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Third Debate: Issue Papers - Domestic Policy
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Third Debate: Issue Papers - Domestic Policy
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White House Special Files Unit Files
Ford - Carter Debates Files
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Campaign debates
Presidential campaign, 1976
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The original documents are located in Box 3, folder "Third Debate: Issue Papers -
Domestic Policy" of the White House Special Files Unit Files 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States of America his copyrights in all of his unpublished writings in National Archives collections.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 3 of the White House Special Files Unit Files at the Gerald R. Ford Presidential Library
AG 10/22
The Economy
Carter will take the position that "the economy is
in a downward slide". He will cite a whole series of
negative statistics allegedly to prove his point. He
may call for an immediate tax cut to spur the economy
during the debate.
I would suggest that the response be that:
The Governor has worked hard to find all of the negative
statistics he can find. The difficulty with his conclusion
is that the experts, including many of those who advise the
Governor, looking at all the facts about the economy conclude
that the economy will be accelerating in months ahead.
Most forecasters are forecasting an increase in real
GNP of between 5% and 6% for the fourth quarter (current
quarter) and 6% to 7.5% in the first quarter of 1977. That
is scarcely support of the Governor's view of the economic
outlook.
The reasons behind this more optimistic outlook of the
experts are:
1) A recovery in capital goods. Merrill Lynch just
released a survey that shows business plans to increase
capital expenditures by 14% in 1977 versus 5% this year.
Today the Commerce Department released capital goods orders
for September which show a 1.8% increase.
2) Housing starts rose 18% and building permits 11%
in September. These presage a strong recovery in residential
building in the months ahead.
3) Inflation continues to unwind with the consumer
price index showing a less than 5% annual rate of increase
last month and only 5.5% during the past year. We expect
further improvement.
AG 10/22
If Carter comes forth with a recommended tax cut,
"to get the economy going again," you might wish to
respond:
1) If the Governor is also recommending a cut in
Federal spending to go along with his tax cut, I commend
him on his sound judgement.
2) If the Governor is saying we should increase the
deficit (which will, of course, be his position) then I
think he's panicking. He is responding in much the same
stop-go policy fashion that got us into our inflationary
mess of recent years. What we need is a steady hand on
economic policy, not one which is inclined to push the
panic button.
Miscellaneous Points
1) Inflation destroys jobs.
2) You can't cure deficits and regain a balanced budget
through more deficit spending.
AG 10/22
Question: -- In recent weeks it has come to light that
Federal spending so far this year has been
running $10 to $15 billion under estimates.
Some commentators are saying this is a major
cause of the economic slowdown. Are these
shortfalls deliberate policy to thwart the
Congress' pressure for increased stimulus?
If not, is it just bad management of our
fiscal affairs?
ANSWER:
That Federal expenditures were running behind
our budget did not become clear to either OMB
or the Congressional Budget Office ( who keep
independent books) until last month. On the
basis of our analysis spending is now back on
track and the only concern that we must have
is that the delay of expenditures earlier this
year will not induce an inordinately inflationary
bulge sometime in 1977.
If slowed Federal expenditures were a factor in
the slowed rate of growth in the economy during
the past six months the effect was small.
Question: Governor Carter has accused your Administration of
suppressing a report critical of the aluminum industry.
He says this action shows you favor the special interests.
What is your reply?
Answer:
Statements issued by both Governor Carter and Senator Mondale
have mis-stated the facts regarding the aluminum report of the
Council on Wage and Price Stability. First, this is not a
suppressed report, as claimed by Senator Mondale on "Face the
Nation." The report was published and widely disseminated on
September 27 and a press conference was held by CWPS on
September 24. Second, the report was by no means a whitewash
of the industry--indeed, it was quite critical of the industry.
Third, the report never contained any policy recommendations,
as Governor Carter has contended. I think that it is inexcusable
to distort the facts with respect to matters such as this which
vitally affect the state of the economy, and therefore, the
American people.
(As is the case with all CWPS studies, this one was widely
circulated for comments and analytical assessments by experts
in and out of the government, and revisions were made by the
CWPS staff, without any interference whatsoever from the
White House, in response to these comments.)
