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{
    "localId": "1133481",
    "label": "10/1/76 - North Carolina Association of Realtors",
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    "citationUrl": "https://catalog.archives.gov/id/1133481"
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{
    "id": "1133481",
    "sourceUrl": "https://catalog.archives.gov/id/1133481",
    "contentType": "document",
    "title": "10/1/76 - North Carolina Association of Realtors",
    "citationUrl": "https://catalog.archives.gov/id/1133481",
    "collections": [
        "Carla A. Hills Speeches",
        "Speeches"
    ],
    "subjects": [
        "Credit",
        "Economics",
        "Housing",
        "Industries",
        "Presidential campaign, 1976"
    ],
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{
    "url": "https://catalog.archives.gov/id/1133481",
    "naId": 1133481,
    "coverageEndDate": {
        "day": 1,
        "logicalDate": "1976-10-01",
        "month": 10,
        "year": 1976
    },
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        "day": 1,
        "logicalDate": "1976-10-01",
        "month": 10,
        "year": 1976
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{
    "seq": 1,
    "pageIndex": 0,
    "type": "document",
    "url": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/ford/grf-0305/656148/1133481.pdf",
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    "ocrText": "The original documents are located in Box 2, folder \"10/1/76 - North Carolina Association\nof Realtors\" of the Carla A. Hills Speeches 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. Gerald Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain.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 2 of the Carla A. Hills Speeches at the Gerald R. Ford Presidential Library\nFINAL\nNORTH CAROLINA ASSOCIATION OF REALTORS\nOCTOBER 1, 1976\nI AM so PLEASED TO HAVE THE OPPORTUNITY TO ADDRESS THE\nNORTH CAROLINA ASSOCIATION OF REALTORS.\nI HAVE COME TO KNOW THAT OUR RELATORS, ALL ACROSS THIS\nCOUNTRY, ARE POSITIVE PEOPLE -- THE MOVERS AND DOERS -- WHO\nGET ON WITH THE WORK OF THE NATION REGARDLESS OF ODDS, AND\nIN SPITE OF THE DOOMSAYERS.\nIN YOUR HANDS THIS NATION'S UNPARALLELED SYSTEM OF FREE\nENTERPRISE -- ABETTED BY HARD WORK -- HAS TRANSFORMED THE\nAMERICAN DREAM OF HOMEOWNERSHIP INTO A REALITY FOR MILLIONS\nOF AMERICAN FAMILIES,\nIT WAS THE REALTORS' UNDAUNTED OPTIMISM, IN THE DEPTH\nOF THE AMERICAN HOUSING INDUSTRY'S RECENT CRISIS THAT HELPED\nPROVIDE THE SPARK OF INDUSTRY SPIRIT LEADING TO THE SOUND\nRECOVERY OF THE PAST YEAR.