In January 1953, the consumer's dollar was worth only 52 cents in terms of
the food, clothing, shelter and other items it would buy compared to 1939.
Today, the inflationary spiral which had raised the cost of living by 36
percent between 1946 and 1952 has all but ceased and the value of the
dollar virtually stabilized.
In 1954 we had the largest tax cut in history, amounting to $7.4 billion
annually, of which over 62 percent went to individuals mostly in the small
income brackets.
This Administration has directed constant efforts toward fiscal
responsibility. Balanced budgets have been sought when the economy was
advancing, and a rigorous evaluation of spending programs has been
maintained at all times. Resort to deficit financing in prosperous times
could easily erode international confidence in the dollar and contribute to
inflation at home. In this belief, I shall submit a balanced budget for
fiscal 1962 to the Congress next week.
There has been a firm policy of reducing government competition with
private enterprise. This has resulted in the discontinuance of some 2,000
commercial industrial installations and in addition the curtailment of
approximately 550 industrial installations operated directly by government
agencies.
Also an aggressive surplus disposal program has been carried on to Identify
and dispose of unneeded government-owned real property. This has resulted
in the addition of a substantial number of valuable properties to local tax
rolls, and a significant monetary return to the government.
Earnest and persistent attempts have been made to strengthen the position
of State and local governments and thereby to stop the dangerous drift
toward centralization of governmental power in Washington.
Significant strides have been made in increasing the effectiveness of
government. Important new agencies have been established, such as the
Department of Health, Education, and Welfare, the Federal Aviation Agency,
and the National Aeronautics and Space Administration. The Council of
Economic Advisers was reconstituted.
The operation of our postal system has been modernized to get better and
more efficient service. Modernized handling of local mail now brings
next-day delivery to 168 million people in our population centers, expanded
carrier service now accommodates 9.3 million families in the growing
suburbs, and 1.4 million families have been added to the rural delivery
service. Common sense dictates that the Postal Service should be on a
self-financing basis.
The concept of a trained and dedicated government career service has been
strengthened by the provision of life and health insurance benefits, a
vastly improved retirement system, a new merit promotion program, and the
first effective incentive awards program. With no sacrifice in efficiency,
Federal civilian employment since 1953 has been reduced by over a quarter
of a million persons.
I am deeply gratified that it was under the urging of this Administration
that Alaska and Hawaii became our 49th and 50th States.