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Third Debate: Briefing Cards from First Debate (1)

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The original documents are located in Box 3, folder "Third Debate: Briefing Cards from First Debate (1)" of the White House Special Files Unit Files at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Digitized from Box 3 of the White House Special Files Unit Files at the Gerald R. Ford Presidential Library NIXON - FORD (PROGRAMS/POLICIES) I am here to address six years of leadership -- my record as President during the past two years and what I will do, if elected, over the next four years. I am accountable -- a responsibility I welcome -- for my record, my policies, my decisions. My predecessor's policies are not my responsibility. When I became President, inflation was skyrocketing. Now it is cut in half. When I became President, unemployment was increasing. The trend is now down (4,000,000 new jobs in 17 months) When I became President, people distrusted the White House. I restored trust and domestic tranquility. When I became President, there was open conflict in the world. Now we are at peace. For follow-up question: After becoming President, I sat down to decide which programs and policies to keep, which to reject and which to change. For example: -- I chose to keep revenue sharing which I fought for as Minority Leader of the House. -- I chose to reject the policy of using wage and price controls. -- I chose to change our health insurance policy. -2- -- I chose to keep strong foreign and national defense policies and to fight off efforts to undermine both. -- And, I chose to fight inflation even in the face of an opposition Congress determined to go the other way. IMPROVING THE QUALITY OF LIFE Q. What have you done to improve the quality of life in America? A. When I walked into the Oval Office, this country was in a state of physical and mental pain: -- The economy was sick. damaged. -- Our national pride was completely affected. -- The people were furious and disgusted, because their faith in their leaders was gone. Mr. Carter has very honestly and kindly attested to the change that has been brought about, and I thank him for it. The first and most important quality of a President is leadership. The most important quality of leadership is judgment. It was my judgment that the American people should calmly assess the extent of the damage of what has celm common always been a solid structure and begin to rebuild the damaged areas. There was no room for more hysteria, decep- tion, or empty promises. Most of all, there was no need for fast answers and quick fixes. I believe that there is no magic in the solution. Like everything else, it's simple, hard work. One step after another, over the last 25 months, we have made a successful journey: -- reducing infation; -- putting four million people back to work; -2- -- and giving the American citizen the knowledge that his government is solid, and honest. Now that we have laid a solid foundation, the country during the next four years has an ideal opport- unity to move ahead in many areas that have come to be associated with the quality of life. We can work toward a day: -- When every American who wants a job can find one; -- When every American who wants a home and is willing to work for it can afford good housing; -- When every American who wants to enjoy the great American outdoors can have access to a national park; and, -- When every American can count upon this nation being at peace. These are my goals for the next four years. WHY YOU SHOULD BE ELECTED Question: Can you give four or five important reasons why the American people should vote for you on November 2nd. Answer: One: my performance in Office. In the past two years, inflation has been cut from over 12% to under 6%. More Americans have gone to work in the last 18 months than in any similar period in our peacetime history. America is finally at peace once again, and trust and faith have been restored to the White House. Number two: experience. I have had the privilege of serving the people of Michigan and the people of the United States for over 27 years. I have dealt first hand with our national and international challenges. (I might add that over the past 60 years, the American people have never elected a President who had virtually no experience with national and foreign affairs of our nation. I don't believe that this is the year to break tradition). Number three: specific, reliable programs for the future. I have laid out a specific set of policies and programs to restore full prosperity and keep America at - 2 - peace. It's on the record for all to see. (I believe that the voters deserve more than smiles from a candidate, more than cleverly chosen words; they need specifics, and I've got them.) Number four: candor and trust. In the last two years, we have tried to make candor and trust the hall- marks of this Administration. As I said in my inaugural address, truth is the glue that holds the nation together. The American people can count on me for reliable, honest leadership, and I think they know it. 210 FORD - NIXON DIFFERENCES One reason why this Nation has grown stronger over the past 200 years is because each successive Administration builds on the accomplishments of past Administrations, changes policies and programs that do not work and reacts to new challenges and problems. My Administration is carrying out Truman ini- tiatives, Eisenhower initiatives, Kennedy initiatives, Johnson initiatives as well as some Nixon initiatives. But I have also initiated my own policies and programs for example: "28 -- Proposed biggest tax cut in history; -- First comprehensive energy policy in our Nation's history (1975 State of the Union); -- Brought federal budgetary processes under control; -- Catastrophic health insurance; -- Proposed comprehensive reform of all federal regulations -- Proposed consolidation of federal programs such as education, health and child nutrition; -- Parks program; -- 1975 Sinai Agreement; Wage & Price controls. -2- -- First comprehensive reorganization of our foreign intelligence agencies in 30 years; -- 1974 agreement limiting offensive weapons with Brezhnev; -- Economic summits both at home and abroad -- an historical first. african Policy Perhaps even more significant than my initiatives is the manner in which I have tried to govern during these difficult two years (go to camera) : * I have rejected the idea of an Imperial Presidency; we have seen too much raw power con- centrated in the Oval Office in the last 15 years. * Instead, I have unclogged the lines of communi- cation and authority to the President. * I have taken power away from the White House staff and restored it to the Cabinet where it belongs. * And I have taken the Presidency to the people with an unprecedented number of regional briefings, meetings and press conferences. The changes in the country have been very noticeable, I believe. It was most apparent in the way that the Nation celebrated the 4th of July. But I have also seen it in smaller ways. Last week when I went back to the University of Michigan -3- and met with a number of students, the thing that struck me was that the students were not overawed to see their President; they seemed very confortable and we had a good, open exchange. I can remember a day not many years ago when a President of the United States could not go on a college campus; I'm very happy to see the difference. Follow-up - What policies of President Nixon have you rejected? ANSWER: For EXAMPLE I have rejected the Imperial Presidency and substituted openness and candor. I kept Revenue Sharing (which I fought for as Minority Leader) but I have changed some policies, for example: I reject: -- the use of wage and price controls -- the assumption that government spending must continue to grow; I supported increased assistance for mass transit. GEORGIA STATE GOVERNMENT UNDER CARTER BUDGET FY 1971 $1,862,891 FY 1975 3,036,002 Percent increase: 62.97% LONG-TERM DEBT FY 1971 $ 931,125 FY 1975 1,148,785 Percent increase: 23,38% PUBLIC EMPLOYEES (Full and Part Time) October 1970 61,142 October 1974 79,100 Percent increase: 29.37% SOURCE: U.S. Bureau of Census (see attached tables) NOTES: Carter was inaugurated in January, 1971 and