</ref>

Gramm ran unsuccessfully for the Republican Party nomination in the [[U.S. presidential election, 1996|1996 presidential election]], for which he had raised $8 million as early as July 1994.<ref name="esquire 1994">{{cite news |last=Shapiro |first=Walter|work=[[Esquire (magazine)|Esquire]] |title=The Gramm Reaper |date=July 1994}}</ref> Although he began the race with a full war-chest and tied for first place with Dole in the 1995 [[Iowa Straw Poll (1979-2011)|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".<ref>{{Cite web|last=Usborne|first=David|date=1995-05-19|title='Porn' scandal rocks Gramm|url=http://www.independent.co.uk/news/world/porn-scandal-rocks-gramm-1620150.html |archive-url=https://ghostarchive.org/archive/20220526/http://www.independent.co.uk/news/world/porn-scandal-rocks-gramm-1620150.html |archive-date=May 26, 2022 |url-access=subscription|url-status=live|access-date=2019-05-09|website=[[The Independent]]|language=en}}</ref><ref>{{Cite news|url=http://content.time.com/time/nation/article/0,8599,3875,00.html|title=GRAMM SLAMS "PORN" STORY|date=1995-05-18|magazine=Time|access-date=2019-05-09|language=en-US|issn=0040-781X}}</ref><ref>{{Cite news|url=https://www.nytimes.com/1995/06/20/us/gramm-after-a-torrid-start-slips-and-slides-in-1996-race.html|title=Gramm, After a Torrid Start, Slips and Slides in 1996 Race|last=Berke|first=Richard L.|date=1995-06-20|work=The New York Times|access-date=2019-05-09|language=en-US|issn=0362-4331}}</ref> Consequently, he lost the Louisiana Caucus on February 7, 1996, to [[Pat Buchanan]] (the final delegate count was 13–8). ''[[The Times-Picayune|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."<ref>"Dole by Default". ''[[New Orleans Times-Picayune]]'', Feb 12, 1996 p.B5</ref> 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 "[[protectionism|protectionist]]".

After abandoning his presidential bid, Gramm refocused on his bid for a third Senate term. He defeated [[Victor Morales (politician)|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]].<ref>{{Cite web|date=2000-12-15|title=Bill Summary & Status - 106th Congress (1999 - 2000) - S.3283|url=http://thomas.loc.gov/cgi-bin/bdquery/z?d106:s.03283:|url-status=dead|archive-url=https://web.archive.org/web/20160705015438/http://thomas.loc.gov/cgi-bin/bdquery/z?d106:s.03283:|archive-date=2016-07-05|access-date=2021-05-03|website=thomas.loc.gov}}</ref> 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.<ref>{{cite news|last=Leonard|first=Andrew|date=2008-05-30|title=Who let the oil market be manipulated?|work=Salon.com|url=http://www.salon.com/tech/htww/2008/05/30/oil_market_manipulation/index.html|url-status=dead|access-date=2009-08-09|archive-url=https://web.archive.org/web/20080531065212/http://www.salon.com/tech/htww/2008/05/30/oil_market_manipulation/index.html|archive-date=2008-05-31}}</ref> [[Wendy Gramm]] was an [[Enron]] Board member and her husband was the second-largest recipient of [[Political campaign|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 [[United States Senate Committee on Rules and Administration|Rules Committee]] policy.<ref>{{Cite web| url=https://www.senate.gov/artandhistory/history/resources/pdf/chronlist.pdf |title=Senators of the United States |publisher=[[United States Senate Historical Office|Senate Historical Office]] |page=78}}</ref>

