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10/8/76 - City Club of Cleveland
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10/8/76 - City Club of Cleveland
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Carla A. Hills Speeches
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The original documents are located in Box 2, folder "10/8/76 - City Club of Cleveland" 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States of America his copyrights in all of his unpublished writings in National Archives collections.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
CITY CLUB OF CLEVELAND
OCTOBER 8, 1976
WITH THE PRESIDENTIAL ELECTION ONLY 25 DAYS AWAY, I AM
so PLEASED YOU INVITED ME TO GIVE YOU MY VIEWS ON WHY THE
NATION, OUR CITIES AND THE PEOPLE OF THE UNITED STATES NEED
PRESIDENT GERALD FORD IN OFFICE FOR ANOTHER FOUR YEARS,
THE PRESENCE TODAY OF CLEVELAND'S BUSINESS COMMUNITY -
LISTENING TO, AND QUESTIONING A REPRESENTATIVE OF THE ADMINISTRATION
-- IS PROOF, IF ANY WERE NEEDED, THAT THIS NATION'S PRIVATE SECTOR
AND THIS NATION'S GOVERNMENT CONSTITUTE AN INSOLUBLE PARTNERSHIP --
AND VERIFIES THE PROPOSITION BASIC TO MY AREA OF CONCERN THAT THE
FEDERAL GOVERNMENT, WORKING THROUGH THE PRIVATE SECTOR, CAN HAVE A
VITAL ROLE IN BOTH HOUSING AND THE ECONOMY.
THAT ROLE IS -- HAS BEEN -- AND WILL CONTINUE TO BE --
QUESTIONED AND CHALLENGED BY THE AMERICAN PEOPLE OF ALL POLITICAL
PURSUASIONS: THOSE WHO HOLD THAT THE GOVERNMENT SHOULD GET OUT
OF HOUSING ALTOGETHER; THOSE WHO CONTEND THAT THE HOUSING INDUSTRY
SHOULD BE FEDERALIZED; AND THOSE, IN BETWEEN, WHO AGREE THAT THE
GOVERNMENT CAN HAVE AN AFFIRMATIVE ROLE, BUT ARE AT ODDS OVER JUST
WHAT THAT ROLE SHOULD BE.
IT IS MY OPINION -- SUPPORTED BY A HARD, BUT DEFINITIVE
18 MONTHS AT HUD -- THAT THE PROPER ROLE OF THE FEDERAL GOVERNMENT
IN HOUSING IS IN LARGE MEASURE DETERMINED BY THE STATE OF THE
FORD
NATIONAL ECONOMY AT ANY GIVEN TIME IN HISTORY.
GERALD
LIBRARY
-2-
THE THINKER-POET, EDWIN MARKHAM, ONCE WROTE:
"FOR ALL YOUR DAYS, PREPARE,
BUT, TREAT THEM NOT ALIKE.
WHEN YOU'RE THE ANVIL -- BEAR.
WHEN YOU'RE THE HAMMER -- STRIKE!"
MR. MARKHAM, OF COURSE, WAS TALKING ABOUT ONE'S LIFE
PHILOSOPHY -- BUT HE COULD HAVE BEEN PRESCRIBING FEDERAL
MEDICINE TO TREAT HOUSING ILLS ACCORDING TO THE NATION'S
CHANGING ECONOMY.
WHERE THE GOVERNMENT HAS GONE OFF THE DEEP END, MOST OFTEN
IT IS NOT FROM THE LAWMAKERS' LACK OF COMPASSION BUT FROM THEIR
ESPOUSAL OF PROGRAMS THAT WORK IN OPPOSITION TO THE MARKET,
FOR EXAMPLE, MR. CARTER HAS PROPOSED THAT THE FEDERAL
GOVERNMENT SUBSIDIZE THE BUILDING OF 2.5 MILLION HOUSING UNITS
A YEAR, ON THE THEORY THAT "WE HAVE TO GET THE HOUSING INDUSTRY
WORKING AGAIN".
ON THE SURFACE, IT SOUNDS GREAT. MORE JOBS, MORE HOMES,
MORE OF ALL THOSE THINGS THAT HAVE MADE AMERICA THE GREATEST
COUNTRY ON THE FACE OF THE EARTH!
-3-
BUT TO EVERY GOVERNMENT ACTION THERE IS A SOBERING REACTION
- AND THE NATION'S HOUSING PICTURE SUFFERED AN ENORMOUS SET-
BACK FROM THAT VERY PHILOSOPHY -- WHICH WAS MANDATED BY THE
HOUSING Act OF 1968.
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
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 BUYERS HEEDED THE PIED PIPER CALL OF "NEW IS
BETTER".
AND BECAUSE ALL FACTORS IN AN ECONOMIC EQUATION ARE RELATED,
THE ARTIFICALLY PRODUCED "BOOM" LED TO THE INEVITABLE CUT-BACKS
IN HOUSING PRODUCTION, AND RESULTING LAY-OFFS IN THE CONSTRUCTION
INDUSTRY WHICH HIT US HARD ABOUT TWO YEARS AGO.