left office in January, 1975. The Georgia fiscal year runs from July 1 through June 30. THE PRESIDENT HAS SEEN AGRICULTURE Flip 1.) -- "There will be no more grain embargoes if I'm elected President." Iowa State Fair August 25, 1976 Flop -- Within the hour, he told reporters that, of course, embargoes would be mandatory if we lack adequate reserves to meet our own domestic needs. Des Moines Register Flip 2.) -- To increase farm profits Carter proposed 80% support price for milk as being adequate. Capital Times - Wisconsin March 25, 1976 Flop -- In response to criticism, Carter said that he would have signed the 85% parity bill vetoed by President Ford. Des Moines Register April 4, 1976 Flip 3.) -- In August Carter issued a statement saying he was taking no position on Proposition 14, a controversial item on this November's California ballot. Flop -- On September 5, however, Carter called a convention of the United Farm Workers and said that "I support the objectives of Proposition 14." The union then endorsed Carter. -- On September 7, Congressman Sisk, a Carter supporter, resigned from the Carter-Mondale Committee because of Carter's frequent change of position on the issue. Los Angeles Times September 8, 1976 BUSING Flip 2.) -- Carter signed a Georgia Senate-House of Representatives resolution opposing forced busing to achieve integration in the nation's classrooms and calling for a constitutional amendment. Atlanta Constitution February 25, 1972 Flop -- Asked about what seemed to have been a shift in position, Carter said flatly that he "never advocated any constitu- tional amendment to prohibit busing. " Washington Post March 7, 1976 -- Jody Powell, Carter's press secretary, conceded to the Associated Press in February that Carter had changed his stand on busing since he was Georgia's governor in 1972. Congressional Quarterly June 24, 1976 CITIES Flip 1.) --"I think it would be inappropriate for the Federal Government to single out New York City for special favors." New York Times March 31, 1976 Flop " If I am elected President in November, I would immediately start to work with the governor, the mayor, and our advisors to formulate a contract to be signed by me to resolve New York City's financial difficulties. " Business Week May 3, 1976 FOREIGN TRADE Flip -- During the primaries Carter frequently criticized the loss of U.S. jobs resulting when American companies locate abroad. Flop -- On July 22, Carter said foreign invest- ment by U.S. companies was "very healthy." U.S. Journal July 23, 1976 HEALTH CARE Flip -- "In general, the Kennedy-Corman Bill suites me but there are a few facets of it on which I'd like to reserve judgement. Philadelphia Inquirer April 12, 1976 Flop -- "I have never adopted any sort of health plan that was equivalent to the Kennedy-Corman Bill. I think I am the only Democratic candidate who did not. " Boston Advertiser July 25, 1976 TAX POLICY ON HOUSING Flip -- Carter told the Boston Globe on February 26, 1976, that the income tax deduction for home mortgage interest payments "would be among those I would like to do away with. " Flop -- The Wall Street Journal noted on April 26, 1976, that when reminded of his statement to the Globe he first denied he had said it. He added that he had said this was one "incentive I would consider modifying" and then without elaboration, asserted, "If I change the deduction it would be increased, not decreased." TAX REFORM SPECIFICS -- Last year Carter promised to reveal specific tax provision plans by the end of the year. Earlier this year, he pledged to do the same during the general election campaign. Now he insists it won't be possible until a year after he takes office. Wall Street Journal May 13, 1976 WAGE AND PRICE CONTROLS Flip -- Carter requested Nixon to reinforce wage and price controls to slow "unprecedented inflation. " Atlanta Journal April 19, 1976 -- If elected he (Carter) said he would ask the Congress to restore the power of wage and price controls to the Presidency. Cincinnatti Enquirer January 10, 1976 Flop -- Latest Carter view - "On Wage and Price Controls Carter said he would use them only as "a last resort" and that early in his administration he would not even seek standby authority to impose them." Los Angeles Times (Interview) August 24, 1976 REVENUE SHARING Flip -- "I think revenue sharing is a big hoax and a mistake." Altanta Constitution January 12, 1973 Flop -- "I stand with you in urging Congress to extend its general revenue sharing " program Speech, Conference of Mayors - June 29, 1976 Flip -- Carter does not endorse the "counter- cyclical" plan to concentrate revenue money in the areas of highest unemploy- ment. Boston Globe February 16, 1976 Flop -- "We also need counter-cyclical assistance, with revenue sharing and other financial aid designed to meet the special needs of the most hard pressed urban areas. " Speech, Conference of Mayors - June 29, 1976 MEDICAID NATION'S COMMITTED TO INSURING ACCESS TO HEALTH CARE FOR OUR LOW INCOME PEOPLE, THOSE WHO DO NOT HAVE THE MONEY TO GET HEALTH CARE FOR THEM- SELVES AND ESPECIALLY FOR THEIR CHILDREN, SHOULD RECEIVE OUR HELP. MEDICAID WAS ENACTED TO HELP WITH THESE CONCERNS, OVER THE LAST 10 YEARS HAS BEEN SUBJECT OF FRAUD AND ABUSE, MANY OF THE PROBLEMS ARISE BECAUSE THE PROGRAM DESIGN HAS SERIOUS FLAWS. EVEN STATES THAT HAVE TRIED HARD HAVE HAD PROBLEMS, GOVERNOR BUSBEE, THE GOVERNOR OF GEORGIA , TESTIFIED BEFORE CONGRESS TWO MONTHS AGO THAT WHEN HE TOOK OFFICE, THE PROGRAM IN HIS STATE WAS IN A SHAMBLES. HE SAID IN 18 YEARS IN THE STATE LEGISLATURE, HE NEVER HAD SEEN SUCH AWFUL FRAUD AND ABUSE, (OVER) THE GENERAL ACCOUNTING OFFICE RECENTLY CONDUCTED A STUDY OF THE PROGRAM AND RECOMMENDED 59 IMPROVEMENTS TO TRY TO CORRECT THESE PROBLEMS, 55 OF THESE CHANGES ARE BEING IMPLEMENTED. I AM CONVINCED THAT TINKERING WITH A FLAWED MECHANISM WILL NOT WORK, THAT IS WHY I RECOMMENDED LAST JANUARY A COMPLETE OVERHAUL OF MEDICAID AND 15 OTHER PROGRAMS THAT ARE SUPPOSED TO HELP LOW INCOME PEOPLE WITH THEIR HEALTH CARE. MY REFORM WOULD SOLVE FRAUD AND ABUSE PROBLEMS AND MAKE SURE THE TAXPAYERS DOLLARS ACTUALLY HELPED. Issues ELECTION 21 POLITICAL FOCUS/ROBERT WALTERS Mudslinging on Medicaid This year's presidential campaign, like most of its predecess- an analysis of medicaid provider payments in order to detect, ors, confirms the political axiom that the contest for the na- any potential program abuses tion's highest elective office may well be the worst possible "We discovered nursing homes billing the state for a water vehicle for serious discussion of the crucial issues facing the ski boat, trips to Hawaii and purchases at a large Atlanta de- country and its people. partment store for which there was no accounting. We had Romantics regularly argue that the presidential race could dentists who, in recent years, had billed the state more than and should be the forum for a major national debate on the $200,000 for work which, upon examination, was simply not future of our society, but politicians persist in mangling and found in the mouths of patients." distorting the issues to meet what they perceive to be their In addition. a federally commissioned review of Georgia's personal campaign requirements. medicaid program found more than $4.6 million in physi- As a result, the campaign to date-including three hours of cians' fees erroneously expended during a 15-month period highly touted, nationally televised, head-to-head "debates" in 1972-73-i the middle of Carter's governorship. between the two principal contenders-generally has been de- Busbee's testimony about "waste, extravagance and out- void of worthwhile discussion on the issues confronting the right fraud" is especially significant in light of Carter's re- country as it proceeds into its third century. peated boasts of streamlining state government, making it Example: A representative case involves the federal-state more efficient and more responsive to the needs of the people. medicaid program that finances the principal health care The one agency in which he displays particular pride is the needs of 24 million poor people at a current annual cost of Department of Human Resources, which administers scores approximately $17 billion - $10 billion federal and $7 billion of social program in Georgia, including medicaid. state money. Response: