Connally on Economic Policy and International Competitiveness

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He said he's part of the grievance.

He doesn't worry about it.

He doesn't think it's going to raise much hell.

And he said the grievance will be strong.

And he thinks I agree that you talk all over me.

And, um, I, first of all, and you know, let me talk to Arthur.

And the way of Arthur is this.

Let me say here what you would use me to say, you know, I have great respect for you, Arthur.

You know that the president feels this.

And the president really feels we ought to raise the prices a little higher.

But we can't do it politically.

We can't.

We just screw up the things.

So the way we've got to do it, we've got to come around, you know, you know, just take a little mess.

The other thing I was going to say about your program, you know, I would be very free to pursue, pursue.

I think the idea of indicating that we are confident that our policies are working, and that we just are too much back in the system, and that we're not going to be lost in it, and we're not going to have any.

But if we look at everything that comes in here, and that is the way of where you come in,

And I wrote, but the other thing is, I think this is the odd fact that we are confident about our economic policies and policies of the future.

Now, all that, however, has to be said in any way.

As I said, the way it leads us to run, to do what we need to do.

That's why I got you to do it.

On the other hand, to get you a chance to make it in China, but now look here.

If we look at these things and as far as we're concerned, look, we've already brought the steel industry in.

We've moved nothing.

Don't you forget something.

And you can say that now, you can say, look, if you think the man is going to China,

The man that broke the lead, well, that made this bold move on Shannon, do you think he's not going to be bold and necessary with regard to this economy?

I don't think so.

But I think, Jack, generally, I feel that

We're tossing and swerving.

Another thing you can get across, a lot of people say, is if you can slip in the thing, you say, you and I have talked about this, but it happens.

We're spending time on this.

In other words, they didn't really worry about China.

It's not true, you know.

Get in there.

Would you do that over here?

Yes, sir.

And the idea that we've talked

Or by God, where do you come from?

And that's, in fact, the only reason why I think maybe you ought to consider that research.

Why?

Because that does talk to that problem.

Schultz did make a good point.

It may not help with jobs now, but in a sense...

Maybe it's the way, it's to target the people forward and say, well, you've got research, but we're going to make America competitive again.

That's right.

Let's make America competitive again.

That's a good line right there.

It gives real hope.

No question.

Make America competitive again.

Well, I'll say this entirely.

And you said, you know, you weren't going to do this.

I almost had to say it.

That's exactly what I said.

And that was to say that in that particular moment, in that time frame, under those conditions, that was right.

Now, let's just say that the President looks at this for three weeks.

He spent hours on it.

He just spent two full days on this track.

And he had a bunch of breakfast and lunch from there.

He's got breakfast, lunch, and then he's got hours.

Certainly this circumstance is going to change.

And you can be sure that this President told him not to pull off this kind of move.

I mean he doesn't he always

A little of that to get the leadership that's right.

But also in your case, the one thing that I don't want them to tag you with, that they were completely unjustified.

You know what I'm saying?

Well, they said John Connolly was just an old man.

Right.

Well, goddamn it, you weren't.

You were simply the positive man.

You were saying, we're not going to do this, we're not going to do this, we're not going to do this.

And I would say, look, we're simply not going to do anything foolish.

We're not going to do anything that is, frankly, not necessary.

We're not panicking.

I think the idea that we're going to do things, that this economy is basically sound, that this economy is moving forward, this is, I mean, we talk about, you know, if you look at the last two quarterjohns, the fourth quarter, goddammit, they both went up.

Not as fast, but up.

So we're in the midst of a very strong upward move in this economy.

Period.

Right?

And we've just been through what they call a recession.

All right, call it a recession.

But it's the miles that we've had since the Korean War.

And so under these circumstances, here we are.

Now the question is, how much faster should it move because of the employment and all that sort of thing, and because of our foreign competition?

These are real challenges.

Oh, I'd also get at the fact that one of the exciting things is that

That we're taking the long view about the economy.

We're thinking not simply of what it is right now, but we're thinking of what the economy is going to have to be as the world becomes more competitive.

We expect more competition from Europe.

We expect more competition from Japan.

The opening to the Soviet Union and the opening to China will be more competition.

Now that's something not to be worried about, not something to be fierce about, but something for Americans to say, to get on their metal and to get going.

And by God be them.

In other words, it's a new game.

And we've got to get going and win that game.

And that's what we're talking about.

I need to leave a little time.

There's that old fight.

I'll do the hard stuff.

Sorry, I made it down to two days.

It's a good session.

Okay.

He says, God damn it, the tech guys, they all just want to keep the system as it is.

Now show them.

Show them we're bold.

Actually, it is very bold.

I know it's bold.

Well, tell them about it.

They ought to be more bold.

Now, this is like John Alexander, Mike, Eric Hoosier, and Marvin Kelly.

They both be very conservative.

Well, they all live, you know, very recently.

Connally on Economic Policy and International Competitiveness

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Nixon Library Finding Aid

Also recorded on July 24, 1971

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