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
1133491
label
10/20/76 - Palo Alto Chamber of Commerce
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
1133491
sourceUrl
contentType
document
title
10/20/76 - Palo Alto Chamber of Commerce
citationUrl
collections
Carla A. Hills Speeches
Speeches
subjects
Credit
Federal aid
Housing
Taxation
iiifBase
thumbnailUrl
largeImageUrl
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
1133491
coverageEndDate
day
26
logicalDate
1976-10-26
month
10
year
1976
coverageStartDate
day
26
logicalDate
1976-10-26
month
10
year
1976
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
url
mediaId
41b199245666df83
ocrText
The original documents are located in Box 2, folder "10/20/76 - Palo Alto Chamber of
Commerce" 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States of America his copyrights in all of his unpublished writings in National Archives collections.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
PALO ALTO CHAMBER OF COMMERCE
OCTOBER 26, 1976
As A NATIVE CALIFORNIAN, I WELCOME ALL OPPORTUNITIES
TO COME BACK TO THE GOLDEN STATE.
As A STANFORD GRADUATE, I WAS PARTICULARLY ENTHUSIASTIC
ABOUT YOUR INVITATION TO COME TO PALO ALTO.
As A MEMBER OF THE FORD ADMINISTRATION, YOU MAY THINK
THAT MY ENTHUSIASM IS SOMEWHAT RELATED TO THE FACT THAT THE
ELECTION IS EXACTLY 7 DAYS AWAY,
WELL, YOU ARE RIGHT! I TAKE EVERY CHANCE I GET TO
TALK ABOUT THE GREAT JOB PRESIDENT FORD IS DOING BECAUSE
I AM CONVINCED THAT THIS NATION NEEDS THE THOUGHTFUL EXECUTIVE
LEADERSHIP THAT HE HAS GIVEN.
BUT, WE ALSO NEED EXCELLENCE IN OUR LEGISLATIVE BRANCH,
AND THE FACT THAT THIS IS THE CONGRESSIONAL DISTRICT OF MY
OLD FRIEND, PETE MCCLOSKEY -- WHO ALSO HAPPENS TO BE RUNNING
FOR RE-ELECTION -- ONLY INCREASES MY ENTHUSIASM FOR BEING
WITH YOU,
PETE ISN'T HERE, AND ALTHO I HATE TO SAY THINGS BEHIND
ANYBODY'S BACK, I KNOW HE'LL FORGIVE ME IF I CONFIDE TO YOU
THAT I THINK HE IS ONE OF THE FINEST CONGRESSMEN ON CAPITOL, HILL.
-2-
I HAVE ALWAYS SUPPORTED PETE BECAUSE I CONSIDER HIM A
HIGHLY "REPRESENTATIVE CALIFORNIAN". BUT I REALLY BEGAN TO
APPRECIATE HIS VALUE TO THIS DISTRICT, TO OUR STATE, AND TO
OUR NATION WHEN I GOT TO WASHINGTON AND COULD OBSERVE HIM
AT WORK -- IN THE COMPANY OF ALL CONGRESSMEN FROM ALL THE STATES.
By ANY YARDSTICK, HE IS A FIRST-CLASS LEGISLATOR --
CONCERNED ABOUT GOVERNMENT.
As I HAVE TRAVELLED TO CITIES, LARGE AND SMALL, ACROSS
THE COUNTRY THIS YEAR, I FIND THAT THE NATIONAL ELECTION
CYCLE HAS SHARPENED THE AWARENESS AND CONCERN OF PRIVATE
LEADERS, EVERYWHERE, ABOUT GOVERNMENT. AND PROPERLY SO.
FOR, OVER THE PAST TWO DECADES, LEADERS IN THE PRIVATE
SECTOR HAVE SEEN GOVERNMENT -- AT ALL THREE LEVELS -- BECOME
MORE AND MORE INVOLVED WITH OUR LIVES, OUR BUSINESSES, AND
OUR DESTINIES -- so WE CANNOT ESCAPE THE NEED TO DEAL
INTELLIGENTLY WITH IT.
NOWHERE IS THE INTERLOCKING OF PRIVATE AND PUBLIC AFFAIRS
MORE EVIDENT, MORE SIGNIFICANT, AND MORE SUBJECT TO CONTROVERSY
THAN IN THE ROLE GOVERNMENT PLAYS IN OUR NATION'S ECONOMY. AND
THAT FACT IS BEST ILLUSTRATED BY TAKING STOCK.
-3-
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 TO 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 THREE DECADES.
ON CAPITOL HILL, 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.
A PARADE OF POORLY CONCEIVED SPENDING BILLS WERE LITERALLY
TUMBLING OUT OF THE LEGISLATIVE BRANCH TO FUEL OUR DOUBLE DIGIT
INFLATION,
-4-
WITH THE SMALLEST PARTY SUPPORT IN CONGRESS IN OVER 50
YEARS, THE PRESIDENT HAD THE LEADERSHIP CAPACITY AND POLITICAL
SHREWDNESS TO BLOCK THE VAST MAJORITY OF THESE 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 -- WHAT DO WE FIND?
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 THREE 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 40 PERCENT OVER LAST AUGUST, AND
93 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,
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.
-6-
I HAVE LISTENED TO OUR OPPOSITION'S PROPOSALS THAT WOULD
ADD $100 TO $200 BILLION TO A BUDGET THAT IS ALREADY PRODUCING
A DEFICIT OF OVER $50 BILLION. BUT I HAVE NOT HEARD HOW WE
ARE TO PAY FOR THEM.