====2007 mortgage and 2008 financial and economic crises====
{{See also|Gramm–Leach–Bliley Act#Criticisms}}
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.<ref>{{cite web |last1=Ekelund|first1=Robert|last2=Thornton|first2=Mark|publisher=Ludwig von Mises Institute|url=https://mises.org/story/3098|title=More Awful Truths About Republicans|date=2008-09-04|access-date=2008-09-07}}</ref><ref>{{cite web|last=Lerer|first=Lisa|date=2008-03-28|title=McCain guru linked to subprime crisis|url=https://www.politico.com/story/2008/03/mccain-guru-linked-to-subprime-crisis-009246|access-date=2009-08-09|work=[[Politico]]}}</ref> The Act is most widely known for repealing portions of the [[Glass–Steagall Act]], which had regulated the financial services industry.<ref>{{Cite web|last=Taibbi|first=Matt|date=2009-03-19|title=The Big Takeover|url=https://www.rollingstone.com/politics/story/26793903/the_big_takeover/1|url-status=dead|archive-url=https://web.archive.org/web/20090322115528/https://www.rollingstone.com/politics/story/26793903/the_big_takeover/1|archive-date=2009-03-22|access-date=2021-05-03|website=rollingstone.com}}</ref> The Act passed the House and Senate by an overwhelming majority on November 4, 1999.<ref>Congressional roll-call: [http://clerk.house.gov/evs/1999/roll570.xml On the passage of S.900: Financial Services Act of 1999, Record Vote No: 570], November 4, 1999, Clerk of the U.S. House. Sortable unofficial table: [http://projects.washingtonpost.com/congress/106/house/1/votes/570/ On Agreeing to the Conference Report, S. 900 Financial Services Modernization Act, roll call 570, 106th Congress, 1st session] Votes Database at ''[[The Washington Post]]''. Retrieved October 9, 2008</ref><ref>Congressional roll-call: [https://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=106&session=1&vote=00354 S.900 as reported by conferees: Financial Services Act of 1999, Record Vote No: 354], November 4, 1999, Clerk of the Senate. Sortable unofficial table: [http://projects.washingtonpost.com/congress/106/senate/1/votes/354/ On Agreeing to the Conference Report, S.900 Gramm-Bliley-Leach Act, roll call 354, 106th Congress, 1st session] {{Webarchive|url=https://web.archive.org/web/20150803061353/http://projects.washingtonpost.com/congress/106/senate/1/votes/354/ |date=August 3, 2015 }} Votes Database at ''[[The Washington Post]]''. Retrieved October 9, 2008</ref>

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".<ref>{{cite web|last=Pethokoukis|first=James|date=2008-03-31|title=Phil Gramm: I Didn't Cause the Subprime Crisis|url=https://www.usnews.com/blogs/capital-commerce/2008/3/31/phil-gramm-i-didnt-cause-the-subprime-crisis.html|url-status=dead|archive-url=https://web.archive.org/web/20090418193351/http://www.usnews.com/blogs/capital-commerce/2008/3/31/phil-gramm-i-didnt-cause-the-subprime-crisis.html|archive-date=April 18, 2009|access-date=2009-08-09|work=[[U.S. News & World Report]]}}</ref>

Gramm's support was later critical in the passage of the [[Commodity Futures Modernization Act of 2000]], which kept derivatives transactions, including those involving [[credit default swap]]s, free of government regulation.<ref>{{cite news |url=https://www.washingtonpost.com/wp-dyn/content/article/2008/10/14/AR2008101403343.html |title=What Went Wrong |newspaper=The Washington Post |date=2008-10-15|access-date=2009-08-09 |first1=Anthony |last1=Faiola |first2=Ellen |last2=Nakashima |first3=Jill |last3=Drew}}</ref>

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".<ref>{{cite news|url=https://www.washingtonpost.com/wp-srv/business/risk/players.html |title=The Crash: Risk and Regulation |newspaper=The Washington Post |access-date=2009-08-09}}</ref>

2008 [[Nobel Memorial Prize in Economic Sciences|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 [[Great Recession]] behind only [[Alan Greenspan]].<ref>{{YouTube|YwqcLbZJ4HA|MSNBC interview}} of Paul Krugman by [[David Gregory (journalist)|David Gregory]], September 2008</ref><ref>{{cite web|url=https://www.youtube.com/watch?v=o-lZcKkKbLM&NR=1|url-status=dead|title=Broadcast Yourself|publisher=YouTube|access-date=2009-08-09|archive-date=July 27, 2013|archive-url=https://web.archive.org/web/20130727035309/http://www.youtube.com/watch?v=o-lZcKkKbLM&NR=1}}</ref> On October 14, 2008, [[CNN]] ranked Gramm number seven in its list of the 10 individuals most responsible for the current economic crisis.<ref>{{cite news|url=http://ac360.blogs.cnn.com/2008/10/14/culprits-of-the-collapse-7-phil-gramm/ |archive-url=https://web.archive.org/web/20081017032803/http://ac360.blogs.cnn.com/2008/10/14/culprits-of-the-collapse-7-phil-gramm/ |url-status=dead |archive-date=October 17, 2008 |title=Anderson Cooper 360: Blog Archive – Culprits of the Collapse – No. 7 Phil Gramm |publisher=CNN |date=October 14, 2008 |access-date=2009-08-09}}</ref>

