to restaurants and to schools, to housing, and laws to permit access to
jobs. But job opportunity, the chance to earn a decent living, is also a
basic human right, which we cannot and will not ignore.
A major priority for our Nation is the final elimination of the barriers
that restrict the opportunities available to women and also to black
people and Hispanics and other minorities. We’ve come a long way toward
that goal. But there is still much to do. What we inherited from the
past must not be permitted to shackle us in the future.
I’ll be asking you for a substantial increase in funds for public jobs
for our young people, and I also am recommending that the Congress
continue the public service employment programs at more than twice the
level of a year ago. When welfare reform is completed, we will have more
than a million additional jobs so that those on welfare who are able to
work can work.
However, again, we know that in our free society, private business is
still the best source of new jobs. Therefore, I will propose a new
program to encourage businesses to hire young and disadvantaged
Americans. These young people only need skills and a chance in order to
take their place in our economic system. Let’s give them the chance they
need. A major step in the right direction would be the early passage of
a greatly improved Humphrey-Hawkins bill.
My budget for 1979 addresses these national needs, but it is lean and
tight. I have cut waste wherever possible.
I am proposing an increase of less than 2 percent after adjusting for
inflation, the smallest increase in the Federal budget in 4 years.
Lately, Federal spending has taken a steadily increasing portion of what
Americans produce. Our new budget reverses that trend, and later I hope
to bring the Government’s toll down even further. And with your help,
we’ll do that.
In time of high employment and a strong economy, deficit spending should
not be a feature of our budget. As the economy continues to gain
strength and as our unemployment rates continue to fall, revenues will
grow. With careful planning, efficient management, and proper restraint
on spending, we can move rapidly toward a balanced budget, and we will.
Next year the budget deficit will be only slightly less than this year.
But one-third of the deficit is due to the necessary tax cuts that I’ve
proposed. This year the right choice is to reduce the burden on
taxpayers and provide more jobs for our people.
The third element in our program is a renewed attack on inflation. We’ve
learned the hard way that high unemployment will not prevent or cure
inflation. Government can help us by stimulating private investment and
by maintaining a responsible economic policy. Through a new top-level
review process, we will do a better job of reducing Government
regulation that drives up costs and drives up prices.
But again, Government alone cannot bring down the rate of inflation.
When a level of high inflation is expected to continue, then companies
raise prices to protect their profit margins against prospective
increases in wages and other costs, while workers demand higher wages as
protection against expected price increases. It’s like an escalation in
the arms race, and understandably, no one wants to disarm alone.
Now, no one firm or a group of workers can halt this process. It’s an
effort that we must all make together. I’m therefore asking government,
business, labor, and other groups to join in a voluntary program to
moderate inflation by holding wage and price increases in each sector of
the economy during 1978 below the average increases of the last 2 years.
I do not believe in wage and price controls. A sincere commitment to
voluntary constraint provides a way, perhaps the only way, to fight
inflation without Government interference.
As I came into the Capitol tonight, I saw the farmers, my fellow
farmers, standing out in the snow. I’m familiar with their problem, and
I know from Congress’ action that you are too. When I was running
Carters Warehouse, we had spread on our own farms 5-10-15 fertilizer for
about $40 a ton. The last time I was home, the price was about $100 a
ton. The cost of nitrogen has gone up 150 percent, and the price of
products that farmers sell has either stayed the same or gone down a
little.
Now, this past year in 1977, you, the Congress, and I together passed a
new agricultural act. It went into effect October 1. It’ll have its
first impact on the 1978 crops. It will help a great deal. It’ll add $6
1/2 billion or more to help the farmers with their price supports and
target prices.
Last year we had the highest level of exports of farm products in the
history of our country, $24 billion. We expect to have more this year.
We’ll be working together. But I think it’s incumbent on us to monitor
very carefully the farm situation and continue to work harmoniously with
the farmers of our country. What’s best for the farmers, the farm
families, in the long run is also best for the consumers of our country.
Economic success at home is also the key to success in our international
economic policy. An effective energy program, strong investment and
productivity, and controlled inflation will provide [improve] our trade
balance and balance it, and it will help to protect the integrity of the
dollar overseas.
By working closely with our friends abroad, we can promote the economic
health of the whole world, with fair and balanced agreements lowering
the barriers to trade.
Despite the inevitable pressures that build up when the world economy
suffers from high unemployment, we must firmly resist the demands for
self-defeating protectionism. But free trade must also be fair trade.
And I am determined to protect American industry and American workers
against foreign trade practices which are unfair or illegal.
In a separate written message to Congress, I’ve outlined other domestic
initiatives, such as welfare reform, consumer protection, basic
education skills, urban policy, reform of our labor laws, and national
health care later on this year. I will not repeat these tonight. But
there are several other points that I would like to make directly to
you.
During these past years, Americans have seen our Government grow far
from us.