When Carter discovered that President Ford's That program is consuming both federal and state funds at campaign organization was planning to use Busbee's testi- an alarmingly rapid rate, as a report in National Journal mony for its own partisan purposes, he promptly back-pedal- (Vol. 7. No. 38, p. 1319) indicated more than a year ago: ed. In mid-September, Carter offered this admission: "Though the federal government is by far the nation's larg- "As governor of Georgia, I saw the system with all of its est purchaser of personal health services, it has not been problems first hand. I worked for four years to try to straight- able to translate this economic leverage into controlling en it out. I never succeeded. Instead, I passed the problem on costs. to my successor, and he hasn't solved it either. Medicaid expenditures have grown far more rapidly than "The Ford Administration is, as usual, passing the buck, Congress originally anticipated because of three factors: in- blaming the states. But the law is clear. The responsibility of creases in enrollment, rising medical costs and changes in the federal government is clear-to keep costs down, to have service." a system that works and to eliminate fraud." In late August of this year. the Senate Special Commit- But independent authorities unanimously agree that, under tee on Aging said in a report that one-fourth to one-half of the law, it is the states that have principal responsibility for all medicaid funds expended are being lost through fraud, honest and efficient administration of the medicaid program. deficient patient care, maladministration and issuance of Some states, such as Michigan and Texas, have developed benefits to ineligible recipients. sound management programs. Others, including New York Carter: The Democratic presidential nominee, Jimmy Cart- and Georgia, have poor records. er, had nothing especially constructive to say about the prob- Debates: In the first of the televised debates between the two lem, but he immediately sought to turn the Senate allegations candidates, Ford raised the issue, attempting to attack Carter into a partisan campaign issue. through the use of Busbee's Senate testimony. Said the Presi- "Special interests in the delivery of health care have gotten dent: "He (Busbee) testified - and these are his words, the rich and the people have suffered," said Carter, who then present governor of Georgia-he says he found the medicaid added: program in 'shambles.' "When the Senate was investigating the management of In fact, Busbee never used the word, "shambles," in his medicaid, where was the President, where were the officials Senate testimony. of the executive branch who are supposed to administer the In summary, here is what the Ford-Carter dialogue on the program? 1 don't know. Sitting in the White House perhaps, medicaid issue has produced to date: timid, fearful, afraid to lead, afraid to manage. That's some- Carter opened the exchange with what can only be des- thing they're going to have to answer for." cribed as a "cheap shot" at Ford, then attempted to walk One month earlier, in late July, Georgia Gov. George Bus- away from his responsibility for maladministration during his bee, a Democrat, testified before the Senate Finance Subcom- tenure as governor. mittee on Health about the conditions he found in 1974 when Ford, after telling a television audience of more than 80 he took over from Carter as Georgia's chief executive: million people that "these are his words," proceeded to mis- "One of the first acts I took after being elected governor quote the governor of one of the 50 states. and prior to taking the oath of office was to request from And nobody in the presidential contest has offered any then-Gov. Carter's emergency fund the resources necessary for thoughtful alternatives to remedy a quite serious problem. National Journal, 10/16/76 Q. Mr. President, there is increasing public concern about the ability of Americans, especially young Americans, to afford their own home. Is the "American dream" of homeownership dying, and what can you do about it? A. The American dream of homeownership is not dying. In fact, more and more Americans own their homes each year. The data make this very clear: Percent of Americans Who Own Their Own Homes 1950 1960 1970 Today 55% 61% 62% 65% Percent of Young American Families (Under 35) Who Own Their Own Homes 1950 1960 1970 Today 38% 48% 49% 56% And first-time home buyers are becoming younger. Percent of First-Time Home Buyers Under 35 1950 1960 1970 Today No Data 49% 54% 62% GOVERNMENT REORGANIZATION You don't make the government work better just by moving its functions or agencies around. How a government agency is set up depends on what it has to do. Unless you change what it is doing, reorganization merely changes the letterhead on the stationery. For example, I have been convinced for a long time that the government does a poor job of providing medical services through Medicaid and associated programs. That's why I proposed last January to reorganize the whole program, consolidating the money normally allocated to these various programs into one single payment allocated to individual states. This would have improved the way medical services reach the individual and allowed a sharp tightening up of the management of these programs. It would have cut the bureaucracy and saved money. The Congress, though, due to special interest pressures, ignored this and other major reorganizations. To be honest about it, there's just no short cut to government efficiency. Simply reshuffling bureaucrats won't do it. We must change the existing laws. GRAIN EMBARGO I will directly answer the question, but first some perspective. One thing about being President, you have to make decisions. You just can't straddle and wobble around in the Oval Office. Like President Truman said, "The buck stops here. " Sometimes your decision is unpopular -- not because it's wrong -- but because critics make a big issue out of one aspect of it. That's the case respecting my decision on the grain embargo, and I understand how some farmers feel about it. The way I see it, freedom for the farmer means freedom to look at circumstances of embargo. The outcome has been grow and sell. If he is asked to achieve full production, then the government is obliged not to interfere with his ability to sell what he produces. Farmers, like other Americans, have the right to have a President they can trust. I recognize my obligation to them. I recognize their need for trust. I foresee no circumstances in which I would impose an embargo on farm products. While that answers for the future, your question raises circumstances of the past. One can fairly argue that the embargo lasted too long, but it's important to look back and see why it was imposed at all. Had we not acted, the maritime unions, or the Congress, would very likely have done -2- something far worse to farmers. President Meany of the AFL-CIO and others were threatening to stop all shipments to the Soviets, including the 10 million tons already sold. Some 70 Members of Congress were moving to put all grain export sales under the control of a government board. Their bill was supported by Mr. Meany and other union leaders, and by Senator Mondale who called for strict export control licenses. I rejected such action, having always fought against that kind of government control, and I will continue to do so. Instead, we negotiated a long-term grain trade agreement whereby trade with the Soviet Union will stay in private hands and our farmers will continue to produce for a market and not a government board. This agreement has turned an off-and-on foreign buyer into a long-term stable pur chaser. The result is the circumstances that led to our problem in 1974 will not happen again because of the actions we have taken. THE PRESIDENT HAS SEEN SOCIAL PROGRAMS/GOALS BLOCK These are my personal goals: -- I want every American who wants one to have a good job with a paycheck -- this is the number one cure for our social problems. -- Every American should feel physically secure, free from the horror of war and the threat of crime. -- Every American should have a home in a decent neighborhood with schools where our children can get a good education. -- Every American should have the best