APPENDIX E 1 TABLE III.-Federally assisted highway construction contracts awarded by State highway departments, January-October 1965 107 7 2,947 2,078, 672 2,418 3 1,859, 445 2,495 1,170, 136 3663 633, 760 10, 381 16,549 12, 223 266 5,405 3,265, 357 2,505, 428 13, 142 1 Contracts awarded and force account work authorized by State agencies for highways, 2 Included with force account authorizations, but not included with contracts awarded, are the force account authorizations for work on the Interstate System as follows: Illinois, Source: U.S. Department of Commerce, Bureau of Public Roads. Mr. DAVIDOFF. Mr. Chairman, we appreciate this opportunity to appear before this committee. Mr. BARRETT. Thank you, Mr. Davidoff. I want to thank you on behalf of the subcommittee for a well thought out and stimulating statement. I notice on page 2 of your statement you speak of the need for at least $20 billion over the next 5 years for the demonstration cities program. I know many of us would like to see this amount authorized. But I also think you understand that in the present setting, with increased demands on the budget coming from Vietnam, the Congress will not be able to authorize as much as it would like to for domestic programs. In other words, the administration and the Congress have to balance all of our national needs. I would like to have your comments on this. Mr. DAVIDOFF. Well, Mr. Chairman, our national domestic programs have been established in the Great Society as setting forth goals of equal opportunity for all people in our society, and that it is our be lief that this must be met at the earliest possible occasion. It is our belief-and I have made mention of this earlier that by failing to set any time limitation on the achievement of this program, of the demonstration program, or of the Housing Act goals of 1949, or the antipoverty fight, that the Great Society has really failed to tell us how it can be established and when it will be established. And this is why I say it may be just rhetoric-6 months ago Mr. Reston wrote of the Great Society: "It is forming a quiet revolution." To me, it may be a quiet revolution or it may be a noisy status-I do not know which it is. But I do sincerely believe that we must confront our problems at home and confront them rapidly. Mr. BARRETT. May I just indicate briefly, you think that these pockets of poverty and slums must be eliminated-if I may put it this way-if we are to be strong from without we must be strong from within? Mr. DAVIDOFF. That states exactly what I would like to say, Chairman, in much better terms. Mr. BARRETT. Mr. Widnall? Mr. Mr. WIDNALL. Mr. Davidoff, thank you for a very constructive statement today. I do not think anybody can quarrel with the aspirations and goals that you have set through the Americans for Democratic Action. As our chairman has said, we have got to determine some priorities, and we have got to decide where we are going to channel our best efforts. Now, the bills that we are considering and also the amendments that you propose embody an expenditure of not just $2.9 billion but billions and billions more than that. Now, if we are to do this, and if we are to start out on the scale that you envisage and recommend, we are undoubtedly going to need new taxes. Have you taken any position with respect to new taxes, Mr. Cohen? Mr. COHEN. We have, Congressman Widnall. Around the time when the budget was being developed in late December, and there was a lot of talk then of cutting back or not sufficiently increasing Great Society programs, the ADA National Executive Committee communicated to the President a letter, which I would be glad to supply failed d. A Rest n." I dom for the record, in which we specifically stated that we thought the We are prepared to say we are for more taxation if it is necessary Mr. BARRETT. That letter may be submitted for the record. Without objection, it is so ordered. (The letter referred to follows:) President LYNDON B. JOHNSON, The White House, Washington, D.C. AMERICANS FOR DEMOCRATIC ACTION, DEAR MR. PRESIDENT: We are deeply troubled by widespread reports that 1967 allocations for the development of programs of the Great Society are being severely restricted because of the rise in military expenditures. It would be tragic if the Great Society were strangled in its infancy. It would be all the more tragic because it is unnecessary. The U.S. economy still is not at full employment and there is not full utilization of its marvelous Indeed, the Great Society will make a major contribution to avoiding inflation. As economists, we recognize that there is a point beyond which the combined effects of public and private expenditures would overburden the economy. We do not know the size of contemplated military expenditures nor the magnitude of prospective private expenditures for plant and equipment and inventories. At present, however, overheating of the economy does not appear imminent. You have already demonstrated how particular points of strain can be dealt with; for example, by release of stockpiled commodities to check administered price increases, and by widespread observance of reasonable wage-price guidelines. The economic impact of budgeted 1967 expenditures is still in the future and dependent on development which cannot now be foreseen. We should continue to observe carefully how output, employment, and Government revenues respond to higher levels of demand. If, in fact, it turns out that there is an inflationary gap that cannot be closed by expanding output, then it would be far better to reverse the tax reductions of the last 2 years than to starve the long overdue and most hopeful programs that you have initiated for the welfare of our country. Under such condtions, a reversion to former tax rates would be the choice consistent with the Nation's needs and the Democratic Party platform. We are addressing this to you on behalf of the Executive Committee of Americans for Democratic Action. Respectfully, Mr. DAVIDOFF. Mr. Chairman, we appreciate this opportunity to appear before this committee. Mr. BARRETT. Thank you, Mr. Davidoff. I want to thank you on behalf of the subcommittee for a well thought out and stimulating statement. I notice on page 2 of your statement you speak of the need for at least $20 billion over the next 5 years for the demonstration cities program. I know many of us would like to see this amount authorized. But I also think you understand that in the present setting, with increased demands on the budget coming from Vietnam, the Congress will not be able to authorize as much as it would like to for domestic programs. In other words, the administration and the Congress have to balance all of our national needs. I would like to have your comments on this. Mr. DAVIDOFF. Well, Mr. Chairman, our national domestic programs have been established in the Great Society as setting forth goals of equal opportunity for all people in our society, and that it is our belief that this must be met at the earliest possible occasion. It is our belief-and I have made mention of this earlier that by failing to set any time limitation on the achievement of this program, of the demonstration program, or of the Housing Act goals of 1949, or the antipoverty fight, that the Great Society has really failed to tell us how it can be established and when it will be established. And this is why I say it may be just rhetoric-6 months ago Mr. Reston wrote of the Great Society: "It is forming a quiet revolution." To me, it may be a quiet revolution or it may be a noisy status-I do not know which it is. But I do sincerely believe that we must confront our problems at home and confront them rapidly. Mr. BARRETT. May I just indicate briefly, you think that these pockets of poverty and slums must be eliminated-if I may put it this way-if we are to be strong from without we must be strong from within? Mr. DAVIDOFF. That states exactly what I would like to say, Chairman, in much better terms. Mr. BARRETT. Mr. Widnall? Mr. Mr. WIDNALL. Mr. Davidoff, thank you for a very constructive statement today. I do not think anybody can quarrel with the aspirations and goals that you have set through the Americans for Democratic Action. As our chairman has said, we have got to determine some priorities, and we have got to decide where we are going to channel our best efforts. Now, the bills that we are considering and also the amendments that you propose embody an expenditure of not just $2.9 billion but billions and billions more than that. Now, if we are to do this, and if we are to start out on the scale that you envisage and recommend, we are undoubtedly going to need new taxes. Have you taken any position with respect to new taxes, Mr. Cohen? Mr. COHEN. We have, Congressman Widnall. Around the time when the budget was being developed in late December, and there was a lot of talk then of cutting back or not sufficiently increasing Great Society programs, the ADA National Executive Committee communicated to the President a letter, which I would be glad to supply |