ENVIRONMENTAL CONCERNS
Q.
Today a coalition of 250 environmental leaders
assailed your record on conservation issues, stating
that you were insensitive to environmental concerns,
especially with respect to the air quality, water and
land usage. What is your reaction to this accusation?
A. I am committed to the Nation's effort to clean up the
environment. At the same sime, I am concerned about
the costs and impact on the economy. We can't do it
tomorrow. I think there is realization now in and
out of the government that we can't make up in a few
years for all the environmental evils we perpetrated
on the country over a period of a hundred years.
In trying to balance between these goals I have:
-- Supported the enactment of toxic substances
legislation that would control the introduction
of toxic substances into the environment;
Proposed a 60 percent increase in outlays for
waste-water treatment plant grants during
fiscal year 1977;
-- Signed the Safe Drinking Water Act to enhance
the safety of public drinking water supplies
through the establishment and enforcement of
national drinking water standards;
-- Proposed a 38 percent increase in funding for
implementation of the Safe Drinking Water Act
for fiscal year 1977;
Now Rever N.C. Rust
-- Signed a wetlands loan advance to facilitate
public ownership of rapidly disappearing wetlands;
--
Proposed the Alaska Conservation Act dedicating
80 million acres to conservation purposes;
-- Provided for full funding of the Land and Water
Conservation Fund for fiscal year 1977;
-2-
-- Increased appropriations for National Park
Service maintenance and operations. This added
400 more park rangers and other National Park
Service employees;
-- Announced a $1.5 billion National Park Program
which would double the National Park system; and,
-- Provided in my Bicentennial Land Heritage Program
for visitors centers, sewers, trails and other
developments along with increased personnel to
service the existing park and refuse systems.
THE PRESIDENT HAS SEEN
...
Energy Accomplishments
Overview of President's
OVERVIEW OF PRESIDENT'S
ENERGY ACCOMPLISHMENTS
In January, 1975, the President submitted the first
comprehensive energy program ever developed by the
Executive Branch. The program contained 13 major
titles and was accompanied by a windfall profits
tax on oil producers; it was later supplemented
by 9 additional legislative proposals.
The President's program was aimed at eliminating
the Nation's vulnerability to insecure foreign oil
by 1985 through:
- actions to reduce demand
- actions to increase supply
- emergency actions designed to cushion and even
deter future embargoes.
The combined actions represented a carefully balanced
set of measures involving:
- market forces to dampen demand and increase supply
- regulatory involvement by the government to encourage
greater conservation than would be achieved by market
forces
- Federal financial assistance for low income persons,
all tax-payers, and selected energy industries to
stimulate conservation and augment supplies.
The initial Congressional response was one of confusion
and of inaction. The President's program was referred
to 20 committees, 21 subcommittees, and his representa-
tives eventually testified over 500 times in two years.
Considerable Presidential pressure was required to get
the Congress to act if the Congress' own disorganization
and concern with passing unpopular measures was to be
overcome. The pressure, however, has borne some fruit;
the government has made a start on a comprehensive
energy program, and the groundwork has been laid for
even more progress next year.
- 2 -
In two years, the Congress has passed three major energy
bills:
- The Energy Policy and Conservation Act
- The Naval Petroleum Reserves Production Act
- The Energy Conservation and Production Act
It has also provided new R & D authorities and established
a new R & D agency.
These measures provide for:
- phased decontrol of oil
- building standards
- automobile efficiency standards
- weatherization assistance for low income persons
- appliance labelling requirements
- efficiency targets for appliances and the top ten
energy consuming industries
- financial assistance to homeowners and industry to
stimulate conservation
- grants to State to develop comprehensive State-wide
conservation programs
- improved emergency authorities and a strategic
reserve program
- production of oil from the Naval Petroleum Reserves
Much remains to be done, even though a start has been
made. Still outstanding are bills to:
- increase natural gas production through deregulation
- commercialize synthetic fuels
- provide for increased enriched uranium supplies
- balance environmental needs with energy realitites
- 3 -
- alleviate financing problems of the Nation's
utilities
The bills enacted to date, however, have had an impact
on the Nation's import situation.
