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Lunch With D. Packhard (Cosmos Club) 7-7-70
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559235929
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Lunch With D. Packhard (Cosmos Club) 7-7-70
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White House Staff Member and Office Files (Nixon Administration)
Paul W. McCracken's Files
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From the desk of
PAUL W. McCRACKEN, Chairman
Council of Economic Advisers
Call him
re this
Sumb at
Cormos Unb.
OX5-6352
Reproduced at the Richard Nixon Presidential Library
June 24, 1970
Dear Dave:
While I was in his office a few days ago, the President
gave me a copy of your letter to him about the importance of
considering a wage and price control plan, suggesting that I
might want to discuss this matter with you directly.
There has been a wide spectrum of views within the
Administration about this, of course, ranging from those who
would prefer to avoid any overt move to those who would
support a quite full-fledged incomes policy program. The
program outlined by the President in his address reflects
the inevitable compromises incident to arriving at something
with which all could live. I do believe myself that this can
make some marginal contribution to the problem of getting
from where we are (with excessive demands on the economy now
relieved) to a situation with a more stable price-cost level.
This is, however, the great unanswered question in the entire
industrial world today.
Some time if you have a luncheon date open, I would like
to chat further with you about this.
Regards,
Paul W. McCracken
Honorable David Packard
The Deputy Secretary of Defense
Washington, D.C. 20301
Reproduced at the Richard Nixon Presidential Library
THE WHITE HOUSE
WASHINGTON
June 16, 1970
MEMORANDUM FOR
CHAIRMAN PAUL MC CRACKEN
COUNCIL OF ECONOMIC ADVISERS
The Deputy Secretary of Defense, David Packard, has written
the President regarding his opinions on wage and price
control (Tab A).
The President has read Mr. Packard's comments, and asked
that you write to the Deputy Secretary acknowledging his letter
and forward on any comments you deem appropriate.
Thank you.
John Jhlinphall. Campbell
Reproduced at the Richard Nixon Presidential Library
THE DEPUTY SECRETARY OF DEFENSE
WASHINGTON, D.C. 20301
OF AMERICAN
11 June 1970
The President
The White House
Washington, D. C.
Dear Mr. President:
I have come to the conclusion that it is very important
for you to consider at this time some kind of a wage and price
control plan. I believe it should be voluntary, and while I am
aware of the limitations and difficulties of a voluntary plan, I
conclude this is the only possible course which would be accept-
able. I believe such a plan should be for a limited and stated
period of time which should be at least one year.
I come to this conclusion for two reasons. First, I
have made a preliminary assessment of the problems of meeting
the FY 72 budget with substantial reductions in Defense. As you
have requested, these will be addressed in detail by the DPRC
and NSC between now and July 15th. However with the difficulties
we already see in this course, I am now convinced that such
reductions will reduce the capability of our armed forces to
dangerously low levels. Further reductions of the magnitude
required will have a severe impact on the morale of our military
people.
Second, it is my judgment that it will not be possible to
bring the over-all inflationary problem of the country under control
in an acceptable manner with fiscal and monetary policies only. It
is my judgment that if we can generally hold the line on present
fiscal and monetary policies, and add at least a minimal program
directed at wage and price restraints, we have an excellent chance
of bringing the inflation down to an acceptable level.
Reproduced at the Richard Nixon Presidential Library
2.
I shall be pleased to discuss my views with your advisors,
but I believe the importance and urgency of this matter is so serious,
I felt it important to bring this directly to your attention.
Respectfully
David Packard
Reproduced at the Richard Nixon Presidential Library