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9/24/76 - Illinois Press Association
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9/24/76 - Illinois Press Association
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This file contains material relating to Humphrey - Hawkins Bill.
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Carla A. Hills Speeches
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The original documents are located in Box 2, folder "9/24/76 - Illinois Press Association" 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States of America his copyrights in all of his unpublished writings in National Archives collections.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
ILLINOIS PRESS ASSOCIATION
SEPTEMBER 24, 1976
THE TELEVISED DEBATE LAST NIGHT CERTAINLY UNDERSCORED ONE
FACT OF LIFE IN THIS CAMPAIGN YEAR, AND THAT IS THAT: PERSONALITIES
REGIONAL ISSUES AND POLITICAL IDEOLOGIES ASIDE THERE IS ONE ISSUE
IN THE NATION -- AS THERE IS ONE ISSUE HERE IN ILLINOIS -- AND
THAT IS THE STATE OF OUR NATIONAL ECONOMY.
BECAUSE, IF THE UNITED STATES DOES NOT CONTINUE TO KEEP A
FIRM HANDLE ON THE ECONOMIC FORCES THAT CONTROL ITS DESTINY --
ALL THE REST IS JUST DUST ALONG THE CAMPAIGN TRIAL.
AND THAT IS WHAT I WANT TO TALK WITH YOU ABOUT TONIGHT.
I'LL KEEP MY REMARKS SHORT TO ALLOW THE MAXIMUM TIME FOR
THE DISCUSSION PERIOD. HOWEVER -- AS WE SAW LAST NIGHT -- WE
SHOULD BE FOREWARNED THAT THIS POTENT SUBJECT IS CAPABLE OF
BLOWING OUT THE SOUND SYSTEM!
THE BIGGEST QUESTION IN THIS PRESIDENTIAL CAMPAIGN -- AND
IN PHILADELPHIA LAST NIGHT AND IN SPRINGFIELD TONIGHT AND IN
ALL OUR GREAT CITIES IS: WHICH MAN -- PRESIDENT FORD OR MR.
CARTER -- OFFERS THIS NATION THE BEST ECONOMIC POLICIES FOR
THE YEARS IMMEDIATELY AHEAD.
IN THIS BI-CENTENNIAL ELECTION YEAR, WE HEAR OUR OPPOSITION
-- WEEK AFTER WEEK -- CALLING FOR MORE OF THE SAME PROGRAMS GRO
THE 1960's, THAT GOT THIS NATION IN THE SERIOUS ECONOMIC
un
1970's
GERARD
STRAIT
LIBRARY
WITH
110
TN
TUC
-2-
IN TRUTH, MR. CARTER'S ECONOMIC "WIZARDRY" IS A RETUNED
VERSION OF YESTERDAY'S ECONOMIC "SOLUTIONS".
IT IS OF MORE THAN PASSING INTEREST THAT THESE SAME OLD
REMEDIES ARE THE ONES THAT HAVE BEEN so HIGHLY TOUTED FOR THE
PAST TWO YEARS IN STRIDENT OPPOSITION TO PRESIDENT FORD'S
MEASURED ECONOMIC POLICIES. AND THAT COINCIDENCE IS WORTH
THINKING ABOUT.
So, LET US BEGIN BY TAKING STOCK.
WHERE WERE WE A YEAR AGO? WHAT HAVE WE DONE ABOUT IT? AND
WHAT HAVE WE LEARNED THAT SHOULD CAUSE US TO PAY SPECIAL HEED
TO THE ECONOMIC DEBATE IN TODAY'S PRESIDENTIAL CAMPAIGN?
NONE OF US CAN FORGET THAT IN 1975, THE MAJOR QUESTION
MARK WAS WHETHER OUR NATIONAL ECONOMY WOULD SUSTAIN THE FORWARD
MOMENTUM WHICH WAS THEN ON THE CUSP OF A POSITIVE TURN-AROUND
-- FROM THE BLEAK AND DEPRESSING 12-MONTH PERIOD OF A TERRIFYING
RECESSION COMPOUNDED BY AN UNCEASING INCREASE IN THE COST OF
EVERYTHING.
INFLATION STOOD AT 12-14 PERCENT, THE UNEMPLOYMENT RATE
WAS ABOUT 9 PERCENT.