For some citizens, the Government has almost become like a foreign
country, so strange and distant that we’ve often had to deal with it
through trained ambassadors who have sometimes become too powerful and
too influential, lawyers, accountants, and lobbyists. This cannot go on.
We must have what Abraham Lincoln wanted, a government for the people.
We’ve made progress toward that kind of government. You’ve given me the
authority I requested to reorganize the Federal bureaucracy. And I am
using that authority.
We’ve already begun a series of reorganization plans which will be
completed over a period of 3 years. We have also proposed abolishing
almost 500 Federal advisory and other commissions and boards. But I know
that the American people are still sick and tired of Federal paperwork
and redtape. Bit by bit we are chopping down the thicket of unnecessary
Federal regulations by which Government too often interferes in our
personal lives and our personal business. We’ve cut the public’s Federal
paperwork load by more than 12 percent in less than a year. And we are
not through cutting.
We’ve made a good start on turning the gobbledygook of Federal
regulations into plain English that people can understand. But we know
that we still have a long way to go.
We’ve brought together parts of 11 Government agencies to create a new
Department of Energy. And now it’s time to take another major step by
creating a separate Department of Education.
But even the best organized Government will only be as effective as the
people who carry out its policies. For this reason, I consider civil
service reform to be absolutely vital. Worked out with the civil
servants themselves, this reorganization plan will restore the merit
principle to a system which has grown into a bureaucratic maze. It will
provide greater management flexibility and better rewards for better
performance without compromising job security.
Then and only then can we have a government that is efficient, open, and
truly worthy of our people’s understanding and respect. I have promised
that we will have such a government, and I intend to keep that promise.
In our foreign policy, the separation of people from government has been
in the past a source of weakness and error. In a democratic system like
ours, foreign policy decisions must be able to stand the test of public
examination and public debate. If we make a mistake in this
administration, it will be on the side of frankness and openness with
the American people.
In our modern world, when the deaths of literally millions of people can
result from a few terrifying seconds of destruction, the path of
national strength and security is identical to the path of peace.
Tonight, I am happy to report that because we are strong, our Nation is
at peace with the world.
We are a confident nation. We’ve restored a moral basis for our foreign
policy. The very heart of our identity as a nation is our firm
commitment to human rights.
We stand for human rights because we believe that government has as a
purpose to promote the well-being of its citizens. This is true in our
domestic policy; it’s also true in our foreign policy. The world must
know that in support of human rights, the United States will stand firm.
We expect no quick or easy results, but there has been significant
movement toward greater freedom and humanity in several parts of the
world.
Thousands of political prisoners have been freed. The leaders of the
world, even our ideological adversaries, now see that their attitude
toward fundamental human rights affects their standing in the
international community, and it affects their relations with the United
States.
To serve the interests of every American, our foreign policy has three
major goals.
The first and prime concern is and will remain the security of our
country.
Security is based on our national will, and security is based on the
strength of our Armed Forces. We have the will, and militarily we are
very strong.
Security also comes through the strength of our alliances. We have
reconfirmed our commitment to the defense of Europe, and this year we
will demonstrate that commitment by further modernizing and
strengthening our military capabilities there.
Security can also be enhanced by agreements with potential adversaries
which reduce the threat of nuclear disaster while maintaining our own
relative strategic capability.
In areas of peaceful competition with the Soviet Union, we will continue
to more than hold our own.
At the same time, we are negotiating with quiet confidence, without
haste, with careful determination, to ease the tensions between us and
to ensure greater stability and security.
The strategic arms limitation talks have been long and difficult. We
want a mutual limit on both the quality and the quantity of the giant
nuclear arsenals of both nations, and then we want actual reductions in
strategic arms as a major step toward the ultimate elimination of
nuclear weapons from the face of the Earth.
If these talks result in an agreement this year, and I trust they will,
I pledge to you that the agreement will maintain and enhance the
stability of the world’s strategic balance and the security of the
United States.
For 30 years, concerted but unsuccessful efforts have been made to ban
the testing of atomic explosives, both military weapons and peaceful
nuclear devices.
We are hard at work with Great Britain and the Soviet Union on an
agreement which will stop testing and will protect our national security
and provide for adequate verification of compliance. We are now making,
I believe, good progress toward this comprehensive ban on nuclear
explosions.
We are also working vigorously to halt the proliferation of nuclear
weapons among the nations of the world which do not now have them and to
reduce the deadly global traffic in conventional arms sales. Our stand
for peace is suspect if we are also the principal arms merchant of the
world. So, we’ve decided to cut down our arms transfers abroad on a
year-by-year basis and to work with other major arms exporters to
encourage their similar constraint.
Every American has a stake in our second major goal, a world at peace.
In a nuclear age, each of us is threatened when peace is not secured
everywhere. We are trying to promote harmony in those parts of the world
where major differences exist among other nations and threaten
international peace.
