On September 4, 1971, President Richard M. Nixon, George P. Shultz, Stephen B. Bull, Arnold R. Weber, Gen. George A. Lincoln, Paul W. McCracken, and White House photographer met in the Oval Office of the White House from 10:47 am to 11:14 am. The Oval Office taping system captured this recording, which is known as Conversation 567-010 of the White House Tapes.
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 Do not cite this transcript as authoritative.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.
Good morning.
Here's the people that have been down on the committee.
I need to get the rest of your journalists to see who's the chairman.
You're the chairman?
Well, you're the chairman.
George?
We'll say that we had for an hour, because I haven't talked to the church, but I had to send her in here talking about the lack of her, and it's not as bad as it's true.
I heard that the purpose of my call was to just ruin her.
I'd like to tell you that I became aware over the last few weeks of the work going on.
We had really excellent reports.
and the people within the White House staff and others who are watching this.
And some of the crowd leaders in the business community have said it's been handled well.
But the part in last night's meeting was one that was just exciting because of the living council.
It's interesting and exciting.
They say that Weber's is a son of a bitch and they're not scared of that.
Is that what you said?
Yeah, but you call it the anger of these defectors, though.
They do call it the anger of these defectors.
They do call it the anger of these defectors.
Five, six, seven, eight.
We're going to have a lot of money for it.
We're going to have a lot of money for it.
I think that's a horrible thing to do in the middle of the street.
Usually you're on a bus and you're going to have to go to the point where they call, and it's very expensive.
You need to have four hours early to have to go to that bus in the middle of the street.
I think that's a terrible thing to do.
I learned a new play every day.
I learned a new play every day.
Well, I must say, it's very, very serious.
I don't want to stress that this has gone as well as it has because of the
a dedicated effort of a rather limited number of civil servants, and deeply important.
We have a country with us.
Every governor, well, I shouldn't say every, President Spence has just shut up for a while, but I think that every other governor has given much.
He's got a member on his insurance.
He's 23-year-old for us.
Yeah, he was a good person.
We had to work something out to get better with him, and so later, later.
Now he would walk back at us, otherwise we would have slapped him.
Yeah, back off.
I saw a couple of signs and things where they said we want our teachers' mother across from the pay raise.
And I saw, and the governor, no, no, the governor of Illinois, he told me there's a very radical group in Illinois organizing.
as you might imagine, California.
Seizures are a condition.
member of the teacher union, and they're organized, just all of them are organized, the teacher union, they're raising food for big cattle, you know, so I'm trying to, he's trying to stand firm, and I said, stand firm?
They just, I'm trying to get a union leader to jail, but a legal strike in 68, we've got an FBA from the University of Chicago now, so you don't need that six to jail now, and I said, I said, the others on your side, get a little credit.
Over me, this is a person running for office, and
But I will get back into this as we go on.
I think one of the important things is that I mentioned George's money.
I think it's very important.
We really are running on what follows on.
I think we should think a lot about it.
But the 98 is what we're in, as we know.
But boy, what follows after it can really be a rat's nest, apparently, or to fool you into a situation where we say, well, we're going to have a 5% salinity increase and so forth.
And then in the next month, we'll just get 30% over two years.
So that, in my view, can't work over 100 hours and pushing and so forth.
But on the other hand, you can't have something that looks like nothing.
The cost of living council is probably too big to do it, but there must be something in there where we do it more than a, this is my opinion, I don't want to prejudge what all you can come up with, where we do it on a rifle shot basis, you know, where, and where we bang, where we get an opportunity to bang somebody hard, where it can count, rather than putting up some nice little guidelines.
services and that just creates a few guidelines and all the rest.
And they just have to blow, and blow, and blow, and be looking at it.
But you all probably haven't gotten into this too much yet.
We have had two very preliminary discussions in the company.
I think you should keep very preliminary for a while.
Don't you think?
You always have to do so.
We can't help a lot of people to contribute to the thinking.
I can't emphasize too strongly that I, despite the recent whole set of rice infections you saw yesterday, can't emphasize too strongly that despite the public support for this and all the rest, that the legacy of our passion
is to leave this economy in a permanent straitjacket.
We just aren't worthy of being placed in this place.
I just feel that very strongly.
I believe in it, you know.
I probably will serve a bill of freedom that I have.
People have to talk about this thing.
We may have moved.
But now, I think we could, I think we should all be smart enough to find ways to handle parts of the problem.
