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9/28/76 - Fort Worth Federal Business Association
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9/28/76 - Fort Worth Federal Business Association
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Carla A. Hills Speeches
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The original documents are located in Box 2, folder "9/28/76 - Fort Worth Federal Business
Association" 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States of America his copyrights in all of his unpublished writings in National Archives collections.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.
FINAL
FORT WORTH FEDERAL BUSINESS ASSOCIATION
SEPTEMBER 28, 1976
You INVITED ME TO TALK WITH YOU ABOUT "HOUSING AND THE
ECONOMY". BUT, BEFORE STARTING OUT, I'D LIKE TO EXPRESS A
FEELING THAT I HAVE HAD OVER AND OVER IN THIS CAMPAIGN YEAR
WHEN SOME CANDIDATES HAVE BEEN RUNNING AGAINST THE FEDERAL
GOVERNMENT.
As SOME OF YOU KNOW, I HAVE SPENT MOST OF MY WORKING LIFE
OUTSIDE OF THE FEDERAL ESTABLISHMENT. BUT IN THE 2-1/2 YEARS
SINCE I ENTERED GOVERNMENT, I CAN HONESTLY SAY THAT I HAVE NEVER
MET ANY MORE SINCERELY DEDICATED, HARD-WORKING AND EFFECTIVE
PEOPLE AS I HAVE BEEN PRIVILEGED TO COME TO KNOW IN THE DEPARTMENT
OF HUD AND THE DEPARTMENT OF JUSTICE -- BOTH IN WASHINGTON AND
IN THE FIELD.
THOSE WHO CONSTANTLY "PUT DOWN" THE FEDERAL GOVERNMENT
UNDER THE ALL-ENCOMPASSING SYMBOL OF "WASHINGTON" SHOULD BE
APPRISED THAT MORE THAN 83 PERCENT OF THE PEOPLE DOING THIS
NATION'S BUSINESS ARE OUT IN THE STATES, CITIES AND COUNTIES
WHERE ALL AMERICA LIVES.
WE HAVE BEEN THROUGH so MUCH THESE PAST TWO YEARS, IT DOES
SEEM TO ME THAT THIS NATION HAS HAD ALL THE DEVISIVENESS IT CAN
TAKE. AND CARPING AT ANY SEGMENT OF OUR POPULATION SIMPLY DOESN'T
HELP.
GERALO 8
Digitized from Box 2 of the Carla A. Hills Speeches at the Gerald R. Ford Presidential Library
-2-
THE FEDERAL GOVERNMENT, WITH ALL ITS FAULTS AND ADVANTAGES,
REPRESENTS THE WILL OF THE AMERICAN PEOPLE. AND OUR FEDERAL
EMPLOYEES HAVE THE NEAR IMPOSSIBLE TASK OF CARRYING OUT ALL OF
THE DIRECTIVES -- TOO OFTEN CONTRARY AND CONFUSING -- OF THE
PEOPLE'S REPRESENTATIVES.
To MAKE IT WORK, WE DO NOT NEED JEERING RHETORIC -- WE NEED
REAL COOPERATION. COOPERATION THRIVES ON OPEN COMMUNICATION.
THE PRESENCE HERE, TODAY, OF HOMEBUILDERS, REALTORS, MORTGAGE
BANKERS AND REPRESENTATIVES OF CONSUMERS -- ALONG WITH THOSE OF US
WHO WORK FOR UNCLE SAM -- IS PROOF THAT THE FEDERAL GOVERNMENT IS
NOT A PLOT, IT'S A PARTNERSHIP,
JUST BY BEING HERE YOU VERIFY THE PROPOSITION THAT THE FEDERAL
GOVERNMENT, WORKING THROUGH THE PRIVATE SECTOR, CAN HAVE A VITAL
ROLE IN BOTH HOUSING AND THE ECONOMY.
BUT 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 DROP THE
WHOLE HOUSING PROBLEM; THOSE WHO CONTEND THAT THE HOUSING INDUSTRY
SHOULD BE FEDERALIZED; AND THOSE, IN BETWEEN, WHO AGREE THAT THE
GOVERNMENT CAN HAVE AN AFFIRMATIVE ROLE IN HOUSING, BUT ARE AT
SIXES-AND-SEVENS OVER JUST WHAT THAT ROLE SHOULD BE.
-3-
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
NATIONAL ECONOMY AT ANY GIVEN TIME IN HISTORY.
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.
IT SEEMS TO ME, THAT MOST OFTEN WHERE THE GOVERNMENT HAS
GONE OFF THE DEEP END, IT IS NOT FROM THE LAWMAKERS' LACK OF
COMPASSION BUT FROM THEIR ESPOUSAL OF PROGRAMS THAT WORK IN
OPPOSITION TO THE MARKET.
FOR EXAMPLE, IT HAS BEEN 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".
-4-
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!
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 SHARP CUT-
BACKS IN HOUSING PRODUCTION AND RESULTING LAY-OFFS IN THE
CONSTRUCTION INDUSTRY WHICH HIT US HARD ABOUT TWO YEARS AGO,
-5-
So LET US BEGIN BY TAKING STOCK.
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 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.
-6-
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,
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?
-7-
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.
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.
-8-
IF WE LISTEN TO THE ENDORSEMENT OF 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 THE "MAGIC"
OF THE FEDERAL PURSE HAS MORE PULLING POWER THAN OUR GREAT FREE
ENTERPRISE SYSTEM.
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.
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,
-9-
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.
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 THAT HAVE CHARACTERIZED THE HOUSING
CONSTRUCTION INDUSTRY EVER 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.
-10-
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.
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.
-11-
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,
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, AND RESPONSIVE, BUT,
UNLESS IT IS PROPERLY COMPATIBLE WITH THE FREE ECONOMY OF THIS
NATION, THOSE ARE NOTHING BUT "BUZZ" WORDS.
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".
-12-
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,
FOR EXAMPLE, COMMON SENSE DEMANDS A GENUINELY COOPERATIVE
ACTION PROGRAM TO KEEP GOVERNMENT GROWTH TO AN ABSOLUTE MINIMUM,
-- BECAUSE SOME GROWTH IS INEVITABLE AS THE COMPLEXITIES OF
EXISTENCE INCREASE. 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 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.
-13-
I SERIOUSLY DOUBT THAT ANYONE, WORKING HARD IN GOVERNMENT,
REALLY BELIEVES IN GIVING THE AMERICAN PEOPLE MORE "WASHINGTON"
THAN THEY ALREADY HAVE.
BUT, I AM CONVINCED 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.
THANK YOU.