Nixon in the Pulpit: Economic Evangelism

ANY President must divide his presidency into distinctive roles. Last week Richard Nixon was the Chief Executive, urging the reconvening Congress to act on his New Economic Policy, meeting with labor leaders to help plan what wage and price restraints will follow the end of the 90-day freeze--which the President said he would not extend beyond Nov. 14. Nixon was also the economic evangelist, preaching a new-old faith in the basic strength of the American system.

Since he has largely pre-empted Democratic proposals for aiding the economy, the Democratic-controlled Congress is likely to give him most of what he wants, although perhaps not quite the way he wants it. But the White House meeting with labor leaders on future wage-price stabilization--which will be followed this week by similar meetings with congressional leaders, businessmen and farm officials--ended on a mildly truculent note. Most of the union officials warned that they would not forgo strikes. They would accept the creation of a stabilization board representing labor, business and the public, but not, as Nixon wants, Government.

Unsuitable Role. Reviving a faltering economy depends almost as much on psychology as on programs. If the U.S. public is convinced that Nixon's policy is going to work, there is a good chance that it will. That is why his evangelical role is so important. Unfortunately, it is not a role that suits him. While his goal was sound, his rhetoric last week was less than convincing. Considering the drastic measures he has taken, Nixon has encountered little opposition from any side. A Harris poll last week showed that since the New Economic Policy wars unveiled, there has been a quick 10% rise in the number of people who feel that he is "keeping the economy healthy"; 63% still react "negatively" to the way he handles the nation's economic affairs. People are obviously waiting for results. Meantime, Nixon has apparently decided to build enthusiasm by appealing to pride and self-interest, condemning sloth, pushing a rather protectionist line and proclaiming that in economics, as in other respects, the U.S. must remain first in the world.

In his Labor Day radio speech, he extolled the work ethic, which is so "ingrained in the American character," he insisted, "that most of us consider it immoral to be lazy or slothful." The speech contained much muddled logic. Nixon equated the work ethic with the competitive spirit, although they are obviously not the same; faith in the value of work is not identical with the desire to push ahead in the marketplace. He suggested that the work ethic is threatened by wrongheadedness and indolence, when in fact it is most seriously challenged by the technological revolution, which (at least potentially) has abolished scarcity and has made many kinds of work unfulfilling or even unnecessary.

Getting More. Nixon spoke pertinently about the need to make work more creative and rewarding, but he seemed to suggest that this is a problem requiring relatively minor repairs rather than a major overhaul. Ultimately, he said, the goal must be to increase productivity, which in Nixon's uncomplicated definition means simply "getting more out of your work."

The President was still conscious of his inspirational role when he returned to these themes in his address to Congress. Again he defended the economic system against those who claim that it is "an oppressor and exploiter of human beings." Echoing one of Vice President Spiro Agnew's favorite lines, he urged citizens to "speak up for what is right about America." He attacked the nation's welfare system as a refuge for the indolent, reminding Congress that it still had to pass his reform proposals.

In the interests of checking inflation, he also suggested that the effective date should be delayed for at least a year. He insisted that "any work is preferable to welfare," seeming to imply that masses of shiftless Americans would rather go on welfare than go to work. It is a fact that nearly three-quarters of welfare recipients are mothers and dependent children.

Nixon also appealed to the growing protectionist sentiment in the U.S. He cited the generosity of U.S. foreign aid and drew loud applause with the declaration that "the time has come to give a new attention to America's own interests here at home."

The President went on to compare international trade to a vast poker game (see THE ECONOMY).

"We have generously passed out the chips," Nixon said. "Now others can play on an equal basis." Mixing metaphors, he contended that "the time is past for the United States to compete with one hand tied behind its back"--a situation that his surcharge on imports and the floating of the dollar are intended to correct.

Bargaining Chip. The most important news of the speech was that the freeze would not be extended. That was a concession to business and labor pressure; it also seemed to be an unnecessary surrender of a bargaining chip that the President might have used in working out post-freeze stabilization plans. He appealed for a bipartisan approach by Congress to his tax package, noting that similar proposals had been successfully carried out by a Democratic President (Kennedy, in the '60s).

It was a legitimate appeal, but one that might fall on unhearing ears in a pre-election year.

Since congressional Democrats could not fault the basic outline of the President's program, they were--as usual in economic matters--counting on the wiles of House Ways and Means Chairman Wilbur Mills to salvage something for them. As hearings on the tax proposals opened before his committee, Mills indicated that he was largely sympathetic to the President's plans. "You can't criticize a fellow who's trying to talk your own language," he conceded. Another fellow who spoke Mills' language was the Administration's shrewd economic salesman, Treasury Secretary John Connally. After pleading the Administration's case at the hearings, Connally, too, hinted that an accommodation could be reached since neither side was overly rigid. "I've done some horse trading in my time," he told reporters.

Away from Business. Mills does have ideas of his own that would gain the Democrats some credit from the economic program. He intends to shift some of the tax incentives to consumers and away from business--he is determined to get a tax bill through the House by Oct. 1, and wants one that will be acceptable to the Administration. By Sept. 30, if all goes well, Nixon will also have recommendations from his Cost of Living Council, so that he can decide by mid-October just what form the longer-range restraints will take.

Underlying the argument over whether business or individuals merit first consideration in any economic-revitalization effort is a hard political reality. The quickest way to give a lagging economy a sharp stimulus is to inject new capital into industry and business for modernization and expansion. The slower, but potentially more lasting avenue is to strengthen consumer demand by aiding individuals. As it happens, the traditional sympathies of both parties neatly coincide with their election urgencies. Nixon wants a fast recovery to ensure his reelection. The Democrats want prosperity too, but are in considerably less of a hurry.

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