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    "title": "West Coast Purchasing Management Association, Tampa, FL, May 8, 1971",
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        "Economics",
        "Middle East conflicts",
        "Revenue sharing",
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    "ocrText": "The original documents are located in Box D31, folder \"West Coast Purchasing\nManagement Association, Tampa, FL, May 8, 1971\" of the Ford Congressional Papers:\nPress Secretary and Speech File at the Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. The Council donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nDigitized from Box D31 of the Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library\nWEST COAST PURCHASING MANAGEMENT ASSOC.\nTAMPA, FLORIDA, 5:30 P.M. SATURDAY,\nMAY 8, 1971.\nIT IS A PLEASURE TO BE HERE WITH\nYOU. TODAY I WOULD LIKE TO TALK WITH YOU\nABOUT CHANGE -- THE CHALLENGES OF CHANGE\nIN THE SEVENTIES.\nWE ALL KNOW THAT MEN MUST BE\nCHALLENGED TO STRIVE MIGHTILY AND TO ACHIEVE\nLOFTY GOALS. WE KNOW THAT CHANGE IS THE\nESSENCE OF PROGRESS, THAT CHANGE REQUIRES\nCHALLENGE, AND THAT CHALLENGE INVOLVES THE\nCLASH OF DIFFERING IDEAS.\nTHIS IS THE KIND OF TIME WE ARE\nLIVING IN -- A TIME OF CHALLENGE, A TIME OF\nCHANGE, A TIME WHEN DIFFERENT IDEAS ARE\nCOLLIDING.\nWE MEET IN EXCITING -- AND TRYING\nTIMES. THESE ARE TIMES WHEN MOMENTOUS\n-2-\nDECISIONS MUST BE MADE -- DECISIONS TODAY\nWHICH WILL DETERMINE THE QUALITY OF OUR\nLIVES TOMORROW.\nIT IS A TIME FOR A REALISTIC\nASSESSMENT OF OUR PROBLEMS -- A TIME FOR A\nRESOLVE TO SOLVE THOSE PROBLEMS AS QUICKLY\nAND EXPERTLY AS CIRCUMSTANCE WILL PERMIT.\nIT IS A TIME FOR POSITIVE ACTION,\nFOR LEADERSHIP, FOR CREATIVITY, AND FOR\nBOLDNESS.\nTHE CHALLENGE OF OUR TIMES IS TO\nCONFRONT THE GREAT PROBLEMS AND TO EMPLOY\nTHE AMERICAN GENIUS AND THE SPIRIT OF\nENTHUSIASM NEEDED TO OVERCOME THEM.\nHOW ARE WE TO DO THIS? THERE\nMUST BE CREATED WITHIN OUR COUNTRY A NEW\nFEELING OF COMMON PURPOSE -- A RESOLVE WHICH\nWILL PRODUCE TWO-WAY COOPERATION BETWEEN\nGOVERNMENT AND THE PEOPLE, A WORKING TOGETHER\n-3-\nOF ONE WITH THE OTHER TOWARD NEEDED\nSOLUTIONS.\nI WILL TALK WITH YOU TODAY ABOUT\nA NUMBER OF CHALLENGES -- THE CHALLENGE OF\nMILITANT COMMUNISM IN THE MIDDLE EAST AND\nINDOCHINA AND THE SEARCH FOR PEACE, THE\nCHALLENGE POSED BY THE ECONOMY, WHERE WE\nMUST WRESTLE WITH THE HANGOVER FROM THE\nINFLATIONARY BINGE OF THE LATE 1960's WHILE\nMAKING A TRANSITION FROM WARTIME TO\nPEACETIME, AND THE CHALLENGE OF GOVERNMENTAL\nREFORM, WHERE WE MUST RESTRUCTURE THE\nFEDERAL GOVERNMENT SO IT BECOMES THE\nSERVANT AND NOT THE MASTER OF THE PEOPLE.\nI SPEAK FIRST ABOUT THE MIDDLE\nEAST -- BECAUSE WHILE IT IS VIETNAM WHICH\nHAS TORN THIS NATION APART AND RAVAGED ITS\nSOUL IT IS IN THE MIDDLE EAST THAT THE\nDANGER OF WORLD WAR III IS THE GREATEST.\n-4-\nIT IS THERE THAT WE HAVE MOST TO FEAR A\nHEAD-ON COLLISION WITH THE OTHER NUCLEAR\nSUPER-POWER, THE SOVIET UNION.\nWE WORK CEASELESSLY FOR PEACE IN\nTHE MIDDLE EAST, BUT ALL THE TIME WE MUST\nBE AWARE THAT THE SOVIET UNION HAS EMBARKED\nON A DRIVE TO TURN THE MEDITERRANEAN INTO\nA RED SEA, UNDERMINE THE SOUTHERN FLANK\nOF NATO, AND EXPAND RUSSIAN INFLUENCE ACROSS\nAFRICA FROM THE INDIAN OCEAN TO THE SOUTH\nATLANTIC.\nIF WE WERE TO ALLOW THE SOVIET\nUNION TO CRUSH ISRAEL INDIRECTLY., THROUGH\nTHE WEAPONS THE SOVIETS HAVE PLACED IN\nEGYPTIAN HANDS, THIS WOULD MEAN THE END OF\nHOPE FOR ALL FREE NATIONS OF THE\nMEDITERRANEAN AND EVEN WESTERN EUROPE. IT\nWOULD GIVE THE SOVIET UNION DOMINANCE\nTHROUGHOUT THE MIDDLE EAST -- THROUGHOUT\n-5-\nTHE ENTIRE MEDITERRANEAN AREA. WE WILL NOT\nLET THAT HAPPEN.\nTHE SITUATION IN THE MIDDLE EAST\nIS MOST COMPLEX. THERE WILL BE NO\nSETTLEMENT UNTIL BOTH SIDES ARE PREPARED\nTO MAKE SOME SACRIFICES.\nTHE ADMINISTRATION LAST AUGUST\nPUT FORWARD THE INITIATIVE WHICH RESULTED\nIN A CEASE-FIRE -- NOW ONLY A DE FACTO\nCEASE FIRE. SOME PROGRESS HAS BEEN MADE\nTHROUGH INDIRECT NEGOTIATIONS. THIS GIVES\nUS REASON TO HOPE.\nTHERE ARE THOSE WHO ARE INCLINED\nTO CONDEMN THE ISRAELIS FOR REFUSING TO\nPULL BACK TO THEIR PREWAR BOUNDARIES.\nPERSONALLY, IN VIEW OF PAST HISTORY, I\nFIND ISRAEL'S ATTITUDE COMPLETELY\nUNDERSTANDABLE. A NATION WHICH IS\nCONFRONTED BY HOSTILE POWERS BACKED BY\n-6-\nTHE MILITARY MIGHT OF THE SOVIET UNION\nCANNOT BE BLAMED FOR SEEKING SECURE AND\nDEFENSIBLE BORDERS.\nWHILE WE SEEK TO ACHIEVE A\nSETTLEMENT OF THE MIDDLE EAST CONFLICT,\nWE CONTINUE TO RESIST COMMUNIST\nAGGRESSION IN SOUTHEAST ASIA AND TO WORK\nFOR PEACE IN THAT WAR-TORN REGION OF THE\nWORLD.