Editing 76-14-B4 (section)

=== Transcript ===
On these broadcasts I have frequently pointed out how much government
has been (and continues to be) increasing in cost. And, I've called attention
to the fact that government costs are not included in the factors used to
compute the cost-of-living index. When government announces the inflation
rate, it is the rate before taxes. That's why we could be told that between
1974 and 1975, for instance, real wages -- meaning purchasing power -- went up
nine per cent. We were not told that after taxes real purchasing power had gone
down three per cent in spite of the nine per cent raise in pay.

I've not hesitated to blame the federal bureaucracy for this increase in
government costs. But, without retreating from the position, let's recognize
that we, ourselves, and our local elected officials can also have a hand in
the ever-rising tide of government spending.

Let me give you an example, which I'm sure is just one of hundreds of
similar cases that have taken the cost of government up to almost 7500 dollars
per year for every household in America.

A French statesman and economist more than a century ago said, QUOTE --
"Public funds seemingly belong to no one and the temptation to bestow them on
someone is irresistable." -- UNQUOTE. At the federal level where there is the
power to dole out grants to individuals and local or state governments, custom
has it that success is measured by how efficiently that money is handed out.
Emptying the bucket becomes the very reason for the existence of the bureau or
agency.

Cap Weinberger, when he was Secretary of HEW, told me of coming to the end
of one fiscal year with 17 million dollars left over in a student aid program.
He was ordered by the Congress to use up that money. He had to send agents
out to campuses to find students who would accept the grants. As you can imagine,
it was hardly an insurmountable task.

Now comes a news item about a Florida city with a 475 thousand dollar
federal grant to build a firehouse. The city had no need for another firehouse.
It could return the money to Washington or it could go ahead and accept it and
begin construction within 90 days. Those are the rules.

At least two commissioners, bless them, wanted to return the money, but
in a three-to-two vote it was decided to accept 300 thousand dollars and build
the unneeded firehouse. It was just too hard to let that seemingly free money
get away.

To justify building the firehouse and keep it from standing idle for the
period of as much as eight years before another fire company is needed -- that
is, even if city growth should call for it then -- it was decided to put an
emergency medical service vehicle and crew in the building.

One of the "no" vote commissioners pointed out that the city already had
three medical stations and didn't need another. He also pointed something else
out. The 300 thousand dollars in federal money, of course, came out of the same
pockets the city has to get into for its revenues. And, the city will have to
dig deeper into those pockets because it will cost 185 thousand dollars a year
to keep that unneeded medical team in that unneeded firehouse. If they do
need the firehouse in eight years, they will have spent one million, 480 thousand
dollars to get that "free" 300 thousand dollar building. And that's why
government costs go up. 

This is Ronald Reagan.

Thanks for listening.
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