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10/1/76 - North Carolina Association of Realtors
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10/1/76 - North Carolina Association of Realtors
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Carla A. Hills Speeches
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The original documents are located in Box 2, folder "10/1/76 - North Carolina Association
of Realtors" 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States of America his copyrights in all of his unpublished writings in National Archives collections.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
NORTH CAROLINA ASSOCIATION OF REALTORS
OCTOBER 1, 1976
I AM so PLEASED TO HAVE THE OPPORTUNITY TO ADDRESS THE
NORTH CAROLINA ASSOCIATION OF REALTORS.
I HAVE COME TO KNOW THAT OUR RELATORS, ALL ACROSS THIS
COUNTRY, ARE POSITIVE PEOPLE -- THE MOVERS AND DOERS -- WHO
GET ON WITH THE WORK OF THE NATION REGARDLESS OF ODDS, AND
IN SPITE OF THE DOOMSAYERS.
IN YOUR HANDS THIS NATION'S UNPARALLELED SYSTEM OF FREE
ENTERPRISE -- ABETTED BY HARD WORK -- HAS TRANSFORMED THE
AMERICAN DREAM OF HOMEOWNERSHIP INTO A REALITY FOR MILLIONS
OF AMERICAN FAMILIES,
IT WAS THE REALTORS' UNDAUNTED OPTIMISM, IN THE DEPTH
OF THE AMERICAN HOUSING INDUSTRY'S RECENT CRISIS THAT HELPED
PROVIDE THE SPARK OF INDUSTRY SPIRIT LEADING TO THE SOUND
RECOVERY OF THE PAST YEAR.
I NEED HARDLY TELL YOU WHAT THAT KIND OF UNQUENCHABLE
EXURBERANCE DOES FOR THE MORALE OF AN EMBATTLED SECRETARY OF
HOUSING AND URBAN DEVELOPMENT.
GERALD R. FORD LIBRARY
-2-
BUT, THERE IS ANOTHER QUALITY ABOUT REALTORS, WHICH IS
IMPORTANT TO ME, AND, THAT IS, YOUR INSTINCTIVE ABILITY TO
LOOK AHEAD AT THE NEEDS OF THE FUTURE,
You HAVE ASKED ME TO TALK TO YOU TODAY ABOUT HOUSING AND
THE ECONOMY, AND THAT SUBJECT INEVITABLY DRAWS INTO QUESTION
THE FUTURE ROLE OF THE FEDERAL GOVERNMENT IN THE HOUSING INDUSTRY.
THAT ROLE IS, HAS BEEN -- AND WILL CONTINUE TO BE --
QUESTIONED AND CHALLENGED BY 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.
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.
-3-
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 OVER-PRODUCTION 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 ARTIFICIALLY PRODUCED "BOOM" LED TO THE INEVITABLE SHARP
CUT-BACKS IN HOUSING PRODUCTION AND RESULTING LAY-OFFS IN THE
CONSTRUCTION INDUSTRY.
-5-
IN DISCUSSING HOUSING AND THE ECONOMY, WE MIGHT WELL 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 EMPTY PROMISES.
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.
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 AM CERTAIN THAT MOST CITIZENS WOULD AGREE THAT WE DO
NOT NEED TO GIVE MORE "WASHINGTON" TO THE AMERICAN PEOPLE THAN
THEY ALREADY HAVE.
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.
AND THIS WE CAN DO IF WE KEEP OUR ECONOMY ON COURSE AND PUT
OUR FAITH SQUARELY BEHIND OUR SYSTEM OF FREE ENTERPRISE WHICH
HAS MADE OURS THE GREATEST NATION IN HISTORY.