medical care at costs which will not wipe out our savings. -- Every American wants to work and relax in a clean, healthy environment. Let me give you an example of how to get them. Good schools require continued federal aid but less federal interference. The block grant approach I have proposed has not been acted on by Congress. Until it is, we'll have federal bureaucrats continuing to reach into local school districts, rather than letting parents and teachers run the schools. I believe my election will be seen as a mandate for Congress to act. INFLATION/VETOES We've cut inflation in half -- and we're going to keep driving it down. Everytime I veto spending bills out of the Congress, I do it in the name of every American worker who wants his earnings protected; every senior citizen on a fixed income; every housewife who does the grocery shopping; and every taxpayer who has had it with bloated government. And, everytime the Congress sends me a bill that endangers the people's pocketbook, I'm going to keep right on vetoing it. It's the only way I know to cut inflation. And it has worked at the same time we've been creating 4,000,000 new jobs in this country in the last 17 months alone. Many of these vetoes have been a clean and hard message to Congress which said: -- remember not a few but all of the taxpayers, -- forget the special interests who live off the federal treasury, -- don't settle for bills that are partly good but mostly bad. Congress got the message now and then and sent back better bills which I then could sign into law. All in all, my vetoes have saved the taxpayers over 9 billion dollars. I find it interesting that Senator Mondale, who my opponent says is compatible on all counts with him, voted to override every one of these tax-saving vetoes. UNEMPLOYMENT Let me say first, that in the last 17 months more new jobs have been created than in any similar period in the history of this country -- 4, 000, 000 new jobs in 17 months, and 500, 000 in the last two months. And, if we stay on the same course, we'll keep making the same progress. Furthermore, 2 years ago, millions of American workers were afraid they were about to lose their jobs. I don't think many feel that worry today. This economy is strong -- and I think the American people feel that that is true. They can remember how bleak things seemed two years ago. And we've done it, while cutting inflation in half. No American President will ever be satisfied while there is one willing worker who can't find a decent job. But in pursuing jobs, no American President should make the mistake of backing spending programs which, through inflation, threaten the earnings of the 88 million Americans who are working. Nor can a President allow the economic course he charts to be erratic by shifting emphasis from one policy to another. Candidates can live by the press release -- a new proposal for every problem every day. A President needs to set a stable course and pursue it, day in and day out. That may not be good politics, but it's what leadership is all about. DRAFT 9/21 AG/MD WEB PRESIDENT HAS SEIN..................... SPENDING AND TAXES Governor Carter is trying desperately to repeal the laws of arithmetic. He's trying to find a way to enact the huge expenditure programs that he supported in the Democratic platform, balance the budget and not increase taxes where the vast revenue raising capacity of our tax system is, namely the middle class. In the impossible task of trying to have all of these objectives simultaneously, the Governor has tried out on us a number of different programs. He has somehow found $60 billion in excess revenues avail- able from the growth in the economy (over and above mandated expenditure increases) by 1980. Unfortunately, over the years many have believed the prediction that there will be somewhere down the road a huge surplus. This has turned out to be a mirage. The closer you get to it the farther it seems to go away, and I suspect that will be the fate of the $60 billion as has been the fate of all such previous surpluses. He has implied some vast potential savings from governmental reorganization. I can assure you it doesn't exist. He next sought to find revenues by proposing an unfair tax on families with above coverage incomes, somehow failing to recog- nize that even if we were to tax all incomes over $50,000 at 100% we would raise less than $9 billion which would pay for less than 4% of Mr. Carter's platform. -2- It is clear that the Governor does not have a clear view of how he can possibly support the huge expenditures in his platform without heavily taxing the hard working middle class. In fact, the other day, he as much as indicated that that was his program when he put forth the general proposition that he would increase taxes on all income levels above $13,000 or $14,000 a year. To quote him exactly, "I would take the mean or median level of income and anything above this would be higher, and anything below that would be lower. " I find the first part of the sentence incredible, the second part, that is about lowering taxes unbelievable, granted his support of his party's expenditure programs. The Governor is now backing off that proposition recognizing that he was advocating a major increase in taxation of middle income groups. But the Governor has not backed away from the Democratic platform, and that's where his real trouble lies. To enact the programs that Mr. Carter has promised to the American people will cost, in my judgment, an additional $100 to $200 billion a year. We can only pay for those programs in two ways: either we borrow the money and pay through higher inflation or we raise taxes. -3- To raise enough taxes to pay for his programs will cost every man, woman and child in the United States any- where from $500 to $1000 a year. There is one other proposal that Mr. Carter has put forward that has not attracted much attention but will also hit the pocketbooks of the American people very hard. That is his proposal, made earlier this year in an interview with Sylvia Porter, to increase the amount of income subject to Social Security taxes from approximately $15,000 to approximately $20-22,000. That's enough to raise the taxes of the American middle class worker between $285 and $400 a year (figures must be checked). In the realm of fiscal affairs which affects the value of the people's money, I believe a Presidential candidate must be very specific and direct. I've stated my position on expenditures and on taxes and I have presented my proposals in complete detail in my budget messages. I have not found a way to create something out of nothing. I suggest that if the American people are going to take the Governor's spending and tax proposals seriously, that he spell them out for the American people in the same detail that I have. My tax proposals are very simple. I believe that taxes should be cut for the hard working middle income wage earner, and I have outlined in great detail how -4- that could be done while reaching a balanced budget in fiscal year 1979. I suggest the Governor do the same. QUESTION: THE PRESIDENT HAS Seen Mr. President, what do you think about the question of victimless crimes such as prostitution, drug use and homosexuality ? ANSWER: I have never been convinced that any crime can accurately be said to be victimless. It simply is not accurate to describe drug use as victimless. On the contrary, it is a major contributor to and cause of the crime problems we face all across the country today. With respect to prostitution, I think it is clear that such activities provide a major source of income for organized crime. Even if it is not possible to identify a specific individual victim, the fact of the matter is society is a victim of such behavior and as long as we have made a judgment to outlaw such activities, the law should be enforced and those convicted of such crimes should be punished.

