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2/26/76 - Harvard Business School Club of Washington
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2/26/76 - Harvard Business School Club of Washington
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This file contains material relating to RESPA, Condominiums.
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Carla A. Hills Speeches
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The original documents are located in Box 2, folder "2/26/76 - Harvard Business School
Club of Washington" of the Carla A. Hills Speeches 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States of America his copyrights in all of his unpublished writings in National Archives collections.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 2 of the Carla A. Hills Speeches at the Gerald R. Ford Presidential Library
FINAL
HARVARD BUSINESS SCHOOL CLUB OF WASHINGTON
FEBRUARY 26, 1976
IT IS A SPECIAL PRIVILEGE FOR THIS LAWYER FROM THE
OTHER NEW ENGLAND UNIVERSITY TO CONFER WITH YOU BUSINESS
EXPERTS FROM THE BANKS OF THE CHARLES. To BORROW A PHRASE
FROM FEBRUARY 16TH NEWSWEEK: "GOOD EVENING EMBATTLED
BUSINESSMEN!" I AM GRATEFUL FOR THE OPPORTUNITY TO
EXCHANGE VIEWS WITH THE QUALITY OF MANAGEMENT TALENT
GATHERED IN THIS ROOM TONIGHT,
I WAS INVITED TO DISCUSS HUD's "BUSINESS ORIENTED"
PROBLEMS, IN THAT CONTEXT I MIGHT START BY SEEKING YOUR
ADVICE ON HOW TO MANAGE THE 96,000 UNITS OF HOUSING THAT
HUD NOW HOLDS BY DEFAULT -- AS A LEGACY OF THE 1960's.
BUT, OUR ROLE AS FEDERAL LANDLORD IS JUST AN ISOLATED
RESULT OF PAST NATIONAL POLICIES THAT HAVE TURNED THIS
BICENTENNIAL ERA INTO THE ERA OF THE SERIOUS AFTERTHOUGHT.
FORD & LIBRARY GERALD
-2-
AND, IN AFTERTHOUGHT, WE HAVE LEARNED -- AND PAID
DEARLY FOR THE LESSON -- THAT NO MATTER HOW MUCH WE MAY
WILL IT -- A "SOCIETY" IS NOT SUDDENLY MADE "GREAT" THROUGH
WELL-MEANING PROGRAMS WHOSE SOLE SOURCE OF SUSTENANCE IS
THE FEDERAL EXCHEQUER.
So, LET ME SUGGEST A BROADER SCOPE FOR OUR DISCUSSIONS.
IT IS ALL TOO EASY TO SEE BY HINDSIGHT WHAT HAPPENED
TO AMERICA IN THE PAST TEN YEARS -- A DECADE WHICH THE
KNOWLEDGEABLE SEERS OF THE SIXTIES HAD FORESEEN AS AN ERA
OF GOOD WILL AND GOOD LIVING FOR ALL AMERICANS,
IN THAT DECADE WE SQUANDERED OUR RESOURCES, DECIMATED
OUR CITIES, ROLLED UP A STAGGERING $350 BILLION FEDERAL
DEBT, FIRED A RAGING INFLATION, AND GENERATED A PAINFUL
RECESSION -- AND IN SO DOING, WE HAVE SEVERELY SHAKEN PUBLIC
CONFIDENCE IN THE CREDIBILITY AND STABILITY OF BOTH BUSINESS
AND GOVERNMENT.
INDEED THE WITHERING OF VOTER CONFIDENCE IN EITHER THE
PUBLIC OR PRIVATE SECTORS TO FIND ECONOMIC SOLUTIONS HAS
PLACED OUR FREE ENTERPRISE SYSTEM IN SERIOUS JEOPARDY,
-3-
IT IS STILL VERY "AMERICAN" TO SING THE PRAISES OF
OUR FREE ECONOMY THAT HAS MADE AMERICA THE ENVY OF THE
WORLD. AND, RECENT POLLS FINDING THAT MOST AMERICANS
WOULD MAKE SACRIFICES TO PRESERVE THE SYSTEM, MAKE WARM
READING.
BUT, WHAT WE SAY ABOUT FREEING OUR ECONOMIC SYSTEM
FROM THE SHACKLES OF FEDERAL REGULATION AND WHAT WE
ACTUALLY DO DIFFER MEASURABLY.
