McCain’s comment on Monday that the “fundamentals of the economy are strong” was a gift for Democrats. Throughout the week, the Obama campaign has been able to seize on McCain’s foible by painting the Republican nominee as “simply out of touch” with the brick-and-mortar economy on Main Street. And this is not McCain’s only weakness at the moment on the economic front.
We are now learning that McCain has a long and distinguished track record in Congress as a staunch advocate of deregulation which will likely further damage his credibility with voters. Given his well documented history as a pro-deregulation lawmaker, it is hard to see how McCain will be able to convince blue-collar voters in Ohio, Wisconsin and Pennsylvania that he is the right person to address the current financial crisis on Wall Street. Below is a summary of citations documenting his long history as a pro-deregulation lawmaker in the Senate.
John McCain: The Deregulator
I don’t think anyone who wants to increase the burden of government regulation and higher taxes has any real understanding of economics and the economy and what is needed in order to ensure the future of this country.”
– John McCain [McCain Town Hall in Inez, Kentucky, 4/23/08]
McCain Is An Avid Supporter Of Lax Rules For Financial Institutions
McCain Supported A Banking Bill Because It Eliminated “The Tremendous Regulatory Burden Imposed On Financial Institutions.” While speaking in favor of bank deregulation on the floor of the senate, John McCain said, “This legislation takes a small but important step toward eliminating the tremendous regulatory burden imposed on financial institutions… One principal reason banks are unable to make loans is the bewildering array of statutory and regulatory restrictions and paperwork requirements imposed by Congress and the regulatory agencies. While a case can certainly be made that every law and regulation is intended to serve a laudable purpose, the aggregate effect of the rapidly increasing regulatory burden imposed on banks is to cause them to devote substantial time, energy and money to compliance rather than meeting the credit needs of the community.” [Congressional Record, 11/19/93; emphasis added]
McCain Supported A Bill To “Takes A Small Step Forward Toward Eliminating Unnecessary Regulatory Burdens Imposed On Banks.” While speaking in favor of bank deregulation on the floor of the senate, John McCain said, “While a case can certainly be made that every law and regulation is intended to serve a laudable purpose, the aggregate effect of the rapidly increasing regulatory burden imposed on banks is to cause them to devote substantial time, energy and money to compliance rather than meeting the credit needs of the community … This bill recognizes this fact, and takes a small step forward toward eliminating unnecessary regulatory burdens imposed on banks.” [Congressional Record, 11/19/93; emphasis added]
McCain Said The Best Thing Government Can Do For Business Is “Stay Out Of Its Way.” While speaking about the American Competitiveness in the Twenty-First Century Act on the floor on the Senate in 2000, John McCain said, “I am convinced that the best thing government can often do to advance the fortunes of the private sector is to stay out of its way. I support this bill because it makes progress toward that end, by improving companies’ flexibility to hire the talent they need, while providing for the regulatory framework and new educational opportunities to protect and promote American workers.” [Congressional Record, 10/3/00; emphasis added]
In 1999, McCain Supported Phil Gramm’s Banking Deregulation Bill. In 1999, John McCain voted for passage of the Senate version of a bill that would eliminate current barriers erected by the 1933 Glass-Steagall Act and other laws that impede affiliations between banking, securities, insurance and other firms. The bill also would exempt small, non-urban banks from the 1977 Community Reinvestment Act (CRA), revise the Federal Home Loan Bank system and require that owners of automated teller machines (ATMs) provide notice on the ATM and on-screen of any charges imposed for the use of the terminal. The bill passed 54-44. [S. 900, Vote #105, 5/6/99]
McCain Missed The Vote For Final Passage Because He Was Campaigning In New Hampshire. John McCain missed the final vote on Phil Gramm’s banking deregulation bill because he was campaigning in New Hampshire. [NPR, “Morning Edition,” 11/5/99; S. 900, Vote #354, 11/4/99]
McCain Has Based His 2008 Campaign On Promoting Less Regulation
McCain: “I Don’t Think Anyone Who Wants To Increase The Burden Of Government Regulation And Higher Taxes Has Any Real Understanding Of Economics.” During a McCain Town Hall in Inez, Kentucky, John McCain said, “When we come out of this recession and we will because I believe that the fundamentals of our economy are good … Sen. Clinton wants the government to make the decisions for you on your health care, I want the families to make the decisions on their health care. I don’t think anyone who wants to increase the burden of government regulation and higher taxes has any real understanding of economics and the economy and what is needed in order to ensure the future of this country.” [McCain Town Hall in Inez, Kentucky, 4/23/08; emphasis added]