WE WILL EITHER HAVE HUGE DEFICITS OR WE WILL HAVE HIGHER
TAXES, THERE ARE NO SECRET SOURCES OF REVENUES.
THEY TELL US THEY WILL BALANCE THE BUDGET,
THEY TELL US THEY WILL FIND THE MONEY BY RAISING THE TAXES
OF THE UNDESERVING RICH, SOME CONFUSION EXISTS WHETHER THE
RICH TO BE TARGETED ARE THOSE WITH INCOMES ABOVE THE NATIONAL
MEDIAN OF $14,000, THOSE ABOVE $25,000, OR THOSE ABOVE $50,000.
BUT ONLY 10 PERCENT OF FAMILIES MAKE $25,000 OR MORE AND
A FULL 40 PERCENT OF THEM DO IT WITH TWO WAGE EARNERS.
IF WE FOCUS ONLY ON $50,000 INCOMES -- THEN WE MUST BE
AWARE THAT FEWER THAN 5 PERCENT OF AMERICAN FAMILIES MAKE
$50,000 PLUS,
IF WE DOUBLE THEIR TAX, WE COULD ONLY PICK UP ABOUT $20
BILLION.
-7-
IF WE LOOK FOR TAX LOOPHOLES TO CLOSE, THEN WE MUST BE
AWARE THAT $65 BILLION IN PREFERENCES GO TO ALL TAXPAYERS.
$53 BILLION GO TO PERSONS WITH INCOMES BELOW $25,000. IF
WE CLOSE ALL LOOPHOLES FOR PERSONS MAKING $25,000 PLUS, WE
COULD ONLY PICK UP ABOUT $12 BILLION -- FAR SHORT OF THE
$200 BILLION WORTH OF NEW PROGRAMS WHICH ARE GLIBLY OFFERED
AS CURES TO OUR NATION'S ILLS,
THE ANALYSIS REMINDS ME OF H.L. MINCKINS COMMENT:
"FOR EVERY HUMAN PROBLEM THERE IS A
SOLUTION THAT IS SIMPLE, NEAT AND WRONG!"
DON'T BE MISLED.
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 --
NOT TO MENTION OUR CITIES,
-8-
IT WORRIES ME THAT WE HEAR OUR OPPOSITION IN THIS
CAMPAIGN CALLING FOR THE FEDERAL GOVERNMENT TO SUBSIDIZE
BUILDING UP TO 2.5 MILLION HOUSING UNITS A YEAR. WE HAVE
ALREADY BEEN DOWN THAT ROAD -- DISASTEROUSLY.
FOR PURSUANT TO THE HOUSING AcT OF 1968, THIS NATION
SUBSIDIZED, ANNUALLY, WITHOUT REGARD TO THE MARKET NEEDS
OF PARTICULAR AREAS, MORE THAN 2 MILLION HOUSING STARTS
FOR THREE YEARS RUNNING -- AND GENERATED A BURST OF HOUSING
OVERPRODUCTION THAT WE ARE STILL TRYING TO WORK 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 URBAN DWELLERS HEEDED
THE PIED PIPER CALL OF "NEW IS BETTER". NEIGHBORHOODS WERE
BLIGHTED WITH ROW UPON ROW OF BOARDED-UP HOUSES LEFT TO DECAY.
BUT IT WAS NOT ONLY OUR CITIES THAT SUFFERED -- OUR
HOUSING INDUSTRY -- MANAGEMENT AND LABOR -- WAS INCAPACITATED.
BECAUSE AN ARTIFICIALLY PRODUCED "BOOM" CANNOT CONTINUE
FOREVER, THE NEXT PERIOD, WHICH HIT US ABOUT TWO YEARS AGO,
WAS ONE OF EXAGGERATED CONTRACTION TO ENABLE US TO WORK-OFF
THE EXCESSIVE INVENTORIES, WITH DISASTEROUSLY HIGH LAY-OFFS
IN THE CONSTRUCTION INDUSTRY.
-9-
PRESIDENT FORD'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 THESE HOUSING 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 SINGLE-
FAMILY STARTS -- CURRENTLY AT 1.3 MILLION, AND MULTI-FAMILY
STARTS, ALTHOUGH NOT so QUICK TO RECOVER, JUMPED 48 PERCENT
IN JULY AND 46 PERCENT IN AUGUST WITH EXCITING JUMPS IN
PERMITS so THAT WE HAVE EVERY REASON TO BE CONDIFDENT 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.
-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
MICHIGAN 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
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 GRADUATED 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.
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 BY HOLDING THE LINE ON EXPENDITURES, AND IN so DOING
HE HAS CREATED THE LARGEST NUMBER OF JOBS IN OUR NATION'S HISTORY.
-12-
I HAVE SEEN A NEW EFFORT GROWING AMONGST CIVIC LEADERS,
LIKE YOURSELVES, TO FIGHT AGAINST THE OLD AND EXPENSIVE
NOTION THAT OUR CITIES, OUR ENTERPRISES AND OUR LIVES CAN BE
RUN FROM WASHINGTON -- WITH A NEW COSTLY NATIONAL PROGRAM FOR
EVERY SOCIAL AND ECONOMIC ILL.
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.
I DO NOT BELIEVE THAT THIS LESSON IS BEING IGNORED HERE
IN MY HOME STATE.
AND, I THINK THE VOTERS WILL PROVE IT NEXT TUESDAY.
THANK YOU,