\nWE HAVE DRAWN OUR FORCES IN\nVIETNAM DOWN FROM AN AUTHORIZED STRENGTH\nOF 549,500 MEN TO 270,000 -- AND WE WILL\nBE DOWN TO 184,000 OR LESS BY NEXT\nDECEMBER 1.\nOUR GOAL IN VIETNAM IS TO MAKE\nIT POSSIBLE FOR THE SOUTH VIETNAMESE TO\nDETERMINE THEIR OWN FUTURE.\nWE HAVE MOVED CONSIDERABLY CLOSER\nTO THAT GOAL. PROSPECTS ARE GOOD THAT WE\n-7-\nWILL ACHIEVE IT.\nANYONE WHO WANTS TO SEE THE SOUTH\nVIETNAMESE GOVERNMENT GAIN THE UPPER HAND\nAGAINST THE COMMUNISTS CANNOT HELP BUT BE\nHEARTENED BY THE PROGRESS WE HAVE MADE.\nAS FOR THOSE WHO SHOUT \"PULLOUT\nNOW, THEY WOULD WRITE OFF COMPLETELY THE\nINVESTMENT WE HAVE MADE IN SOUTHEAST ASIA\nTOWARD A FULL GENERATION OF PEACE. THEY\nWOULD THROW IN THE TOWEL AT THE VERY MOMENT\nWHEN SUCCESS IS IN SIGHT. THEY WOULD\nCAPITULATE JUST WHEN OUR OBJECTIVE IS\nNEAR AT HAND.\nWE ARE WITHDRAWING FROM VIETNAM\nIN ACCORDANCE WITH A CAREFULLY THOUGHT OUT\nPLAN. THE PRESIDENT HAS DRAWN OUR FORCES\nIN VIETNAM DOWN BY 270,000 MEN -- AND THE\nWITHDRAWALS WILL CONTINUE AT A FASTER PACE.\nIT MATTERS VERY MUCH HOW WE END\n-8-\nOUR INVOLVEMENT IN THE VIETNAM WAR. IT IS\nEASY TO HAVE PEACE SIMPLY BY SAYING TO THE\nENEMY, \"IT'S ALL YOURS.\" I SAY WE SHOULD\nEND OUR INVOLVEMENT IN VIETNAM IN A WAY\nTHAT STEMS THE COMMUNIST TIDE IN SOUTHEAST\nASIA. AND THAT IS WHAT WE ARE DOING\nI LOOK FORWARD TO SALUTING A\nVIABLE AND INDEPENDENT SOUTH VIETNAM.\nOUR WITHDRAWAL FROM VIETNAM IS,\nOF COURSE, HAVING A TREMENDOUS IMPACT ON\nOUR ECONOMY.\nWE HAVE CUT VIETNAM SPENDING IN\nHALF -- AND WE HAVE DELIBERATELY COOLED OFF\nTHE ECONOMY TO BRING INFLATION UNDER CONTROL.\nNOW THE NEED IS TO STIMULATE\nTHE ECONOMY. UNEMPLOYMENT IS TOO HIGH.\nHOWEVER, LET ME POINT OUT THAT IT WAS LOWER\nIN 1970 AT 4.9 PER CENT THAN FOR ANY OF THE\nYEARS 1960 THROUGH 1964. IT WAS NOT UNTIL\n-9-\n1965 WHEN THE PREVIOUS ADMINISTRATION SHARPLY\nESCALATED OUR COMMITMENT TO THE VIETNAM\nWAR AND CONTINUED TO ESCALATE IT THAT\nUNEMPLOYMENT FELL BELOW 5 PER CENT.\nTHE NIXON ADMINISTRATION IS\nGETTING OUT OF VIETNAM AND MAKING A\nTRANSITION TO A PEACETIME ECONOMY.\nUNEMPLOYMENT HAS RESULTED AS WE\nHAVE FOUGHT INFLATION AND MOVED FROM A\nWARTIME TO A PEACETIME ECONOMY. THE\nPROBLEMS WERE EVEN TOUGHER THAN THE\nADMINISTRATION ANTICIPATED. BUT NOW THE\nECONOMY IS IMPROVING. THERE ARE MOST\nENCOURAGING SIGNS OF AN ECONOMIC UPTURN.\nALL WE NEED NOW TO GIVE THE ECONOMY\nA STRONG PUSH IS AN UPSURGE OF CONSUMER\nCONFIDENCE\nIT IS ONLY A MATTER OF TIME BEFORE\nTHE ECONOMY PICKS UP APPRECIABLY. THIS IS\n-10-\nBOUND TO OCCUR BECAUSE BOTH OUR FISCAL AND\nMONETARY POLICIES ARE EXPANSIONARY. THE\nMONEY SUPPLY, INCLUDING TIME DEPOSITS, IS\nEXPANDING AT A RATE UNPRECEDENTED IN\n20 YEARS. AND WHILE FEDERAL SPENDING IS\nRISING ONLY MODERATELY, THE PRESIDENT HAS\nPROPOSED AN EXPANSIONARY BUDGET FOR FISCAL\n1972 WHICH CALLS FOR FEDERAL SPENDING BASED\nON FULL EMPLOYMENT REVENUE LEVELS.\nI PREDICT THE ECONOMY WILL GROW\nBY 8 PER CENT IN 1971, WITH ABOUT 4 PER CENT\nOF THIS IN REAL GROWTH AND THE REST ACCOUNTED\nFOR BY PRICE INFLATION.\nI FURTHER PREDICT THAT AUTO SALES\nWILL RUN CLOSE TO 10 MILLION THIS YEAR AND\nTHAT HOUSING STARTS WILL TOTAL AT LEAST\n1.8 MILLION NATIONALLY.\nTHERE IS ANOTHER GREAT CHALLENGE\nIN ADDITION TO REVITALIZING OUR ECONOMY --\n-11-\nONE THAT IS PERHAPS MORE DIFFICULT TO MEET.\nI SPEAK OF PROVIDING ALL OF OUR\nCITIZENS WITH AN OPPORTUNITY TO\nPARTICIPATE IN AMERICAN SOCIETY AND IN\nTHE SHAPING OF GOVERNMENTAL DECISIONS\nAFFECTING THEIR LIVES.\nTHIS IS A CHALLENGE WHICH\nECLIPSES ALL OTHERS.\nIT IS CENTRAL TO OUR\nFUTURE AS A NATION.\nIT IS BASIC TO OUR\nGROWTH AS A PEOPLE. IT GOES TO OUR\nPHILOSOPHY OF GOVERNMENT AND TOUCHES THE\nLIVES OF EVERY ONE OF US.\nTHE CHALLENGE IS WHETHER ANY MAN,\nWOMAN OR CHILD REALLY COUNTS IN AMERICA\nANYMORE -- WHETHER THE SYSTEM HAS BECOME\nMORE IMPORTANT THAN THE INDIVIDUAL -- WHETHER\nWE HAVE ALL BECOME JUST DIGITS CRANKED INTO\nA COMPUTER OPERATED BY A FACELESS\nBUREAUCRACY.\n-12-\nTHERE IS A WAY TO CONTROL THE VAST\nFEDERAL BUREAUCRACY.\nTHE ANSWER IS \"FEDERAL REVENUE\nSHARING.\" IT IS AN IDEA WHOSE TIME HAS\nCOME.\nI TALK ABOUT REVENUE SHARING NOT\nIN A PARTISAN VEIN. THERE ARE DEMOCRATS WHO\nSUPPORT IT, AS WELL AS SOME WHO OPPOSE IT.\nLET'S LOOK AT REVENUE SHARING FROM\nTHE STANDPOINT OF POLITICAL PHILOSOPHY.\nREVENUE SHARING IS BASED ON THE\nCONCEPT THAT THAT GOVERNMENT IS BEST WHICH\nIS CLOSEST TO THE PEOPLE.\nWHAT IS THE PRESIDENT ASKING?