McCain: “I Understand Why The AFL-CIO And Maybe Other Unions May Oppose My Free Market, Less Regulation, Right To Work.” During an appearance on Fox’s “Special Report with Brit Hume,” John McCain said, “I understand why the AFL-CIO and maybe other unions may oppose my free market less regulation right to work. I think we have honest differences of opinion. I respect those labor unions, but I’m sure that those differences are very intense and very real.” [Fox News,” Special Report with Brit Hume,” 3/12/08]
McCain: “Let’s Reduce Regulation.” While speaking about the economy in St. Louis, Missouri, John McCain said, “I’m asked all the time are we in a recession or not in a recession. And I don’t know the answer to that because it’s kind of a technical term… I do not believe we should raise your taxes. I think it would be the worst thing we could do. And that means to me I think the tax cuts need to be made permanent. When you’ve got a bad economy, the worst thing you can do is increase people’s tax burden. Let’s reduce it. Let’s reduce regulation.” [CNN, “Ballot Bowl, 3/15/08]
McCain: “We Need To Return To The Reagan Years… We Need Less Regulation.” As shown on PBS’s “Washington Week,” John McCain said, “We need to return to the Reagan years. We need to have fiscal conservatism. We need less government. We need less regulation. We need to end of spending spree which has eroded our base of Republican support.” [PBS, “Washington Week,” 1/25/08]
McCain Promised To “Give Them Lower Taxes, Less Regulation, Less Government In Their Lives.” As shown on CNN’s “CNN Newsroom,” John McCain said, “We’ve got to do the other things necessary to encourage business and give them lower taxes, less regulation, less government in their lives, and that means a simpler, fairer — tax code. The tax code in America is broken and it needs to be fixed.” [CNN, “CNN Newsroom,” 2/14/08]
To Fix the Economy, McCain Would “We’ve Got To Take Specific Actions, Keep Their Taxes Low, Less Regulation.” As shown on ABC’s “Good Morning America,” John McCain said, “That our economy is in terrible shape, that we’ve got to take specific actions, keep their taxes low, less regulation, get – start exploring and exploiting offshore oil deposits.” [ABC, “Good Morning America,” 7/2/08]
McCain Said The Difference Between Obama & Himself Would Be “More Regulation Or Less Regulation.” During a media availability in Phoenix, Arizona, John McCain said, “I think the important thing is that there will be stark differences between either Senator [Clinton] or Senator Obama and me because they are liberal Democrats and I’m a conservative Republican… whether we pursue the present strategy in Iraq or whether we — or whether we set a date for withdrawal, which will mean Al Qaida wins; whether we have more regulation or less regulation.” [McCain Media Availability via CQ Transcriptions, 3/3/08; emphasis added]
McCain: “Less Government, Lower Taxes, Less Regulation, Safer America Is What I Can Give America.” During an appearance on CBS’s “60 Minutes,” John McCain said, “I can make a case that a less government, lower taxes, less regulation, safer America is what I can give America. But I don’t underestimate the size of the challenge.” [CBS, “60 Minutes,” 3/9/08]
McCain Is Long-Time Supporter Of Deregulation
McCain: “I Am A Deregulator. I Believe In Deregulation.” While speaking about the cable and satellite television during an appearance on CNN’s “On the Money,” John McCain said, “I am a deregulator. I believe in deregulation.” [CNN, “In the Money,” 7/13/03]
McCain: “The Basic Core Principles Of The Republican Party… Less Government Is Best Government, Less Regulation.” When asked how the Republican Party can recover after the losses in the 2006 election, John McCain said, “By returning to the basic core principles of the Republican Party, very careful stewardship of tax dollars, less government is best government, less regulation, lower taxes, strong national defense, community and family values.” [CNN, “CNN Newsroom,” 11/8/06]
McCain: “I Have A Long Voting Record In Support Of Deregulation.” The St. Petersburg Times quoted McCain at a Senate Commerce Committee hearing as having said, “I have a long voting record in support of deregulation.” [St. Petersburg Times, 6/5/03]
McCain: “I Continue To Believe In A Strong National Defense, Free Trade, Deregulation.” During an appearance on CNN’s “Wolf Blitzer Reports,” John McCain said, “I continue to believe in a strong national defense, free trade, deregulation. I’m pro-life. There are many, many issues that I feel would make it very difficult for Democrats to embrace me.” [CNN, “Wolf Blitzer Reports,” 5/8/02; emphasis added]
McCain: “Keep The Regulation Of The Government As Much As Possible Out Of People’s Lives.” During an appearance on PBS’s “NewsHour with Jim Lehrer,” John McCain said, “If you inspect my 17-year voting record, it’s a proud conservative Republican who acts on principles and one who obviously has a very strong commitment to the leadership role the United States has to play… I think that’s probably one of our first efforts – keep the regulation of the government as much as possible out of people’s lives.” [PBS, “NewHour with Jim Lehrer,” 2/2/00]