\nI NEED HARDLY TELL YOU WHAT THAT KIND OF UNQUENCHABLE\nEXURBERANCE DOES FOR THE MORALE OF AN EMBATTLED SECRETARY OF\nHOUSING AND URBAN DEVELOPMENT.\nGERALD R. FORD LIBRARY\n-2-\nBUT, THERE IS ANOTHER QUALITY ABOUT REALTORS, WHICH IS\nIMPORTANT TO ME, AND, THAT IS, YOUR INSTINCTIVE ABILITY TO\nLOOK AHEAD AT THE NEEDS OF THE FUTURE,\nYou HAVE ASKED ME TO TALK TO YOU TODAY ABOUT HOUSING AND\nTHE ECONOMY, AND THAT SUBJECT INEVITABLY DRAWS INTO QUESTION\nTHE FUTURE ROLE OF THE FEDERAL GOVERNMENT IN THE HOUSING INDUSTRY.\nTHAT ROLE IS, HAS BEEN -- AND WILL CONTINUE TO BE --\nQUESTIONED AND CHALLENGED BY AMERICAN PEOPLE OF ALL POLITICAL\nPURSUASIONS: THOSE WHO HOLD THAT THE GOVERNMENT SHOULD DROP\nTHE WHOLE HOUSING PROBLEM; THOSE WHO CONTEND THAT THE HOUSING\nINDUSTRY SHOULD BE FEDERALIZED; AND THOSE, IN BETWEEN, WHO\nAGREE THAT THE GOVERNMENT CAN HAVE AN AFFIRMATIVE ROLE IN\nHOUSING, BUT ARE AT SIXES-AND-SEVENS OVER JUST WHAT THAT ROLE\nSHOULD BE.\nIT IS MY OPINION -- SUPPORTED BY A HARD, BUT DEFINITIVE\n18 MONTHS AT HUD -- THAT THE PROPER ROLE OF THE FEDERAL\n!\nGOVERNMENT IN HOUSING IS IN LARGE MEASURE DETERMINED BY THE\nSTATE OF THE NATIONAL ECONOMY AT ANY GIVEN TIME IN HISTORY.\n-3-\nTHE THINKER-POET, EDWIN MARKHAM, ONCE WROTE:\n\"FOR ALL YOUR DAYS, PREPARE,\nBUT, TREAT THEM NOT ALIKE,\nWHEN YOU'RE THE ANVIL -- BEAR.\nWHEN YOU'RE THE HAMMER -- STRIKE!\"\nMR. MARKHAM, OF COURSE, WAS TALKING ABOUT ONE'S LIFE\nPHILOSOPHY -- BUT HE COULD HAVE BEEN PRESCRIBING FEDERAL\nMEDICINE TO TREAT HOUSING ILLS ACCORDING TO THE NATION'S\nCHANGING ECONOMY,\nIT SEEMS TO ME, THAT MOST OFTEN WHERE THE GOVERNMENT\nHAS GONE OFF THE DEEP END, IT IS NOT FROM THE LAWMAKERS'\nLACK OF COMPASSION, BUT FROM THEIR ESPOUSAL OF PROGRAMS\nTHAT WORK IN OPPOSITION TO THE MARKET,\nFOR EXAMPLE, IT HAS BEEN PROPOSED THAT THE FEDERAL\nGOVERNMENT SUBSIDIZE THE BUILDING OF 2.5 MILLION HOUSING\nUNITS A YEAR, ON THE THEORY THAT \"WE HAVE TO GET THE HOUSING\nINDUSTRY WORKING AGAIN\".\n-4-\nON THE SURFACE, IT SOUNDS GREAT. MORE JOBS, MORE HOMES,\nMORE OF ALL THOSE THINGS THAT HAVE MADE AMERICA THE GREATEST\nCOUNTRY ON THE FACE OF THE EARTH!\nBUT TO EVERY GOVERNMENT ACTION THERE IS A SOBERING\nREACTION -- AND THE NATION'S HOUSING PICTURE SUFFERED AN\nENORMOUS SET-BACK FROM THAT VERY PHILOSOPHY -- WHICH WAS\nMANDATED BY THE HOUSING Act OF 1968.