-3-
URBAN REVENUES WERE WAY DOWN. NEW YORK AND OTHER CITIES
WERE ON THE BRINK OF FINANCIAL FAILURE. INDUSTRY WAS DEPRESSED
AND THE HOUSING SECTOR WAS SUFFERING ITS WORST YEAR IN 3 DECADES.
So, HERE WE ARE -- ONE YEAR LATER.
THE NATION AND ITS ECONOMY SURVIVED -- IN SPITE OF THE
DOOMSAYERS -- AND THE DELICATE HEALTH OF THE ECONOMIC UPTURN,
WHICH WE WATCHED so FRETFULLY A YEAR AGO, HAS BECOME STRONGER
AND STRONGER WITH EACH PASSING MONTH.
IN ONE SHORT YEAR WE HAVE SEEN:
PERSONAL INCOME JUMP $83 BILLION; -- OUR GROSS NATIONAL
PRODUCT GROW BY $200 BILLION; RETAIL SALES INCREASE 16 PERCENT;
AUTO SALES 38 PERCENT; GENERAL MERCHANDISE 11 PERCENT; -- NEW
FACTORY ORDERS UP $17 BILLION.
TODAY, THERE ARE 3 MILLION MORE AMERICANS WORKING THAN
ONE YEAR AGO -- IN SPITE OF A TREMENDOUS INFLUX OF WOMEN AND
YOUNG PEOPLE INTO THE LABOR MARKET, AND INFLATION HAS BEEN
MORE THAN CUT IN HALF.
-4-
AND IN HOUSING -- PERHAPS THE HARDEST HIT SECTOR OF OUR
ENTIRE ECONOMY, -- NEW STARTS ARE UP 22 PERCENT OVER LAST
AUGUST, AND 64 PERCENT OVER THE BEGINNING OF 1975.
WHAT HAVE WE LEARNED?
WE HAVE COME THIS FAR, NOT THROUGH SOME MAGIC OF A BIG
FEDERAL GOVERNMENT "SAVE," BUT THROUGH THE STRONG AND CONSISTENT
GUIDING HAND. OF A PRAGMATIC PRESIDENT.
AND OUR PROSPECTS FOR CONTINUED GROWTH AND PROGRESS DEPEND
ON MAINTAINING THE STEADY COURSE PRESIDENT FORD SET WHEN HE
TOOK OFFICE TWO YEARS AGO.
UNDER PRESIDENT FORD, BASED ON HIS RECORD OF UNDERSTATED
PROMISES AND HIS PATTERN OF DELIVERING MORE THAN HE PROMISES,
WE CAN COUNT ON THE FACT THAT INFLATION WILL DROP STEADILY DOWN
TO 3 PERCENT IN 1980.
WE CAN COUNT ON THE FACT THAT PERSONAL INCOME WILL INCREASE
BY MORE THAN 10 PERCENT EACH YEAR -- PRODUCING MORE REAL
PURCHASING POWER NOT A MERE COST-OF-LIVING CATCH-UP.
-5-
AND WE CAN COUNT ON THE FACT THAT UNEMPLOYMENT WILL
CONTINUE ITS STEADY DECLINE TO LESS THAN 5 PERCENT BY 1980.
Now, LET US LOOK AT THE CONFUSING AND OFTEN CONTRADICTORY
PROMISES OFFERED BY MR. CARTER.
IN AN EFFORT TO HEDGE THE "SPENDER" IMAGE HE HAS ACQUIRED
FROM SOME SPEECHES TO SOME AUDIENCES HE HAS SAID IN AT LEAST
ONE INTERVIEW THERE WOULD BE NO ADDITIONAL SOCIAL PROGRAMS IN
A CARTER ADMINISTRATION UNTIL THE BUDGET WAS BALANCED.
THAT CAN ONLY MEAN THAT HE ENDORSES -- AS I DO -- THE
COURSE THE PRESIDENT HAS BEEN FOLLOWING, INCLUDING EACH AND
EVERY ONE OF THOSE VETOES WHOSE PRINCIPAL OBJECTIVE HAS BEEN
TO KEEP OUR NATIONAL DEFICITS DOWN,
IF OUR OPPOSITION APPROVES OF PRESIDENT FORD'S STRATEGY
WHICH HAS ACCOMPLISHED so MUCH, THERE IS NO LOGICAL REASON
TO CHANGE LEADERS -- AND THERE IS VERY GOOD REASON TO AVOID
UNNECESSARY DISRUPTION AT THIS CRUCIAL STAGE OF NATIONAL
ECONOMIC RECOVERY,
-6-
BUT THE OPPOSITION CANDIDATE'S REPEATED CALL FOR MORE
GOVERNMENT PROGRAMS, LEAVES SCANT LIKELIHOOD THAT HE WOULD
FOLLOW THE PRESIDENT'S WISE PRECEDENT.