In the Middle East, we are contributing our good offices to maintain the
momentum of the current negotiations and to keep open the lines of
communication among the Middle Eastern leaders. The whole world has a
great stake in the success of these efforts. This is a precious
opportunity for a historic settlement of a longstanding conflict, an
opportunity which may never come again in our lifetime.
Our role has been difficult and sometimes thankless and controversial.
But it has been constructive and it has been necessary, and it will
continue.
Our third major foreign policy goal is one that touches the life of
every American citizen every day, world economic growth and stability.
This requires strong economic performance by the industrialized
democracies like ourselves and progress in resolving the global energy
crisis. Last fall, with the help of others, we succeeded in our vigorous
efforts to maintain the stability of the price of oil. But as many
foreign leaders have emphasized to me personally and, I am sure, to you,
the greatest future contribution that America can make to the world
economy would be an effective energy conservation program here at home.
We will not hesitate to take the actions needed to protect the integrity
of the American dollar.
We are trying to develop a more just international system. And in this
spirit, we are supporting the struggle for human development in Africa,
in Asia, and in Latin America.
Finally, the world is watching to see how we act on one of our most
important and controversial items of business, approval of the Panama
Canal treaties. The treaties now before the Senate are the result of the
work of four administrations, two Democratic, two Republican.
They guarantee that the canal will be open always for unrestricted use
by the ships of the world. Our ships have the right to go to the head of
the line for priority of passage in times of emergency or need. We
retain the permanent right to defend the canal with our own military
forces, if necessary, to guarantee its openness and its neutrality.
The treaties are to the clear advantage of ourselves, the Panamanians,
and the other users of the canal. Ratifying the Panama Canal treaties
will demonstrate our good faith to the world, discourage the spread of
hostile ideologies in this hemisphere, and directly contribute to the
economic well-being and the security of the United States.
I have to say that that’s very welcome applause.
There were two moments on my recent journey which, for me, confirmed the
final aims of our foreign policy and what it always must be.
One was in a little village in India, where I met a people as
passionately attached to their rights and liberties as we are, but whose
children have a far smaller chance for good health or food or education
or human fulfillment than a child born in this country.
The other moment was in Warsaw, capital of a nation twice devastated by
war in this century. There, people have rebuilt the city which war’s
destruction took from them. But what was new only emphasized clearly
what was lost.
What I saw in those two places crystalized for me the purposes of our
own Nation’s policy: to ensure economic justice, to advance human
rights, to resolve conflicts without violence, and to proclaim in our
great democracy our constant faith in the liberty and dignity of human
beings everywhere.
We Americans have a great deal of work to do together. In the end, how
well we do that work will depend on the spirit in which we approach it.
We must seek fresh answers, unhindered by the stale prescriptions of the
past.
It has been said that our best years are behind us. But I say again that
America’s best is still ahead. We have emerged from bitter experiences
chastened but proud, confident once again, ready to face challenges once
again, and united once again.
We come together tonight at a solemn time. Last week the Senate lost a
good and honest man, Lee Metcalf of Montana.
And today, the flag of the United States flew at half-mast from this
Capitol and from American installations and ships all over the world, in
mourning for Senator Hubert Humphrey.
Because he exemplified so well the joy and the zest of living, his death
reminds us not so much of our own mortality, but of the possibilities
offered to us by life. He always looked to the future with a special
American kind of confidence, of hope and enthusiasm. And the best way
that we can honor him is by following his example.
Our task, to use the words of Senator Humphrey, is “reconciliation,
rebuilding, and rebirth.”
Reconciliation of private needs and interests into a higher purpose.
Rebuilding the old dreams of justice and liberty, and country and
community.
Rebirth of our faith in the common good.
Each of us here tonight, and all who are listening in your homes, must
rededicate ourselves to serving the common good. We are a community, a
beloved community, all of us. Our individual fates are linked, our
futures intertwined. And if we act in that knowledge and in that spirit,
together, as the Bible says, we can move mountains.
Thank you very much.
***
State of the Union Address
Jimmy Carter
January 25, 1979
Tonight I want to examine in a broad sense the state of our American
Union--how we are building a new foundation for a peaceful and a
prosperous world.
Our children who will be born this year will come of age in the 21st
century. What kind of society, what kind of world are we building for
them? Will we ourselves be at peace? Will our children enjoy a better
quality of life? Will a strong and united America still be a force for
freedom and prosperity around the world?
Tonight, there is every sign that the state of our Union is sound.
Our economy offers greater prosperity for more of our people than ever
before. Real per capita income and real business profits have risen
substantially in the last 2 years. Farm exports are setting an all-time
record each year, and farm income last year, net farm income, was up
more than 25 percent.
Our liberties are secure. Our military defenses are strong and growing
stronger. And more importantly, tonight, America--our beloved
country--is at peace.
