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10/13/76 - Dallas Republican Men's Club
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1133485
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10/13/76 - Dallas Republican Men's Club
collections
Carla A. Hills Speeches
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Economics
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Presidential campaign, 1976
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1133485
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1976-10-13
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1976
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13
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1976-10-13
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10
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1976
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The original documents are located in Box 2, folder "10/13/76 - Dallas Republican Men's Club" 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 Gerald Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections.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 DALLAS REPUBLICAN MEN'S CLUB OCTOBER 13, 1976 I AM so PLEASED YOU INVITED ME TO THE BEAUTIFUL CITY OF DALLAS TO TALK WITH YOU. SINCE I AM A MEMBER OF THE FORD ADMINISTRATION, AND THE PRESIDENTIAL ELECTION IS JUST 20 DAYS AWAY, YOU MIGHT THINK MY ENTHUSIASM IN BEING HERE IS SOMEWHAT RELATED. You ARE RIGHT! I USE EVERY OCCASION I CAN TO TELL WHAT A FINE JOB PRESIDENT FORD IS DOING, OUR OPPOSITION HAS TRIED TO PUT DOWN THE PRESIDENT'S LEADERSHIP CAPACITY AND ON THAT ISSUE WE ARE STRONG AND WE SHOULD NOT HESITATE TO MEET IT STRAIGHT ON, THE FACT IS THAT PRESIDENT FORD HAS BEEN TAKING BETTER CARE OF THIS NATION'S AFFAIRS THAN ANY PRESIDENT IN RECENT HISTORY, ON ASSUMING OFFICE 26 MONTHS AGO, HE LED THIS NATION THROUGH ITS MOST SERIOUS CONSTITUTIONAL CRISIS SINCE THE CIVIL WAR AND THEN PROCEEDED TO RESTORE NATIONAL CONFIDENCE IN THE INSTITUTIONS WHICH DISTINGUISH OUR FORM OF GOVERNMENT FROM THOSE ENDURED BY A MAJORITY OF THE WORLD'S PEOPLE, GERALD -2- HIS STRONG LEADERSHIP OVER THE PAST TWO YEARS HAS RESTORED THE PRESTIGE OF AMERICA AMONG THE COUNTRIES OF THE WORLD -- WHILE MAINTAINING PEACE, ENHANCING GOOD WILL, AND STANDING FIRM ON THE NEED FOR CONTINUED NATIONAL STRENGTH. IF ANYTHING CAME THROUGH TO THE AMERICAN PEOPLE, IN LAST WEEK'S DEBATE -- IT WAS THE UNARGUABLE FACT THAT THERE IS NOT ONE SINGLE AMERICAN ON A BATTLEGROUND ANYWHERE ON THIS EARTH! WHEN MR. CARTER DUCKED ONE OF SEVERAL TOUGH FOREIGN "POLICY" QUESTIONS, AND RETREATED TO COMPARING OUR ECONOMY UNDER RECENT DEMOCRATIC PRESIDENTS WITH THE ECONOMY TODAY, HE INADVERTENTLY OPENED UP A SUBJECT THAT THE AMERICAN PEOPLE WOULD DO WELL TO RECALL. FOR, THE TRUTH IS, THAT THE RELATIVELY LOW UNEMPLOYMENT FIGURES MR. CARTER MENTIONED WERE, IN EVERY CASE, ACHIEVED THROUGH THE ARTIFICIAL STIMULUS OF WAR, AND DEARLY PAID FOR WITH THE LIVES AND CRUSHED HOPES OF MILLIONS OF OUR AMERICAN PEOPLE! -- -- AND PAID FOR AGAIN, IN PEACETIME, AS THE NATION STRUGGLED TO RE-ADJUST ITS PRIORITIES -- BOTH ECONOMIC AND SOCIAL, -3- BUT, YOU HAVE ASKED ME TO TALK WITH YOU TODAY ABOUT HOUSING AND THE ECONOMY AND THAT SUBJECT IS BEST APPROACHED BY TAKING STOCK. WHERE WERE WE A YEAR AGO? WHAT HAVE WE DONE ABOUT IT? WHAT HAVE WE LEARNED? 