IF WE LISTEN TO HIS ENDORSEMENT OF PROPOSALS THAT WOULD
ADD $100 TO $200 BILLION TO A BUDGET THAT IS ALREADY PRODUCING A
DEFICIT OF OVER $50 BILLION THEN WE MUST CONCLUDE THAT HE IS
PURSUING THE PRESIDENCY WITH THE SAME "SOMETHING FOR EVERYBODY"
PROMISES THAT HAVE BEEN HIS PARTY'S STOCK-IN TRADE FOR FOUR
DECADES.
FOR EXAMPLE, THE FAMILIAR ADHERENCE TO THE DISCREDITED
NOTION THAT AMERICA CAN "BUY ITS WAY" OUT OF ANY PROBLEM IS
FOUND IN HIS SUPPORT OF THE NATIONAL HEALTH INSURANCE PROGRAM
THAT WOULD ADD $70 BILLION AND OF THE HUMPHREY-HAWKINS EMPLOYMENT
BILL WHICH WOULD ADD ANOTHER $50 BILLION TO THE BUDGET IN ITS
FIRST YEAR.
AND THE UNVARNISHED EVIDENCE IS THAT THESE PROGRAMS WOULD
THWART NEEDED BUSINESS EXPANSION BY DRIVING UP COSTS OF DOING
BUSINESS,
-7-
THAT HURTS THE VERY PEOPLE THESE PROGRAMS WERE SUPPOSED
TO HELP -- WITH GREATER EXPENSES, EMPLOYMENT CONTRACTION,
LAYOFFS AND STILL ANOTHER ROUND OF UNEMPLOYMENT CHECKS.
THE HUMPHREY-HAWKINS BILL WOULD "CREATE" MAKE-WORK FEDERAL
EMPLOYMENT ON ONE END WHILE THE MEANINGFULLY-EMPLOYED IN THE
PRIVATE SECTOR WOULD BE SQUEEZED OUT AT THE OTHER, IN FACT, A
CARTER ECONOMIC ADVISOR HAS ESTIMATED THAT THE HUMPHREY-HAWKINS
APPROACH WILL DRIVE-UP INFLATION ANOTHER 15 PERCENT,
SURELY, A CONCERN FOR CATASTROPHIC ILLNESS AND UNEMPLOYMENT
IS NOT THE SOLE PROVINCE OF THE DEMOCRATIC CANDIDATE. BUT,
PRESIDENT FORD'S SOLUTION DOES NOT CALL FOR A DON QUIXOTE CHARGE
OF MASSIVE FEDERAL SPENDING TO WIPE OUT THESE ANCIENT ENEMIES.
IN HEALTH INSURANCE, THE PRESIDENT PROPOSES NOT TO FEDERALIZE
ALL OF THE HEALTH CARE, BUT, INSTEAD, TO INSURE THAT ELDERLY
PERSONS WITH MAJOR MEDICAL EXPENSES WILL NOT BE FINANCIALLY
DESTROYED BY THOSE COSTS,
THE PRESIDENT'S CURE FOR UNEMPLOYMENT IS THE BEST REMEDY
KNOWN TO A DEMOCRATIC SOCIETY: TO ESTABLISH A STABLE ECONOMY
IN WHICH EXPANDING BUSINESS AND INDUSTRY, UNDER THE SYSTEM OF
FREE ENTERPRISE, CREATES REAL AND LASTING JOBS AND A GROWING
DEMAND FOR BLUE AND WHITE COLLAR WORKERS AT EVERY INCOME LEVEL.
-8-
SIMILARLY IN THE HOUSING AREA, WHICH IS OF PARTICULAR
CONCERN TO ME, MR. CARTER SAYS THAT WITH HIM AT THE HELM, THE
GOVERNMENT WOULD SUBSIDIZE HOUSING STARTS TO A LEVEL OF 2.5
MILLION A YEAR.