McCain: “I Believe In Smaller Government… Less Regulation.” During an interview on PBS’s “NewsHour with Jim Lehrer,” John McCain said, “, I would argue that I have 17 years of legislative experience with a clear voting record of a strong conservative. I believe in smaller government, stronger defense, lower taxes, less regulation, encouragement of entrepreneurship, encouragement of legal immigration. I think that my fundamental philosophies and beliefs are very clear, and I’ve articulated them for years and years. And most importantly, I voted on them.” [PBS, “NewsHour with Jim Lehrer,” 10/15/99]
McCain: “I’ve Been A Good Party Member. I Agree On Most Issues, Fundamentals Of Lower Taxes, Less Regulation.” During an appearance on CNN’s “Crossfire,” John McCain said, “I’ve been a good party member. I agree on most issues, fundamentals of lower taxes, less regulation, smaller government, coherent foreign policy, strong national defense.” [CNN, “Crossfire,” 9/13/99]
McCain Supports Deregulation Whenever Possible. The Journal of Commerce reported, “A McCain aide notes in the past he has supported deregulation of other industries. ‘Any time you can responsibly deregulate, Sen. McCain wants to deregulate,’ the aide said.” [Journal of Commerce, 1/6/97]
Newsflash for big government liberal types: Deregulation is generaly good when it comes to federal government.
Example – remeber when we used to have to go to a phone store to buy an AT&T telephone for $ 100.00. At the time $ 100.00 would be like $ 300.00 today!!!. When the telephone industry was deregulated, there was massive competition for your telephone service both local and long distance – now phone service is cheap when compared to yesteryear.
It was not that long ago when any ordinary person had very limited options when it came to getting access to financial services. Getting a home loan, setting up an investment account, or getting a business loan was much more difficult for the masses. If we had the same type of cumbersome regulation, the economy would certainly not have grown at the rate it has for the last 25 years.
The problem is not so much the de-regulation, it is the fact that our government has failed to exercise good judgement. In fact, Senators Dodd and Frank are in the tank for the big banks Fannie & freddie. It was people like them that pressured the lenders to ease credit requirements and actually created the sub-prime mortgage industry.
Diego you cannot allow the FOX to guard the hen house and that is exactly what McCain and the republican party have done. The results are quite obvious at this point. I would also point out the breakup of AT&T is a fiction and a canard since AT&T controls stock in all of the other so called competitive phone services. This enabled them to avoid taxes. They also own all of the phone lines that the department of homeland security is using to illegally spy on us.
Diego and Michael:
Thank you for your comments on this topic. Certainly the problems we are experiencing at the moment in our capital markets have their origins on both sides of the coin, which you both rightly point out. On the one hand, we have had years of poor oversight by Congress and other regulatory agencies regarding our financial institutions, especially with regard to Fannie and Freddie. For this, Democrats deserve their share of the blame. I expect this will change.
However, it cannot be denied that a very powerful deregulation movement has gripped Washington since the Reagan era, led by high-priced banking industry lobbyists and dogmatic free-market ideologues (and I think its accurate to put McCain in this camp). Ideologies have consequences, and taxpayers are now reaping the impact from years of deregulation.
Remember when airlines were required to have two armed air marshals on ALL flights over 300 miles. That was DEREGULATED and the result was 9/11
Oh, and let me add to all the nonsense about the bailout. Rising home prices have been fueling this economy for the last decade or so. A substantial portion of which has been artificial due to government tinkering and incentives voted on and approved by BOTH parties. There are some claims regarding the current administration’s warning regarding needed oversight, but I think this could just as easily be read as documented leadership failure. When Reagan couldn’t get Congress to act he took it to the people. Did Bush?
Their is a misunderstanding here I believe regarding the supposed evil of de-regulation. De-regulation didn’t cause the root issue here. Government regulation/intervention to create artificial sources of funding generated a good portion of the problem along with personal greed and stupidity. Forcing Fannie and Freddie to guarantee sub-prime’s in an effort to provide houses for people who can’t afford them encouraged prices to go up artificially and for loans to be made to the unworthy. Freddie in trouble? Cook the books. Make campaign contributions to influential Congressmen. Congressmen provide cheap line of credit from the government to Freddie. Nice full circle “regulation” eh? Did Carter call the Community Reinvestment Act of 1977 a banking deregulation bill? Yet it got the government to start meddling in the home mortgage business then and it’s later tinkerings would make it worse.