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    "ocrText": "The original documents are located in Box 3, folder \"Third Debate: Briefing Cards from\nFirst Debate (1)\" of the White House Special Files Unit Files at the Gerald R. Ford\nPresidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nDigitized from Box 3 of the White House Special Files Unit Files at the Gerald R. Ford Presidential Library\nNIXON - FORD (PROGRAMS/POLICIES)\nI am here to address six years of leadership -- my record as\nPresident during the past two years and what I will do, if elected, over\nthe next four years.\nI am accountable -- a responsibility I welcome -- for my record,\nmy policies, my decisions. My predecessor's policies are not my\nresponsibility.\nWhen I became President, inflation was skyrocketing. Now it is\ncut in half.\nWhen I became President, unemployment was increasing. The trend\nis now down (4,000,000 new jobs in 17 months)\nWhen I became President, people distrusted the White House. I\nrestored trust and domestic tranquility.\nWhen I became President, there was open conflict in the world.\nNow we are at peace.\nFor follow-up question:\nAfter becoming President, I sat down to decide which programs and\npolicies to keep, which to reject and which to change. For example:\n--\nI chose to keep revenue sharing which I fought for as\nMinority Leader of the House.\n--\nI chose to reject the policy of using wage and price controls.\n--\nI chose to change our health insurance policy.\n-2-\n--\nI chose to keep strong foreign and national defense\npolicies and to fight off efforts to undermine both.\n--\nAnd, I chose to fight inflation even in the face of an\nopposition Congress determined to go the other way.\nIMPROVING THE QUALITY OF LIFE\nQ. What have you done to improve the quality of\nlife in America?\nA. When I walked into the Oval Office, this country\nwas in a state of physical and mental pain:\n-- The economy was sick.\ndamaged.\n-- Our national pride was completely affected.\n-- The people were furious and disgusted, because\ntheir faith in their leaders was gone.\nMr. Carter has very honestly and kindly attested\nto the change that has been brought about, and I thank\nhim for it.\nThe first and most important quality of a President\nis leadership. The most important quality of leadership\nis judgment. It was my judgment that the American people\nshould calmly assess the extent of the damage of what has\ncelm common\nalways been a solid structure and begin to rebuild the\ndamaged areas. There was no room for more hysteria, decep-\ntion, or empty promises. Most of all, there was no need\nfor fast answers and quick fixes.\nI believe that there is no magic in the solution. Like\neverything else, it's simple, hard work. One step after\nanother, over the last 25 months, we have made a successful\njourney:\n-- reducing infation;\n-- putting four million people back to work;\n-2-\n-- and giving the American citizen the knowledge\nthat his government is solid, and honest.\nNow that we have laid a solid foundation, the\ncountry during the next four years has an ideal opport-\nunity to move ahead in many areas that have come to be\nassociated with the quality of life. We can work toward\na day:\n-- When every American who wants a job can find\none;\n-- When every American who wants a home and is\nwilling to work for it can afford good housing;\n-- When every American who wants to enjoy the\ngreat American outdoors can have access to a national\npark; and,\n-- When every American can count upon this nation\nbeing at peace.\nThese are my goals for the next four years.\nWHY YOU SHOULD BE ELECTED\nQuestion: Can you give four or five important reasons\nwhy the American people should vote for you on\nNovember 2nd.\nAnswer:\nOne: my performance in Office. In the past two\nyears, inflation has been cut from over 12% to under 6%.\nMore Americans have gone to work in the last 18 months\nthan in any similar period in our peacetime history.\nAmerica is finally at peace once again, and trust and\nfaith have been restored to the White House.\nNumber two: experience. I have had the privilege of\nserving the people of Michigan and the people of the\nUnited States for over 27 years. I have dealt first hand\nwith our national and international challenges. (I might\nadd that over the past 60 years, the American people have\nnever elected a President who had virtually no experience\nwith national and foreign affairs of our nation. I don't\nbelieve that this is the year to break tradition).\nNumber three: specific, reliable programs for the\nfuture. I have laid out a specific set of policies and\nprograms to restore full prosperity and keep America at\n- 2 -\npeace. It's on the record for all to see. (I believe\nthat the voters deserve more than smiles from a candidate,\nmore than cleverly chosen words; they need specifics,\nand I've got them.)\nNumber four: candor and trust. In the last two\nyears, we have tried to make candor and trust the hall-\nmarks of this Administration. As I said in my inaugural\naddress, truth is the glue that holds the nation together.\nThe American people can count on me for reliable, honest\nleadership, and I think they know it.\n210\nFORD - NIXON DIFFERENCES\nOne reason why this Nation has grown stronger\nover the past 200 years is because each successive\nAdministration builds on the accomplishments of\npast Administrations, changes policies and programs\nthat do not work and reacts to new challenges and\nproblems.\nMy Administration is carrying out Truman ini-\ntiatives, Eisenhower initiatives, Kennedy initiatives,\nJohnson initiatives as well as some Nixon initiatives.\nBut I have also initiated my own policies and\nprograms for example:\n\"28\n-- Proposed biggest tax cut in history;\n-- First comprehensive energy policy in our\nNation's history (1975 State of the Union);\n-- Brought federal budgetary processes under\ncontrol;\n-- Catastrophic health insurance;\n-- Proposed comprehensive reform of all federal\nregulations\n-- Proposed consolidation of federal programs\nsuch as education, health and child nutrition;\n-- Parks program;\n-- 1975 Sinai Agreement;\nWage & Price controls.\n-2-\n-- First comprehensive reorganization of\nour foreign intelligence agencies in\n30 years;\n-- 1974 agreement limiting offensive weapons\nwith Brezhnev;\n-- Economic summits both at home and abroad --\nan historical first.\nafrican Policy\nPerhaps even more significant than my initiatives\nis the manner in which I have tried to govern during\nthese difficult two years (go to camera) :\n*\nI have rejected the idea of an Imperial\nPresidency; we have seen too much raw power con-\ncentrated in the Oval Office in the last 15 years.\n*\nInstead, I have unclogged the lines of communi-\ncation and authority to the President.\n*\nI have taken power away from the White House\nstaff and restored it to the Cabinet where it belongs.\n*\nAnd I have taken the Presidency to the people\nwith an unprecedented number of regional briefings,\nmeetings and press conferences.\nThe changes in the country have been very\nnoticeable, I believe. It was most apparent in\nthe way that the Nation celebrated the 4th of July.\nBut I have also seen it in smaller ways. Last\nweek when I went back to the University of Michigan\n-3-\nand met with a number of students, the thing that\nstruck me was that the students were not overawed\nto see their President; they seemed very confortable\nand we had a good, open exchange. I can remember\na day not many years ago when a President of the\nUnited States could not go on a college campus;\nI'm very happy to see the difference.\nFollow-up - What policies of President Nixon\nhave you rejected?\nANSWER:\nFor EXAMPLE\nI have rejected the Imperial Presidency and\nsubstituted openness and candor.\nI\nkept Revenue Sharing (which I fought for\nas Minority Leader) but I have changed some policies,\nfor example:\nI reject:\n-- the use of wage and price controls\n-- the assumption that government spending\nmust continue to grow;\nI supported increased assistance for mass transit.\nGEORGIA STATE GOVERNMENT UNDER CARTER\nBUDGET\nFY 1971 $1,862,891\nFY 1975 3,036,002\nPercent increase: 62.97%\nLONG-TERM DEBT\nFY 1971 $ 931,125\nFY 1975 1,148,785\nPercent increase: 23,38%\nPUBLIC EMPLOYEES (Full and Part Time)\nOctober 1970 61,142\nOctober 1974 79,100\nPercent increase: 29.37%\nSOURCE: U.S. Bureau of Census\n(see attached tables)\nNOTES: Carter was inaugurated in January, 1971 and left\noffice in January, 1975. The Georgia fiscal year runs\nfrom July 1 through June 30.\nTHE PRESIDENT HAS SEEN\nAGRICULTURE\nFlip 1.)\n-- \"There will be no more grain embargoes\nif I'm elected President.