\nHE IS ASKING THE CONGRESS TO APPROPRIATE\n$5 BILLION TO BE SHARED BY THE STATES AND\nCITIES WITH NO STRINGS ATTACHED. THIS\nCOMES UNDER THE HEADING OF GENERAL REVENUE\nSHARING. HE IS ALSO ASKING THE CONGRESS\n-13-\nTO TAKE ABOUT 130 CATEGORICAL GRANT-IN-AID\nPROGRAMS, LUMP THEM TOGETHER UNDER SIX\nGENERAL PURPOSE HEADINGS OF EDUCATION,\nURBAN DEVELOPMENT, RURAL DEVELOPMENT,\nTRANSPORTATION, JOB TRAINING AND LAW\nENFORCEMENT AND LET THE STATES AND CITIES\nDECIDE HOW TO PURSUE THEIR PRIORITIES UNDER\nTHOSE BROAD PURPOSES.\nWHAT THE PRESIDENT IS SAYING\nIS GIVE STATE AND LOCAL GOVERNMENT A\nCHANCE. LET'S TRANSFER TO THE LOCAL\nPOLITICAL ARENA HUNDREDS OF DECISIONS NOW\nBEING MADE IN WASHINGTON OR THE\nADMINISTRATION'S REGIONAL OFFICES.\nTODAY WE ARE LIVING THROUGH A\nCRISIS WHICH HAS SO SLOWED THE WHEELS OF\nSOCIAL PROGRESS AS TO CREATE A KIND OF\nPARALYSIS, A PARALYSIS OF MUSCLEBOUND\n-14-\nGOVERNMENT WITH TOO MUCH POWER AND MONEY\nIN THE HANDS OF THE FEDERAL BUREAUCRACY.\nPRESIDENT NIXON HAS POINTED TO A\nWAY OUT OF THIS CRISIS -- A WAY TO PROVE\nTHAT GOVERNMENT CAN WORK\nIT CAN BE DONE BY BRINGING\nGOVERNMENT BACK TO THE PEOPLE -- BY MAKING\nAN INVESTMENT IN THE LOCAL POLITICAL\nPROCESS THROUGH FEDERAL REVENUE SHARING.\nSTATUS QUO GOVERNMENT CANNOT BE ACCEPTED.\nAS TIMES CHANGE, WE MUST REFORM GOVERNMENT --\nSO THAT INSTEAD OF SLIDING FURTHER INTO\nMUSCLEBOUND INEFFECTIVENESS IT AT LAST CAN\nDELIVER THE SERVICES IT PROMISES AND BRIDGE\nTHEGAP BETWEEN PROMISE AND PERFORMANCE.\nWHILE THE GOVERNMENT IN WASHINGTON\nHAS BECOME MUSCLEBOUND, STATE AND LOCAL\nGOVERNMENTS HAVE BEEN STRUGGLING WITH\nPROBLEMS THE BUREAUCRATS CAN'T SOLVE.\n-15-\nAND THE COST OF STATE AND LOCAL GOVERNMENT\nHAS SKYROCKETED.\nSTATE AND LOCAL SPENDING HAS\nJUMPED 372 PER CENT FROM 1950 THROUGH\n1969 -- FROM $28 BILLION TO $132 BILLION.\nSTATE AND LOCAL TAXES,\nPER CAPITA, HAVE SPIRALED FROM $105 IN 1950\nTO $380 IN 1969, AN INCREASE OF 262 PER CENT.\nSTATES HAVE INCREASED MAJOR TAXES\n300 TIMES DURING THE LAST DECADE.\nIN THE LAST TWO DECADES FEDERAL\nAID TO STATE AND LOCAL GOVERNMENTS HAS\nRISEN FROM $2.5 BILLION TO OVER $30 BILLION.\nAT THE SAME TIME THE FEDERAL\nCATEGORICAL GRANTS-IN-AID SYSTEM HAS\nDEVELOPED MORE THAN 500 DIFFERENT SPIGOTS,\nMANNED BY THOUSANDS OF ADMINISTRATORS\nOPERATING IN A JUNGLE OF REGULATIONS.\nHOW DO WE ESCAPE FROM THIS\nJUNGLE? HOW DO WE PUT THE MONEY WHERE THE\n-16-\nPROBLEMS ARE? HOW DO WE HOLD DOWN THE\nPRESSURES FOR STATE AND LOCAL TAX\nINCREASES?\nTHE ANSWER IS THE PRESIDENT'S\nPROGRAM OF FEDERAL REVENUE SHARING.\nTHERE IS OPPOSITION TO REVENUE\nSHARING. BUT WHAT MAN HAS MADE, MAN CAN\nCHANGE AND WE MUST HAVE THE COURAGE TO\nCHANGE WHAT SHOULD BE CHANGED.\nMONEY IS POWER. MOVING MONEY BACK\nTO THE STATES AND CITIES MEANS A FLOW OF\nPOWER BACK TO THE PEOPLE. THIS IS WHERE\nTHE POWER BELONGS.\nEVERY INDIVIDUAL WANTS TO COUNT\nFOR SOMETHING. UNDER THE REVENUE - SHARING\nPHILOSOPHY OF GOVERNMENT, HE CAN\nWE MUST THINK IN TERMS OF PEOPLE,\nNOT JUST PROGRAMS. WE MUST REPLACE\nCOMPUTERS WITH COMPASSION.\n-17-\nABRAHAM LINCOLN SAID, \"THIS\nCOUNTRY, WITH ITS INSTITUTIONS, BELONGS TO\nTHE PEOPLE WHO INHABIT IT.\"\nLET'S MAKE THIS COUNTRY BELONG TO\nTHE PEOPLE AGAIN. LET'S GIVE THE INDIVIDUAL\nTHE FEELING OF DETERMINING HIS OWN DESTINY,\nOF BEING ABLE TO MAKE THINGS HAPPEN.\nTHIS IS OLD POLITICS. THIS IS\nNEW POLITICS. THIS IS THE SHAPE OF\nTHINGS TO COME. THIS IS THE RIGHT RESPONSE\nTO THE GREATEST CHALLENGE OF THE SEVENTIES.\nTHIS IS THE WAY TO BUILD A NEW AND GREATER\nAMERICA.\n--END--\nDistribution 20 copus of mr. Ford\noffice Copy\nAN ADDRESS BY REP. GERA.D R. FORD, R-MICH.\nREPUBLICAN LEADER, U.S. HOUSE OF REPRESENTATIVES\nBEFORE THE WEST COAST PURCHASING MANAGEMENT ASSOCIATION\nTAMPA, FLORIDA\n5:30 P.M. SATURDAY, MAY 8, 1971\nFOR RELEASE ON DELIVERY\nIt is a pleasure to be here with you. Today I would like to talk with you\nabout change--the Challenges of Change in the Seventies.\nWe all know that men must be challenged to strive mightily and to achieve\nlofty goals. We know that change is the essence of progress, that change requires\nchallenge, and that challenge involves the clash of differing ideas.\nThis is the kind of time we are living in--a time of challenge, a time of\nchange, a time when different ideas are colliding.\nWe meet in exciting--and trying times. These are times when momentous\ndecisions must be made--decisions today which will determine the quality of our\nlives tomorrow.