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10/14/76 - Akron Public Affairs Forum
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10/14/76 - Akron Public Affairs Forum
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Carla A. Hills Speeches
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The original documents are located in Box 2, folder "10/14/76 - Akron Public Affairs
Forum" 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States of America his copyrights in all of his unpublished writings in National Archives collections.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
AKRON PUBLIC AFFAIRS FORUM
OCTOBER 14, 1976
I AM so PLEASED THAT YOU INVITED ME TO PARTICIPATE IN
THIS INAUGURAL YEAR OF YOUR NEW PUBLIC AFFAIRS FORUM.
SINCE I AM A MEMBER OF THE FORD ADMINISTRATION, AND THE
PRESIDENTIAL ELECTION IS JUST 19 DAYS AWAY, YOU MIGHT THINK
MY ENTHUSIASM IN BEING HERE IS SOMEWHAT RELATED.
WELL -- YOU ARE RIGHT! I USE EVERY OCCASION I CAN GET
TO TELL WHAT A FINE JOB OUR PRESIDENT IS DOING.
You COULD NOT HAVE PICKED A BETTER YEAR TO BEGIN YOUR
MEETINGS ON PUBLIC POLICY, THE COMBINATION OF OUR NATION'S
BICENTENNIAL AND THE ELECTION CYCLE HAS SHARPENED THE AWARENESS
AND CONCERN OF PRIVATE LEADERS, EVERYWHERE, IN OUR NATION'S
PUBLIC AFFAIRS,
AND FOR GOOD REASON. FOR, OVER THE PAST TWO DECADES, WE
HAVE SEEN GOVERNMENT AT ALL LEVELS BECOME MORE AND MORE INVOLVED
WITH OUR LIVES, OUR BUSINESSES AND OUR DESTINIES, so THAT WE
CANNOT ESCAPE OUR 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,
A
AND
THAT FACT IS BEST ILLUSTRATED BY TAKING STOCK.
GERALD
-2-
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 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 DOUGLE DIGIT
INFLATION.
-3-
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,
-4-
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 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.
-5-
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.
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.
-6-
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 TWO YEARS WERE CAUSED IN LARGE MEASURE BY THAT
VERY PHILOSOPHY WHICH WAS MANDATED BY THE HOUSING ACT OF 1968.
-7-
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, THE MOST
FREQUENTLY CITED SYMPTON OF THE ILLNESS IN OUR CITIES,
BUT IT WAS NOT ONLY OUR CITIES THAT SUFFERED -- OUR HOUSING
INDUSTRY 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 EXCESSIVE INVENTORIES WITH THE RESULTING LAY-OFFS
IN THE CONSTRUCTION INDUSTRY,
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.
-8-
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 -- WHICH HAS ALREADY
REACHED 1.2 MILLION STARTS -- WILL BE THE FOURTH BEST YEAR ON
RECORD FOR NEW FAMILY STARTS. AND MULTI-FAMILY STARTS, ALTHOUGH
NOT so QUICK TO RECOVERY, 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,
-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
WITH A 10 TO 20 PERCENT DOWNPAYMENT. You MAY RECALL THAT IN 1930,
THE TRADITIONAL MORTGAGE WAS FOR 5-YEARS WITH A 50 PERCENT DOWNPAYMEN
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.
-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.
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.
-11-
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
SCHEME THAT WOULD GIVE THE AMERICAN PEOPLE MORE "WASHINGTON" THAN
THEY ALREADY HAVE.
HIS "WASHINGTON" POLICY AS PRESIDENT HAS BEEN, IS, AND WILL
BE 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.
THANK YOU.