\nFOR PURSUANT TO THAT AcT, THIS NATION SUBSIDIZED, ANNUALLY,\nMORE THAN 2 MILLION HOUSING STARTS FOR THREE YEARS RUNNING --\nAND GENERATED A BURST OF HOUSING OVER-PRODUCTION THAT WE ARE\nSTILL TRYING TO WORK OFF,\nIN THE COURSE OF THIS PRODUCTION EXPLOSION OUR NATION\nABANDONED THOUSANDS OF SOUND, WELL-DESIGNED HOMES IN OUR CITIES\nAND UNDER-UTILIZED ROADS, UTILITIES, AND SEWAGE SYSTEMS ALREADY\nIN PLACE THERE, AS BUYERS HEEDED THE PIED PIPER CALL OF \"NEW IS\nBETTER\".\nAND BECAUSE ALL FACTORS IN AN ECONOMIC EQUATION ARE RELATED,\nTHE ARTIFICIALLY PRODUCED \"BOOM\" LED TO THE INEVITABLE SHARP\nCUT-BACKS IN HOUSING PRODUCTION AND RESULTING LAY-OFFS IN THE\nCONSTRUCTION INDUSTRY.\n-5-\nIN DISCUSSING HOUSING AND THE ECONOMY, WE MIGHT WELL BEGIN\nBY TAKING STOCK.\nWHERE WERE WE A YEAR AGO? WHAT HAVE WE DONE ABOUT IT?\nWHAT HAVE WE LEARNED?\nNONE OF US CAN FORGET THAT IN 1975, THE MAJOR QUESTION-MARK\nWAS WHETHER OUR NATIONAL ECONOMY WOULD SUSTAIN THE FORWARD\nMOMENTUM WHICH WAS THEN ON THE CUSP OF A POSITIVE TURN-AROUND\n-- FROM THE BLEAK AND DEPRESSING 12-MONTH PERIOD OF A TERRIFYING\nRECESSION COMPOUNDED BY AN UNCEASING INCREASE IN THE COST OF\nEVERYTHING.\nINFLATION STOOD AT 12-14 PERCENT. THE UNEMPLOYMENT RATE\nWAS ABOUT 9 PERCENT,\nURBAN REVENUES WERE WAY DOWN. NEW YORK WAS ON THE BRINK\nOF FINANCIAL FAILURE, INDUSTRY WAS DEPRESSED AND THE HOUSING\nSECTOR WAS SUFFERING ITS WORST YEAR IN 3 DECADES.\nON CAPITOL HILL, THE ECONOMISTS AND OTHER EXPERTS WERE\nPROPHESIZING A NATIONAL COLLAPSE UNLESS WE ENGAGED IN MASSIVE\nFEDERAL SPENDING -- IN THE FORM OF SUBSIDIES -- PARTICULARLY\nIN THE HOUSING INDUSTRY.\n-6-\nSo, HERE WE ARE -- ONE YEAR LATER.\nTHE NATION AND ITS ECONOMY SURVIVED -- IN SPITE OF THE\nDOOMSAYERS -- AND THE DELICATE HEALTH OF THE ECONOMIC UPTURN,\nWHICH WE WATCHED SO FRETFULLY A YEAR AGO, HAS BECOME STRONGER\nAND STRONGER WITH EACH PASSING MONTH,\nIN ONE SHORT YEAR WE HAVE SEEN:\nPERSONAL INCOME JUMP $83 BILLION; -- OUR GROSS NATIONAL\nPRODUCT GROW BY $200 BILLION; RETAIL SALES INCREASE 16 PERCENT;\nAUTO SALES 38 PERCENT; GENERAL MERCHANDISE 11 PERCENT; -- NEW\nFACTORY ORDERS UP $17 BILLION,\nTODAY, THERE ARE 3 MILLION MORE AMERICANS WORKING THAN ONE\nYEAR AGO -- IN SPITE OF A TREMENDOUS IN-FLUX OF WOMEN AND YOUNG\nPEOPLE INTO THE LABOR MARKET. AND INFLATION HAS BEEN MORE THAN\nCUT IN HALF,\n-\nIN HOUSING -- PERHAPS THE HARDEST HIT SECTOR OF OUR ENTIRE\nECONOMY -- NEW STARTS ARE UP 22 PERCENT OVER LAST AUGUST, AND\n64 PERCENT OVER THE BEGINNING OF 1975.