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. URBAN REVENUES WERE WAY DOWN, NEW YORK WAS ON THE BRINK OF FINANCIAL FAILURE, INDUSTRY WAS DEPRESSED AND THE HOUSING SECTOR WAS SUFFERING ITS WORST YEAR IN 3 DECADES, ON CAPITOL HILL, DISTINGUISHED LABOR AND POLITICAL LEADERS WERE PROPHESIZING A NATIONAL COLLAPSE UNLESS WE ENGAGED IN MASSIVE FEDERAL SPENDING -- IN THE FORM OF SUBSIDIES -- PARTICULARLY IN THE HOUSING INDUSTRY, -4- A PARADE OF POORLY CONCEIVED SPENDING BILLS WERE LITERALLY TUMBLING OUT OF THE LEGISLATIVE BRANCH TO FUEL OUR DOUBLE DIGIT INFLATION. WITH THE SMALLEST PARTY SUPPORT IN CONGRESS IN OVER 50 YEARS, AND IN THE FACE OF THE SO-CALLED VETO PROOF CONGRESS, THE PRESIDENT HAD THE LEADERSHIP CAPACITY AND POLITICAL SHREWDNESS TO BLOCK THE VAST MAJORITY OF THESE MEASURES AND SAVE THE TAXPAYERS NEARLY $10 BILLION IN A YEAR ALREADY PRODUCING A DEFICIT OVER $50 BILLION, OUR FOUNDING FATHERS CONSTRUCTED OUR SYSTEM OF CHECKS AND BALANCES FOR VERY GOOD REASON -- AND NEVER BETTER DEMONSTRATED THAN DURING 1975. So, HERE WE ARE -- ONE YEAR LATER. THE NATION AND ITS ECONOMY SURVIVED -- 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. -5- 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. 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 THE 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. -6- 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, AND WE CAN COUNT ON THE FACT THAT UNEMPLOYMENT WILL CONTINUE ITS STEADY DECLINE TO LESS THAN 5 PERCENT BY 1980. TODAY -- ACROSS THE BOARD -- WE ARE RIGHT ON TARGET WITH OUR FORECASTS MADE AT THE BEGINNING OF THE YEAR, WHAT WORRIES ME ARE THE REPEATED CALLS FOR MORE GOVERNMENT SPENDING PROGRAMS. IF WE LISTEN TO MR. CARTER'S PROPOSALS THAT WOULD ADD $100 TO $200 BILLION TO A BUDGET THAT IS ALREADY PRODUCING A DEFICIT OF OVER $50 BILLION, WE MUST CONCLUDE THAT HE BELIEVES THE "MAGIC" OF THE FEDERAL PURSE HAS MORE PULLING POWER THAN OUR FREE ENTERPRISE SYSTEM. BUT, THE UNVARNISHED EVIDENCE IS THAT THESE BIG SPENDING PROGRAMS THWART NEEDED BUSINESS EXPANSION BY DRIVING UP COSTS OF DOING BUSINESS. THAT HURTS THE VERY PEOPLE SUCH PROGRAMS WERE SUPPOSED TO HELP -- WITH GREATER EXPENSES, EMPLOYMENT CONTRACTION, LAY-OFFS AND STILL ANOTHER ROUND OF UNEMPLOYMENT CHECKS. -7- CERTAINLY, THAT DOES NOT MEAN WE CAN EVER IGNORE THE GREAT HUMAN PROBLEMS -- SUCH AS CATASTROPHIC ILLNESS AND UNEMPLOYMENT. 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, FOR EXAMPLE, 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. AND, 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 OUR SYSTEM OF FREE ENTERPRISE, CREATES REAL AND LASTING JOBS AND A GROWING DEMAND FOR BLUE AND WHITE COLLAR WORKERS AT EVERY INCOME LEVEL. IN THE HOUSING AREA I AM VERY CONCERNED ABOUT MR. CARTER'S CALL FOR THE FEDERAL GOVERNMENT TO SUBSIDIZE THE BUILDING OF 2-1/2 MILLION HOUSING UNITS A YEAR. THE FACT IS THAT THE PROBLEMS WE HAVE SUFFERED IN HOUSING OVER THE PAST 2 YEARS WERE CAUSED IN LARGE MEASURE BY THAT VERY PHILOSOPHY WHICH WAS MANDATED BY THE HOUSING ACT OF 1968. -8- FOR PURSUANT TO THAT AcT, THIS NATION SUBSIDIZED, ANNUALLY, MORE THAN 2 MILLION HOUSING STARTS FOR THREE YEARS RUNNING -- AND GENERATED A BURST OF HOUSING OVERPRODUCTION THAT WE ARE JUST NOW WORKING OFF, IN THE COURSE OF THIS PRODUCTION EXPLOSION OUR NATION ABANDONED THOUSANDS OF SOUND, WELL-DESIGNED HOMES IN OUR CITIES AND UNDER-UTILIZED ROADS, UTILITIES, AND SEWAGE SYSTEMS ALREADY IN PLACE THERE, AS BUYERS HEEDED THE PIED PIPER CALL OF "NEW IS