\nIt is a time for a realistic assessment of our problems--a time for a\nresolve to solve those problems as quickly and expertly as circumstance will permit.\nIt is a time for positive action, for leadership, for creativity, and for\nboldness.\nThe challenge of our times is to confront the great problems and to employ\nthe American genius and the spirit of enthusiasm needed to overcome them.\nHow are we to do this? There must be created within our country a new\nfeeling of common purpose--a resolve which will produce two-way cooperation\nbetween government and the people, a working together of one with the other toward\nneeded solutions.\nI will talk with you today about a number of challenges--the challenge of\nmilitant Communism in the Middle East and Indochina and the search for peace; the\nchallenge posed by the economy, where we must wrestle with the hangover from the\ninflationary binge of the late 1960s while making a transition from wartime to\npeacetime; and the challenge of governmental reform, where we must restructure the\nFederal government so it becomes the servant and not the master of the people.\nI speak first about the Middle East--because while it is Vietnam which has\ntorn this Nation apart and ravaged its soul it is in the Middle East that the danger\n(more)\nGERALD LIBRARY\n-2-\nof World War III is the greatest. It is there that we have most to fear a head-on\ncollision with the other nuclear super-power, the Soviet Union.\nWe work ceaselessly for peace in the Middle East, but all the time we must\nbe aware that the Soviet Union has embarked on a drive to turn the Mediterranean into\na red sea, undermine the southern flank of NATO, and expand Russian influence across\nAfrica from the Indian Ocean to the South Atlantic.\nIf we were to allow the Soviet Union to crush Israel indirectly, through\nthe weapons the Soviets have placed in Egyptian hands, this would mean the end of\nhope for all free nations of the Mediterranean and even western Europe. It would\ngive the Soviet Union dominance throughout the Middle East throughout the entire\nMediterranean area. We will not let that happen.\nThe situation in the Middle East is most complex. There will be no settle-\nment until both sides are prepared to make some sacrifices.\nThe Administration last August put forward the initiative which resulted in\na cease-fire--now only a de facto cease fire. Some progress has been made through\nindirect negotiations. This gives us reason to hope.\nThere are those who are inclined to condemn the Israelis for refusing to pull\nback to their prewar boundaries. Personally, in view of past history, I find\nIsrael's attitude completely understandable. A nation which is confronted by\nhostile powers backed by the military might of the Soviet Union cannot be blamed\nfor seeking secure and defensible borders.\nWhile we seek to achieve a settlement of the Middle East conflict, we\ncontinue to resist Communist aggression in Southeast Asia and to work for peace in\nthat war-torn region of the world.\nWe have drawn our forces in Vietnam down from an authorized strength of\n549,500 men to 270,000--and we will be down to 184,000 or less by next Dec. 1.\nOur goal in Vietnam is to make it possible for the South Vietnamese to\ndetermine their own future.\nWe have moved considerably closer to that goal. Prospects are good that\nwe will achieve it.\nAnyone who wants to see the South Vietnamese government gain the upper hand\nagainst the Communists cannot help but be heartened by the progress we have made.\nAs for those who shout \"pullout now,\" they would write off completely the\ninvestment we have made in Southeast Asia toward a full generation of peace. They\nwould throw in the towel at the very moment when success is in sight. They would\n(more)\n-3-\ncapitulate just when our objective is near at hand.\nWe are withdrawing from Vietnam in accordance with a carefully thought out\nplan. The President has drawn our forces in Vietnam down by 270,000 men--and the\nwithdrawals will continue at a faster pace.\nIt matters very much how we end our involvement in the Vietnam War. It is\neasy to have peace simply by saying to the enemy, \"It's all yours.\" I say we should\nend our involvement in Vietnam in a way that stems the Communist tide in Southeast\nAsia. And that is what we are doing.\nI look forward to saluting a viable and independent South Vietnam.\nOur withdrawal from Vietnam is, of course, having a tremendous impact on\nour economy.