Our earliest national commitments, modified and reshaped by succeeding
generations, have served us well. But the problems that we face today
are different from those that confronted earlier generations of
Americans. They are more subtle, more complex, and more interrelated. At
home, we are recognizing ever more clearly that government alone cannot
solve these problems. And abroad, few of them can be solved by the
United States alone. But Americans as a united people, working with our
allies and friends, have never been afraid to face problems and to solve
problems, either here or abroad.
The challenge to us is to build a new and firmer foundation for the
future--for a sound economy, for a more effective government, for more
political trust, and for a stable peace--so that the America our
children inherit will be even stronger and even better than it is today.
We cannot resort to simplistic or extreme solutions which substitute
myths for common sense.
In our economy, it is a myth that we must choose endlessly between
inflation and recession. Together, we build the foundation for a strong
economy, with lower inflation, without contriving either a recession
with its high unemployment or unworkable, mandatory government controls.
In our government, it is a myth that we must choose between compassion
and competence. Together, we build the foundation for a government that
works, and works for people.
In our relations with our potential adversaries, it is a myth that we
must choose between confrontation and capitulation. Together, we build
the foundation for a stable world of both diversity and peace.
Together, we’ve already begun to build the foundation for confidence in
our economic system. During the last 2 years, in bringing our economy
out of the deepest recession since the 1930’s, we’ve created 7,100,000
new jobs. The unemployment rate has gone down 25 percent. And now we
must redouble our fight against the persistent inflation that has
wracked our country for more than a decade. That’s our important
domestic issue, and we must do it together.
We know that inflation is a burden for all Americans, but it’s a
disaster for the poor, the sick, and the old. No American family should
be forced to choose among food, warmth, health care, or decent housing
because the cost of any of these basic necessities has climbed out of
reach.
Three months ago, I outlined to the Nation a balanced anti-inflation
program that couples responsible government restraint with responsible
wage and price restraint. It’s based upon my knowledge that there is a
more powerful force than government compulsion--the force created by the
cooperative efforts of millions of Americans working toward a common
goal.
Business and labor have been increasingly supportive. It’s imperative
that we in government do our part. We must stop excessive government
growth, and we must control government spending habits.
I’ve sent to this Congress a stringent but a fair budget, one that,
since I ran for President in 1976, will have cut the Federal deficit in
half. And as a percentage of our gross national product, the deficit
will have dropped by almost 75 percent.
This Congress had a good record last year, and I now ask the 96th
Congress to continue this partnership in holding the line on excess
Federal spending. It will not be easy. But we must be strong, and we
must be persistent.
This budget is a clear message that, with the help of you and the
American people, I am determined, as President, to bring inflation under
control.
The 1980 budget provides enough spending restraint to begin unwinding
inflation, but enough support for our country to keep American workers
productive and to encourage the investments that provide new jobs. We
will continue to mobilize our Nation’s resources to reduce our trade
deficit substantially this year and to maintain the strength of the
American dollar.
We’ve demonstrated in this restrained budget that we can build on the
gains of the past 2 years to provide additional support to educate
disadvantaged children, to care for the elderly, to provide nutrition
and legal services for the poor, and to strengthen the economic base of
our urban communities and, also, our rural areas.
This year, we will take our first steps to develop a national health
plan.
We must never accept a permanent group of unemployed Americans, with no
hope and no stake in building our society. For those left out of the
economy because of discrimination, a lack of skills, or poverty, we must
maintain high levels of training, and we must continue to provide jobs.
A responsible budget is not our only weapon to control inflation. We
must act now to protect all Americans from health care costs that are
rising $1 million per hour, 24 hours a day, doubling every 5 years. We
must take control of the largest contributor to that inflation:
skyrocketing hospital costs.
There will be no clearer test of the commitment of this Congress to the
anti-inflation fight than the legislation that I will submit again this
year to hold down inflation in hospital care.
Over the next 5 years, my proposals will save Americans a total of $60
billion, of which $25 billion will be savings to the American taxpayer
in the Federal budget itself. The American people have waited long
enough. This year we must act on hospital cost containment.
We must also fight inflation by improvements and better enforcement of
our antitrust laws and by reducing government obstacles to competition
in the private sector.
We must begin to scrutinize the overall effect of regulation in our
economy. Through deregulation of the airline industry we’ve increased
profits, cut prices for all Americans, and begun--for one of the few
times in the history of our Nation--to actually dismantle a major
Federal bureaucracy. This year, we must begin the effort to reform our
regulatory processes for the railroad, bus, and the trucking industries.
America has the greatest economic system in the world. Let’s reduce
government interference and give it a chance to work.
I call on Congress to take other anti-inflation action--to expand our
exports to protect American jobs threatened by unfair trade, to conserve
energy, to increase production and to speed development of solar power,
and to reassess our Nation’s technological superiority. American workers
who enlist in the fight against inflation deserve not just our
gratitude, but they deserve the protection of the real wage insurance
proposal that I have already made to the Congress.