SUCH A SUBSIDY PROGRAM WOULD GENERATE WASTE OF OUR EXISTING
HOUSING STOCK; TRIGGER ANOTHER WAVE OF OUT-MIGRATION FROM OUR
URBAN CENTERS AND LEAD, INEVITABLY, TO A SMALLER PRODUCTION
CYCLE IN THE NEXT PERIOD -- AND THUS REINCARNATE THE ECONOMY-
SHATTERING SPECTOR OF BOOM-AND-BUST.
AND ALL OF THIS WITHOUT EVEN CONSIDERING THE INFLATIONARY
EFFECT OF THAT GOVERNMENT SPENDING ON THE AMERICAN POCKETBOOK.
THIS ISN'T A "SCARE" STATEMENT. IT IS BASED ON THE HARD
LESSON OF OUR IMMEDIATE PAST -- FOR, PURSUANT TO THE HOUSING
AcT OF 1968, OUR NATION SUBSIDIZED ANNUALLY OVER 2 MILLION
STARTS FOR A THREE YEAR PERIOD AND GENERATED A BURST OF HOUSING
OVERPRODUCTION THAT WE ARE STILL TRYING TO WORK OFF,
AND IN THE COURSE OF THIS EXPLOSION OF OVERPRODUCTION OUR
NATION ABANDONED HUNDREDS OF THOUSANDS OF SOUND, WELL-DESIGNED
HOMES IN OUR CITIES AND UNDERUTILIZED ROADS, UTILITIES, AND
SEWAGE SYSTEMS ALREADY IN PLACE THERE, AS BUYERS HEEDED THE
PIED PIPER CALL OF "NEW IS BETTER," AND RUSHED TO THE SUBURBS.
-9-
AND BECAUSE ALL FACTORS IN AN ECONOMIC EQUATION ARE RELATED,
THE ARTIFICALLY PRODUCED "BOOM" LED TO THE SHARP CUTBACKS IN
HOUSING PRODUCTION AND MASSIVE LAYOFFS IN THE CONSTRUCTION
INDUSTRY WHICH HIT US HARD ABOUT TWO YEARS AGO.
CERTAINLY PRESIDENT FORD HAS SHOWN HIS BELIEF IN MAINTAINING
REASONABLE LEVELS OF HOUSING PRODUCTION -- AND PROOF IS FOUND
IN THE GOVERNMENT'S PURCHASE OF MORTGAGES BEARING BELOW MARKET
INTEREST RATES WHICH HAS BEEN JUDICIOUSLY AND EFFECTIVELY USED
TO NURTURE RECOVERY OF THE HOUSING INDUSTRY,
HIS HOUSING POLICIES ARE DESIGNED TO ACCOMMODATE THE LOGICAL
CALL FOR REASONABLE LEVELS OF STARTS WHILE AVOIDING THE DISASTEROUS
CYCLES OF ALL OR NOTHING THAT HAVE CHARACTERIZED THE HOUSING
CONSTRUCTION INDUSTRY EVER SINCE BIG GOVERNMENT GOT INTO THE ACT.
IT IS A CREDIT TO PRESIDENT FORD'S POLICY OF WORKING WITH
-- AND NOT AGAINST -- THE MARKET, THAT HUD HAS ACHIEVED A 42
YEAR SALES RECORD IN RETURNING HOMES TO USEFUL OCCUPANCY, AND
HAS PREVENTED THE ABANDONMENT OF OTHERS THROUGH OUR RENTAL
SUBSIDY PROGRAM.
-10-
RATHER THAN RE-CREATE MASSIVE SUBSIDY PROGRAMS TO EXPAND
HOMEOWNERSHIP OPPORTUNITIES WHICH TOO OFTEN FORCE TAXPAYERS
TO SUBSIDIZE THEIR ECONOMIC PEERS, THE PRESIDENT ANNOUNCED IN
ANN ARBOR THREE INITIATIVES WHICH HAVE BEEN UNDER STUDY IN MY
DEPARTMENT FOR SEVERAL MONTHS,
THE FIRST IS TO LOWER DOWNPAYMENTS FOR THOSE WHO BUY
HOMES WITH FHA INSURANCE. FOR THE TYPICALLY-PRICED NEW HOME,
THE PRESIDENT'S INITIATIVE WILL CUT THE DOWNPAYMENT IN HALF,
THUS HELPING FAMILIES, PARTICULARLY YOUNG FAMILIES WHO ARE
BUYING THEIR FIRST HOMES, TO GAIN THE PRACTICAL AND PERSONAL
BENEFITS OF HOMEOWNERSHIP.