TALK OF LIMITING "BIG GOVERNMENT" HAS INCREASED ON
BOTH SIDES OF THE POLITICAL AISLE; BUT, so HAS THE FLOW
OF LAWS, REGULATIONS AND APPROPRIATIONS THAT INCREASE
GOVERNMENT INTERVENTION AND INFLUENCE.
TALK OF CUTTING GOVERNMENT EXPENDITURES WHICH NOW
COUNT FOR ABOUT 40 PERCENT OF OUR GROSS NATIONAL PRODUCT
HAS INCREASED, BUT JUST A FORTNIGHT AGO, 321 CONGRESSMEN,
REPRESENTING A MAJORITY OF THE AMERICAN PEOPLE VOTED A
$6 BILLION BILL TO EXPAND PUBLIC WORKS AND PUBLIC SERVICE
JOBS -- A COSTLY ELECTION YEAR PORK BARREL BY ANY HISTORIC
STANDARD.
-4-
TRADITIONALLY, POLITICAL CAMPAIGNS HAVE BEEN WAGED
AND WON ON THE PROMISE OF "MORE FOR EVERYBODY". RESTRAINT
AND REASON HAVE NOT BEEN THE RHETORIC OF MOST CANDIDATES.
AND, IN FACT, MANY STILL SINCERELY BELIEVE IN THE
POWER OF GOVERNMENT TO RIGHT EVERY WRONG IN SPITE OF THE
EVIDENCE, You MAY RECALL THE CONTRAST BETWEEN SENATOR
MUSKIE'S RESPONSE TO THE PRESIDENT'S STATE OF THE UNION
WHEREIN HE SAID:
"WE CAN HAVE CONFIDENCE THAT GOVERNMENT
CAN
PUT PEOPLE BACK TO WORK,
WITH THE PRESIDENT'S THEME THAT MORE REAL AND LASTING JOBS
ARE CREATED THROUGH THE PRIVATE SECTOR,
THE AMERICAN PUBLIC CONFRONTED BY THIS CLASH IN IDEOLOGY
MUST MAKE A PROFOUND CHOICE GROUNDED IN ECONOMICS.
AND, IF IT IS VAGUE ABOUT THE FINE POINTS OF THE BUSINESS
PROFITS STRUCTURE -- AS POINTED OUT IN THAT OPINION RESEARCH
POLL QUOTED BY NEWSWEEK -- THERE ARE NEW SIGNS OF AN INTENSE
INTEREST IN CURRENT ECONOMICS ON THE PART OF THE PEOPLE,
-5-
THOSE SIGNS CAN BE SEEN IN MOST LIVING ROOMS OF THE
COUNTRY ON THE NIGHTLY NEWS SHOWS, AS ON-SCENE REPORTERS
AND ANCHOR MEN COVER THE BUSINESS AND FINANCIAL SCENE
WITH AS MUCH CARE AND DETAIL AS THEY GIVE TO THE TOP-
BREAKING NEWS EVENTS.
THE GNP; THE Dow JONES; HOUSING STARTS; STEEL OUTPUT;
DETROIT PRODUCTION; THE UNEMPLOYMENT RATE; THE PRESIDENT'S
BUDGET; MORTGAGE RATES -- ARE NOT JUST "ECONOMIC" NEWS
STORES, BUT NATIONAL NEWS,
SURELY, THE LEADERS OF AMERICA -- BOTH PUBLIC AND
PRIVATE -- MUST BE CHALLENGED BY THIS NEW CURIOSITY OF
AMERICANS IN ECONOMICS, DISHEARTENING AS IT IS TO CONCLUDE,
AS WE MUST, THAT A GOOD MEASURE OF THE INTEREST STEMS FROM
CYNICISM ROOTED IN A GROWING DISTRUST OF ALL INSTITUTIONS,
IT IS NO CREDIT -- EITHER TO GOVERNMENT OR TO INDUSTRY
-- THAT MORE AND MORE AMERICANS SEEM TO SEE THEIR OPTIONS
NARROWED TO A CHOICE BETWEEN EVILS: EXPANSIVE GOVERNMENT
WITH UNPRODUCTIVE INDUSTRY OR LIMITED GOVERNMENT WITH
IRRESPONSIBLE INDUSTRY.