\"\nIowa State Fair\nAugust 25, 1976\nFlop\n-- Within the hour, he told reporters that,\nof course, embargoes would be mandatory\nif we lack adequate reserves to meet\nour own domestic needs.\nDes Moines Register\nFlip 2.)\n-- To increase farm profits Carter proposed\n80% support price for milk as being\nadequate.\nCapital Times - Wisconsin\nMarch 25, 1976\nFlop\n-- In response to criticism, Carter said\nthat he would have signed the 85% parity bill\nvetoed by President Ford.\nDes Moines Register\nApril 4, 1976\nFlip 3.)\n-- In August Carter issued a statement saying\nhe was taking no position on Proposition\n14, a controversial item on this November's\nCalifornia ballot.\nFlop\n-- On September 5, however, Carter called a\nconvention of the United Farm Workers\nand said that \"I support the objectives\nof Proposition 14.\" The union then\nendorsed Carter.\n-- On September 7, Congressman Sisk, a Carter\nsupporter, resigned from the Carter-Mondale\nCommittee because of Carter's frequent\nchange of position on the issue.\nLos Angeles Times\nSeptember 8, 1976\nBUSING\nFlip 2.)\n-- Carter signed a Georgia Senate-House\nof Representatives resolution opposing\nforced busing to achieve integration in\nthe nation's classrooms and calling for\na constitutional amendment.\nAtlanta Constitution\nFebruary 25, 1972\nFlop\n-- Asked about what seemed to have been a\nshift in position, Carter said flatly\nthat he \"never advocated any constitu-\ntional amendment to prohibit busing. \"\nWashington Post\nMarch 7, 1976\n-- Jody Powell, Carter's press secretary,\nconceded to the Associated Press in\nFebruary that Carter had changed his\nstand on busing since he was Georgia's\ngovernor in 1972.\nCongressional Quarterly\nJune 24, 1976\nCITIES\nFlip 1.)\n--\"I think it would be inappropriate for\nthe Federal Government to single out\nNew York City for special favors.\"\nNew York Times\nMarch 31, 1976\nFlop\n\" If I am elected President in November,\nI would immediately start to work with\nthe governor, the mayor, and our advisors\nto formulate a contract to be signed by\nme to resolve New York City's financial\ndifficulties. \"\nBusiness Week\nMay 3, 1976\nFOREIGN TRADE\nFlip\n-- During the primaries Carter frequently\ncriticized the loss of U.S. jobs resulting\nwhen American companies locate abroad.\nFlop\n-- On July 22, Carter said foreign invest-\nment by U.S. companies was \"very\nhealthy.\"\nU.S. Journal\nJuly 23, 1976\nHEALTH CARE\nFlip\n-- \"In general, the Kennedy-Corman\nBill suites me but there are a\nfew facets of it on which I'd\nlike to reserve judgement.\nPhiladelphia Inquirer\nApril 12, 1976\nFlop\n-- \"I have never adopted any sort of\nhealth plan that was equivalent to\nthe Kennedy-Corman Bill. I think\nI am the only Democratic candidate\nwho did not. \"\nBoston Advertiser\nJuly 25, 1976\nTAX POLICY ON HOUSING\nFlip\n-- Carter told the Boston Globe on\nFebruary 26, 1976, that the income tax\ndeduction for home mortgage interest\npayments \"would be among those I would\nlike to do away with. \"\nFlop\n-- The Wall Street Journal noted on April 26,\n1976, that when reminded of his statement\nto the Globe he first denied he had said\nit. He added that he had said this was\none \"incentive I would consider modifying\"\nand then without elaboration, asserted,\n\"If I change the deduction it would be\nincreased, not decreased.\"\nTAX REFORM SPECIFICS\n-- Last year Carter promised to reveal specific\ntax provision plans by the end of the year.\nEarlier this year, he pledged to do the\nsame during the general election campaign.\nNow he insists it won't be possible until\na year after he takes office.\nWall Street Journal\nMay 13, 1976\nWAGE AND PRICE CONTROLS\nFlip\n-- Carter requested Nixon to reinforce\nwage and price controls to slow\n\"unprecedented inflation. \"\nAtlanta Journal\nApril 19, 1976\n--\nIf elected he (Carter) said he would\nask the Congress to restore the power\nof wage and price controls to the\nPresidency.\nCincinnatti Enquirer\nJanuary 10, 1976\nFlop\n-- Latest Carter view -\n\"On Wage and Price Controls Carter said\nhe would use them only as \"a last resort\"\nand that early in his administration he\nwould not even seek standby authority\nto impose them.\"\nLos Angeles Times (Interview)\nAugust 24, 1976\nREVENUE SHARING\nFlip\n-- \"I think revenue sharing is a big\nhoax and a mistake.\"\nAltanta Constitution\nJanuary 12, 1973\nFlop\n-- \"I stand with you in urging Congress\nto extend its general revenue sharing\n\"\nprogram\nSpeech, Conference of\nMayors - June 29, 1976\nFlip\n-- Carter does not endorse the \"counter-\ncyclical\" plan to concentrate revenue\nmoney in the areas of highest unemploy-\nment.\nBoston Globe\nFebruary 16, 1976\nFlop\n-- \"We also need counter-cyclical assistance,\nwith revenue sharing and other financial\naid designed to meet the special needs\nof the most hard pressed urban areas. \"\nSpeech, Conference of\nMayors - June 29, 1976\nMEDICAID\nNATION'S COMMITTED TO INSURING ACCESS TO HEALTH CARE FOR OUR\nLOW INCOME PEOPLE,\nTHOSE WHO DO NOT HAVE THE MONEY TO GET HEALTH CARE FOR THEM-\nSELVES AND ESPECIALLY FOR THEIR CHILDREN, SHOULD RECEIVE OUR HELP.\nMEDICAID WAS ENACTED TO HELP WITH THESE CONCERNS, OVER THE LAST\n10 YEARS HAS BEEN SUBJECT OF FRAUD AND ABUSE, MANY OF THE PROBLEMS\nARISE BECAUSE THE PROGRAM DESIGN HAS SERIOUS FLAWS. EVEN STATES\nTHAT HAVE TRIED HARD HAVE HAD PROBLEMS, GOVERNOR BUSBEE, THE\nGOVERNOR OF GEORGIA , TESTIFIED BEFORE CONGRESS TWO MONTHS AGO\nTHAT WHEN HE TOOK OFFICE, THE PROGRAM IN HIS STATE WAS IN A\nSHAMBLES. HE SAID IN 18 YEARS IN THE STATE LEGISLATURE, HE\nNEVER HAD SEEN SUCH AWFUL FRAUD AND ABUSE,\n(OVER)\nTHE GENERAL ACCOUNTING OFFICE RECENTLY CONDUCTED A STUDY OF\nTHE PROGRAM AND RECOMMENDED 59 IMPROVEMENTS TO TRY TO CORRECT\nTHESE PROBLEMS, 55 OF THESE CHANGES ARE BEING IMPLEMENTED.\nI AM CONVINCED THAT TINKERING WITH A FLAWED MECHANISM WILL NOT\nWORK, THAT IS WHY I RECOMMENDED LAST JANUARY A COMPLETE OVERHAUL\nOF MEDICAID AND 15 OTHER PROGRAMS THAT ARE SUPPOSED TO HELP LOW\nINCOME PEOPLE WITH THEIR HEALTH CARE.\nMY REFORM WOULD SOLVE FRAUD AND ABUSE PROBLEMS AND MAKE SURE\nTHE TAXPAYERS DOLLARS ACTUALLY HELPED.\nIssues\nELECTION\n21\nPOLITICAL FOCUS/ROBERT WALTERS\nMudslinging on Medicaid\nThis year's presidential campaign, like most of its predecess-\nan analysis of medicaid provider payments in order to detect,\nors, confirms the political axiom that the contest for the na-\nany potential program abuses\ntion's highest elective office may well be the worst possible\n\"We discovered nursing homes billing the state for a water\nvehicle for serious discussion of the crucial issues facing the\nski boat, trips to Hawaii and purchases at a large Atlanta de-\ncountry and its people.\npartment store for which there was no accounting. We had\nRomantics regularly argue that the presidential race could\ndentists who, in recent years, had billed the state more than\nand should be the forum for a major national debate on the\n$200,000 for work which, upon examination, was simply not\nfuture of our society, but politicians persist in mangling and\nfound in the mouths of patients.\"\ndistorting the issues to meet what they perceive to be their\nIn addition. a federally commissioned review of Georgia's\npersonal campaign requirements.\nmedicaid program found more than $4.6 million in physi-\nAs a result, the campaign to date-including three hours of\ncians' fees erroneously expended during a 15-month period\nhighly touted, nationally televised, head-to-head \"debates\"\nin 1972-73-i the middle of Carter's governorship.\nbetween the two principal contenders-generally has been de-\nBusbee's testimony about \"waste, extravagance and out-\nvoid of worthwhile discussion on the issues confronting the\nright fraud\" is especially significant in light of Carter's re-\ncountry as it proceeds into its third century.\npeated boasts of streamlining state government, making it\nExample: A representative case involves the federal-state\nmore efficient and more responsive to the needs of the people.\nmedicaid program that finances the principal health care\nThe one agency in which he displays particular pride is the\nneeds of 24 million poor people at a current annual cost of\nDepartment of Human Resources, which administers scores\napproximately $17 billion - $10 billion federal and $7 billion\nof social program in Georgia, including medicaid.