THE SECOND IS TO EXPAND FHA MORTGAGE LIMITS TO COVER
ABOUT 87 PERCENT OF SALES,
AND THE THIRD IS TO PROVIDE A FEDERAL GUARANTEE OF A
GRADUATED PAYMENT MORTGAGE, WHICH ALLOWS YOUNG FAMILIES TO
REDUCE THEIR MONTHLY PAYMENTS IN THE EARLY YEARS WHEN THEIR
INCOMES ARE LIKELY TO BE LOWER, THE PAYMENTS INCREASE MODERATELY
IN LATER YEARS WHEN THEIR INCOMES ARE EXPECTED TO RISE,
-11-
IN THE 1930's AND 40's THE FEDERAL GOVERNMENT REVOLUTIONIZED
HOME PURCHASING BY INTRODUCING THE 30-YEAR FULLY-AMORTIZED LOAN.
UNDER THE PRESIDENT'S PROGRAM, WE CAN DO THE SAME, ON A SMALLER
SCALE, IN THE 1970's. THESE PROPOSALS ARE NOT BASED ON SUBSIDIES
PAID FOR WITH TAX DOLLARS -- THEY ARE INNOVATIVE METHODS FOR
HELPING FAMILIES TO PAY FOR THEIR OWN HOMES,
BUT NO AMOUNT OF INNOVATION WILL WORK IF THE AMERICAN FAMILY
DOES NOT HAVE THE SPENDABLE INCOME TO MAKE THE DOWNPAYMENT AND TO
PAY THE MORTGAGE, UTILITIES AND MAINTENANCE.
THE ONLY SURE PRESCRIPTION FOR THAT IS THE CONTINUATION OF
THE STEADY PROGRESS WHICH PRESIDENT FORD HAS MADE IN REDUCING
INFLATION AND INCREASING EMPLOYMENT THROUGH ARTFUL STIMULATION
OF THE PRIVATE SECTOR,
THE OPPOSITION CANDIDATE MAY FIND IT EXPEDIENT TO USE OLD
SOLUTIONS: TO PROMISE "SOMETHING FOR EVERYBODY." BUT I AM
PROUD OF PRESIDENT FORD BECAUSE HE IS SPARING IN HIS PROMISES
-- AND PRODUCING RESULTS FOR ALL AMERICANS.
YES, THERE IS A VAST DIFFERENCE IN THE APPROACH OF THESE
TWO NOMINEES TO THE VITAL QUESTIONS THAT MUST BE ANSWERED FOR
AMERICA BETWEEN NOW AND 1980.
-12-
MR. CARTER, WHO CAME TO PROMINENCE BY CAMPAIGNING AGAINST
"WASHINGTON", PROPOSES TO ANSWER THEM BY GIVING AMERICANS MORE
"WASHINGTON" THAN THEY ALREADY HAVE. AND HE WOULD HAVE THEM
PAY FOR IT WITH AN, AS YET, "UNDETERMINED" TAX REFORM THAT
WOULD RAISE THE TAXES OF MORE THAN HALF THE WORKING PEOPLE
IN THIS COUNTRY,
PRESIDENT FORD, WHO KNOWS "WASHINGTON" LIKE THE BACK OF
HIS HAND -- AS HIS SUCCESSFUL VETOES, WITH AN OVERWHELMING
OPPOSITION CONGRESS, DEMONSTRATES -- WOULD ANSWER IT BY GIVING
AMERICA BACK TO THE AMERICAN PEOPLE:
-- MORE REAL INCOME FROM THEIR EARNINGS;
-- MORE REAL JOBS SUPPORTED BY HEALTHY PRIVATE ENTERPRISE;
-- MORE HOMES THEY CAN AFFORD TO BUY AND MAINTAIN; AND
-- A NATIONAL ECONOMY FREE FROM THE BOMBARDMENTS OF
ARTIFICAL PROGRAMS THAT SAP THE VITALITY OF AMERICA.
AND NOW, I'LL BE PLEASED TO TAKE YOUR QUESTIONS.