BETTER". NEIGHBORHOODS ALL ACROSS THIS NATION WERE BLIGHTED WITH ROW UPON ROW OF BOARDED-UP HOUSES LEFT TO DECAY, AND BECAUSE ALL FACTORS IN AN ECONOMIC EQUATION ARE RELATED, THE ARTIFICIALLY PRODUCED "BOOM" LED TO THE INEVITABLE "BUST" IN HOUSING PRODUCTION, AND RESULTING LAY-OFFS 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, A PROGRAM WHICH HAS BEEN JUDICIOUSLY AND EFFECTIVELY USED TO NURTURE RECOVERY OF THE HOUSING INDUSTRY. -9- THE PRESIDENT'S 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. AND HIS POLICIES HAVE WORKED. EVEN IF WE FAIL TO BUILD ANOTHER HOUSE IN 1976, THIS YEAR -- RIGHT NOW -- WILL BE THE FOURTH BEST YEAR ON. RECORD FOR NEW FAMILY STARTS. AND MULTI- FAMILY STARTS, ALTHOUGH NOT so QUICK TO RECOVER, JUMPED 48 PERCENT LAST MONTH WITH A SUBSTANTIAL JUMP IN PERMITS so THAT WE HAVE EVERY REASON TO BE CONFIDENT OF THEIR CONTINUED GAIN. IT IS A CREDIT TO PRESIDENT FORD'S POLICY OF WORKING WITH -- AND NOT AGAINST -- THE MARKET, THAT THE NEW HOUSING MARKET HAS RALLIED so WELL, WHILE AT THE SAME TIME HUD HAS BROKEN EVERY PAST SALES RECORD IN RETURNING HOMES TO USEFUL OCCUPANCY, AND HAS PREVENTED THE ABANDONMENT OF OTHERS THROUGH ITS NEW RENTAL SUBSIDY PROGRAM, 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 MICHIGAN THREE INITIATIVES WHICH HAVE BEEN UNDER STUDY IN MY DEPARTMENT FOR SEVERAL MONTHS. -10- 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. IN THE 1930's AND 40's THE FEDERAL GOVERNMENT REVOLUTIONIZED HOME PURCHASING BY INTRODUCING THE 30-YEAR FULLY-AMORTIZED LOAN WITH A 10 TO 20 PERCENT DOWNPAYMENT. You MAY RECALL THAT IN 1930, THE TRADITIONAL MORTGAGE WAS FOR 5-YEARS WITH A 50 PERCENT DOWNPAYMENT UNDER THE PRESIDENT'S GRAUDATED PAYMENT PROGRAM, WE CAN CHANGE THE MARKET IN A SIMILAR WAY 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. -11- 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. WE SIMPLY CANNOT IGNORE THE LESSON FOR WHICH WE PAID so DEARLY IN THE 1960's -- 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. WE KNOW THAT OUR PRIVATE ECONOMY CANNOT SUSTAIN THE 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 ENTERPRISES, WHICH ARE THE SOURCE OF FIVE OUT OF SIX JOBS, PRESIDENT FORD HAS HELD THE LINE IN EXPENDITURES, AND IN so DOING HAS CREATED THE LARGEST NUMBER OF JOBS IN OUR NATION'S HISTORY, -12- HE HAS DIRECTLY ATTACKED THE DELAYS, THE RED-TAPE, AND THE REGULATION MAZE so DISHEARTENING TO THE INNOVATIVE SPIRIT THAT IS THE SOUL OF THE FREE ENTERPRISE SYSTEM. AND HE HAS DONE IT IN TWO SHORT YEARS, ASSEMBLING HIS WINNING TEAM AT THE LOWEST POINT IN THE POLITICAL HISTORY OF OUR COUNTRY. AND ONE OF THE GREAT REASONS FOR HIS SUCCESS IS THAT HE REALLY KNOWS WASHINGTON AND HE KNOWS HOW TO MAKE IT WORK FOR THE NATION. FOR MORE THAN 25 YEARS, GERALD FORD HAS FOUGHT AGAINST EVERY DEMOCRATIC SCHEME THAT WOULD GIVE THE AMERICAN PEOPLE MORE "WASHINGTON" THAN THEY ALREADY HAVE, HIS "WASHINGTON" POLICY AS PRESIDENT HAS BEEN AND IS TO GIVE MORE AMERICA TO THE AMERICAN PEOPLE BY CONTINUING TO GIVE THEM --- --- 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 ARTIFICIAL PROGRAMS THAT SAP THE VITALITY OF AMERICA. -13- ( THIS IS WHAT PRESIDENT FORD IS DOING RIGHT NOW. THIS IS WHAT HE WILL CONTINUE TO DO OVER THE NEXT FOUR YEARS, WHAT WE HAVE TO DO OVER THE NEXT THREE WEEKS IS TO GET EVERY THINKING AMERICAN TO THE POLLS ON NOVEMBER 2ND TO VOTE FOR A GREAT LEADER WITH A SPLENDID RECORD OF ACCOMPLISHMENT. THANK YOU.