Former U.S. Sen. Phil Gramm, R-Texas, had strong words for incumbent U.S. Rep. Chet Edwards, D-Waco, on Wednesday as he joined Republican House hopeful Bill Flores during a campaign stop in Waco.

Gramm tried to paint Edwards as insincere in his rhetoric advocating for greater fiscal restraint.

The former senator called an Edwards fundraising letter advocating fiscal responsibility hypocritical. The letter came on the heels of a vote to raise the federal debt limit.

Bill Flores, left, listens as Phil Gramm endorses him for Chet Edwards’ U.S. House seat.
Jerry Larson/Tribune-Herald

“Chet Edwards voted for the largest debt ceiling increase in history, imposing new debts of $6,000 per man, woman and child in America, and then six days later sends out letters saying we need to do something about covering our children in a sea of national debt,” Gramm said.

“He’s wonderful when he says things in Waco, but he’s not wonderful when he votes on things in Washington,” added Gramm, who taught Edwards economics at Texas A&M University and beat him by a razor-thin margin in a Democratic House primary in 1978.

Edwards defended the decision to raise the debt limit, saying the alternative was to let the United States go into default.

“It is hypocritical that Mr. Gramm, who voted multiple times to raise the debt ceiling as a U.S. senator, is criticizing me for doing so,” Edwards said in a statement. “Mr. Gramm knows full well that to default on America’s debt would immediately put our nation into a recession or depression, and it would be irresponsible to do so.”

Flores is facing Waco small-businessman Rob Curnock in a primary runoff Tuesday.

But given Gramm and Edwards’ long history of butting heads, it was not surprising the news conference focused on a hypothetical general election matchup between Flores and Edwards, whom Gramm wants to see unseated.

In Gramm’s press conference speech and in Edwards’ statement, the men battled over what policies bear responsibility for the financial crisis.

Edwards contended the Gramm-Leach-Bliley act, sponsored by Gramm, contributed to the U.S. economy’s slump. The bill deregulated the banking industry, allowing for the consolidation of banking, security and insurance companies.

Edwards opposed the legislation.

President Barack Obama criticized Gramm-Leach-Bliley during the 2008 campaign, Gramm noted, but his administration hasn’t repealed any significant provisions in the law since Obama was elected.

“(The recession) came from federal law that pressured banks to make subprime loans” that Edwards supported, Gramm said.

Edwards countered, saying he “never supported or condoned the irresponsible decisions made by Fannie Mae or Freddie Mac,” and noted his efforts to reform the congressionally chartered housing agencies.

“I believe the deregulation of Wall Street and interstate banks was a major contributor to our economic recession,” Edwards said. “I am proud that I voted against the Gramm-Leach-Bliley bill, and I would do so again.”

mshapiro@wacotrib.com

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