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    "title": "Ford Press Releases - Inflation, 1968",
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        "Gerald R. Ford Congressional Papers",
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    "ocrText": "The original documents are located in Box D8, folder \"Ford Press Releases - Inflation,\n1968\" of the Ford Congressional Papers: Press Secretary and Speech File at the Gerald R.\nFord Presidential 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. The Council donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain.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 D8 of The Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library\nCopy\n7 February 1968\n11111\nU. S. HOUSE\nOF REPRESENTATIVES\nREPUBLICAN POLICY\nCOMMITTEE\nREP. JOHN J. RHODES, (R.-ARIZ.) CHAIRMAN\n1616 LONGWORTH HOUSE OFFICE BUILDING\nTELEPHONE 225-6168\n10\nHOUSE REPUBLICAN POLICY COMMITTEE PLEDGES ACTION TO ESTABLISH PRIORITIES,\nREDUCE SPENDING AND REVISE AND REFORM EXISTING PROGRAMS\nThe deepening fiscal crisis at home and abroad demands courage, leadership\nand candor.\nUnfortunately, the Johnson Administration has failed to demonstrate any of\nthese qualities. Instead, it has sown the seeds for yet another spending explosion.\nThe proposed expenditures of $186.1 billion in the 1969 budget and the estimated\ndeficit of $8 to $21.2 billion are evidences of a government slipping out of control.\nAction must be taken by this Congress to impose spending priorities, reduce govern-\nmental expenditures and reestablish fiscal credibility.\nThe spending policies of the Johnson Administration have fed the inflationary\nfires, skyrocketed interest rates and created large deficits. They have led to a\nmarked reduction in the purchasing power of the dollar, caused a catastrophic drain\non the gold supply of this Country and endangered the world monetary system.\nSecrecy, improvisation and pclitically inspired estimates have become the\nhallmark of the Great Society economic planning.\nThe Johnson Administration has stubbornly insisted that this Country could\nfight a major war and escalate nondefense spending. The results devastating in-\nflation, a dollar under attack, proposed controls on travel and investment abroad, a\nplea for a 10 percent surtax, the threat of wage and price controls and a request\nthat the 25 percent gold cover be removed.\nUnder the new unified budget concept, the President proposes expenditures of\n$186.1 billion in fiscal 1969. If Congress enacts his tax proposals, he anticipates\nrevenues of $178.1 billion and a deficit of $8 billion. Without the tax increase, a\ndeficit of $21.2 billion is forecast.\n(over)\nUnder the 1969 Budget, new obligational authority would increase by nearly\n$18 billion compared to an increase of $7.4 billion in the current year. Total bud-\nget authority would increase by over $15 billion compared to less than $4 billion in\nthe current year. Net obligations incurred would increase by $15.7 billion compared\nto $10.8 billion in the current year.\nBased on the pattern of the past, there is reason to believe that the 1969\nbudget may present a misleading picture both as to income and outgo. Thus, even with\nthe enactment of the surtax, the budget deficit may be nearer $15 billion than the $8\nbillion the President has predicted.\nFor example, the President's budget assumes that the war in Vietnam will cost\n$26.3 billion. This may be at least $4 billion low just as the 1968 estimate has\nproven to be. Also, the President has asked for only a 10 percent increase in grants\nto the States for public assistance. In each of the last three budgets, the Admin-\nistration's estimate has been off several hundred million dollars. In fiscal 1968\nthe Administration has had to ask for an increase of some 26 percent over the original\nrequest.\nThe overall expenditure estimates of the past three budgets have been in-\ncredibly wide of the mark. In 1966, the first administration estimate was a full\n$10.4 billion less than actual spending. In 1967, the spread between the original\nand final estimate was $10 billion. This year's budget document projects a $4\nbillion increase over last January's estimate and fiscal 1968 is only half over.\nAlso, the original estimate for the deficit in fiscal 1968 was $8 billion. Now the\nPresident estimates that the deficit may be $19.8 billion with a tax increase and\n$22.8 billion without.\nIt is little wonder that the Chairman of the House Appropriations Committee\nhas warned: \"History strongly cautions us to assume that the budget will turn out\nfor the worse rather than the better; that it is wise to hedge against the uncertain-\nties, the slippages, the failures.\"\nThe dramatic increase in spending under the Johnson Administration is re-\nflected in the fact that in fiscal 1965 the Administrative budget expenditures\n(more)\ntotaled $96.5 billion. At that time, defense costs were $50.2 billion. In fiscal\n1969, administrative budget expenditures are estimated to total $147.3 billion. Of\nthis amount, $76.9 billion will be for defense. While defense costs have increased\nby $26.7 billion from 1965 to 1969, nondefense spending has increased $24.2 billion.\nThus, on a percentage basis, both defense and nondefense spending have increased by\n52 percent from 1965 to 1969.\nIn 4 years, full-time permanent employment in the executive branch will have\nincreased by 454,747 to a total of 2,687,500 civilian employees. This represents an\nincrease of more than 20 percent. In this period employment has decreased in only\none agency, the National Aeronautics and Space Administration and then by only 1.5\npercent. Now, in spite of the fiscal crisis, the budget anticipates a further in-\ncrease in 1969 over 1968 of 45,600 full-time permanent employees in the Executive\nBranch.\nCertainly no significant effort has been made by the Johnson Administration\nto restrain other Government spending when Vietnam defense costs were clearly escal-\nating. On the contrary, in 1965 and again in 1966 when the Republicans were out-\nnumbered two to one, President Johnson and his rubber stamp Democratic majority in\nCongress hastily enacted a flood of new and extremely costly programs. The next\ninstallments on these programs are now due.\nThis then may be the true measure of the 1969 budget as well as the Johnson\nAdministration. It is a business as usual approach. It is characterized by fast\ntalk and glib promises. It is so committed to the Great Society Programs and in-\ncreased spending that it has neither the will nor the competency to face up to our\nmounting economic problems and our new and pressing needs.\nIn the First Session of the 90th Congress, Republicans were instrumental in\nsaving the American taxpayers $4.1 billion in proposed spending and in cutting $5.8\nbillion from the President's new appropriation requests. A Republican expenditure\nlimitation of $131.5 billion was adopted by the House of Representatives. In a\nseries of 23 roll call votes on specific reductions, Republican Members of the House\nof Representatives averaged 85 percent support while Democrats averaged only 17\n(over)\npercent support.\nIn the Second Session, we pledge an even greater effort to establish\npriorities, reduce spending and revise and reform existing programs. This Country\nmust win the battle of the budget so that it may emerge from the present fiscal\ncrisis strong and better equipped to meet its obligations and challenges at home\nand abroad."
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