Richard Nixon photo

Message to the Congress Transmitting the Cost of Living Council's Quarterly Report on the Economic Stabilization Program.

October 30, 1973

To the Congress of the United States:

I herewith transmit to the Congress the most recent Quarterly Report of the Economic Stabilization Program, covering the period April I, 1973, through June 30, 1973.

The second quarter of 1973 was a time of tremendous growth for the American economy. Employment increased by over one million jobs. Our gross national product grew by $29.5 billion and real per capita disposable income reached a new high. On the international front, our balance of payments continued to improve significantly according to all major measures of the payments deficit. The basic balance deficit was reduced to an annual rate of slightly more than $3 billion in this period, as compared to a deficit rate of $9.8 billion for all of 1972.

Unfortunately, during this same period the rate of inflation continued its unsatisfactory rise. This increase reflected a strong growth in demand--both here at home and around the world--particularly for agricultural and petroleum products.

Accordingly, I decided to institute a 60-day freeze on prices beginning June 13. At the same time, I directed that plans be developed for a new phase of the Economic Stabilization Program. Phase IV, which was developed in extensive consultation with representatives of all segments of our economy, is now in effect.

I am convinced that Phase IV, combined with actions to increase supplies, a restrictive monetary policy, and restraint in Federal spending, will enable us to reduce the inflationary threat to our economic well-being.

With the cooperation of business, labor and the American public, we can achieve our goal of reasonable price stability and return our country to a strong and healthy free market system.

RICHARD NIXON

The White House,

October 30, 1973.

Note: The report, covering the period April I through June 30, 1973, is entitled "Economic Stabilization Program Quarterly Report" (Government Printing Office, 94 pp.)

Richard Nixon, Message to the Congress Transmitting the Cost of Living Council's Quarterly Report on the Economic Stabilization Program. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/255463

Filed Under

Categories

Attributes

Simple Search of Our Archives