-6-
UNLESS WE CAN TAKE STEPS TO MAKE THE ALTERNATIVES
MORE ATTRACTIVE, SOONER OR LATER THE GROWING WEIGHT OF
THESE CHOICES WILL BREAK DOWN THE FREE SYSTEM, WHICH WE
ALL ENDORSE, AND CREATE A CLIMATE IN WHICH EXTREME CALLS
FOR ECONOMIC RESTRUCTURING WILL SEEM LESS STRIDENT AND
MORE SENSIBLE,
THE TRUTH IS THAT OUR MAJOR NATIONAL PROBLEMS MUST
BE SOLVED IN PARTNERSHIP, FOR BOTH GOVERNMENT AND INDUSTRY
HAVE ALREADY PROVED THAT THEY ARE INCAPABLE OF SOLVING THEM
ALONE,
IT SOUNDS IN HORSE-AND-BUGGY ABSOLUTES TO ASK: How
MUCH OR HOW LITTLE GOVERNMENT DO WE NEED? THE ANALYSIS
SIMPLY MUST BE MORE QUALITATIVE: WHAT KIND OF GOVERNMENT
WILL WE HAVE IN THIS NATION'S THIRD CENTURY? WHERE, HOW
QUICKLY, AND HOW FAR DO WE MOVE THE BALANCE OF POWER FROM
PUBLIC TO THE PRIVATE SECTOR?
CERTAINLY, GOVERNMENT MUST BE HUMANE, AND RESPONSIVE.
BUT, UNLESS IT IS PROPERLY COMPATIBLE WITH THE FREE ECONOMY
OF THIS NATION, THOSE ARE NOTHING BUT "BUZZ" WORDS.
-7-
OUR PRIVATE ECONOMY CANNOT SUSTAIN AN AWESOME FEDERAL
DEFICIT OF TODAY'S MAGNITUDE WITHOUT THE EROSION OF THE
VERY FINANCIAL RESOURCES THAT ARE VITAL TO THE GROWTH AND
PRODUCTIVITY OF OUR FREE ENTERPRISE SYSTEM.
How, FOR EXAMPLE, WILL AMERICA BUILD AND BUY HOMES
IN WHICH TO LIVE IF GOVERNMENT IS THE BIGGEST COMPETITIVE
BORROWER OF AVAILABLE MORTGAGE MONEY?
How WILL WE ACHIEVE REAL ECONOMIC GROWTH IF THE
GOVERNMENT CONTINUES TO COMPETE WITH THE PRIVATE SECTOR
FOR DOLLARS TO BUY PUBLIC SERVICE JOBS WHEN WE KNOW THAT
JOBS CREATED IN THE PRIVATE SECTOR HAVE A FAR GREATER
AND MOST LASTING IMPACT?
To SAY THAT THE GOVERNMENT SHOULD STOP THE WORLD AND
GET OFF -- AT THIS POINT IN OUR COMBINED HISTORY -- IS A
TURN-OF-THE-CENTURY ABSURDITY, WE KNOW FEDERAL STIMULANTS
CAN BE USED TO BOOST SAGGING SECTORS OF THE ECONOMY WHEN
AND WHERE NECESSARY TO SMOOTH OUT DISLOCATIONS WITHOUT
FEDERALIZING THE ECONOMY,
-8-
IN HIS STATE OF THE UNION ADDRESS, PRESIDENT FORD
CALLED FOR "COMMON SENSE" GOVERNMENT. AND, HE PROPOSED
A FEDERAL BUDGET FOR FISCAL 1977 THAT "PROMISES NO MORE
THAN WE CAN DELIVER", YET, PROVIDES THE MEANS TO "DELIVER
ON ALL THAT WE PROMISE".
IT IS REALLY THE JOINT CHALLENGE OF BUSINESS AND
GOVERNMENT TO DEVISE COMMON SENSE PROGRAMS AND INITIATIVES
THAT ALLOW US BOTH TO DELIVER ON OUR PROMISES,
COMMON SENSE DEMANDS A GENUINELY COOPERATIVE ACTION
PROGRAM TO KEEP GOVERNMENT GROWTH TO AN ABSOLUTE MINIMUM,
-- BECAUSE SOME GROWTH IS INEVITABLE AS THE COMPLEXITIES
OF EXISTENCE INCREASE. WE NEED TO REFRAIN FROM ISSUING
NEW REGULATIONS AND TO DO AWAY WITH REGULATIONS NOW ON
THE BOOKS THAT SERVE NO DEMONSTRABLE PURPOSE.
THIS TAKES A CONSTANT DIALOGUE, WHERE WE HAVE HAD
STRONG AND OPEN LINES OF COMMUNICATION WITH THE PRIVATE
SECTOR, WE HAVE SUCCEEDED. WHERE WE HAVE NOT, WE HAVE
COMPOUNDED THE PROBLEMS.
