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Presidential Files; Folder: 7/20/78; Container 85 7/20/78 Folder Citation: Collection: Office of Staff Secretary; Series: Presidential Files; Folder: 7/20/78; Container 85 To See Complete Finding Aid: http://www.jimmycarterlibrary.gov/library/findingaids/Staff_Secretary.pdf I. .W.rfHDRAWAL'SHIEET (;PRESIDENTIAL LIBRARIES) ''FORM OF DATE 80CUMENT RESTRICTION ·7� "& . Bi:es --�� ee ssf.fici se.u, -fP·, I' "7j_'"if\'/ -�, ·u I� '-6- 'VJ '""" oft r.:. -' · ;;; , . ,.;�a�:.<")re�;;�-��); ' ' ·. �:.;���·�r�tss MellO ;c;;cr� ; w··· " 7/19/78 A ... 'BrzPzjn$1 t�t;ts. cart�rI w/attadnuents 6 ppw-, ' 0 ·; n Korea A " �Q a T£.9QP.S , 7/19/78 · 4"�c...../ tJ� iflc. Nl...c .. IJ..c·ti� ;..r ·I·? t(I1/IJ 1 " •• 0 ', .>' ... 0 ' • FILE LOCATION carter Presidential Papers-Staff Offices, Office of the Staff Sec.-Presidential Handwriting File, 7/20/78 Box 95 RESTRICTION CODES (AI Closed by Executive Order 12356'governing.access to national security information. (B) Closed by statute or by the agency which originated the document. (C) Closed in accordance with restrictions co_ntalned in the donor's deed of gift. NATIONAL ARCHIVES AND RECORDS ADMINISTRATION. NA FORM 1429 (6-85) 'l'HE PRESIDENT'S SCHEDULE - Thursday - July 20, 1978 8:15 Dr. Zbigniew Brzezinski The Oval Office. 9:00 Mr. Frank Moore The Oval Office. 10:00 Greet the Future Farmers of America State (5 min.) Presidents. (Ms. Anne Wexler) - The Rose Garden. 11:30 Secretary· Ray Marshall. {Mr. Jack \!Jatson). (30 min.) The Oval Office. 12: 2·0 Governor Juan F. Luis and ,a Delegation from (5 min.) the Virgin Islands. (Mr. Jack Watson). The Oval Office. 1:·30 Greet People's Republic of China Theatrical (15 min.) Troupe. (Dr. Zbigniew Brzezinski) - Rose Garden. 8:00 News Conference. (Mr. Jody Powell). (30 min.) Room 450·, OEOB. ' �--�tale OW.Illaite� ! llriPrM11MIIIIIPiajiG�I8·., THE WHITE HOUSE WASHINGTON ----- July 19·, 1978 � MEMORANDUM FOR THE PRESIDE� FROM.: Jack Watso .. SUBJECT: Your Meet' g with Secretary Ray Marshall Thursday, y 20, 1978 11:30 a.m. (30 minutes} (Oval Office} As you may recall, we had schedU!led Ray for a 30 minute private session with you OR Monday, June 12, which we had to cancel at the last minute because of a problem in your schedule. Your meeting, with Ray tomorrow is simply a substitute· for the earlier meeting and will have no formal agenda. Under your guidelines, these meeting:s are not for the purpose of making specific decisions, but are rather intended to give you a priva,te and informal opportunity to meet with the Cab.dinet Secretaries.• ATTACHMENT 1 "• THE WHITE HOUSE WASHINGTON July 19, 1978 MEMORANDUM FOR: THE PRESIDENT� FROM: STU EIZENSTAT BILL SPRING SUBJECT: Meeting with Secretary Marshall You are scheduled to meet with Secretary Marshall for 30 minutes Thursday morning. While this meeting is intended primarily for the Secretary to discuss certain issues with you, it is important for you to talk to the Secretary on the following topics: 1. Administration's New Youth Employment Programs o The Vice President is chairing a Cabinet-level task force at your request and DPS will shortly initiate a PRM on improving youth employment and training. o DOL is being asked to take the lead in coordinating both the task force activities for the Vice President and other members of the Cabinet, and the policy review process. o Success of these activities will require a personal commitment of the Secretary's time, adequate staff resources and his support of the programs within the Labor Department. o This is a chance to gain much needed public recognition and credit for the Administration's exciting new programs for disadvantaged youth. 2. Reauthorization of CETA o Votes are expected in both Houses very shortly on the CETA bill. o We must make every effort to insure that central cities, e.g., Detroit, Atlanta, New York, are not adversely affected by certain provisions of the pending legislation. - 2 - o It would be useful to explore with the Secretary the prospects for passage of the legislation and any potential problems that may require your personal attention. 3. Veterans Employment Programs o The Administration has come under continued criticism for its handling of veterans employment programs e.g., Jack Anderson columns, Congressional oversight hearings, and a series of Washington Post articles. o DOL largely ignored the Veterans PRM process and made signficant decisions on employment programs for veterans outside of this process, including a redesign of the HIRE program and a phasedown of a Disabled Veterans program. o A closer working relationship has developed between the White House and DOL on these issues, but the Secretary needs to give more personal attention and concern to his Department's veterans programs. o A careful process should be established to fill the recently vacated position of Deputy Assistant Secretary for Veterans Employment. This process should include consultation with veterans groups and the White House. si1,:·,i,i;:Jl!,aJ�---- ji.)