Well, for example, you start talking about this across the board thing.
With the thousands of price and wage decisions that are being made, I don't know how the hell you're going to be able to do it without bureaucracy.
No, no.
Without bureaucracy.
and have the capability to persuade people that you can't do it.
Yeah.
Of course, this has some relevance also because of the way you drive the free period.
Yeah.
Yeah, I, I, despite that vision.
Did it, did it?
Well, with any of my problems, you know, it's only like a day or two.
Well, I'll get it.
You know, I'll let you know.
I will help.
I mean, there's some stuff at the end of the walk.
Oh, yeah.
So you've got to have power there.
the certainty of some strong action.
And I really haven't had the progress yet.
Yeah, sure, yeah.
But something that we'll keep an image of from COVID-19.
During this period, we need to try to manage the breezes to the extent we can so that we don't just pile up the impossible.
In other words, there are a few exceptions.
and some other kinds of strategies that either always give a lot of public anticipation so that when it happens, it happens.
And we act as though we expect that.
And the question is, what happens after the vote?
I think what we need to avoid is the impression that the freeze is sort of like
Yeah, it's not going to happen.
Well, I know we have an hour and 70 days left to the freeze.
You know, tomorrow we'll have our days and minutes to scan data.
But that probably means that if we're going to establish anything which requires an administrative machinery rules and regulations sometime in the middle of October,
We've got to be reasonable with decisions that have to be made.
So we've got about half done.
We've really got a lot.
We've got a lot, sir.
Yes.
Because this period just goes off and fast.
People are trying to figure out how do we measure the effect of the freeze.
Really, the best estimate is we won't get to the last of the freeze.
We'll get something to nothing later.
So 90 days is really an intense, short-term period.
And I think the whole stuff you just talked about was about cold water.
You know, we're wet.
Well, the freeze, to the extent it is working, is working because we are in public support.
You can't get around that public support.
You see a few signs of it.
You get up to 70% of the people that work.
They were ready for something.
We have practically no letters or telephone calls indicating my support.
These people come in and say, we're all in the presence of the program.
This is just what the country needed.
But I'm a special case.
Sure love me.
I would say the teachers have been most vocal since the day that we went to Jacksonville.
Teachers?
Yeah.
No, I had teachers just for my years.
That's good.
I was done with the football part.
That's what I did.
More of the Philly, I think, than teachers.
Mm-hmm.
I had an older contestant go shoot.
Well, the various states, some of them are 12 months contract free.
Others have contracts on the basis that they start getting paid in the middle of September, but they're subject to waivers if they don't come through in the summer.
Those are paid, they all start getting their home free.
A rookie just coming aboard.
Oh, I'm just beginning to learn about football players.
They gave up on them during the Korean War.
That leads you to believe that there's something, a natural way to crisis themselves.
The football players can affect the prices of tickets for a day and a day.
That's a deep political problem here.
Except they have a lot of consistency.
The way we handle other people, our teachers,
One of our problems was, were we going to say that everything that was agreed to before the freeze carried into the freeze, given the fact that it's only 90 days?
It was just horrific momentum.
The freeze would have been a nullity.
So the general notion was to take a stringent position.
And the way that was fared was by being insistent.
Or you would keep the football.
Or I would certainly look.
Well, we apply the seasonal rule to some of these bubbles.
Of course, we're getting 29,000 last year and 100,000 now, and others, and vice versa.
We'll figure something out.
We'll figure something out.
We'll figure something out.
We'll figure something out.
We'll figure something out.
We'll figure something out.
We'll figure something out.
He's probably home free.
He's home free for other reasons, too.
The guy probably now in his commercials is making more than he'll make on his salary.
My God, every time he eats, that's a baby on her.
Baby food on her, whatever they do.
The smokes you say we're having on you can't do.
What I'm saying is something that George said just now.
He said, if you want an exercise, it will renew your respect for the insinuity and the .
Just get into the business of .
Oh, I know nothing about it compared to what you want.
Well, we have one little thing that we've used on the space to the extent that
Productivity can be a bridge of some kind that will help us in rationalizing regional price problems.
We now have the Productivity Commission's short statement that 100% importance in productivity, that wireless endorses productivity bargaining, and a variety of other things like that.
It's all a very general term, but at any rate it represents an agreement.
a lot of team labor people, a lot of management people, some public people.
After a long period of time, finally, we have this document and everybody's agreed to it.
So we have even now this document that we can put out, even though it's not contained.
