Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
4526484
label
Mobile Home Manufacturers Association, March 22, 1973
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
4526484
sourceUrl
contentType
document
title
Mobile Home Manufacturers Association, March 22, 1973
citationUrl
collections
Gerald R. Ford Congressional Papers
Speeches
subjects
Economics
Housing
Inflation (Finance)
iiifBase
thumbnailUrl
largeImageUrl
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
4526484
coverageEndDate
logicalDate
1973-03-31
month
3
year
1973
coverageStartDate
logicalDate
1973-03-01
month
3
year
1973
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
url
mediaId
f38aa0e6be784668
ocrText
The original documents are located in Box D34, folder "Mobile Home Manufacturers
Association, March 22, 1973" of the Ford Congressional Papers: Press Secretary and
Speech File 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. The Council 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States of America his copyrights in all of his unpublished writings in National Archives collections.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 D34 of the Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library
Notes
for Speech before the Mobile Homes Manufacturers Association March 22, 1973.
M Office Copy
There are problems in the economy and in the mobile home industry. I am not so
naive as to deny that. I am in the business of looking for problems--and solutions.
I am a problem-solver and an optimist.
I am optimistic about the future of the
economy and the future of the mobile home industry. My optimism stems from the belief
that WB are recognizing our problems--and that is the first step toward solving them.
To recognize problems is constructive. To become obsessed with them is destructive.
The best way to solve problems is to concentrate on our strengths. And if you
look at the economy and at your own industry you see many strengths, many reasons
for confidence.
First, the economy. We have made the transition from a highly inflationary
part
economy
devoted
larget
to
war to a far less inflationary economy concentrated on peace and genuine prosperity.
The prospect is for continued expansion of the economy and for moderation in price
increases on the average.
In the past four years, the number of persons engaged in the defense efforts--as
military or civilian personnel--has declined by about 2 million. Real expenditures
for defense-adjusted for pay and price increases--have declined by over30 per cent,
which is the equivalent of about $35 billion in today's prices. In fact, both the
number of persons in the armed forces and real expenditures for defense are now lower
than they ever have been at any time in the past 22 years --that is, since before the
Korean War. Smallert % 7 federal budget of smallest 9/15 of GNPm 20yrs
We have aso made the transition to a much lower rate of inflation. In 1969, the
rate of inflation W as 6.1 per cent. In 1972, after we got past the post-freeze bulge,
the rate of inflation was 3 per cent. Of course, some people will demand, "What about
the price of hamburger...or steak?" The fact is that the prices of non-food items have
been rising le SS rapidly--and that makes the rapid rise of food prices more tolerable.
Of course, continuation of price increases at the rate experienced in February would be
inconsistent with the nation's anti-inflation goals. The
wholesale price figures
for February emphasize the need to keep the very strong economic expansion
now under way from turning into an inflationary boom. We must make determined use of
our Phase III controls system, and We must have a continuing attack on the food price
problem at its source-the need for e xpanded supplies. Davisted acres/demonation I trade
bannes One basic on fortign imports 7 meat 4 huse.
fact about the inflation is that people are now keeping up with ito
By any measure, real incomes are rising much more rapidly than they have in a long
time.
The pro pect for 1973 is for a further rise in output and employment and a reduction
of unemployment. I expect that unemployment will be in the
neighborhood
of
41
per cent by the end of the year. And I am pleased that February employment showed a
-2-
large increase in civilian jobs--2.5 million higher than a year earlier. This is
further e vidence that the economy is expanding strongly.
I also predict that the rate of inflation will be lower by the end of 1973 than
it was
at the end of 1972. Food price will decline in the second half of 1973,
and Phase III will contribute effectively to diminishing the inflation
Let me just say a word about Phase III. The system is as voluntary as it can be
at this point and as mandatory as it needs to be.
There is common vie W of economic and political history which holds that
political democracy inevitably leads to more and more inflation, more and more
absorption of private incomes by the Government, and more and more Government control
over the economy.
Well, I'm here to tell you toda that the present Administration is going to
prove that theory wrong.
The best evidence of that is that the Administration will use the stick in the
closet against
inflation as necessary, and the Administration will hold
back Federal spending and avoid a tax increase.
Control of the federal budget within the limits proposed by the Administration
is orucial. It is crucial if we are to consolidate our progress against inflation,
and it is crucial for the whole future role of government in our society. You can be
encouraged by the strong fight the Administration is making and by the support it is
Budyet
getting in the Congress and elsewhere.
Now, what about the outlbok for your industry? I think it is
excellent.
You are not affected by the,
vagarie S of the stock market. The launching of the housing subsidy programs had
no
impact on your industry, and neither will the moratorium on subsidy housing
have any effect on you.