To be successful, we must change our attitudes as well as our policies.
We cannot afford to live beyond our means. We cannot afford to create
programs that we can neither manage nor finance, or to waste our natural
resources, and we cannot tolerate mismanagement and fraud. Above all, we
must meet the challenges of inflation as a united people.
With the support of the American people, government in recent decades
has helped to dismantle racial barriers, has provided assistance for the
jobless and the retired, has fed the hungry, has protected the safety,
health, and bargaining rights of American workers, and has helped to
preserve our natural heritage.
But it’s not enough to have created a lot of government programs. Now we
must make the good programs more effective and improve or weed out those
which are wasteful or unnecessary.
With the support of the Congress, we’ve begun to reorganize and to get
control of the bureaucracy. We are reforming the civil service system,
so that we can recognize and reward those who do a good job and correct
or remove those who do not.
This year, we must extend major reorganization efforts to education, to
economic development, and to the management of our natural resources. We
need to enact a sunshine [sunset] law that when government programs have
outlived their value, they will automatically be terminated.
There’s no such thing as an effective and a noncontroversial
reorganization and reform. But we know that honest, effective government
is essential to restore public faith in our public action.
None of us can be satisfied when two-thirds of the American citizens
chose not to vote last year in a national election. Too many Americans
feel powerless against the influence of private lobbying groups and the
unbelievable flood of private campaign money which threatens our
electoral process.
This year, we must regain the public’s faith by requiring limited
financial funds from public funds for congressional election campaigns.
House bill 1 provides for this public financing of campaigns. And I look
forward with a great deal of anticipation to signing it at an early
date.
A strong economy and an effective government will restore confidence in
America. But the path of the future must be charted in peace. We must
continue to build a new and a firm foundation for a stable world
community.
We are building that new foundation from a position of national
strength--the strength of our own defenses, the strength of our
friendships with other nations, and of our oldest American ideals.
America’s military power is a major force for security and stability in
the world. We must maintain our strategic capability and continue the
progress of the last 2 years with our NATO Allies, with whom we have
increased our readiness, modernized our equipment, and strengthened our
defense forces in Europe. I urge you to support the strong defense
budget which I have proposed to the Congress.
But our national security in this complicated age requires more than
just military might. In less than a lifetime, world population has more
than doubled, colonial empires have disappeared, and a hundred new
nations have been born, and migration to the world’s cities have all
awakened new yearnings for economic justice and human rights among
people everywhere.
This demand for justice and human rights is a wave of the future. In
such a world, the choice is not which super power will dominate the
world. None can and none will. The choice instead is between a world of
anarchy and destruction, or a world of cooperation and peace.
In such a world, we seek not to stifle inevitable change, but to
influence its course in helpful and constructive ways that enhance our
values, our national interests, and the cause of peace.
Towering over this volatile, changing world, like a thundercloud on a
summer day, looms the awesome power of nuclear weapons.
We will continue to help shape the forces of change, to anticipate
emerging problems of nuclear proliferation and conventional arms sales,
and to use our great strength parts of the world before they erupt and
spread.
We have no desire to be the world’s policeman. But America does want to
be the world’s peacemaker.
We are building the foundation for truly global cooperation, not only
with Western and industrialized nations but with the developing
countries as well. Our ties with Japan and our European allies are
stronger than ever, and so are our friendly relations with the people of
Latin America, Africa, and the Western Pacific and Asia.
We’ve won new respect in this hemisphere with the Panama Canal treaties.
We’ve gained new trust with the developing world through our opposition
to racism, our commitment to human rights, and our support for majority
rule in Africa.
The multilateral trade negotiations are now reaching a successful
conclusion, and congressional approval is essential to the economic
well-being of our own country and of the world. This will be one of our
top priorities in 1979.
We are entering a hopeful era in our relations with one-fourth of the
world’s people who live in China. The presence of Vice Premier Deng
Xiaoping next week will help to inaugurate that new era. And with prompt
congressional action on authorizing legislation, we will continue our
commitment to a prosperous, peaceful, and secure life for the people of
Taiwan.
I’m grateful that in the past year, as in the year before, no American
has died in combat anywhere in the world. And in Iran, Nicaragua,
Cyprus, Namibia, and Rhodesia, our country is working for peaceful
solutions to dangerous conflicts.
In the Middle East, under the most difficult circumstances, we have
sought to help ancient enemies lay aside deep-seated differences that
have produced four bitter wars in our lifetime.
Our firm commitment to Israel’s survival and security is rooted in our
deepest convictions and in our knowledge of the strategic importance to
our own Nation of a stable Middle East. To promote peace and
reconciliation in the region, we must retain the trust and the
confidence both of Israel and also of the Arab nations that are
sincerely searching for peace.
I am determined, as President, to use the full, beneficial influence of
our country so that the precious opportunity for lasting peace between
Israel and Egypt will not be lost.