\nWe have cut Vietnam spending in half--and we have deliberately cooled off\nthe economy to bring inflation under control.\nNow the need is to stimulate the economy. Unemployment is too high. However,\nlet me point out that it was lower in 1970 at 4.9 per cent than for any of the years\n1960 through 1964. It was not until 1965 when the previous Administration sharply\nescalated our commitment to the Vietnam War and continued to escalate it that\nunemployment fell below 5 per cent.\nThe Nixon Administration is getting out of Vietnam and making a transition to\na peacetime economy.\nUnemployment has resulted as we have fought inflation and moved from a\nwartime to a peacetime economy. The problems were even tougher than the\nAdministration anticipated. But now the economy is improving. There are most\nencouraging signs of an economic upturn.\nAll we need now to give the economy a strong push is an upsurge of consumer\nconfidence.\nIt is only a matter of time before the economy picks up appreciably. This is\nbound to occur because both our fiscal and monetary policies are expansionary. The\nmoney supply, including time deposits, is expanding at a rate unprecedented in\n20 years. And while Federal spending is rising only moderately, the President has\nproposed an expansionary budget for fiscal 1972 which calls for Federal spending\nbased on full employment revenue levels.\nI predict the economy will grow by 8 per cent in 1971, with about 4 per cent\nof this in real growth and the rest accounted for by price inflation.\nI further predict that auto sales will run close to 10 million this year and\nthat housing starts will total at least 1.8 million nationally.\n(more)\n-4-\nThere is another great challenge in addition to revitalizing our economy--one\nthat is perhaps more difficult to meet.\nI speak of providing all of our citizens with an opportunity to participate\nin American society and in the shaping of governmental decisions affecting their\nlives.\nThis is a challenge which eclipses all others. It is central to our future\nas a Nation. It is basic to our growth as a people. It goes to our philosophy\nof government and touches the lives of every one of us.\nThe challenge is whether any man, woman or child really counts in America\nanymore whether the system has become more important than the individual whether\nwe have all become just digits cranked into a computer operated by a faceless\nbureaucracy.\nThere is a way to control the vast federal bureaucracy.\nThe answer is \"Federal Revenue Sharing.\" It is an idea whose time has come.\nI talk about revenue sharing not in a partisan vein. There are Democrats\nwho support it, as well as some who oppose it.\nLet's look at revenue sharing from the standpoint of political philosophy.\nRevenue sharing is based on the concept that that government is best which\nis closest to the people.\nWhat is the President asking? He is asking the Congress to appropriate\n$5 billion to be shared by the states and cities with no strings attached. This\ncomes under the heading of general revenue sharing. He is also asking the Congress\nto take about 130 categorical grant-in-aid programs, lump them together under six\ngeneral purpose headings of education, urban development, rural development,\ntransportation, job training and law enforcement and let the states and cities\ndecide how to pursue their priorities under those broad purposes.\nWhat the President is saying is\ngive State and local government a chance.\nLet's transfer to the local political arena hundreds of decisions now being made\nin Washington or the Administration's regional offices.\nToday we are living through a crisis which has so slowed the wheels of social\nprogress as to create a kind of paralysis, a paralysis of musclebound government\nwith too much power and money in the hands of the federal bureaucracy.\nPresident Nixon has pointed to a way out of this crisis--a way to prove that\ngovernment can work.\nIt can be done by bringing government back to the people--by making an\n(more)\n-5-\ninvestment in the local political process through Federal revenue sharing. Status\nquo government cannot be accepted. As times change, we must reform government--so\nthat instead of sliding further into musclebound ineffectiveness it at last can\ndeliver the services it promises and bridge the gap between promise and performance.\nWhile the government in Washington has become musclebound, State and local\ngovernments have been struggling with problems the bureaucrats can't solve. And\nthe cost of State and local government has skyrocketed.