\nWHAT HAVE WE LEARNED?\n-7-\nWE HAVE COME THIS FAR, NOT THROUGH THE MAGIC OF A BIG\nFEDERAL GOVERNMENT \"SAVE\", BUT THROUGH THE STRONG AND CONSISTENT\nGUIDING HAND OF A PRAGMATIC PRESIDENT.\nAND OUR PROSPECTS FOR CONTINUED GROWTH AND PROGRESS DEPEND\nON MAINTAINING THE STEADY COURSE PRESIDENT FORD SET WHEN HE\nTOOK OFFICE TWO YEARS AGO,\nUNDER PRESIDENT FORD, BASED ON HIS RECORD OF UNDERSTATED\nPROMISES AND HIS PATTERN OF DELIVERING MORE THAN HE PROMISES --\nWE CAN COUNT ON THE FACT THAT INFLATION WILL DROP STEADILY\nDOWN TO 3 PERCENT IN 1980.\nWE CAN COUNT ON THE FACT THAT PERSONAL INCOME WILL INCREASE\nBY MORE THAN 10 PERCENT EACH YEAR -- PRODUCING MORE REAL PURCHASING\nPOWER NOT A MERE COST-OF-LIVING CATCH-UP,\nAND WE CAN COUNT ON THE FACT THAT UNEMPLOYMENT WILL CONTINUE\nITS STEADY DECLINE TO LESS THAN 5 PERCENT BY 1980.\nWHAT WORRIES ME ARE THE REPEATED CALLS FOR MORE GOVERNMENT\nSPENDING PROGRAMS.\n-8-\nIF WE LISTEN TO THE ENDORSEMENT OF PROPOSALS THAT WOULD\nADD $100 TO $200 BILLION TO A BUDGET THAT IS ALREADY PRODUCING\nA DEFICIT OF OVER $50 BILLION, WE MUST CONCLUDE THAT THE \"MAGIC\"\nOF THE FEDERAL PURSE HAS MORE PULLING POWER THAN OUR GREAT FREE\nENTERPRISE SYSTEM.\nTHE UNVARNISHED EVIDENCE IS THAT THESE BIG SPENDING PROGRAMS\nTHWART NEEDED BUSINESS EXPANSION BY DRIVING UP COSTS OF DOING\nBUSINESS.\nTHAT HURTS THE VERY PEOPLE SUCH PROGRAMS WERE SUPPOSED TO\nHELP -- WITH GREATER EXPENSES, EMPLOYMENT CONTRACTION, LAY-OFFS\nAND STILL ANOTHER ROUND OF UNEMPLOYMENT CHECKS.\nCERTAINLY, THAT DOES NOT MEAN WE CAN EVER IGNORE THE GREAT\nHUMAN PROBLEMS -- SUCH AS CATASTROPHIC ILLNESS AND UNEMPLOYMENT.\nBUT, PRESIDENT FORD'S SOLUTION DOES NOT CALL FOR A DON QUIXOTE\nCHARGE OF MASSIVE FEDERAL SPENDING TO WIPE OUT THESE ANCIENT\nENEMIES,\nIN HEALTH INSURANCE, FOR EXAMPLE, THE PRESIDENT PROPOSES\nNOT TO FEDERALIZE ALL OF THE HEALTH CARE, BUT, INSTEAD, TO\nINSURE THAT ELDERLY PERSONS WITH MAJOR MEDICAL EXPENSES WILL\nNOT BE FINANCIALLY DESTROYED BY THOSE COSTS.