The new foundation of international cooperation that we seek excludes no
nation. Cooperation with the Soviet Union serves the cause of peace, for
in this nuclear age, world peace must include peace between the super
powers--and it must mean the control of nuclear arms.
Ten years ago, the United States and the Soviet Union made the historic
decision to open the strategic arms limitations talks, or SALT. The
purpose of SALT, then as now, is not to gain a unilateral advantage for
either nation, but to protect the security of both nations, to reverse
the costly and dangerous momentum of the nuclear arms race, to preserve
a stable balance of nuclear forces, and to demonstrate to a concerned
world that we are determined to help preserve the peace.
The first SALT agreement was concluded in 1972. And since then, during 6
years of negotiation by both Republican and Democratic leaders, nearly
all issues of SALT II have been resolved. If the Soviet Union continues
to negotiate in good faith, a responsible SALT agreement will be
reached.
It’s important that the American people understand the nature of the
SALT process.
SALT II is not based on sentiment; it’s based on self-interest--of the
United States and of the Soviet Union. Both nations share a powerful
common interest in reducing the threat of a nuclear war. I will sign no
agreement which does not enhance our national security.
SALT II does not rely on trust; it will be verifiable. We have very
sophisticated, proven means, including our satellites, to determine for
ourselves whether or not the Soviet Union is meeting its treaty
obligations. I will sign no agreement which cannot be verified.
The American nuclear deterrent will remain strong after SALT II. For
example, just one of our relatively invulnerable Poseidon
submarines--comprising less than 2 percent of our total nuclear force of
submarines, aircraft, and land-based missiles--carries enough warheads
to destroy every large- and medium-sized city in the Soviet Union. Our
deterrent is overwhelming, and I will sign no agreement unless our
deterrent force will remain overwhelming.
A SALT agreement, of course, cannot substitute for wise diplomacy or a
strong defense, nor will it end the danger of nuclear war. But it will
certainly reduce that danger. It will strengthen our efforts to ban
nuclear tests and to stop the spread of atomic weapons to other nations.
And it can begin the process of negotiating new agreements which will
further limit nuclear arms.
The path of arms control, backed by a strong defense, the path our
Nation and every President has walked for 30 years, can lead to a world
of law and of international negotiation and consultation in which all
peoples might live in peace. In this year 1979, nothing is more
important than that the Congress and the people of the United States
resolve to continue with me on that path of nuclear arms control and
world peace. This is paramount.
I’ve outlined some of the changes that have transformed the world and
which are continuing as we meet here tonight. But we in America need not
fear change. The values on which our Nation was founded: individual
liberty, self-determination, the potential for human fulfillment in
freedom, all of these endure. We find these democratic principles
praised, even in books smuggled out of totalitarian nations and on
wallposters in lands which we thought were closed to our influence. Our
country has regained its special place of leadership in the worldwide
struggle for human rights. And that is a commitment that we must keep at
home, as well as abroad.
The civil rights revolution freed all Americans, black and white, but
its full promise still remains unrealized. I will continue to work with
all my strength for equal opportunity for all Americans--and for
affirmative action for those who carry the extra burden of past denial
of equal opportunity.
We remain committed to improving our labor laws to better protect the
rights of American workers. And our Nation must make it clear that the
legal rights of women as citizens are guaranteed under the laws of our
land by ratifying the equal rights amendment.
As long as I’m President, at home and around the world America’s
examples and America’s influence will be marshaled to advance the cause
of human rights.
To establish those values, two centuries ago a bold generation of
Americans risked their property, their position, and life itself. We are
their heirs, and they are sending us a message across the centuries. The
words they made so vivid are now growing faintly indistinct, because
they are not heard often enough. They are words like “justice,”
“equality,” “unity,” “truth,” “sacrifice,” “liberty,” “faith,” and
“love.”
These words remind us that the duty of our generation of Americans is to
renew our Nation’s faith, not focused just against foreign threats but
against the threats of selfishness, cynicism, and apathy.
The new foundation I’ve discussed tonight can help us build a nation and
a world where every child is nurtured and can look to the future with
hope, where the resources now wasted on war can be turned towards
meeting human needs, where all people have enough to eat, a decent home,
and protection against disease.
It can help us build a nation and a world where all people are free to
seek the truth and to add to human understanding, so that all of us may
live our lives in peace.
Tonight, I ask you, the Members of the Congress, to join me in building
that new foundation, a better foundation, for our beloved country and
our world.
Thank you very much.
***
State of the Union Address
Jimmy Carter
January 21, 1980
This last few months has not been an easy time for any of us. As we meet
tonight, it has never been more clear that the state of our Union
depends on the state of the world. And tonight, as throughout our own
generation, freedom and peace in the world depend on the state of our
Union.
The 1980’s have been born in turmoil, strife, and change. This is a time
of challenge to our interests and our values and it’s a time that tests
our wisdom and our skills.