\nState and local spending has jumped 372 per cent from 1950 through 1969--from\n$28 billion to $132 billion.\nState and local taxes, per capita, have spiraled from $105 in 1950 to\n$380 in 1969, an increase of 262 per cent.\nStates have increased major taxes 300 times during the last decade.\nIn the last two decades Federal aid to state and local governments has risen\nfrom $2.5 billion to over $30 billion.\nAt the same time the Federal categorical grants-in-aid system has developed\nmore than 500 different spigots, manned by thousands of administrators operating in\na jungle of regulations.\nHow do we escape from this jungle? How do we put the money where the problems\nare? How do we hold down the pressures for state and local tax increases?\nThe answer is the President's program of Federal revenue sharing.\nThere is opposition to revenue sharing. But what man has made, man can\nchange. And we must have the courage to change what should be changed.\nMoney is power. Moving money back to the states and cities means a flow\nof power back to the people. This is where the power belongs.\nEvery individual wants to count for something. Under the revenue-sharing\nphilosophy of government, he can.\nWe must think in terms of people, not just programs. We must replace\ncomputers with compassion.\nAbraham Lincoln said: \"This country, with its institutions, belongs to the\npeople who inhabit it.\"\nLet's make this country belong to the people again. Let's give the individual\nthe feeling of determining his own destiny, of being able to make things happen.\nThis is old politics. This is new politics. This is the shape of things to\ncome. This is the right response to the greatest challenge of the Seventies. This\nis the way to build a new and greater America.\n###\nAN ADDRESS BY REP. GERA.D R. FORD, R-MICH.\nREPUBLICAN LEADER, U.S. HOUSE OF REPRESENTATIVES\nBEFORE THE WEST COAST PURCHASING MANAGEMENT ASSOCIATION\nTAMPA, FLORIDA\n5:30 P.M. SATURDAY, MAY 8, 1971\nFOR RELEASE ON DELIVERY\nIt is a pleasure to be here with you. Today I would like to talk with you\nabout change--the Challenges of Change in the Seventies.\nWe all know that men must be challenged to strive mightily and to achieve\nlofty goals. We know that change is the essence of progress, that change requires\nchallenge, and that challenge involves the clash of differing ideas.\nThis is the kind of time we are living in--a time of challenge, a time of\nchange, a time when different ideas are colliding.\nWe meet in exciting--and trying times. These are times when momentous\ndecisions must be made--decisions today which will determine the quality of our\nlives tomorrow.\nIt is a time for a realistic assessment of our problems--a time for a\nresolve to solve those problems as quickly and expertly as circumstance will permit.\nIt is a time for positive action, for leadership, for creativity, and for\nboldness.\nThe challenge of our times is to confront the great problems and to employ\nthe American genius and the spirit of enthusiasm needed to overcome them.\nHow are we to do this? There must be created within our country a new\nfeeling of common purpose--a resolve which will produce two-way cooperation\nbetween government and the people, a working together of one with the other toward\nneeded solutions.\nI will talk with you today about a number of challenges--the challenge of\nmilitant Communism in the Middle East and Indochina and the search for peace; the\nchallenge posed by the economy, where we must wrestle with the hangover from the\ninflationary binge of the late 1960s while making a transition from wartime to\npeacetime; and the challenge of governmental reform, where we must restructure the\nFederal government so it becomes the servant and not the master of the people.\nI speak first about the Middle East--because while it is Vietnam which has\ntorn this Nation apart and ravaged its soul it is in the Middle East that the danger\n(more)\n-2-\nof World War III is the greatest. It is there that we have most to fear a head-on\ncollision with the other nuclear super-power, the Soviet Union.\nWe work ceaselessly for peace in the Middle East, but all the time we must\nbe aware that the Soviet Union has embarked on a drive to turn the Mediterranean into\na red sea, undermine the southern flank of NATO, and expand Russian influence across\nAfrica from the Indian Ocean to the South Atlantic.