\n-9-\nAND, THE PRESIDENT'S CURE FOR UNEMPLOYMENT IS THE BEST\nREMEDY KNOWN TO A DEMOCRATIC SOCIETY: TO ESTABLISH A STABLE\nECONOMY IN WHICH EXPANDING BUSINESS AND INDUSTRY, UNDER OUR\nSYSTEM OF FREE ENTERPRISE, CREATES REAL AND LASTING JOBS AND\nA GROWING DEMAND FOR BLUE AND WHITE COLLAR WORKERS AT EVERY\nINCOME LEVEL,\nCERTAINLY PRESIDENT FORD HAS SHOWN HIS BELIEF IN MAINTAINING\nREASONABLE LEVELS OF HOUSING PRODUCTION -- AND PROOF IS FOUND\nIN THE GOVERNMENT'S PURCHASE OF MORTGAGES BEARING BELOW-MARKET\nINTEREST RATES, A PROGRAM WHICH HAS BEEN JUDICIOUSLY AND EFFECTIVELY\nUSED TO NURTURE RECOVERY OF THE HOUSING INDUSTRY,\nHIS HOUSING POLICIES ARE DESIGNED TO ACCOMMODATE THE LOGICAL\nCALL FOR REASONABLE LEVELS OF STARTS WHILE AVOIDING THE DISASTEROUS\nCYCLES OF ALL OR NOTHING THAT HAVE CHARACTERIZED THE HOUSING\nCONSTRUCTION INDUSTRY EVER SINCE BIG GOVERNMENT GOT INTO THE ACT.\nIT IS A CREDIT TO PRESIDENT FORD'S POLICY OF WORKING WITH\n-- AND NOT AGAINST -- THE MARKET, THAT HUD HAS ACHIEVED A 42-\nYEAR SALES RECORD IN RETURNING HOMES TO USEFUL OCCUPANCY, AND\nHAS PREVENTED THE ABANDONMENT OF OTHERS THROUGH OUR RENTAL SUBSIDY\nPROGRAM.\n-10-\nRATHER THAN RE-CREATE MASSIVE SUBSIDY PROGRAMS TO EXPAND\nHOMEOWNERSHIP OPPORTUNITIES, WHICH TOO OFTEN FORCE TAXPAYERS\nTO SUBSIDIZE THEIR ECONOMIC PEERS, THE PRESIDENT ANNOUNCED IN\nANN ARBOR THREE INITIATIVES WHICH HAVE BEEN UNDER STUDY IN MY\nDEPARTMENT FOR SEVERAL MONTHS,\nTHE FIRST IS TO LOWER DOWNPAYMENTS FOR THOSE WHO BUY HOMES\nWITH FHA INSURANCE. FOR THE TYPICALLY-PRICED NEW HOME, THE\nPRESIDENT'S INITIATIVE WILL CUT THE DOWNPAYMENT IN HALF, THUS\nHELPING FAMILIES, PARTICULARLY YOUNG FAMILIES WHO ARE BUYING\nTHEIR FIRST HOMES, TO GAIN THE PRACTICAL AND PERSONAL BENEFITS\nOF HOMEOWNERSHIP.\nTHE SECOND IS TO EXPAND FHA MORTGAGE LIMITS TO COVER ABOUT\n87 PERCENT OF SALES,\nAND THE THIRD IS TO PROVIDE A FEDERAL GUARANTEE OF A\nGRADUATED PAYMENT MORTGAGE, WHICH ALLOWS YOUNG FAMILIES TO\nREDUCE THEIR MONTHLY PAYMENTS IN THE EARLY YEARS WHEN THEIR\nINCOMES ARE LIKELY TO BE LOWER. THE PAYMENTS INCREASE MODERATELY\nIN LATER YEARS WHEN THEIR INCOMES ARE EXPECTED TO RISE.\n-11-\nIN THE 1930's AND 40's THE FEDERAL GOVERNMENT REVOLUTIONIZED\nHOME PURCHASING BY INTRODUCING THE 30-YEAR FULLY-AMORTIZED LOAN.\nUNDER THE PRESIDENT'S GRADUATED PAYMENT PROGRAM, WE CAN DO THE\nSAME, ON A SMALLER SCALE, IN THE 1970's. THESE PROPOSALS ARE NOT\nBASED ON SUBSIDIES PAID FOR WITH TAX DOLLARS -- THEY ARE INNOVATIVE\nMETHODS FOR HELPING FAMILIES TO PAY FOR THEIR OWN HOMES.\nBUT NO AMOUNT OF INNOVATION WILL WORK IF THE AMERICAN FAMILY\nDOES NOT HAVE THE SPENDABLE INCOME TO MAKE THE DOWNPAYMENT AND TO\nPAY THE MORTGAGE, UTILITIES AND MAINTENANCE.