You are entrepreneurs in the best tradition of the free enterprise system.
Your industry fulfills a definite needs Statistics show that virtually all of
the
housing purchased by the $15,000-and-under income group is supplied by your
industry. And you are to be congratulated for turning out a steadily improving product.
There is no question that the mobile
home industry took a big step forward with
adoption of the American National Standards
Institute A-119.1 standard and the
National Fire Protection Associations standard 501-B.
benaton Bill Brok ITemn Congresoma or
have noted with great interest the billsintroduced by Lou Frey of Florida,
the National Mobile Home and Recreational Vehicle Safety Act of 1973. Congress should
these legislative proposate
Let me make
give this legislation the closest possible study and scrutiny. F and sure
that
each and every one of you shares Lou Frey's concerns and respects his motivation.
This absenvation - if problems what don't ynore Them. of an industrin does
not connect abusis, this niglect is the seed from which nistrictive legislation grows.
-3-
What's the outlook for the
mobile home industry? It can only be described
as bright. My information is that your production now is running at an annual rate of
nearly 700,000--and that is a fantastic figure for what really is
still
a very young industry.
There probably is considerable potential for you among
the growing "army"
of veterans in this country--sales of first homes to Vietnam veterans and retirement
homes to
veterans of World War II. Some five and three-quarter million people have
left the U.S. armed forces for civilian life in the past eight years. As a result,
the
veteran population of our nation has risen sharply.
As you know, Congress in 1970 approved a
law letting the Veterans
Administration guarantee loans on mobile homes as well as on the lots to place them
on. know
Well, that program hasn't really gotten off the ground. There's a lot of red
tape connected with it, and I can tell you that the House Veterans Affairs Committee
is planning to look at the program to see if it canbe made more attractive.
The
Veterans Committee
frankly is disappointed with the results.
The VA
mobile homes program has fallen far short of its goals. But it's
now picking up. In recent weeks VA officials have conferred with mobile home
manufacturer S and dealers and with money lenders. They want to make the program go.
jumped at the opportunity
Up to this point, Vietnam veterans have not
to purchase
mobile
homes. Last
year, 50 per cent of VA's loans for stick-built homes were to
Vietnam vets.
But VA officials are doing everything they can to promote the mobile homes loan
guarantee program, and it
is beginning to accelerate. Of the 5,460 mobile home
loans guaranteed by the VA
last
year, 4,178 were to post-Korean vets.
I say the future of your industry is bright because you've got a lot going
for you. Mobile homes are the only low-cost new homes available. The $20,000
stick-built home has become a myth. The cost of producing stick-built housing has
rinsen ramatically. At the same time, with your assembly-line methods, you are
doing
something to lick high
housing costs--and it is the mobile home
purchaser who benefits.
I am not here to promote the sale of mobile homes. But there is no question that
the mobile home industry holds revolutionary potential for future advancement in the
field of housing. Mobile homes have become a major segment of the nation's housing
supply. They are here to stay.
GERALD FORD LIBRARY
Notes for Speech before the Mobile Homes Manufacturers Association March 22, 1973.
There are problems in the economy and in the mobile home industry. I am not D
naive as to deny that. I am in the business of looking for problems--and solutions.
I am a problem-solver and an optimist. Mymmpt I am optimistic about the future of the
economy and the future of the mobile home industry. My optimism stems from the belief
that We are recognizing our problems--and that is the first step toward solving them.
To recognize problems is constructive. To become obsessed with them is destructive.
The best way to solve problems is to concentrate on our strengths. And if you
look at the economy and at your own industry you see many strengths, many reasons.
for confidence.amdxenenzragerentxzi
First, the economy. We have made the transition from a highly inflationary
part
devoted
large
to
war to a far less inflationary economy concentrated on peace and genuine prosperity.
The prospect is for continued expansion of the economy and for moderation in price
increases on the average.
In the past four years, the number of persons engaged in the defense efforts--as
military or civilian personnel-has declined by about 2/2 million. Real expenditures
for defense--adjusted for pay and price increases--have declined by over30 per cent,
which is the equivalent of about $35 billion in today's prices. In fact, both the
number of persons in the armed forces and real expenditures for defense are now lower
than they ever have been at any time in the past 22 years that is, since before the
Korean War.
We have also made the transition to a much lower rate of inflation. In 1969, the
rate of inflation W as 6.1 per cent. In 1972, after we got past the post-freeze bulge,
the rate of inflation was 3 per cent. Of course, some people will demand, "What about
the price of hamburger...or steak?" The fact is that the prices of non-food items have
been rising le SE rapidly--and that makes the radid rise of food prices more tolerable.
