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Conversation 040-074

TapeTape 40StartWednesday, June 13, 1973 at 1:55 PMEndWednesday, June 13, 1973 at 1:57 PMParticipantsShultz, George P.;  Nixon, Richard M. (President)Recording deviceWhite House Telephone
AI Summary

President Nixon and Secretary of the Treasury George P. Shultz reviewed talking points for an upcoming press briefing regarding the administration's economic policy. Nixon instructed Shultz to emphasize that a broad freeze on wages, prices, and rents would trigger a recession, while specifically highlighting how rent control fosters slums and housing shortages. Shultz confirmed that recent data showed stable rent increases under Phase III, supporting the administration’s decision to reject mandatory controls except in isolated problem areas.

Economic policyRent controlPhase IIIInflationRecessionPrice and wage controls
AudioNARA Description

On June 13, 1973, George P. Shultz and President Richard M. Nixon talked on the telephone from 1:55 pm to 1:57 pm. The White House Telephone taping system captured this recording, which is known as Conversation 040-074 of the White House Tapes.

Nixon Library Finding Aid
Conversation No. 40-74
                                              -63-

                   NIXON PRESIDENTIAL LIBRARY AND MUSEUM

                                       (rev. March-2011)

Date: June 13, 1973
Time: 1:55 pm - 1:57 pm
Location: White House Telephone

George P. Shultz talked with the President.

[See also Conversation No. 445-15]

     National economy
          -Shultz’s forthcoming press briefing
                -Talking points
                -Freeze
                      -Wages, prices, rents, interests, and profits
                      -Effects
                            -Recession
                -Rent control
                      -President’s position
                            -Creation of slums
                            -Housing shortages
                      -Increases under Phase III
                            -Percentages
                            -Isolated areas of problems
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 Do not cite this transcript as authoritative.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.

returning your calls.
Yeah.
Mr. President, George, I read your talking points.
I think they're very good.
The thing that I think that all of you should emphasize, you know, so as to make the news and all the rest, is the insanity of the across-the-board freeze, you know, going on forever and ever of
wages, prices, rents, interest profits, that would bring on a recession.
I would simply say that.
They rejected that.
They also rejected the idea of the status quo because we've got to do some things.
And then on the rent thing, for whatever it's worth, I'd point out that the president, he made this decision because he's seen rent control abroad and in the United States and where you have it, it means slums.
and a shortage of housing which uh we don't want but you know hit that very hard on the rent control also on that mr president um in the month after the phase three started the rents went up 0.5 in the month the next month 0.4 the next month 0.3 i saw your figures now they've come in nicely and that's why we don't have any your point is that
You don't need rent control because rents are not a problem.
Right.
That's right.
Except in certain isolated areas.
Right.
But the talking points are excellent, and just fight it out.
Okay?
Okay.
All right, George.
Very good, sir.
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