Gerald Ford: Wrestling with Inflation

More than the pardon, more than amnesty, more even than the "healing" he likes to talk about, the wobbly U.S.

economy has been Gerald Ford's driv ing concern as President. He declared inflation to be domestic enemy No. 1 in his address to Congress, then pursued it relentlessly in a series of consensus-building economic conferences. Last week, appearing before 800 economists, businessmen, Government officials and labor leaders at the final summit in Washington, Ford declared that "this is not the end but the beginning of a bat tle" to rescue the economy. "You have done your own work well," he added. "Now it's my turn."

He delivered his vigorous, 32-minute speech just one hour after his wife Betty had emerged from emergency cancer surgery. Said he, with his voice breaking: "Betty would expect me to be here." Ford sketched the outlines of his approach to the war against the "inflation and waste" in the economy. Ford indicated that he would send several legislative proposals to Congress by next week. Much of the Administration's anti-inflation program would depend on energy policy. As Ford spoke, Secretary of State Henry Kissinger was preparing to meet at Camp David with foreign ministers of four other industrial countries about ways to deal with the rising price of oil. The Ford Administration is working hard to lower international oil prices. Ford also said that he would speak to the nation this week about his economic plans. The speech is likely to include new energy measures. (For an account of what the summit accomplished, see THE ECONOMY.)

Whatever the specifics of Ford's anti-inflation program, he developed a distinctive approach in enlisting a broad range of citizens in the search for answers. The organizational setup for the war on inflation that Ford outlined in his address had a more-the-merrier look. The President established two new bodies to manage economic policy:

POLICY BOARD. By executive order, Ford created an Economic Policy Board to consolidate all federal efforts, both domestic and foreign, in this field. He named Treasury Secretary William Simon as chairman, with authority to serve as the President's spokesman on all economic matters. This appeared to be a coup for Simon; he emerged victorious in his long-running feud with Roy Ash, director of the Office of Management and Budget, for supremacy in economic policy.

Simon's new 13-member board includes eight other Cabinet members, plus Ash, Council of Economic Advisers Chairman Alan Greenspan, William Eberle of the Council on International Economic Policy, and Ford Aide L. William Seidman. A millionaire accounting executive and Ford adviser from Grand Rapids, Seidman holds two vaguely defined but key positions. Ford made him executive director of Simon's board as well as his own chief White House economic coordinator. While the board may prove to be useful in coordinating policy, it could well be too large for effective decision making.

LABOR-MANAGEMENT COMMITTEE.

For the first time, a formal White House-sanctioned cross section of labor and management representatives will meet regularly with the President to explore economic issues. Probably the most promising of Ford's moves, the White House Labor-Management Committee includes eight of the nation's most influential labor leaders as well as eight top corporate executives. Although purely an advisory body, it will be able to make direct recommendations to Ford on what he termed a "man-to-man and face-to-face" basis--in contrast to Nixon's remote habits. Its role may also be enhanced by the selection of John Dunlop, Harvard economics professor and a former arm-twisting director of Nixon's Cost of Living Council, as the coordinator.

Ford also adopted an idea offered by Columnist Sylvia Porter: he solicited suggestions from all Americans on specific ways in which inflation can be fought and energy saved through the multiplied actions of millions of individuals. In his speech, Ford urged everyone "to join us in a great effort--and to become inflation fighters and energy savers." He urged citizens to list ten helpful suggestions, act on them and send a copy of them to the White House. The proposals, Ford said, should involve "little things that have become habits but don't really affect your health and happiness."

Ford paid relatively less attention to his Council on Wage and Price Stability, which will monitor increases in those crucial areas. The council has no enforcement powers, but Ford did appoint as executive director a strong advocate of Washington jawboning. He is Albert E. Rees, a Princeton economist and a Democrat. Rees shares Ford's adamant stand against imposing mandatory wage and price controls.

Ford conceded that his preliminary moves of the week, while necessary, will not resolve the nation's economic problems. Said he: "Nobody knows better than I do that councils and committees cannot win this war."

No Quick Remedies. Thus the action plans soon to be announced by Ford will be more vital than last week's meshing of new policymaking gears. The general shape of those plans now seems clear. Despite sharp differences over some specific measures, the summit conference produced no overwhelming objections from economists to the basic thrust of Ford's current policies: somewhat reduced Government spending and a continued mild crimp in the money supply. There was also general approval of Ford's plan to ease the impact of an economic slowdown on the poor through tax reforms and job programs.

Some conventional economists expressed concern that Ford's airing of the nation's economic ills through his series of public conferences may have only aggravated the ailments, especially since it was so vividly demonstrated that none of the experts had any quick remedies to offer. But Ford was surely right in telling the delegates: "You have spoken candidly. As a result, I, along with other Americans, have gained a better understanding of our economic problems. Perhaps we have caught glimpses of the political problems as well. But even in our controversies, we have all developed a surer sense of direction."

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