Cf course, continuation of price increases at the rate experienced in February would be
inconsistent with the nation's anti-inflation goals. The fx wholesale price figures
saedx for February emphasize the need to keep the very strong economic expansion
now under way from turning into an inflationary boom. We must make determined use of
our Phase III controls system, and we must have a continuing attack on the food price
problem at its source-the need for & xpanded supplies.
One basic fact about the inflation is that people are now keeping up with it.
By any measure, real incomes are rising much more rapidly than they have in a long
time.
FORD
The pect for 1973 is for a further rise in output and employment and a reduction
of unemployment. I expect that unemployment will be in the neighborhood of 42
per cent by the end of the year. And I am pleased that February employment showed a
-2-
large increase in civilian jobs--2.5 million higher than a year earlier. This is
further e vidence that the economy is xpanding strongly.
I also predict that the rate of inflation will be lower by the end of 1973 than
it was
at the end of 1972. Food prices will decline in the second half of 1973,
and Phase III will contribute effectively to diminishing the inflation1.
Let me just say a word about Phase III. The system is as voluntary as it can be
at this point and as mandatcry as it needs to be.
There is common vie W of economic and political history which holds that
political democracy inevitably leads to more and more inflation, more and more
absorption of private incomes by the Government, and more and more Government control
over the economy.
Well, I'm here to tell you today that the present Administration is going to
presextint
prove that theory wrong.
The best evidence of that is that the Administration will use the stick in the
closet against inflation as necessary, and the Administration will hold
back Federal spending and avoid a tax increase.
Control of the federal budget within the limits proposed by the Administration
is crucial. It is crucial if we are to consolidate our progress against inflation,
and it is crucial for the whole future role of government in our society. You can be
encouraged by the strong fight the Administration is making and by the support it is
getting in the Congress and elsewhere.
Now, what about the outlbok for your industry? I think it is excellent.
You are not affected by the international deliarzrisis> monetary crisis or by the
vagarie of the stock market. The launching of the housing subsidy programs had
notxin
impact on your industry, and neither will the moratorium on subsidy housing
have any effect on you.
You are entrepreneurs in the best tradition of the free enterpri se system.
Your industry fulfills a definite needs Statistics show that virtually all of
the
housing purchased by the $15,000-and-under income group is supplied by your
industry. And you are to be congratulated for turning out a steadily improving product.
There is no question that the mobile home industry took a big step forward with
adoption of the American National Standards Instistazx Institute A-119.1 standard and the
National Fire Protection Associations standard 501-B.
have noted with great interest the bill introduced by Lou Frey of Florida,
the National Mobile Home and Recreational Vehicle Safety Act of 1973. Congress should
give this legislation the closest possible study and scrutiny. I am sure tthat
each
and every one of you shares Lou Frey's concerns and respects his motivation.
-3-
What's the outlook for the mobile home industry? It can only be described
as bright. My information is hat your production now is running at an annual rate of
nearly 700,000--and that is a fantastic figure for what really is EX still
a very young industry.
There probably is considerable potential for you among waterment the growing "army"
of veterans in this country--sales of first homes to Vietnam veterans and retirement
homes to Wx veterans of World War II. Some five and three-quarter million people have
left the U.S. armed forces for civilian life in the past eight years. As a result,
the veteran populati on of our nation has risen sharply.
As you know, Congress in 1970 approved a haxls law letting the Voterans
Administration guarantee loans on mobile homes as well as on the lots to place them
on.
Well, that program hasn't really gotten off the ground. There's a lot of red
tape connected with it, and I can tell you that the House Veterans Affairs Committee
is planning to look at the program to see if it canbe made more tor attractive. The
Veterans Committee frax gran frankly is disappointed with the results.
The VA program mobile homes program has fallen far short of its goals. But it's
now picking up. In recent weeks VA officials have conferred with mobile home
manufacturer and dealers and with money lenders. They want to make the program go.
jumped at the opportunity
Up to this point, Vietnam veterans have not **kmux to purchase mobile
homes. Last fixest year, 50 per cent of VA's loans for stick-built homes were to
Vietnam vets.
But VA officials are doing everything they can to promote the mobile homes loan
guarantee program, and it ET is beginning to accelerate. Of the 5,460 mobile home
loans guaranteed by the VA ****** last year, 4,178 were to post-Korean vets.
I say the future of your industry is bright because you've got a lot going
for you. Mobile homes are the only low-cost new homes available. The $20,000
stick-built home has become a myth. The cost of producing stick-built housing has
rissendramatically At the same time, with your assembly-line methods, you are
doing something to lick high cursts housing costs--and it is the mobile home
purchaser who benefits.
I am not here to promote the sale of mobile homes. But there is no question that
the mobile home industry holds revolutionary potential for future advancement in the
field of housing. Mobile il homes have become a major segment of the nation's housing
supply. They are here to stay.