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Conversation 009-029

TapeTape 9StartWednesday, September 15, 1971 at 4:44 PMEndWednesday, September 15, 1971 at 4:48 PMTape start time01:01:21Tape end time01:05:19ParticipantsNixon, Richard M. (President);  Shultz, George P.Recording deviceWhite House Telephone
AudioNARA Description

On September 15, 1971, President Richard M. Nixon and George P. Shultz talked on the telephone from 4:44 pm to 4:48 pm. The White House Telephone taping system captured this recording, which is known as Conversation 009-029 of the White House Tapes.

Nixon Library Finding Aid
Conversation No. 9-29

Date: September 15, 1971
Time: 4:44 pm - 4:48 pm
Location: White House Telephone

The President talked with George P. Shultz.

[See Conversation No. 277-23]

     Economy
         -Second quarter figures
         -Third quarter estimate
              -Fifteen
              -Time
         -Possible announcement of figures
              -Question of changing estimate
              -July figures
         -Question of July figures
              -Question of significance
                    -Economy fluctuation

               -Herbert Stein
          -September sales figures
               -Automobile sales
                     -Time period
          -Effectiveness of policy
               -President's strategy
                     -Follow-up program
                     -Meeting needs of public
                     -90-day period
               -Draft statement by Shultz
                     -Wording
                     -Question of voluntary cooperation
                     -Standards
                     -Sanctions
                     -Deferred pay increases
                     -Wage and Price control
Transcript (AI-Generated)

This transcript was generated automatically by AI and has not been reviewed for accuracy. Do not cite this transcript as authoritative. Consult the Finding Aid above for verified information.

Hello.
Hello.
Yes, sir.
George, you know, when you were talking about the economy yesterday, you were talking about the second quarter figures being revised upwards.
This isn't for the purpose of using anything.
I'm just doing it for my own background thinking.
And you said the third quarter estimate at the present time was at 15.
at July flattening out and so forth.
Let me ask, these figures have not been announced, and the 15 is this early flash estimate that they always change, but it's based largely on the July figures.
Mm-hmm.
Mm-hmm.
But July was flat or...
It was a little weaker.
Was there any significance in that, do you think?
Why was July weaker?
Or is that just the way economy goes?
Well, it doesn't go along at an absolutely even pace.
I think that it is the sort of thing that we were kind of feeling, and it certainly is an argument for giving a little extra stimulation, as the new policy did.
I think Herb Stein would argue very strongly along that line.
The September...
sales picture seems to be quite strong.
There was a report in the paper today of the auto sales in the first 10 days of September that were just astounding, apparently.
Were they?
Yeah.
Good.
Good.
Good.
Let me ask another thing.
It seems to me that in terms of what if I get into any of this tomorrow and I may have some, have some, a few, something to say on it when I, if I see the press, I'm not sure I will, but I may.
Anyway,
that it's very important to set stage two in proper perspective.
I think the perspective that is needed now is mainly to indicate that it's going to be effective.
What I meant is, now you and I know that we haven't the slightest idea how to make it effective, or we have some ideas, but on the other hand, I think we've got to indicate that there will be a follow-on program, that it will be effective to deal with this problem the American people want dealt with, and that...
That's, you would agree, wouldn't you?
That has to be strongly stated or otherwise I think we're going to have a real problem with regard to people saying, oh, well, right after the 90 days, then we're off to the races again.
Right.
I think I agree with that completely.
I tried to draft a statement.
I drafted a statement last night that I sent in to you this morning with a suggestion on that for some words that you may or may not have gotten, but anyway, I was saying.
Yeah, yeah.
Well, it's probably on its way over here now.
I'm just reading.
But I do feel that you've got to, and I think, George, we've got to indicate that there will be something other than a request for voluntary cooperation.
Oh, yeah.
I think that has to be a real program.
A program of...
It's organized, but I think that all these questions about what are the standards going to be, who is going to set the standards, how much of a sanction will there be, is there going to be a tripartite, and are we going to move back?
And what are we going to do about deferred pay increases?
I'm just saying now those are matters that are under consideration.
I'm not going to discuss them.
right oh don't worry i'll stay miles away from but it's very important among other things just for this vote on the six-month pay deferment that's right that there will be that there is going to be something effective in the private sector will be effective and to deal with both prices and wages a continuing program to keep both prices and wages under control that's what i'm going to say okay very good all right george fine thank you thank you
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