Did President Clinton think the Gramm-Leach-Bliley Act of 1999 created the crisis or helped ease it? See
http://www.businessweek.com/magazine/content/08_40/b4102000409948.htm
See also “Who Really Owns The Mess” feedback at
http://app.businessweek.com/UserComments/combo_review?action=all&style=wide&productId=36058&productCode=spec.
Did the government know there was a problem with Fannie and Freddie? You bet. Were these institutions regulated? You bet. Given their government regulation/oversight were the problems fixed? You bet not. The Senate couldn’t even get the Housing Regulatory Reform Act of 2005 to a vote. Were the Dems to blame or the Repubs to blame? No either or, just both. Dodd, Schumer, McCain, Obama, Bush, etc. didn’t provide the leadership the country needed. They can talk all they want about their view or their votes or delayed sponsorship on nearly dead committee bills. Nobody in government got the job done. The regulators were all a bragging when they enacted in incremental steps the monster they created, but blaming, and sleeping when it came time to oversee it. The Director of the Office of Federal Housing Enterprise Oversight has the “authority to ensure Fannie Mae and Freddie Mac (the Enterprises) are adequately capitalized and operate in a safe and sound manner. ” See
http://www.ofheo.gov/Regulations.aspx?Nav=119
Apparently a fiscal conservative couldn’t be found to steer the ship headed for the iceberg of social liberalism.
This debacle came during the watch of the 1999 Clinton-era (specifically, an Andrew M. Cuomo, a former director of HUD) appointment of Armando Falcon, Jr. who served until Oct., 2004.
see
http://www.fairness.com/resources/relation?relation_id=21610
Should the quasi-government, quasi-public entity Fannie Mae be allowed to contribute to the political campaigns of anyone, especially of the Senate Banking Committee members like Dodd (D), Senators like Obama (D) or House Financial Services Committee chair Frank (D)? Or former House Financial Services Committee chair Oxley (R), while getting a cheap line of credit from the federal government? Ex-Fed Reserve Chairman Alan Greenspan tried to get Congress to end the line of credit. Should the government be in the housing business (especially to the extent they are)? Which amendment or article in the Constitution authorizes this? Can they regulate themselves? The Fannie Mae and Freddie Mac government backing contributed to the crisis, not averted it. There was a sufficient amount of regulation already in place, but NObody had the leadership to use it.
There is some logic to the bailout bill in that the government contributed to the crisis and must be responsible for the rescue of it to a degree as well. Unfortunately, I agree with Aiken (R) in that there was nothing in the bill to fix the problem or to avert a like disaster in the future. Perhaps what the bill has done is to make things worse for the long term in that it’s given the government more power to regulate the banking and mortgage industry–power it hasn’t demonstrated it can wield without corruption and with wisdom and accountability.
You are misleading the public on the passage of the Gramm-Leach-Bliley Act. This is the bill that repealed Glass Steagall. The vote was 90 Aye and 8 nay with one no. Among those who voted for the bill were H. Reid, Chris Dodd, John Kerry, D. Feinstein, Joe Biden, Joe Liberman, T. Daschle on the Democratic side, and Strom Thurmond, Orin Hatch, Phill Gramm, and Kay Hutchison on the Republican side. Go to http://www.govtrack.us/congress/vote.xpd?vote=s1999-354 for a complete list of who voted for it and who voted against it. President Clinton eagerly signed this terrible bill into law. We need truth not smears and distortions at a time like this. Shame on you.
See also the vote on H.R. 10 [106th]: Financial Services Act of 1999. Although this piece of legislation was superseded by Gramm-Leach-Bliley Act, the vote passed the House with 79% of its members voting Aye! Bob Barr or Georgia who is trying to run as a Libertarian, voted Aye, and Nancy Pelosi did not vote (just like J McCain in the Senate did not vote) The majority of both houses supported this disastrous bank deregulation and now they are holding show trials to cover themselves.
Lastly, you have to define what kind of deregulation McCain supported. This word without a context is meaningless and open to all kinds of interpretations. Reading your criticism’s of McCain’s record on Deregulation is like something from 1984 (Orwell). Please give us facts, not distortions, or shut up.
You may want to check this out… interesting discussion.. might want to link up, start a back and forth
http://joshxiong.com/?p=107
Thanks Jeff and Eric. I get tired off all the inaccurate BS that people throw out there unchecked!!