- If none of these measures the President proposed
had been enacted, our imports could total almost
12 MMB/D by 1985.
- As a result of those programs already enacted, our
imports would be approximately 7.5 MMB/D by 1985.
- However, if the President's full energy program were
enacted, we have the very real possibility of lowering
our imports to approximately 4 MMB/D by 1985. At
this import level, our startegic reserve system and
emergency standby authorities should enable us to
offset the effects of any supply interruption.
1995- 12
3470 1980.
1976- will
Legislative Scoreboard
THE ENERGY SCORECARD
PRESIDENT'S BILLS PASSED
$
CONGRESSIONAL ADDITIONS
BILLS REMAINING
EPCA: *STRATEGIC RESERVES
*NATURAL GAS DEREGULATION
*STANDBY AUTHORITIES
*NATURAL GAS EMERGENCY
*COAL CONVERSION
AUTHORITY
*APPLIANCE LABELING
*SYNTHETIC FUELS COMMERCI-
AUTO EFFICIENCY STANDARDS
ALIZATION
*PRICE CONTROL PHASEOUT
*INSULATION TAX CREDIT
COAL LOAN GUARANTEES
*ALASKAN GAS TRANSPORTATION
STATE CONSERVATION PROGRAMS,
*NUCLEAR LICENSING
*NUCLEAR FUEL ASSURANCE
ECPA: *BUILDING STANDARDS
*CLEAN AIR ACT
*WEATHERIZATION
*ENERGY INDEPENDENCE
CONSERVATION LOAN GUARANTEES
AUTHORITY
UTILITY RATE STRUCTURE DEMO.
*ENERGY FACILITIES SITING
INSULATION DEMO. PROGRAM
*UTILITY TAX INCENTIVES
*UTILITY REGULATORY REFORM
OTHER: *NAVAL PETROLEUM RESERVES
*OIL SPILL LIABILITY
COASTAL IMPACT ASSISTANCE
*URANIUM ENRICHMENT
*ERDA ORGANIZATION
IMPACT ASSISTANCE
* PROPOSED BY THE PRESIDENT
Company
The Carter Energy Program
THE CARTER ENERGY PROGRAM
On September 21, Governor Carter released a three and
one-half page statement on energy organization. Less
than one page dealt with his organizational proposal,
and the remainder contained a five-point summary
of his energy policy:
- I would exercise the Federal government's obligation
to protect the Nation against an oil embargo and to
negotiate on behalf of the consumer to keep OPEC
prices under reasonable control. The present practice
of leaving the consumers' fate in the hands of the
big oil companies and the OPEC cartel will be stopped.
- I would institute an all-out, comprehensive energy
conservation program. This means performance standards,
financial incentives, research and development of
more efficient technology, and conservation pricing
of energy. The Carter Administration will give a
higher priority to conservation.
- I would establish a new "clean coal" program, designed
to overcome all the bottlenecks in mining, transporta-
tion and conversion of industrial plants but still
protecting the land, air and water, and health and
safety of coal miners.
- I would institute a major initiative to develop
environmentally safe and renewable energy resources,
such as solar power. Its development is being
neglected, while nuclear power, which poses many
dangers, is being favored.
- I would formulate all of my initiatives in partnership
with the states and local governments. The best
resources of each area of the country will be matched
with its important needs.
There are a number of striking things about Carter's
energy proposals:
- The energy organizational proposal is a flawed re-
statement of the Administration's original DENR
proposal in 1971
- There are no goals or targets
nothing we haven't proposed or
J.C. energy program - a of hot air.
new source
- 2 -
- The statement is extremely vague and imprecise
(what is energy conservation pricing? Is it a
gasoline tax? Or is it decontrol?)
- Apart from nationalization of oil imports (State
trading), all of the proposals have either been
proposed by the Administration or are now being
implemented.
From the Administration perspective, the bottomline of
Carter's energy proposal can be stated as follows:
"Governor Carter implies that the Administration
has done nothing in any of these areas. This
assertion demonstrates that Governor Carter either
knows nothing about what has been happening in energy,
or he is trying to mislead the American public. In
fact, his energy program constitutes but a part of
the President's overall energy initiatives."