\nstate money.\nResponse: When Carter discovered that President Ford's\nThat program is consuming both federal and state funds at\ncampaign organization was planning to use Busbee's testi-\nan alarmingly rapid rate, as a report in National Journal\nmony for its own partisan purposes, he promptly back-pedal-\n(Vol. 7. No. 38, p. 1319) indicated more than a year ago:\ned. In mid-September, Carter offered this admission:\n\"Though the federal government is by far the nation's larg-\n\"As governor of Georgia, I saw the system with all of its\nest purchaser of personal health services, it has not been\nproblems first hand. I worked for four years to try to straight-\nable to translate this economic leverage into controlling\nen it out. I never succeeded. Instead, I passed the problem on\ncosts.\nto my successor, and he hasn't solved it either.\nMedicaid expenditures have grown far more rapidly than\n\"The Ford Administration is, as usual, passing the buck,\nCongress originally anticipated because of three factors: in-\nblaming the states. But the law is clear. The responsibility of\ncreases in enrollment, rising medical costs and changes in\nthe federal government is clear-to keep costs down, to have\nservice.\"\na system that works and to eliminate fraud.\"\nIn late August of this year. the Senate Special Commit-\nBut independent authorities unanimously agree that, under\ntee on Aging said in a report that one-fourth to one-half of\nthe law, it is the states that have principal responsibility for\nall medicaid funds expended are being lost through fraud,\nhonest and efficient administration of the medicaid program.\ndeficient patient care, maladministration and issuance of\nSome states, such as Michigan and Texas, have developed\nbenefits to ineligible recipients.\nsound management programs. Others, including New York\nCarter: The Democratic presidential nominee, Jimmy Cart-\nand Georgia, have poor records.\ner, had nothing especially constructive to say about the prob-\nDebates: In the first of the televised debates between the two\nlem, but he immediately sought to turn the Senate allegations\ncandidates, Ford raised the issue, attempting to attack Carter\ninto a partisan campaign issue.\nthrough the use of Busbee's Senate testimony. Said the Presi-\n\"Special interests in the delivery of health care have gotten\ndent: \"He (Busbee) testified - and these are his words, the\nrich and the people have suffered,\" said Carter, who then\npresent governor of Georgia-he says he found the medicaid\nadded:\nprogram in 'shambles.'\n\"When the Senate was investigating the management of\nIn fact, Busbee never used the word, \"shambles,\" in his\nmedicaid, where was the President, where were the officials\nSenate testimony.\nof the executive branch who are supposed to administer the\nIn summary, here is what the Ford-Carter dialogue on the\nprogram? 1 don't know. Sitting in the White House perhaps,\nmedicaid issue has produced to date:\ntimid, fearful, afraid to lead, afraid to manage. That's some-\nCarter opened the exchange with what can only be des-\nthing they're going to have to answer for.\"\ncribed as a \"cheap shot\" at Ford, then attempted to walk\nOne month earlier, in late July, Georgia Gov. George Bus-\naway from his responsibility for maladministration during his\nbee, a Democrat, testified before the Senate Finance Subcom-\ntenure as governor.\nmittee on Health about the conditions he found in 1974 when\nFord, after telling a television audience of more than 80\nhe took over from Carter as Georgia's chief executive:\nmillion people that \"these are his words,\" proceeded to mis-\n\"One of the first acts I took after being elected governor\nquote the governor of one of the 50 states.\nand prior to taking the oath of office was to request from\nAnd nobody in the presidential contest has offered any\nthen-Gov. Carter's emergency fund the resources necessary for\nthoughtful alternatives to remedy a quite serious problem.\nNational Journal, 10/16/76\nQ.\nMr. President, there is increasing public concern about\nthe ability of Americans, especially young Americans,\nto afford their own home. Is the \"American dream\" of\nhomeownership dying, and what can you do about it?\nA.\nThe American dream of homeownership is not dying.\nIn fact, more and more Americans own their homes\neach year. The data make this very clear:\nPercent of Americans Who Own Their Own Homes\n1950\n1960\n1970\nToday\n55%\n61%\n62%\n65%\nPercent of Young American Families (Under 35)\nWho Own Their Own Homes\n1950\n1960\n1970\nToday\n38%\n48%\n49%\n56%\nAnd first-time home buyers are becoming younger.\nPercent of First-Time Home Buyers Under 35\n1950\n1960\n1970\nToday\nNo Data\n49%\n54%\n62%\nGOVERNMENT REORGANIZATION\nYou don't make the government work better just by moving its\nfunctions or agencies around. How a government agency is set up\ndepends on what it has to do. Unless you change what it is doing,\nreorganization merely changes the letterhead on the stationery.\nFor example, I have been convinced for a long time that the\ngovernment does a poor job of providing medical services through\nMedicaid and associated programs. That's why I proposed last January\nto reorganize the whole program, consolidating the money normally\nallocated to these various programs into one single payment allocated\nto individual states.\nThis would have improved the way medical services reach the\nindividual and allowed a sharp tightening up of the management of these\nprograms. It would have cut the bureaucracy and saved money.\nThe Congress, though, due to special interest pressures, ignored\nthis and other major reorganizations.\nTo be honest about it, there's just no short cut to government\nefficiency. Simply reshuffling bureaucrats won't do it. We must change\nthe existing laws.\nGRAIN EMBARGO\nI will directly answer the question, but first some perspective.\nOne thing about being President, you have to make decisions.\nYou just can't straddle and wobble around in the Oval Office. Like\nPresident Truman said, \"The buck stops here. \"\nSometimes your decision is unpopular -- not because it's\nwrong -- but because critics make a big issue out of one aspect of it.\nThat's the case respecting my decision on the grain embargo, and I\nunderstand how some farmers feel about it. The way I see it, freedom\nfor the farmer means freedom to look at circumstances of embargo. The\noutcome has been grow and sell. If he is asked to achieve full production,\nthen the government is obliged not to interfere with his ability to sell\nwhat he produces.\nFarmers, like other Americans, have the right to have a President\nthey can trust. I recognize my obligation to them. I recognize their need\nfor trust.\nI foresee no circumstances in which I would impose an embargo on\nfarm products.\nWhile that answers for the future, your question raises circumstances\nof the past.\nOne can fairly argue that the embargo lasted too long, but it's\nimportant to look back and see why it was imposed at all. Had we not\nacted, the maritime unions, or the Congress, would very likely have done\n-2-\nsomething far worse to farmers. President Meany of the AFL-CIO and\nothers were threatening to stop all shipments to the Soviets, including\nthe 10 million tons already sold. Some 70 Members of Congress were\nmoving to put all grain export sales under the control of a government\nboard. Their bill was supported by Mr. Meany and other union leaders,\nand by Senator Mondale who called for strict export control licenses.\nI rejected such action, having always fought against that kind of\ngovernment control, and I will continue to do so. Instead, we negotiated\na long-term grain trade agreement whereby trade with the Soviet Union\nwill stay in private hands and our farmers will continue to produce for a\nmarket and not a government board.\nThis agreement has turned an off-and-on foreign buyer into a\nlong-term stable pur chaser.\nThe result is the circumstances that led to our problem in 1974\nwill not happen again because of the actions we have taken.\nTHE PRESIDENT HAS SEEN\nSOCIAL PROGRAMS/GOALS BLOCK\nThese are my personal goals:\n--\nI want every American who wants one to have a good job\nwith a paycheck -- this is the number one cure for our social problems.