At this time in Iran, 50 Americans are still held captive, innocent
victims of terrorism and anarchy. Also at this moment, massive Soviet
troops are attempting to subjugate the fiercely independent and deeply
religious people of Afghanistan. These two acts--one of international
terrorism and one of military aggression--present a serious challenge to
the United States of America and indeed to all the nations of the world.
Together, we will meet these threats to peace.
I’m determined that the United States will remain the strongest of all
nations, but our power will never be used to initiate a threat to the
security of any nation or to the rights of any human being. We seek to
be and to remain secure--a nation at peace in a stable world. But to be
secure we must face the world as it is.
Three basic developments have helped to shape our challenges: the steady
growth and increased projection of Soviet military power beyond its own
borders; the overwhelming dependence of the Western democracies on oil
supplies from the Middle East; and the press of social and religious and
economic and political change in the many nations of the developing
world, exemplified by the revolution in Iran.
Each of these factors is important in its own right. Each interacts with
the others. All must be faced together, squarely and courageously. We
will face these challenges, and we will meet them with the best that is
in us. And we will not fail.
In response to the abhorrent act in Iran, our Nation has never been
aroused and unified so greatly in peacetime. Our position is clear. The
United States will not yield to blackmail.
We continue to pursue these specific goals: first, to protect the
present and long-range interests of the United States; secondly, to
preserve the lives of the American hostages and to secure, as quickly as
possible, their safe release, if possible, to avoid bloodshed which
might further endanger the lives of our fellow citizens; to enlist the
help of other nations in condemning this act of violence, which is
shocking and violates the moral and the legal standards of a civilized
world; and also to convince and to persuade the Iranian leaders that the
real danger to their nation lies in the north, in the Soviet Union and
from the Soviet troops now in Afghanistan, and that the unwarranted
Iranian quarrel with the United States hampers their response to this
far greater danger to them.
If the American hostages are harmed, a severe price will be paid. We
will never rest until every one of the American hostages are released.
But now we face a broader and more fundamental challenge in this region
because of the recent military action of the Soviet Union.
Now, as during the last 3 1/2 decades, the relationship between our
country, the United States of America, and the Soviet Union is the most
critical factor in determining whether the world will live at peace or
be engulfed in global conflict.
Since the end of the Second World War, America has led other nations in
meeting the challenge of mounting Soviet power. This has not been a
simple or a static relationship. Between us there has been cooperation,
there has been competition, and at times there has been confrontation.
In the 1940’s we took the lead in creating the Atlantic Alliance in
response to the Soviet Union’s suppression and then consolidation of its
East European empire and the resulting threat of the Warsaw Pact to
Western Europe.
In the 1950’s we helped to contain further Soviet challenges in Korea
and in the Middle East, and we rearmed to assure the continuation of
that containment.
In the 1960’s we met the Soviet challenges in Berlin, and we faced the
Cuban missile crisis. And we sought to engage the Soviet Union in the
important task of moving beyond the cold war and away from
confrontation.
And in the 1970’s three American Presidents negotiated with the Soviet
leaders in attempts to halt the growth of the nuclear arms race. We
sought to establish rules of behavior that would reduce the risks of
conflict, and we searched for areas of cooperation that could make our
relations reciprocal and productive, not only for the sake of our two
nations but for the security and peace of the entire world.
In all these actions, we have maintained two commitments: to be ready to
meet any challenge by Soviet military power, and to develop ways to
resolve disputes and to keep the peace.
Preventing nuclear war is the foremost responsibility of the two
superpowers. That’s why we’ve negotiated the strategic arms limitation
treaties--SALT I and SALT II. Especially now, in a time of great
tension, observing the mutual constraints imposed by the terms of these
treaties will be in the best interest of both countries and will help to
preserve world peace. I will consult very closely with the Congress on
this matter as we strive to control nuclear weapons. That effort to
control nuclear weapons will not be abandoned.
We superpowers also have the responsibility to exercise restraint in the
use of our great military force. The integrity and the independence of
weaker nations must not be threatened. They must know that in our
presence they are secure.
But now the Soviet Union has taken a radical and an aggressive new step.
It’s using its great military power against a relatively defenseless
nation. The implications of the Soviet invasion of Afghanistan could
pose the most serious threat to the peace since the Second World War.
The vast majority of nations on Earth have condemned this latest Soviet
attempt to extend its colonial domination of others and have demanded
the immediate withdrawal of Soviet troops. The Moslem world is
especially and justifiably outraged by this aggression against an
Islamic people. No action of a world power has ever been so quickly and
so overwhelmingly condemned. But verbal condemnation is not enough. The
Soviet Union must pay a concrete price for their aggression.
While this invasion continues, we and the other nations of the world
cannot conduct business as usual with the Soviet Union. That’s why the
United States has imposed stiff economic penalties on the Soviet Union.