In January 2009 [[The Guardian|''Guardian'']] City editor [[Julia Finch]] identified Gramm as one of twenty-five people who were at the heart of the financial meltdown.<ref>{{cite news|author=Finch|first1=Julia|last2=Clark|first2=Andrew|last3=Teather|first3=David|date=2009-01-26|title=Twenty-five people at the heart of the meltdown|work=[[The Guardian]]|location=London|url=https://www.theguardian.com/business/2009/jan/26/road-ruin-recession-individuals-economy|access-date=2009-08-09}}</ref> ''[[Time (magazine)|Time]]'' included Gramm in its list of the top 25 people to blame for the economic crisis.<ref>{{cite news|date=2007-08-27|title=Internet poll: 25 People to Blame for the Financial Crisis|magazine=Time|url=http://www.time.com/time/specials/packages/article/0,28804,1877351_1877350,00.html|url-status=dead|access-date=2009-08-09|archive-url=https://web.archive.org/web/20090218154041/http://www.time.com/time/specials/packages/article/0,28804,1877351_1877350,00.html|archive-date=2009-02-18}}</ref>

===Career with UBS===
As of 2009, Gramm is employed by [[UBS AG]] as a vice chairman of the [[Investment banking|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."<ref>{{cite web|date=2012-02-10|title=UBS Announces the Retirement of Senator Phil Gramm as Vice Chairman of the Investment Bank|url=https://www.ubs.com/global/en/about_ubs/media/america/releases/news_display_media_americas.html/en/2012/02/10/ubs-announces-the-retirement-of-senator-phil-gramm-as-vice-chair.html|url-status=dead|archive-url=https://web.archive.org/web/20140902234454/https://www.ubs.com/global/en/about_ubs/media/america/releases/news_display_media_americas.html/en/2012/02/10/ubs-announces-the-retirement-of-senator-phil-gramm-as-vice-chair.html|archive-date=September 2, 2014|access-date=2009-04-02|publisher=ubs.com}}</ref> He joined UBS in 2002 immediately after retiring from the Senate.<ref>{{cite web|date=October 7, 2002|title=Senator Phil Gramm to join UBS Warburg|url=https://www.ubs.com/1/e/media_overview/media_americas/search1/search10?newsId=58925|url-status=dead|archive-url=https://web.archive.org/web/20080531071242/http://www.ubs.com/1/e/media_overview/media_americas/search1/search10?newsId=58925|archive-date=May 31, 2008|access-date=2009-04-02|publisher=UBS}}</ref>

===John McCain 2008 presidential campaign===
Gramm was co-chair of [[John McCain]]'s presidential campaign<ref name="autogenerated2">{{Cite web|last=Bentley|first=John|date=2008-07-18|title=Gramm Steps Down From McCain Campaign|url=https://www.cbsnews.com/blogs/2008/07/18/politics/fromtheroad/entry4274793.shtml|url-status=dead|archive-url=https://web.archive.org/web/20080920113534/https://www.cbsnews.com/blogs/2008/07/18/politics/fromtheroad/entry4274793.shtml|archive-date=2008-09-20|access-date=|website=cbsnews.com}}</ref> and his most senior economic adviser<ref>Amity Shlaes, [https://www.washingtonpost.com/wp-dyn/content/article/2008/07/11/AR2008071102543.html?hpid=opinionsbox1 "Phil Gramm Is Right"], ''The Washington Post'', July 12, 2008</ref><ref>{{cite web|last=Hart|first=Patricia Kilday|date=2008-05-30|title=McCain's Economic Advisor|url=http://www.texasobserver.org/article.php?aid=2767|url-status=dead|archive-url=https://web.archive.org/web/20090727032050/http://www.texasobserver.org/article.php?aid=2767|archive-date=July 27, 2009|access-date=2009-08-09|publisher=Texasobserver.org}}</ref> from the summer of 2007<ref>Stein, Sam, [https://www.huffingtonpost.com/2008/01/21/short-on-economic-underst_n_82529.html "Short On Economic Understanding, McCain Brings Phil Gramm to Meeting"], ''The Huffington Post'', January 21, 2008</ref> until July 18, 2008.<ref name="autogenerated2" />
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 [[Depression (mood)|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."<ref name="autogenerated3">{{cite web|last=Hill |first=Patrice |url=http://www.washtimes.com/news/2008/jul/09/mccain-adviser-addresses-mental-recession/ |title=Washington Times – McCain adviser talks of 'mental recession' |work=Washtimes.com |date=2008-07-09 |access-date=2009-08-09}}</ref>
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."<ref>{{Cite news| last = Associated Press  | author-link = Associated Press   | title = Obama on Gramm: 'America already has one Dr. Phil' | newspaper = [[USA Today]] | date = July 10, 2008| url =https://www.usatoday.com/news/politics/election2008/2008-07-10-obama-gramm_N.htm?csp=34<!--None-->}}</ref>
McCain strongly denounced Gramm's comments.<ref>{{cite news|last=Gray|first=Kathleen|date=2008-07-11|title=McCain rejects claim that Americans are 'whiners'|newspaper=[[Detroit Free Press]]|url=http://www.freep.com/apps/pbcs.dll/article?AID=/20080711/NEWS15/807110393|url-status=dead|access-date=2008-07-11|archive-url=https://web.archive.org/web/20080924095228/http://www.freep.com/apps/pbcs.dll/article?AID=%2F20080711%2FNEWS15%2F807110393|archive-date=September 24, 2008}}</ref>
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."<ref name="cnn-mccain">{{cite news|author=Dana Bash CNN |url=http://www.cnn.com/2008/POLITICS/07/10/mccain.gramm/?iref=mpstoryview |title=Gramm: We need more leadership, less whining|publisher=CNN |date=2008-07-10 |access-date=2009-08-09}}</ref>
In the same interview, Gramm said, "I'm not going to retract any of it. Every word I said was true."<ref name="wapo-mccain">{{cite news |author1=Shear, Michael D.  |author2=Weisman, Jonathan  |name-list-style=amp |title=Gramm Remark Adds to McCain's Difficulty Addressing the Economy |url=https://www.washingtonpost.com/wp-dyn/content/article/2008/07/10/AR2008071003085.html |newspaper=Washington Post |date=2008-07-11 |access-date=2008-07-11 }}</ref>