\nIf we were to allow the Soviet Union to crush Israel indirectly, through\nthe weapons the Soviets have placed in Egyptian hands, this would mean the end of\nhope for all free nations of the Mediterranean and even western Europe. It would\ngive the Soviet Union dominance throughout the Middle throughout the entire\nMediterranean area. We will not let that happen.\nThe situation in the Middle East is most complex. There will be no settle-\nment until both sides are prepared to make some sacrifices.\nThe Administration last August put forward the initiative which resulted in\na cease-fire--now only a de facto cease fire. Some progress has been made through\nindirect negotiations. This gives us reason to hope.\nThere are those who are inclined to condemn the Israelis for refusing to pull\nback to their prewar boundaries. Personally, in view of past history, I find\nIsrael's attitude completely understandable. A nation which is confronted by\nhostile powers backed by the military might of the Soviet Union cannot be blamed\nfor seeking secure and defensible borders.\nWhile we seek to achieve a settlement of the Middle East conflict, we\ncontinue to resist Communist aggression in Southeast Asia and to work for peace in\nthat war-torn region of the world.\nWe have drawn our forces in Vietnam down from an authorized strength of\n549,500 men to 270,000--and we will be down to 184,000 or less by next Dec. 1.\nOur goal in Vietnam is to make it possible for the South Vietnamese to\ndetermine their own future.\nWe have moved considerably closer to that goal. Prospects are good that\nwe will achieve it.\nAnyone who wants to see the South Vietnamese government gain the upper hand\nagainst the Communists cannot help but be heartened by the progress we have made.\nAs for those who shout \"pullout now,\" they would write off completely the\ninvestment we have made in Southeast Asia toward a full generation of peace. They\nwould throw in the towel at the very moment when success is in sight. They would\n(more)\n-3-\ncapitulate just when our objective is near at hand.\nWe are withdrawing from Vietnam in accordance with a carefully thought out\nplan. The President has drawn our forces in Vietnam down by 270,000 men--and the\nwithdrawals will continue at a faster pace.\nIt matters very much how we end our involvement in the Vietnam War. It is\neasy to have peace simply by saying to the enemy, \"It's all yours.\" I say we should\nend our involvement in Vietnam in a way that stems the Communist tide in Southeast\nAsia. And that is what we are doing.\nI look forward to saluting a viable and independent South Vietnam.\nOur withdrawal from Vietnam is, of course, having a tremendous impact on\nour economy.\nWe have cut Vietnam spending in half--and we have deliberately cooled off\nthe economy to bring inflation under control.\nNow the need is to stimulate the economy. Unemployment is too high. However,\nlet me point out that it was lower in 1970 at 4.9 per cent than for any of the years\n1960 through 1964. It was not until 1965 when the previous Administration sharply\nescalated our commitment to the Vietnam War and continued to escalate it that\nunemployment fell below 5 per cent.\nThe Nixon Administration is getting out of Vietnam and making a transition to\na peacetime economy.\nUnemployment has resulted as we have fought inflation and moved from a\nwartime to a peacetime economy. The problems were even tougher than the\nAdministration anticipated. But now the economy is improving. There are most\nencouraging signs of an economic upturn.\nAll we need now to give the economy a strong push is an upsurge of consumer\nconfidence.\nIt is only a matter of time before the economy picks up appreciably. This is\nbound to occur because both our fiscal and monetary policies are expansionary. The\nmoney supply, including time deposits, is expanding at a rate unprecedented in\n20 years. And while Federal spending is rising only moderately, the President has\nproposed an expansionary budget for fiscal 1972 which calls for Federal spending\nbased on full employment revenue levels.\nI predict the economy will grow by 8 per cent in 1971, with about 4 per cent\nof this in real growth and the rest accounted for by price inflation.\nI further predict that auto sales will run close to 10 million this year and\nthat housing starts will total at least 1.8 million nationally.\n(more)\n-4-\nThere is another great challenge in addition to revitalizing our economy--one\nthat is perhaps more difficult to meet.