\nTHE ONLY SURE PRESCRIPTION FOR THAT IS THE CONTINUATION OF\nTHE STEADY PROGRESS WHICH PRESIDENT FORD HAS MADE IN REDUCING\nINFLATION AND INCREASING EMPLOYMENT THROUGH ARTFUL STIMULATION\nOF THE PRIVATE SECTOR.\nCERTAINLY, GOVERNMENT MUST BE HUMANE, AND RESPONSIVE. BUT,\nUNLESS IT IS PROPERLY COMPATIBLE WITH THE FREE ECONOMY OF THIS\nNATION, THOSE ARE NOTHING BUT EMPTY PROMISES.\nIN HIS STATE OF THE UNION ADDRESS, PRESIDENT FORD CALLED\nFOR \"COMMON SENSE\" GOVERNMENT. AND, HE PROPOSED A FEDERAL\nBUDGET THAT \"PROMISES NO MORE THAN WE CAN DELIVER\", YET, PROVIDES\nTHE MEANS TO \"DELIVER ON ALL THAT WE PROMISE\".\n-12-\nIT IS REALLY THE JOINT CHALLENGE OF BUSINESS AND GOVERNMENT\nTO DEVISE COMMON SENSE PROGRAMS AND INITIATIVES THAT ALLOW US\nBOTH TO DELIVER ON OUR PROMISES.\nFOR EXAMPLE, COMMON SENSE DEMANDS A GENUINELY COOPERATIVE\nACTION PROGRAM TO KEEP GOVERNMENT GROWTH TO AN ABSOLUTE MINIMUM.\nWE NEED TO REFRAIN FROM ISSUING NEW REGULATIONS AND TO DO AWAY\nWITH REGULATIONS NOW ON THE BOOKS THAT SERVE NO DEMONSTRABLE\nPURPOSE,\nTHIS TAKES A CONSTANT DIALOGUE, WHERE WE HAVE HAD STRONG\nAND OPEN LINES OF COMMUNICATION WITH THE PRIVATE SECTOR, WE HAVE\nSUCCEEDED. WHERE WE HAVE NOT, WE HAVE COMPOUNDED THE PROBLEMS.\nTHE SAME, CERTAINLY, IS TRUE OF HOUSING AND THE ECONOMY.\nTHE SUCCESS OF PRESIDENT FORD'S JUDICIOUS USE OF FEDERAL\nSTIMULANTS TO GET THE HOUSING INDUSTRY ON THE ROAD TO RECOVERY\nWITHOUT STIMULATING A MATCHING, SELF-DEFEATING INFLATION\nDEPENDED ON A JOINT AWARENESS OF ALL THE STAKES INVOLVED.\n:\nTOGETHER, WE CAN CONTINUE TO DEVELOP A STABLE HOUSING\nECONOMY, FREE FROM THE WILD CYCLICAL SWINGS THAT HAVE REPEATEDLY\nPLAGUED THIS ESSENTIAL AMERICAN INDUSTRY.\n-13-\nI AM CERTAIN THAT MOST CITIZENS WOULD AGREE THAT WE DO\nNOT NEED TO GIVE MORE \"WASHINGTON\" TO THE AMERICAN PEOPLE THAN\nTHEY ALREADY HAVE.\nBUT, I AM EQUALLY CERTAIN THAT ALL OF US ARE INTERESTED\nIN GIVING MORE AMERICA TO THE AMERICAN PEOPLE. AND THAT MEANS\nCONTINUING TO GIVE THEM:\n-- MORE REAL INCOME FROM THEIR EARNINGS;\n-- MORE REAL JOBS SUPPORTED BY HEALTHY PRIVATE ENTERPRISE;\n-- MORE HOMES THEY CAN AFFORD TO BUY AND MAINTAIN; AND\n--- A NATIONAL ECONOMY FREE FROM THE BOMBARDMENTS OF\nARTIFICAL PROGRAMS THAT SAP THE VITALITY OF AMERICA.\nAND THIS WE CAN DO IF WE KEEP OUR ECONOMY ON COURSE AND PUT\nOUR FAITH SQUARELY BEHIND OUR SYSTEM OF FREE ENTERPRISE WHICH\nHAS MADE OURS THE GREATEST NATION IN HISTORY."
}