�U:1; _,,..•• � ,_��····� An Anti-inflation Proposal Summary This paper describes an anti-inflation program that ralies on voluntary cooperation with some easily understood wage and price standards, yet has strong incentives for compliance. The proposal may not be ideal, but it is preferable to the other methods that have been suggested for red'uc ihg inflation (such as tax-based incomes policies). If these other methods receive serious discUs·sion within the Admir:dstration, then this proposal should also be considered. PrinGipllies for an Anti-inflation Policy The anti-inflation policy would be designed around th.e following procedures: ( 1) Wag,e inc:reases (including benefits) woulld, in ·ge'neral, be e ual to the inc·rease in the CPI in the revious �· T s wou guaran.tee eac worker s stah ard of TIVTng. Inflation would slowdown because normal produc­ tivity gains of 1 l/2 to 2% per year would cause unit labor costs to increase by 1 1/2 to 2% less than labor compensation. A normal contract might have a full Cost-of-Living Adjustment (COLA) with a one year lag though shorter lags could be permitted. (2) Prices wo·uld r'is•e .·:us.t enou rh to maintain constant prof 1 t marg ns. Prices may be mo.re d:i f.f icul t to :monitor than wag,es., but a. price principle would be needed to guarantee equity. A workable form o.f the pr incipl e would require careful thought, but with the cooperation of large firms, the worst inequities would be avoided. In general, each sector's price increases would be reduced by the same amount as are wage increases. That is, price increases would tend to decelerate at the rate of growth o·f overall productivity. This tendency would be modified to the extent that true shortages (e.g. food), gove;rnment actions {e.• g. energy taxes) o·r deviations from the s·tanda.rd occurred • .'. ' 2 - These p.r i.hciples would pe:rmit. overall dec·eleration according t.o the following schedule if productivity gains of 1 1/2 % per· year were experienced.' Annual Increases •1978 1979 1980 1981: 1982 in Labor Compensation 8 i/2% 7% . ''5 1/2 4% 4%.' Productivity 1 1/2% '1.1/2% 1 1/2% 1 l/2% 1 1/2% Unit Labor· Costs 7% 5 1/2% 4% 2 l/2% 2 1/2% CPI 7% 5 1/2% ·4% 2 l!/2% .. 2 1/2% o' ·(3 )_ w.age or pric·e incre1as•es above the s.tandards would . :be ermitted, overnment wi 11 assume t·hat .s:uc:: -� lnc:reas'es emon:strate t e ex1stence o : a s• ortag-e or bottleneck�., ·I n these cases; the gove,rnment would take appropriate steps to relieve the shortage. ' . 'The teeth 6f the ro ram 1 ie. in this.. rihci le_. If meat pr.l.c.es go up t.oo muc , m_eat 1mport quot�s would be raised; if st-eel-prices go up too·much,. steel impor·t. restrictions would 'be eased; if· auto prices go up too · . much, the F.ederal. Gover.nmen·t would forego pu·rcha,s.es . of autos, bus.es, and: trucks' or consider purchasing ·imports; if Doctor-'s fe.es go up too much, Medicaid payments to param·edicals· would be· pe:rmitted for some services n6w requiring M.D.'�; if the Teamstei c�nt�act. · · ''· is too big; trucking<regulations would be· ea,sed substantially. · ( 4 r · · E xis.tin g contracts .would .n.ot. be·· affe·cted, though the ·size of exist.ing. contracts ·Would be considered when the .Aext contract is negotiat.ed. ·Firms would not be penalized f;or passing throu<!Jh costs from existing · contracts. · . : · (5) Productivity bar·ga.ins· wo.ul d ·be.. all�wed where unions trade demo·nstrable improvemeA·ts in· work rules- for .wage ' · · increases. higher than the sta�dard �· ·(6) Extraord.ina,ry Cos.ts Would b'e ·Passed· Through.. Firms facirig·. spe.c ial si tuati.ons_fr.om existing c.oritracts or because .their energy prices. increased ·sub stantially wo�uld :be pe.r�i tted' to pa�s. t:hei r_· costs· throug:h to prices. ·' - 3 - (7) Inte·rest. rates would be brought do.wn wi'th inflation. The Fede.ral Re.serve would .seek to reduce some :broad­ ba:sed measure of nominal interest :rates by at least a·· point., for eac.h poin,t that inflation dece.le:rates .• The Adminis•tration's response to the possibilities -under iterns ( lJ th.rough (6) above would be a.s follows: Wage I nc·reases Price Increase Government Actfort At or b.e1ow At or :be.l()W ;Nope s.tandard .· s·tanda.rd Above· At 6r below .
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