To PUT THIS ALL IN PROSPECTIVE -- WE MIGHT WELL BEGIN BY
TAKING STOCK,
WHERE WERE WERE A YEAR AGO? WHAT HAVE WE DONE ABOUT IT?
WHAT HAVE WE LEARNED?
-4-
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 TERRIFHING
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, THE ECONOMISTS AND OTHER EXPERTS WERE
PROPHESIZING A NATIONAL COLLAPSE UNLESS WE ENGAGED IN MASSIVE
FEDERAL SPENDING -- IN THE FORM OF SUBSIDIES -- PARTICULARLY
IN THE HOUSING INDUSTRY.
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.
-5-
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 IN-FLUX 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,
-6-
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,
AND WE CAN COUNT ON THE FACT THAT UNEMPLOYMENT WILL CONTINUE
ITS STEADY DECLINE TO LESS THAN 5 PERCENT BY 1980.
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,
-7-
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,
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.
-8-
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,
HIS HOUSING POLICIES ARE DESIGNED TO ACCOMMODATE THE LOGICAL
CALL FOR REASONABLE LEVELS OF STARTS WHILE AVOIDING THE
DISASTEROUS CYCLES OF ALL OR NOTHING THST HAVE CHARACTERIZED
THE HOUSING CONSTRUCTION INDUSTRY EVERY 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.
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.
-9-
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.
UNDER THE PRESIDENT'S GRADUATED PAYMENT 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.
-10-
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.
CERTAINLY, GOVERNMENT MUST BE HUMANE, COMPASSIONATE, AND
RESPONSIVE, BUT, UNLESS GOVERNMENT PROGRAMS ARE PROPERLY
COMPATIBLE WITH THE FREE ECONOMY OF THIS NATION, THOSE NOBLE
WORDS ARE NOTHING BUT CAMPAIGN PLATITUDES.
IN HIS STATE OF THE UNION ADDRESS, PRESIDENT FORD CALLED
FOR "COMMON SENSE" GOVERNMENT. AND, HE PROPOSED A FEDERAL
BUDGET THAT "PROMISES NO MORE THAN WE CAN DELIVER", YET,
PROVIDES THE MEANS TO "DELIVER ON ALL THAT WE PROMISE".
BUT, IT IS REALLY THE JOINT. CHALLENGE OF BUSINESS AND
GOVERNMENT TO DEVISE COMMON SENSE PROGRAMS AND INITIATIVES
THAT ALLOW US BOTH TO DELIVER ON OUR PROMISES.
CERALD
-11-
FOR EXAMPLE, COMMON SENSE DEMANDS A GENUINELY COOPERATIVE
ACTION PROGRAM TO KEEP GOVERNMENT GROWTH TO AN ABSOLUTE MINIMUM.
WE NEED TO REFRAIN FROM ISSUING NEW REGULATIONS AND TO DO AWAY
WITH REGULATIONS NOW ON THE BOOKS THAT SERVE NO DEMONSTRABLE
PURPOSE.
THIS TAKES A CONSTANT DIALOGUE. WHERE WE HAVE HAD STRONG
AND OPEN LINES OF COMMUNICATION WITH THE PRIVATE SECTOR, WE HAVE
SUCCEEDED. WHERE WE HAVE NOT, WE HAVE COMPOUNDED THE PROBLEMS,
THE SAME, CERTAINLY, IS TRUE OF HOUSING AND THE ECONOMY.
THE SUCCESS OF PRESIDENT FORD'S JUDICIOUS USE OF FEDERAL
STIMULANTS TO GET THE HOUSING INDUSTRY ON THE ROAD TO RECOVERY
WITHOUT STIMULATING A MATCHING, SELF-DEFEATING INFLATION HAS
DEPENDED ON A JOINT AWARENESS OF ALL THE STAKES INVOLVED.
TOGETHER, WE CAN CONTINUE TO DEVELOP A STABLE HOUSING
ECONOMY, FREE FROM THE WILD CYCLICAL SWINGS THAT HAVE REPEATEDLY
PLAGUED THIS ESSENTIAL AMERICAN INDUSTRY.
I AM CERTAIN THAT MOST CITIZENS WOULD AGREE THAT WE DO
NOT NEED TO GIVE MORE "WASHINGTON" TO THE AMERICAN PEOPLE.
-12-
BUT, I AM EQUALLY CERTAIN THAT ALL OF US ARE INTERESTED
IN GIVING MORE AMERICA TO THE AMERICAN PEOPLE. AND THAT MEANS
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
ARTIFICAL PROGRAMS THAT SAP THE VITALITY OF AMERICA.
THIS WE CAN DO IF WE KEEP OUR ECONOMY ON THE STEADY COURSE
THAT PRESIDENT FORD HAS CHARTED AND PUT OUR SHOULDERS BEHIND THE
SYSTEM OF FREE ENTERPRISE THAT HAS MADE OURS THE GREATEST NATION
IN HISTORY.
PRESIDENT FORD'S STRENGTH -- HIS RECORD OF ACCOMPLISHMENT
AND HIS VISION -- MAKE ME PROUD TO BE PART OF HIS ADMINISTRATION.
THANK YOU,