-9-
TAKE OUR EXPERIENCE WITH THE REAL ESTATE AND SETTLEMENT
PROCEDURES AcT, WHICH HAS JUST UNDERGONE LEGISLATIVE REVISION.
OBVIOUSLY, HOMEBUYERS ARE ENTITLED TO PROTECTION IN
PROPERTY PURCHASES, INDEED, THE MOST VOCAL CHAMPIONS OF
THAT RIGHT ARE THE REALTORS THEMSELVES,
BUT, THE INITIAL STATUTE TYPIFIED REGULATION, WELL-
INTENTIONED IN CONCEPT BUT UNREALISTIC IN IMPLEMENTATION,
PRECISELY BECAUSE IT WAS ENACTED WITHOUT THE NECESSARY
INTERCHANGE OF IDEAS ON THE PROBLEMS ADDRESSED OR THE
SOLUTIONS FASHIONED. As A RESULT, WHAT STARTED OUT TO
CURB THE ABUSES OF A FEW, ENDED UP STIFLING THE LEGITIMATE
OBJECTIVES OF THE MANY,
CONVERSELY, TAKE OUR APPROACH TO CONDOMINIUM REGULATION,
LAST YEAR, YOU MAY RECALL, THERE WAS TREMENDOUS PRESSURE
FOR FEDERAL REGULATION OF THIS NEW "WONDER CHILD" OF INDUSTRY,
-10-
WE MOUNTED A HUD/INDUSTRY FACT FINDING EFFORT. DURING
ITS COURSE WE TALKED TO MANY REALTORS AND STATE OFFICIALS,
AND HELD CONSUMER HEARINGS AROUND THE COUNTRY, WE FOUND
ABUSES -- SOME OF THEM EXTREMELY SERIOUS -- BUT NOT NEARLY
AS COMMON OR WIDESPREAD AS THE COMMOTION THEY CAUSED.
BASED UPON THAT JOINT STUDY, IN SEPTEMBER I WAS ABLE
TO TESTIFY BEFORE SENATOR PROXMIRE'S BANKING COMMITTEE,
BACKED BY DETAILED DATA, THAT FEDERAL CONDOMINIUM REGULATION
SHOULD BE MINIMAL, AND, THAT DETAILED REGULATION SHOULD BE
LEFT TO THE STATES WHICH ARE BEST EQUIPPED TO TAILOR
REGULATORY LAWS TO LOCAL CONDITIONS.
THAT STUDY TOOK A LOT OF WORK IN BOTH THE PRIVATE AND
THE PUBLIC SECTORS. BUT, IT WAS VERY MUCH WORTH IT,
PARTICULARLY FOR THE AMERICAN CONSUMER WHO PAYS THE BILL
WHEN GOVERNMENT REGULATION RAISES INDUSTRY'S COST OF DOING
BUSINESS.
EQUALLY IMPORTANT, THIS KIND OF EXERCISE IN COMMONALITY
OF PURPOSE, GIVES EACH PARTNER A MORE INTIMATE LOOK AT EACH
OTHER'S REALISTIC LIMITS.
-11-
AND, THAT KNOWLEDGE IS ESSENTIAL TO THE ULTIMATE SUCCESS
OF THE PARTNERSHIP IN ITS SEARCH FOR THE QUALITATIVE ANSWERS
ABOUT GOVERNMENT. How OFTEN HAVE WE HEARD THE ADVERSARIES ON
HIGH IN THE COUNCILS OF BOTH SECTORS CLAIM THAT "THOSE PEOPLE
JUST DON'T UNDERSTAND OUR PROBLEM", WHICH, OFTEN AS NOT, IS
TRUE,
IN FACT, THAT PROBABLY IS WHY WE TEND TO COMPROMISE EACH
OTHER'S ESSENTIAL INTEREST IN DECISIONS WE MAKE INDEPENDENTLY.
As SECRETARY OF HOUSING AND URBAN DEVELOPMENT, I HAVE A
VERY POINTED INTEREST IN THE SUCCESS OF OUR COOPERATIVE MISSION,
FOR NOWHERE HAS OUR NATIONAL ECONOMIC CRISIS BEEN MORE SEVERELY
FELT THAN IN THE HOUSING INDUSTRY,
By 1975, THE LONG INFLATION COMMENCED IN THE 1960's HAD
GENERATED STAGGERING NEW COSTS ACROSS THE BOARD IN EVERYTHING
IT TAKES TO MAKE A HOUSE A HOME -- LAND, LABOR, BASIC MATERIALS,
FINISHED PRODUCTS -- TOPPED BY HISTORICALLY HIGH MORTGAGE
INTEREST RATES WHICH TENDED TO JUMP AT ANY MOMENTARY SIGN OF
INCREASED INFLATION.