===2016 Republican presidential primary===
After the [[2016 United States presidential election in Iowa|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.<ref name=":0" /> Gramm endorsed U.S. Senator [[Marco Rubio]] in the 2016 [[Republican Party presidential primaries, 2016|Republican presidential primary]] stating: "He's the best prepared on national security. He can win the general election."<ref>{{Cite web|last=Antle III|first=W. James|date=January 7, 2016|title=Gramm endorses Rubio over Cruz|url=https://www.washingtonexaminer.com/gramm-endorses-rubio-over-cruz|access-date=2021-05-03|website=[[Washington Examiner]]}}</ref> 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".<ref name=":0">{{Cite web |last=Beamer |first=Randy |date=February 11, 2016 |title=Former Texas Senator Phil Gramm calls presidential race "scary" |url=https://news4sanantonio.com/news/local/fmr-tx-senator-calls-prez-race-scary |access-date=March 16, 2022 |website=News 4 San Antonio}}</ref>

==Personal life==
Gramm lives in [[Helotes, Texas]]. He is married to [[Wendy Lee Gramm]], a native of Hawaii, who is associated with [[George Mason University]]'s [[Mercatus Center]] in Virginia, and is known for being involved in [[Enron scandal]].<ref name=":1">{{Cite news|url=https://www.nytimes.com/2002/01/17/opinion/enron-and-the-gramms.html|title=Enron And the Gramms|last=Herbert|first=Bob|date=2002-01-17|work=The NY Times|access-date=2018-09-27|language=en}}</ref> They have two sons: Marshall Gramm, a professor of economics at [[Rhodes College]] in [[Memphis, Tennessee]], and Jeff Gramm, a money manager, author,<ref>{{Cite web|last=|first=|date=2017-08-27|title=TIP153: Boardroom Battles w/ Dear Chairman author, Jeff Gramm|url=https://www.theinvestorspodcast.com/episodes/dear-chairman-jeff-gramm/|url-status=live|archive-url=https://web.archive.org/web/20210503030336/https://www.theinvestorspodcast.com/episodes/dear-chairman-jeff-gramm/|archive-date=2021-05-03|access-date=2021-05-03|website=The Investor's Podcast Network|language=en-US}}</ref> and previously a musician in the [[Independent music|indie]] pop band [[Aden (band)|Aden]]. Gramm is an [[Episcopal Church (United States)|Episcopalian]].<ref>{{cite web | last=Niebuhr | first=Gustav | title=Gramm, on Stump, Invokes the Second Coming of Christ | website=The New York Times | date=1995-09-23 | url=https://www.nytimes.com/1995/09/23/us/gramm-on-stump-invokes-the-second-coming-of-christ.html | access-date=2024-08-06}}</ref>

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.
* {{cite journal |year=1974 |title=Laissez-Faire and the Optimum Quantity of Money |journal=Economic Inquiry |volume=12 |issue=1 |pages=125–132 |doi=10.1111/j.1465-7295.1974.tb00232.x |last1= Gramm |first1= William P. }}
* 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 (economist)|John Early]]. “The Myth of American Inequality: How Government Biases Policy Debate.” Rowman & Littlefield, 2022.
* Gramm, Phil, Boudreaux, Donald J. : "The Triumph of Economic Freedom."; Rowman & Littlefield, 2025.

==See also==
{{Portal|Biography}}
* [[List of United States representatives who switched parties]]

== Notes ==
{{notelist}}

==References==
{{reflist|colwidth=30em}}

==External links==
{{CongLinks|congbio=G000365}}
* {{IMDb name|name= Phil Gramm|id=1109307}}
* {{C-SPAN|174}}

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