\nI speak of providing all of our citizens with an opportunity to participate\nin American society and in the shaping of governmental decisions affecting their\nlives.\nThis is a challenge which eclipses all others. It is central to our future\nas a Nation. It is basic to our growth as a people. It goes to our philosophy\nof government and touches the lives of every one of us.\nThe challenge is whether any man, woman or child really counts in America\nanymore--whether the system has become more important than the individual whether\nwe have all become just digits cranked into a computer operated by a faceless\nbureaucracy.\nThere is a way to control the vast federal bureaucracy.\nThe answer is \"Federal Revenue Sharing.\" It is an idea whose time has come.\nI talk about revenue sharing not in a partisan vein. There are Democrats\nwho support it, as well as some who oppose it.\nLet's look at revenue sharing from the standpoint of political philosophy.\nRevenue sharing is based on the concept that that government is best which\nis closest to the people.\nWhat is the President asking? He is asking the Congress to appropriate\n$5 billion to be shared by the states and cities with no strings attached. This\ncomes under the heading of general revenue sharing. He is also asking the Congress\nto take about 130 categorical grant-in-aid programs, lump them together under six\ngeneral purpose headings of education, urban development, rural development,\ntransportation, job training and law enforcement and let the states and cities\ndecide how to pursue their priorities under those broad purposes.\nWhat the President is saying is give State and local government a chance.\nLet's transfer to the local political arena hundreds of decisions now being made\nin Washington or the Administration's regional offices.\nToday we are living through a crisis which has so slowed the wheels of social\nprogress as to create a kind of paralysis, a paralysis of musclebound government\nwith too much power and money in the hands of the federal bureaucracy.\nPresident Nixon has pointed to a way out of this crisis--a way to prove that\ngovernment can work.\nIt can be done by bringing government back to the people--by making an\n(more)\n-5-\ninvestment in the local political process through Federal revenue sharing. Status\nquo government cannot be accepted. As times change, we must reform government--so\nthat instead of sliding further into musclebound ineffectiveness it at last can\ndeliver the services it promises and bridge the gap between promise and performance.\nWhile the government in Washington has become musclebound, State and local\ngovernments have been struggling with problems the bureaucrats can't solve. And\nthe cost of State and local government has skyrocketed.\nState and local spending has jumped 372 per cent from 1950 through 1969--from\n$28 billion to $132 billion.\nState and local taxes, per capita, have spiraled from $105 in 1950 to\n$380 in 1969, an increase of 262 per cent.\nStates have increased major taxes 300 times during the last decade.\nIn the last two decades Federal aid to state and local governments has risen\nfrom $2.5 billion to over $30 billion.\nAt the same time the Federal categorical grants-in-aid system has developed\nmore than 500 different spigots, manned by thousands of administrators operating in\na jungle of regulations.\nHow do we escape from this jungle? How do we put the money where the problems\nare? How do we hold down the pressures for state and local tax increases?\nThe answer is the President's program of Federal revenue sharing.\nThere is opposition to revenue sharing. But what man has made, man can\nchange. And we must have the courage to change what should be changed.\nMoney is power. Moving money back to the states and cities means a flow\nof power back to the people. This is where the power belongs.\nEvery individual wants to count for something. Under the revenue-sharing\nphilosophy of government, he can.\nWe must think in terms of people, not just programs. We must replace\ncomputers with compassion.\nAbraham Lincoln said: \"This country, with its institutions, belongs to the\npeople who inhabit it.\"\nLet's make this country belong to the people again. Let's give the individual\nthe feeling of determining his own destiny, of being able to make things happen.\nThis is old politics. This is new politics. This is the shape of things to\ncome. This is the right response to the greatest challenge of the Seventies. This\nis the way to build a new and greater America.\n###"
}