-12-
POTENTIAL BUYERS AT MIDDLE-INCOME LEVEL, WHO ARE VITAL
TO INDUSTRY HEALTH, LITERALLY, WERE PRICED OUT OF THE MARKET.
NEW HOUSING STARTS WHICH ALREADY WERE LOW, FELL EVEN LOWER
IN LATE 1974 AND EARLY 1975.
RENTS HAD RISEN FASTER THAN TENANTS' INCOME AND "RENT
CONTROL" BECAME A SAD REALITY FOR APARTMENT OWNERS IN MANY
URBAN AREAS.
WE SAW THE FIRST SIGNS OF A POSSIBLE NEW TREND TO
"DOUBLING UP" -- WITH FAMILIES SHARING HOUSING UNITS, A
PHENOMENON THAT HAD BEEN IN STEADY DECLINE SINCE THE EARLY
1900's.
WITH HOUSING STARTS OF ALL KIND CURTAILED BY THE
INFLATIONARY CYCLE, CONSTRUCTION UNEMPLOYMENT BECAME ANOTHER
PAINFUL SIGN THAT A SERIOUS RECESSION HAD JOINED THE INFLATION.
WHILE THE INDUSTRY WAS COUNTING, AMONG ITS OTHER PROBLEMS,
ALL OF THE COSTLY CODES, RESTRICTIONS AND REGULATIONS LAID ON
IT BY ALL LEVELS OF GOVERNMENT -- HUD WAS COUNTING THE FAILURES
OF PREVIOUS GOVERNMENT EFFORTS TO SOLVE THE CHRONIC SHORTAGE
OF LIVABLE LOW-INCOME HOUSING.
-13-
AMONG OUR "SOUVENIRS" WERE ENORMOUSLY EXPENSIVE
SUBSIDIZED HOUSING PROJECTS WHICH HAD PROVIDED so LITTLE
FOR SO MUCH.
AND, HUD's PORTFOLIO OF RECLAIMED PROPERTIES GREW TO
THE 96,000 FIGURE I MENTIONED AT THE OUTSET, A PHENOMENON
RESULTING FROM UNWISE INITIAL LOANS COUPLED WITH A SINKING
ECONOMY WHICH ACCELERATED THE INCIDENCE OF RECLAMATION.
ALTHOUGH ONE OF HUD's PRIMARY JOBS IS TO HELP PROVIDE
DECENT HOUSING FOR OUR POORER CITIZENS, OUR CONCERN, NOW,
HAD SPREAD TO THE TRADITIONAL NEW HOME BUYERS IN THE MIDDLE-
INCOME LEVELS AS WELL.
SURELY, WE COULD ACCOMPLISH NONE OF HUD's OBJECTIVES
UNLESS WE FIRST HAD A HOUSING INDUSTRY HEALTHY ENOUGH TO
HELP SUSTAIN AND CARRY OUT OUR PROGRAMS.
THE QUICK ANSWER -- AND PRESSURE -- LAST WINTER AND
SPRING FOR SOLVING THE ECONOMIC DILEMMA CAME IN A RASH OF
PROPOSALS TO "SPEND" THE PROBLEM OUT OF EXISTENCE WITH
MASSIVE USE OF FEDERAL FUNDS -- WHICH TRANSLATED INTO MORE
BORROWING, AND ULTIMATELY, ANOTHER INFLATIONARY WAVE ON
TOP OF THE ONE THAT GOT US THERE IN THE FIRST PLACE.
-14-
INSTEAD, WE STEPPED UP LAUNCHING OUR RENTAL SUBSIDY
PROGRAM TO ASSIST VERY LOW INCOME FAMILIES SECURE DECENT
DWELLINGS, THIS PROGRAM RELIES ON THE PRIVATE MARKET FOR
ITS SUCCESS AND DE-EMPHASIZES FEDERAL LANDLORDSHIP.
AND, WE TARGETED SHARPLY FOCUSED PUBLIC FUNDS TO GET
THE PRIVATE HOUSING INDUSTRY MOVING AGAIN.
