Response to Questions for "Nation's Business"

Q. Do you favor a $3 minimum hourly wage and tying future increases to the cost of living index?

Governor Carter. Higher priorities must be faced. The United States should put primary efforts on ensuring full employment.

Q. Do you favor restructuring the regulatory agencies?

Governor Carter. The revolving door between regulatory agencies and the regulated industries should be closed.

A recent report stated that 350 government decision makers once worked for industries they now regulate. At least 41 high level officials have recently left federal agencies for lucrative posts with companies in industries those same agencies regulated. More than 100 government officials who decided what drugs could be sold and what chemicals could be put in food once worked for drug and chemical companies. More than 30 top level regulatory officials now make the rules for sale of stocks and bonds to the public by their former employers—including brokerage firms and stock exchanges. Also, companies and consumers both would benefit from a change in regulation. For example, the airline industry would be more competitive with less regulatory interference.

Q. Do you favor general tax reform, and what thrust would you suggest?

Governor Carter. The national tax system is a disgrace. Some large corporations with extremely high profits pay virtually no tax at all. The average family earning $10,000 per year pays a larger portion of its income in various taxes than a family with an annual income of $1 million or more. A piecemeal approach to change will not work. Basically, subject to some exceptions, a simplified tax system, which treats all income the same, would be better.

Q. Would you press for a balanced budget, and how would you go about it? Or do you think balancing the budget is not achievable?

Governor Carter. We should strive toward a balanced budget in times of normal prosperity. Most importantly, necessary imbalances during times of economic or military crises should be controllable and a matter of carefully determined policy.

Zero-based budgeting should be required for all federal departments, bureaus, and boards. This process requires each departmental budget or spending program to rejustify itself annually before more can be spent. It insures elimination of unneeded or obsolescent programs, provides a routine means for reduction or modification of unsatisfactory programs which should be continued, and provides for a logical and enlightened expansion of service delivery systems, when needed.

Q. What role should the federal government play in restoring a healthy economy?

Governor Carter. The federal government has a responsibility to stimulate employment in such crucial areas as rebuilding our railroads, installation of solar heating units, completion of our interstate road system, construction of pollution control facilities for local governments, and improvement of health services—particularly through the use of paraprofessionals.

As a last resort, public employment jobs need to be created similar to those created during the 1930's, particularly for Americans 18 to 21 years old.

Q. Do you favor an increased public employment program or subsidizing jobs in the private sector with tax incentives?

Governor Carter. The best approach usually is job stimulation through private industry. For areas and groups of people afflicted with acute unemployment, public service jobs are best.

Q. Do you favor using general revenue for Social Security benefit increases, or do you prefer raising Social Security tax rates and the wage base?

Governor Carter. The United States should do as much as possible to avoid general revenue contributions to the Social Security fund. As more people go back to work and the rate of inflation decreases, some short-term problems in financing will be overcome. The government should study every means of making the fund more secure, including a rise in the wage base or the tax rate, or a combination of the two.

Q. What kind of national health program would you support?

Governor Carter. A comprehensive national health insurance program is needed which guarantees to every person as much care as he or she needs, with minimal or no deductibles or co-insurance—that portion of a covered charge for which the insured is responsible—and with cost and quality controls.

Q. What would you do to speed the national effort for energy independence?

Governor Carter. With proper national planning and determined execution of long-range policies, energy conservation and production can be increased. This can be compatible with environmental quality and economic well-being. Unless a major shift to coal is made, along with substantially increased use of solar energy, the United States will have no alternative to greatly increased dependence on nuclear power.

We must make an effort to keep dependence on nuclear energy to a minimum.

Q. Would you advocate imposing conditions on the Russians in future grain deals aimed at bringing them closer to our positions on such things as arms reduction?

Governor Carter. Emergency food aid should not be used as a diplomatic tool. However, in trade discussions—with the Russians, for example—we should strive to obtain diplomatic concessions.