Key Campaign Points To Be
Made By President Ford
Issues
6
CARTER/MONDALE CAMPAIGN
He said there will be no changes for the better in
Washington until members of the Ford Cabinet who were in
the Administration of President Nixon leave government.
"President Ford still says we're in only a pause
economically and he still has the same basic Cabinet members
who were there with his predecesser," Carter said. (AP)
"Nixon leaders are running the Defense Department, the
State Department, the Commerce Department, the Treasury
Department, and are making the basic decisions of this
Administration. Until we have a real change in the White
House, we'll never turn this country around and get it
moving economically again." (AP)
--AP, UPI, Morning Shows (10-20-76)
Carter Left Georgia Medicaid Program $63 Million In Red
Jimmy Carter was "uncooperative" with Georgia
physicians while governor and left the state Medicaid pro-
gram $63 million in debt when he left office, says a memo
from the executive director of the Medical Association of
Georgia.
The memo was released by the White House, and its
author association director James M. Moffett, said he did
not "have the foggiest idea how the White House got hold of
it."
"Throughout his administration," the memo says,
"Governor Carter proved to be uncooperative with medicine in the
state.
"He consistently ignored efforts of the Medical
Association of Georgia to provide meaningful and knowledgeable
advice on programs that impacted on health care."
It was written to other state medical association
directors as "a private communication to let them know
how Jimmy Carter and doctors got along here," Moffett said.
"If it had been my intention to make it public, I might
have written it differently."
There were frequent disputes between Carter and
physicians during his administration. The memo quotes
Carter as saying in a 1973 speech, "Collectively, through
their organizations, the doctors have probably done more
to block adequate medical care for the people of this
country than any other single group.'
(continued)
CRIME
Q. Mr. President, in a recent speech in Detroit on crime,
Mr. Carter accused your Administration of failure to
take effective action against the rising crime rate
and outlined his own plans in this regard. What has
your Administration done about crime? And what could
we look forward to under the new Ford Administration?
A. Well, first of all, let me talk just a little about
Mr. Carter's speech. Mr. Carter has said, in fact,
that if he is elected President he will solve the crime
problem. Anyone who knows anything about America's
Constitution or her history and tradition would know
better than to talk like this.
Under our Constitution, and for the 200 years of our
existence, the fundamental responsibility for law
enforcement rests with State and local governments.
We have no national police force in this country -- and
I don't think the American people want one.
The proper role for the Federal government in the area
of crime prevention is one of leadership and support,
1
and this is what I have tried to provide during my
tenure in office. Let me be more specific.
In my crime message to the Congress, I called for the
enactment of a comprehensive criminal code to serve as a
model for State and local governments to follow.
I called for mandatory minimum sentences for violent
offenders, particularly those using guns, and for drug
pushers.
I called for legislation increasing the number of Federal
judges, and I increased the number of Federal prosecutors.
And I called for legislation to provide compensation for
the victims of Federal crimes.
It troubles me to have to tell you that the Congress has
done nothing on these recommendations. In fact, Congress
has done virtually nothing at all to address the serious
crime problem facing this country. Fortunately, we have
been able to do some things without the help of the
Congress.
2
For example, two years ago -- shortly after I became
President -- I directed the Law Enforcement Assistance
Administration to develop a new Career Criminal Program
designed to focus the attention of the criminal justice
system on the professional criminal -- the repeat
offender who makes his living through crime. This
program is now operating in almost 20 States across
the nation and it has had dramatic results. Over
95 per cent of those identified as career criminals
have been convicted and sentenced to more than
20 years in jail.
Another area where we are making considerable progress
is in combating drug abuse. I have personally met with the
leaders of Mexico and other countries to let them know of
my concern about the shipment of drugs, particularly heroin,
from their countries to ours. I think these meetings have
stimulated greater cooperation and we are now beginning to
see reductions in the amount of "brown heroin" coming into
this country from Mexico.
These are just two of the areas where we are making progress.
There are more. And I think these efforts are beginning to
1
have an impact throughout the country.