FIRST, PRESIDENT FORD APPROVED THE RELEASE OF MORTGAGE
PURCHASE ASSISTANCE FUNDS TO CUSHION THE DEVASTATING EFFECT
OF INFLATION ON SINGLE-FAMILY HOME BUYERSHIP.
OVER TWO YEARS, HUD HAS OFFERED TO BUY FOR RESALE $15
BILLION WORTH OF MORTGAGES BEARING BELOW-MARKET INTEREST RATES
ON SOME 500,000 NEW HOMES -- ENOUGH TO CRANK UP THE SINGLE-
FAMILY HOUSING INDUSTRY, WITHOUT CRANKING UP MORE INFLATION.
SECOND, IN OCTOBER, THE PRESIDENT APPROVED HUD's USE OF
$264 MILLION TO REACTIVATE ITS HOMEOWNERSHIP SUBSIDY PROGRAM
UNDER WHICH WE SUBSIDIZE DOWN TO 5 PERCENT MORTGAGES IN THE
RANGE OF $20,000 TO $25,000. THIS TRANSLATES INTO ASSISTANCE
FOR ABOUT 250,000 LOW AND MODERATE INCOME HOMEBUYERS, GENERATES
$6.5 BILLION IN CONSTRUCTION ACTIVITY AND PUTS 500,000 PEOPLE
BACK TO WORK,
-15-
THESE PROGRAMS SOUGHT NOT TO FEDERALIZE A SICK INDUSTRY
BUT RATHER TO ENCOURAGE RECOVERY THROUGH PRIVATE ENTERPRISE.
AND, THEY WORKED. TODAY, THE SINGLE-FAMILY MARKET IS
BACK ON THE ROAD TO ROBUST HEALTH, WITH INDUSTRY ECONOMISTS
REVISING THEIR FORECASTS FOR 1976 WELL UPWARD FROM THEIR
END-OF-THE-YEAR ESTIMATES.
AND, LAST MONTH, TO REMEDY THE LAG IN THE RECOVERY IN
THE MULTI-FAMILY MARKET, PRESIDENT FORD APPROVED HUD's
RELEASE OF $3 BILLION FEDERAL FUNDS TO PURCHASE MULTI-FAMILY
MORTGAGES, -- WHICH COVERS ABOUT 120,000 HOUSING UNITS.
AGAIN, THE OBJECTIVE IS TO SPARK RECOVERY WITHOUT
RE-FIRING THE INFLATION.
BUT IN ALL INSTANCES, IT IS PRIVATE INDUSTRY HELPED
BY GOVERNMENT THAT IS RESTORING OUR HOUSING ECONOMY --
NOT THE OTHER WAY AROUND.
AND, SO IT IS WITH BUSINESS AND INDUSTRY ACROSS THE
BOARD -- AS PRESIDENT FORD STICKS TO HIS GUNS IN LIMITING
THE FEDERAL PRESENCE TO PROVIDING JUDICIOUS STIMULANTS WHERE
ABSOLUTELY INDICATED AND IN STAVING OFF FURTHER INFLATION
so THE PRIVATE SECTOR CAN GET ON WITH ITS RIGHTFUL JOB,
-16-
As A RESULT, CONFIDENCE IS RETURNING -- TO THE POINT
WHERE FORTUNE's LEAD EDITORIAL IN THE CURRENT ISSUE TELLS
US WE'RE DOING EVEN BETTER THAN WE THINK.
BUT, WE STILL HAVE A GOOD WAY TO GO BEFORE WE CAN
HAVE THE LASTING CONFIDENCE THAT COMES FROM STRONG ECONOMIC
STABILITY -- AT ALL LEVELS OF THE INCOME LADDER,
PUBLIC CONFIDENCE IN GOVERNMENT AND INDUSTRY IS IN
DIRECT PROPORTION TO THE BREAD-WINNER'S CONFIDENCE IN
HIS OR HER CHANCE TO MAKE IT, MULTIPLIED BY ALL THE BREAD-
WINNERS IN THE NATION.
THE CHALLENGE OF OUR DECADE IS TO MAKE OUR SYSTEM OF
FREE ENTERPRISE WORK, HAMPERED NOT so MUCH BY A HARSH
ECONOMIC CLIMATE AS BY SAGGING PUBLIC CONFIDENCE.
THAT SHOULD BE CHALLENGE ENOUGH FOR US TO FORGE AND
CULTIVATE A SOLID PARTNERSHIP BETWEEN BUSINESS AND GOVERNMENT.