Economic Report of Ford essays

Economic Report of Ford essays In 1974, there was a large rise in oil prices which gave a large amount of purchasing power to the oil-producing companies. "Inflation, strong demands for credit, and the unwillingness of the monetary authorities to underwrite a continued acceleration of inflation drove interest rates upward, causing a slump in housing."(The Economic Report of the President 1975) Another weakening effect of the higher and "variable" rate of inflation was how uncertain the nation was regarding future rates of price increase. When 1975 began, the unemployment rate was at the highest level it had been in seventeen years. Production and unemployment were declining very fast. To increase business and industry and to create new jobs, Ford proposed a one year tax reduction of $16 billion. He said that three-quarters would go to individuals and one-quarter would be used to promote business investment. Ford said in his 1975 State of the Union Address that "cutting taxes now is essential if we are to turn the economy around. He also proposed a program that he said would "begin to restore our countrys surplus capacity in total energy. In this way we will be able to assure ourselves reliable and adequate energy and help foster a new world energy stability In 1976, the unemployment rate had declined by one percentage point, but it was still too high and must be reduced further. There was a 3.2 percent increase in employment in 1976. Real gross national product (GNP) rose by 6.2 percent, and employment rose by almost 3 million people. In President Fords 1976 State of the Union Address, he asked for additional housing assistance for 500,000 families. He felt that those programs would expand housing opportunities, stimulate construction, and help to house moderate-income ...