Can't you convince your friends at General Motors to be the statesman that American Motors were in?
I have.
That's the one that's surely in the tax package that's going to go.
They should take the risk.
I talked to them briefly at the State Department when we got it around.
I said, look, I'll just move on.
I mean, it's a way to sell cars.
Oh, I feel that way too.
Another thing too is that, General, you and Arnie and a person too, would you tell your staffs that, I mean, these poor guys down in Woodburg, I'm keenly aware of what they've done, and the proper time will come.
Recognize them so many times.
Certainly will.
And people out on the visit, friends out across the country, and just really,
We had one expert in each of my eight regions designated, who was an economic stabilization man, but of course on all panels.
for a night war.
I had about five people in my national office.
But they didn't want to do it.
You know, we had that test of morale, not only in my organization, but the people we recruited from other agencies and the IRS.
I thought it was a very good and tremendous job.
There was an agreement.
It's true.
You know, I think that anybody can do it.
talking about, oh gee whiz, we've got this terrible new job.
And it's exactly the opposite of the case.
It's, oh gee whiz, why do we have to do the same little damn thing every day?
And here we are, they're part of an exciting venture now.
I remember it that way.
And when I went to go PA, it was in January.
A meeting after Pearl Harbor, I remember that Tom had just
In October, before Pearl Harbor, I signed up for it.
It didn't hit Pearl Harbor, so I packed it in January.
Well, I will never forget the morale and the excitement of just being there, writing regulations about tirade and all that sort of thing.
It was just a big thing.
And people in the open line agencies were just as jealous as they could be because they were the action one.
That's the thing.
People like the action, don't they?
They like the action.
They like to be in there.
For some of our people, they like to do well.
They like to keep people around.
That's hard to do.
So the best people who have had the operations that the man was in charge of?
Do I have...
Interns.
Interns.
Great interns.
A girl, 19 years old, was running my restaurant, and we were partners, and she was part of it.
We had one intern that came over to my IRS, and she was supposed to go after a master's degree, and she decided to stay out of it.
Well, you know, I got to spend a note, too, from the beginning.
You work out there anything you want with this man here in the center.
He's had some notes for all those.
The last time he was here, he had the 90-day period with his son.
He knows the appreciation of his crime.
This girl, I had her in yesterday and she'd come back to me.
She said they had my picture taken with her and gave her whatever she turned to look like a girl.
Why'd you send her back?
They want her back.
I said she'd come back to school, that's it.
And I thought he wanted to get it up here with you too.
I don't get it.
figure what comes afterwards.
I'm going to continue to do this.
I was away for two weeks.
I'm just going to assume I'm away for the next two weeks.
You make all these decisions, they're all right.
There's no way, during this time, there's no way, there's no way that I just don't want to know.
I mean, to say, you know, it's just done.
You might be hurt, but that's where you're at.
the operation of it in the sense that we have a little, of course, the cost of living counts in these, every avenue, four and five, across all of here.
And I know they're supposed to come to Harvard.
They're supposed to come.
Great addition.
And they're doing something that's more interesting than they'd be doing back in our options.
And we have a little policy that they have to receive every morning to take care of it.
It does the initial screening, and that output standard is sampled by the cost of the house standard, and then we go on to process that work in our next job.
So I think we could, I think this is constant.
We, keeping the flow of things moving is very important.
I'd like to add two things just recently.
less popular every day.
And secondly, people are going to get a little smarter every day in thinking how they can slide out from under and all of their places are going to be different.
And if they can't, they're going to delay their deliveries.
And in business,
Saying, well, come November 14th is when I put the price up.
So that, to me, is meant to, as opposed to stage two.
I certainly think we could put up, even under the wage price freeze, in order to be effective, to, to leverage the later, the old price.
No, that's not what I'm starting to think.
I'm getting to stage two.
I think so.
It's very important to handle this because if we get toward the end of the freeze, these kinds of things can have the effect of slowing the economy down.
As people put away for the end of that freeze period, we want to be ready to set that up.
This is why we need to get out guidelines on what we're thinking about after November 13th, way ahead of November 13th.
So keep that in mind, too.
The fact that the soil is down, if we could be in business with our base to machine it so that it could come a little empty in the street, it would come back to the ground.
Right.
And also, we could make certain decisions here at this stage.
Yeah, I see.
What do you say, Gronk?
I'm going to go back and teach you a course.
What do we call it?
You know what I mean?