\n--\nEvery American should feel physically secure, free from\nthe horror of war and the threat of crime.\n--\nEvery American should have a home in a decent neighborhood with\nschools where our children can get a good education.\n--\nEvery American should have the best medical care at costs\nwhich will not wipe out our savings.\n--\nEvery American wants to work and relax in a clean, healthy\nenvironment.\nLet me give you an example of how to get them. Good schools require\ncontinued federal aid but less federal interference. The block grant approach\nI have proposed has not been acted on by Congress. Until it is, we'll have\nfederal bureaucrats continuing to reach into local school districts, rather\nthan letting parents and teachers run the schools. I believe my election\nwill be seen as a mandate for Congress to act.\nINFLATION/VETOES\nWe've cut inflation in half -- and we're going to keep driving\nit down.\nEverytime I veto spending bills out of the Congress, I do it in the\nname of every American worker who wants his earnings protected; every\nsenior citizen on a fixed income; every housewife who does the grocery\nshopping; and every taxpayer who has had it with bloated government.\nAnd, everytime the Congress sends me a bill that endangers the people's\npocketbook, I'm going to keep right on vetoing it.\nIt's the only way I know to cut inflation. And it has worked at the\nsame time we've been creating 4,000,000 new jobs in this country in\nthe last 17 months alone.\nMany of these vetoes have been a clean and hard message to\nCongress which said:\n--\nremember not a few but all of the taxpayers,\n--\nforget the special interests who live off the federal treasury,\n--\ndon't settle for bills that are partly good but mostly bad.\nCongress got the message now and then and sent back better bills\nwhich I then could sign into law.\nAll in all, my vetoes have saved the taxpayers over 9 billion dollars.\nI find it interesting that Senator Mondale, who my opponent says is compatible\non all counts with him, voted to override every one of these tax-saving vetoes.\nUNEMPLOYMENT\nLet me say first, that in the last 17 months more new jobs have\nbeen created than in any similar period in the history of this country --\n4, 000, 000 new jobs in 17 months, and 500, 000 in the last two months.\nAnd, if we stay on the same course, we'll keep making the same progress.\nFurthermore, 2 years ago, millions of American workers were\nafraid they were about to lose their jobs. I don't think many feel that\nworry today. This economy is strong -- and I think the American people\nfeel that that is true. They can remember how bleak things seemed two\nyears ago. And we've done it, while cutting inflation in half.\nNo American President will ever be satisfied while there is one\nwilling worker who can't find a decent job. But in pursuing jobs, no\nAmerican President should make the mistake of backing spending programs\nwhich, through inflation, threaten the earnings of the 88 million Americans\nwho are working.\nNor can a President allow the economic course he charts to be\nerratic by shifting emphasis from one policy to another. Candidates can\nlive by the press release -- a new proposal for every problem every day.\nA President needs to set a stable course and pursue it, day in and day out.\nThat may not be good politics, but it's what leadership is all about.\nDRAFT 9/21\nAG/MD\nWEB PRESIDENT HAS SEIN.....................\nSPENDING AND TAXES\nGovernor Carter is trying desperately to repeal the laws\nof arithmetic. He's trying to find a way to enact the huge\nexpenditure programs that he supported in the Democratic\nplatform, balance the budget and not increase taxes where the\nvast revenue raising capacity of our tax system is, namely\nthe middle class.\nIn the impossible task of trying to have all of these\nobjectives simultaneously, the Governor has tried out on us\na number of different programs.\nHe has somehow found $60 billion in excess revenues avail-\nable from the growth in the economy (over and above mandated\nexpenditure increases) by 1980. Unfortunately, over the years\nmany have believed the prediction that there will be somewhere\ndown the road a huge surplus. This has turned out to be a mirage.\nThe closer you get to it the farther it seems to go away, and I\nsuspect that will be the fate of the $60 billion as has been the\nfate of all such previous surpluses. He has implied some vast\npotential savings from governmental reorganization. I can assure\nyou it doesn't exist.\nHe next sought to find revenues by proposing an unfair tax\non families with above coverage incomes, somehow failing to recog-\nnize that even if we were to tax all incomes over $50,000 at 100%\nwe would raise less than $9 billion which would pay for less than\n4% of Mr. Carter's platform.\n-2-\nIt is clear that the Governor does not have a\nclear view of how he can possibly support the huge\nexpenditures in his platform without heavily taxing\nthe hard working middle class. In fact, the other day,\nhe as much as indicated that that was his program when\nhe put forth the general proposition that he would\nincrease taxes on all income levels above $13,000 or\n$14,000 a year. To quote him exactly,\n\"I would take the mean or median level of\nincome and anything above this would be\nhigher, and anything below that would be\nlower. \"\nI find the first part of the sentence incredible, the\nsecond part, that is about lowering taxes unbelievable,\ngranted his support of his party's expenditure programs.\nThe Governor is now backing off that proposition\nrecognizing that he was advocating a major increase in\ntaxation of middle income groups.\nBut the Governor has not backed away from the\nDemocratic platform, and that's where his real trouble\nlies. To enact the programs that Mr. Carter has promised\nto the American people will cost, in my judgment, an\nadditional $100 to $200 billion a year. We can only pay\nfor those programs in two ways: either we borrow the\nmoney and pay through higher inflation or we raise taxes.\n-3-\nTo raise enough taxes to pay for his programs will\ncost every man, woman and child in the United States any-\nwhere from $500 to $1000 a year.\nThere is one other proposal that Mr. Carter has put\nforward that has not attracted much attention but will\nalso hit the pocketbooks of the American people very hard.\nThat is his proposal, made earlier this year in an\ninterview with Sylvia Porter, to increase the amount of\nincome subject to Social Security taxes from approximately\n$15,000 to approximately $20-22,000. That's enough to\nraise the taxes of the American middle class worker\nbetween $285 and $400 a year (figures must be checked).\nIn the realm of fiscal affairs which affects the\nvalue of the people's money, I believe a Presidential\ncandidate must be very specific and direct. I've stated\nmy position on expenditures and on taxes and I have\npresented my proposals in complete detail in my budget\nmessages. I have not found a way to create something\nout of nothing. I suggest that if the American people\nare going to take the Governor's spending and tax proposals\nseriously, that he spell them out for the American people\nin the same detail that I have.\nMy tax proposals are very simple. I believe that\ntaxes should be cut for the hard working middle income\nwage earner, and I have outlined in great detail how\n-4-\nthat could be done while reaching a balanced budget in\nfiscal year 1979. I suggest the Governor do the same.\nQUESTION:\nTHE PRESIDENT HAS Seen\nMr. President, what do you think about the question of victimless crimes\nsuch as prostitution, drug use and homosexuality ?\nANSWER:\nI have never been convinced that any crime can accurately be said to\nbe victimless. It simply is not accurate to describe drug use as\nvictimless. On the contrary, it is a major contributor to and cause\nof the crime problems we face all across the country today. With\nrespect to prostitution, I think it is clear that such activities provide\na major source of income for organized crime.\nEven if it is not possible to identify a specific individual victim, the\nfact of the matter is society is a victim of such behavior and as long\nas we have made a judgment to outlaw such activities, the law should\nbe enforced and those convicted of such crimes should be punished."
}