Nixon White House Tapes › Tape 742 › Conversation 742-018
Nixon, Stein & Shultz on National economy and Federal budget
Monday, June 26, 1972 · 3:41 PM–5:23 PM ET · Oval Office
AI Summary
President Nixon met with his economic and policy advisors, including George P. Shultz, Herbert Stein, and John D. Ehrlichman, to deliberate on fiscal strategy, federal spending constraints, and the administration's legislative priorities. The discussion focused on managing the federal budget for fiscal years 1973 through 1975, specifically addressing inflation, revenue sharing, welfare reform, and potential veto strategies to control congressional expenditures. The participants also explored the political ramifications of proposed spending cuts and tax policy adjustments ahead of the upcoming election cycle.
Audio
Audio for this conversation has not been released by the National Archives.
Transcript (AI-generated)
No transcript is available because the audio has not been released.
NARA Description
On June 26, 1972, President Richard M. Nixon, Herbert Stein, George P. Shultz, John D. Ehrlichman, Caspar W. ("Cap") Weinberger, and Clark MacGregor met in the Oval Office of the White House at an unknown time between 3:41 pm and 5:23 pm. The Oval Office taping system captured this recording, which is known as Conversation 742-018 of the White House Tapes.
Nixon Library Finding Aid
Conversation No. 742-18
Date: June 26, 1972
Time: 3:41 pm – unknown before 5:23 pm
Location: Oval Office
The President met with Hebert Stein, George P. Shultz, John D. Ehrlichman, Caspar W. (“Cap”)
Weinberger, and Clark MacGregor.
National economy
-Projected growth
-Unemployment
Budget
-Full employment
-Estimates based on 4% unemployment
-Fiscal Year [FY] 1974
-FY 1975
-FY 1974
-Revenues
-FY 1973
-Terms
-Base
-Target path
-FY 1974
-FY 1975
-FY 1973
-Civilian and military expenditures
-Possible deficits
-Possible enactments
-Administration's options
-Possible enactments
-Defense
-Melvin R. Laird
-Public service bill
-Emergency school integration
-Higher education
-Department of Housing and Urban Development [HUD]
-Revenue sharing
-Ehrlichman's conversation with Nelson A. Rockefeller
-Jacob K. Javits, James B. Pearson, [Thomas] Hale Boggs
-Shultz’s testimony
Revenue sharing bill
-Ways and Means Committee provisions
-Russell B. Long
-Ehrlichman's conversation with Rockefeller
-Distribution formulas
-General revenue sharing
-Categorical grants
-Withholding of funds
-Court injunction
William V. Roth, Jr. proposal on Social Security
-Frank F. Church proposal
-Wilbur D. Mills
-Spending ceiling
-Long
Budget
-Revenue sharing
-The President’s view
-Legislative contingencies
-1973 target
-Reductions
-Possible veto statement
-Congressional action
-Programs
-Debt ceiling limit extension
-Importance of publicizing administration's position
-Reductions
-Timing
-Department of Health, Education, and Welfare [HEW]
-Strategy
-Agency spending
-FY 1974
-Effects of FY 1973
-Reductions
-Strategy
-Tax increase
-Congress's role
-Possible administration statement
-Tax increase
-George H. Mahon
-Barber B. Conable, Jr.
-Reductions
-Danger of inflation
-Possible tax increase
-Welfare reform
-Abraham A. Ribikoff
-House Resolution [HR] 1
-Starting date
-Richard B. Ogilvie
-Ronald W. Reagan
-Aid to Families with Dependent Children [AFDC]
-General revenue sharing
-Reductions
-Public relations
-Debt ceiling limit
-Congressional action
-HR 1
-Charles H. Percy
-John W. Byrnes
-Rules Committee
-Social Security increase
-Byrnes
-Robert C. Byrd
-Possible courses of action by administration
-Government services and programs
-Church
-Size
-Possible actions by Treasury Department
-Disaster expenses
-Milton J. Shapp
-Disinvestments
-Social Security
-Highway Trust Fund
-Proposals for reform of process
-State of Union message
-Ralph Nader
-Higher education bill
-Reductions
-Preparation of alternate budget
-Constraints
-Reductions
-Black lung disease
-Possible increases
-Agriculture
-Cotton programs
-Food prices
-Health
-Public perception of programs' value
-Manpower
-Administration's errors
-Great Society programs
-Inflation
-Food stamps
-John F. Kennedy
-Lyndon B. Johnson
-Social services
-Black lung disease
-US government share
-Rockefeller, Ogilvie
-Reaction to cuts
-FY 1974
-Reagan
-Rockefeller, Ogilvie
-John N. Mitchell
-Executive Order content
-FY 1974
-Provisions
-Percy's welfare program
-Political problems
-Governors
-Voters
-Mitchell
-Rockefeller, Ogilvie
-Shapp
-Political ramifications
-Effects on people
-The President's forthcoming Executive Order
-FY 1973
-Rockefeller
-General revenue sharing
-Uses by state government
-Personnel cuts
-Attrition rate
-Pending legislation
-Social Security increase
-Senate amendment
-Financing
-Barry M. Goldwater
-Church amendment
-Water pollution control
- Mass transit
-Emergency community facilities
-Labor
-Excess over budget
-Vetoes
-Wage Board bill
-Charles W. Colson's deal with John F. Griner
-Tied to end of controls
-Shultz’s view
-Harry Bridges
-Longshoremen contract
-Effect on ending controls
-Effect on public salaries
-The President's labor coalition
-James D. Hodgson
-Negotiating strategy with Griner
-Manpower training act
-Effects on Veterans Administration [VA] and HEW
-The President’s view
-Olin E. (“Tiger”) Teague
-Elliot L. Richardson
-Education
-Problems
-Veterans
-Social Security
-General revenue sharing
-Formulas
-Percy
-Political value
-Welfare reform
-HR 1
-Effect
-Welfare reform
-Budgetary implications
-Problems
-New federal employees
-Percy's amendment
-Rockefeller
-Percy's amendment
-Ways and Means Committee
-Mills
-Water pollution
-Rural development
-Child development
-Office of Economic Opportunity [OEO] legal services
-Social services
-Rockefeller and Ogilvie
-Brookings Institute's study
-FY 1974
-Reductions
-Defense expenditures
-Laird's projections
-Vietnam War
-Programs
-Navy
-Manpower in Vietnam
-Ending of Vietnam War
-George S. McGovern
-Strategic Arms Limitation Talks [Salt] negotiations
-The President’s view
-Tax reform
-Value-added tax [VAT]
-Need for simplification
-Income tax exemptions
-Use of tax system for social purposes
-Treasury Department
-The President’s view
-Need for elimination of programs
-Effect of forthcoming elections
-Robert H. Finch compared with Alan Cranston
-Ehrlichman
-MacGregor
-Stein
-Shultz
-Colson
-Possible tax increases
-Congress
-Stein
-Defense
This conversation was cut off at an unknown time before 5:23 pm.Also recorded on June 26, 1972
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Cite this conversation
Conversation 742-018, June 26, 1972. White House Tapes, Richard Nixon Presidential Library and Museum, National Archives. Audio and AI transcript via Easy Nixon, https://www.easynixon.org/tapes/742-018 (accessed September 30, 2026).