In the year in which I became President, crime increased
18 per cent over the previous year. After my first full
year in office, the rate of increase had been cut to
9 per cent. For the first six months of this year, the
rate of increase was only 3 per cent, and serious crimes --
rapes, murders, robberies and the like -- had actually
declined for the first time in years. So we are beginning
to see positive results. But I fully realize that we have
a long way to go.
If the American people are going to beat this problem, and
I believe we are, punishment for those who break our laws
must be swift and certain. This is what I have been
advocating. But I can't do the job alone, without the
help of Congress. That is why I have stated that one of my
top priorities next January will be the rallying of America
behind Federal anticrime legislation. I realize that this
legislation will not answer the crime problem, but it will
be a good beginning.
10-19-76
CARTER'S RECORD - CRIME
[This can be used in response to a Carter attack on
your efforts to deal with the crime problem.]
During three years while Mr. Carter was Governor of
Georgia, (1971, 1973, and 1974), the growth in Georgia
crime rate exceeded that of the United States as a
whole in three of the seven "serious crime" categories:
murder, forcible rape, and aggravated assault.
113 TRESTMENT MAS SEEN
CARTER'S RECORD - CRIME
[This can be used in response to a Carter attack on
your efforts to deal with the crime problem.]
During three years while Mr. Carter was Governor of
Georgia, (1971, 1973, and 1974), the growth in Georgia
crime rate exceeded that of the United States as a
whole in three of the seven "serious crime" categories:
murder, forcible rape, and aggravated assault.
10/16/76
JIMMY CARTER: SOFT ON CRIME?
Jimmy Carter proved again yesterday his bizarre ability to
attack the President on an issue while totally ignoring
his own lackluster record in handling the same issue when
he was Governor of Georgia.
Speaking in Detroit, Michigan, Mr. Carter said the President
wasn't doing enough to combat crime, and then very briefly
spoke of what he did as Governor. Interestingly, all Mr.
Carter said was that he stopped treating alcoholism as a
crime and visited prison inmates to find out what was on
their mind.
Why, since he raised the subject himself, didn't Jimmy
Carter drop the fuzzy generalities and talk specifically
about the results of his so-called law and order efforts in
Georgia? What in his own record was he trying to hide from
the American people?
TALKING POINTS
1. Jimmy Carter stressed rehabilitation and early release of
prisoners, both as humane measures and as a means of coping
with the prison over-population problems. A strike and
near riot at the Georgia State Prison at Reidsville in
late 1974 forced Carter to acknowledge that the prison
remained overcrowded and the strike's impact was that "the
programs for rehabilitation and counseling established
over the past three years have suffered as a result.'
2. In 1971, 1973 and 1974, Georgia's crime rate surpassed the
national rate in three of the seven "serious crime
categories: homicide, forcible rape, and aggravated assault.
In 1972, just 1.6 percentage points kept Georgia's rape
from exceeding the national rate.
3. If as President of the United States Jimmy Carter were to
do for the Nation what he did for Georgia as Governor,
murder would increase 96% rape would rise 6% and assault
would go up 54%.
4. Crime is too great already without having Jimmy Carter in
the White House to help it along.
2
BACKGROUND
below: A full accounting of the Georgia and U.S. crime rate is provided
1971
Georgia
USA
Murder
16.0
Murder
8.5
Rape
21.5
Rape
20.3
Robbery
104.2
Robbery
187.1
Assault
199.2
Assault
176.8
1972
Georgia
USA
Murder
18.5
Murder
8.9
Rape
20.8
Rape
22.3
Robbery
134.3
Robbery
179.9
Assault
204.0
Assault
186.6
1973
Georgia
USA
Murder
17.4
Murder
9.3
Rape
25.8
Rape
24.3
Robbery
158.1
Robbery
182.4
Assault
211.1
Assault
198.4
1974
Georgia
USA
Murder
17.8
Murder
9.7
Rape
27.1
Rape
26.1
Robbery
176.5
Robbery
208.8
Assault
220.8
Assault
214.2
Source: Crime in the United States, Uniform Crime Reports
1971-1974, U.S. Department of Justice