I will not issue any permits for Soviet ships to fish in the coastal
waters of the United States. I’ve cut Soviet access to high-technology
equipment and to agricultural products. I’ve limited other commerce with
the Soviet Union, and I’ve asked our allies and friends to join with us
in restraining their own trade with the Soviets and not to replace our
own embargoed items. And I have notified the Olympic Committee that with
Soviet invading forces in Afghanistan, neither the American people nor I
will support sending an Olympic team to Moscow.
The Soviet Union is going to have to answer some basic questions: Will
it help promote a more stable international environment in which its own
legitimate, peaceful concerns can be pursued? Or will it continue to
expand its military power far beyond its genuine security needs, and use
that power for colonial conquest? The Soviet Union must realize that its
decision to use military force in Afghanistan will be costly to every
political and economic relationship it values.
The region which is now threatened by Soviet troops in Afghanistan is of
great strategic importance: It contains more than two-thirds of the
world’s exportable oil. The Soviet effort to dominate Afghanistan has
brought Soviet military forces to within 300 miles of the Indian Ocean
and close to the Straits of Hormuz, a waterway through which most of the
world’s oil must flow. The Soviet Union is now attempting to consolidate
a strategic position, therefore, that poses a grave threat to the free
movement of Middle East oil.
This situation demands careful thought, steady nerves, and resolute
action, not only for this year but for many years to come. It demands
collective efforts to meet this new threat to security in the Persian
Gulf and in Southwest Asia. It demands the participation of all those
who rely on oil from the Middle East and who are concerned with global
peace and stability. And it demands consultation and close cooperation
with countries in the area which might be threatened.
Meeting this challenge will take national will, diplomatic and political
wisdom, economic sacrifice, and, of course, military capability. We must
call on the best that is in us to preserve the security of this crucial
region.
Let our position be absolutely clear: An attempt by any outside force to
gain control of the Persian Gulf region will be regarded as an assault
on the vital interests of the United States of America, and such an
assault will be repelled by any means necessary, including military
force.
During the past 3 years, you have joined with me to improve our own
security and the prospects for peace, not only in the vital
oil-producing area of the Persian Gulf region but around the world.
We’ve increased annually our real commitment for defense, and we will
sustain this increase of effort throughout the Five Year Defense
Program. It’s imperative that Congress approve this strong defense
budget for 1981, encompassing a 5-percent real growth in authorizations,
without any reduction.
We are also improving our capability to deploy U.S. military forces
rapidly to distant areas. We’ve helped to strengthen NATO and our other
alliances, and recently we and other NATO members have decided to
develop and to deploy modernized, intermediate-range nuclear forces to
meet an unwarranted and increased threat from the nuclear weapons of the
Soviet Union.
We are working with our allies to prevent conflict in the Middle East.
The peace treaty between Egypt and Israel is a notable achievement which
represents a strategic asset for America and which also enhances
prospects for regional and world peace. We are now engaged in further
negotiations to provide full autonomy for the people of the West Bank
and Gaza, to resolve the Palestinian issue in all its aspects, and to
preserve the peace and security of Israel. Let no one doubt our
commitment to the security of Israel. In a few days we will observe an
historic event when Israel makes another major withdrawal from the Sinai
and when Ambassadors will be exchanged between Israel and Egypt.
We’ve also expanded our own sphere of friendship. Our deep commitment to
human rights and to meeting human needs has improved our relationship
with much of the Third World. Our decision to normalize relations with
the People’s Republic of China will help to preserve peace and stability
in Asia and in the Western Pacific.
We’ve increased and strengthened our naval presence in the Indian Ocean,
and we are now making arrangements for key naval and air facilities to
be used by our forces in the region of northeast Africa and the Persian
Gulf.
We’ve reconfirmed our 1959 agreement to help Pakistan preserve its
independence and its integrity. The United States will take action
consistent with our own laws to assist Pakistan in resisting any outside
aggression. And I’m asking the Congress specifically to reaffirm this
agreement. I’m also working, along with the leaders of other nations, to
provide additional military and economic aid for Pakistan. That request
will come to you in just a few days.
Finally, we are prepared to work with other countries in the region to
share a cooperative security framework that respects differing values
and political beliefs, yet which enhances the independence, security,
and prosperity of all.
All these efforts combined emphasize our dedication to defend and
preserve the vital interests of the region and of the nation which we
represent and those of our allies--in Europe and the Pacific, and also
in the parts of the world which have such great strategic importance to
us, stretching especially through the Middle East and Southwest Asia.
With your help, I will pursue these efforts with vigor and with
determination. You and I will act as necessary to protect and to
preserve our Nation’s security.
The men and women of America’s Armed Forces are on duty tonight in many
parts of the world. I’m proud of the job they are doing, and I know you
share that pride. I believe that our volunteer forces are adequate for
current defense needs, and I hope that it will not become necessary to
impose a draft. However, we must be prepared for that possibility. For
this reason, I have determined that the Selective Service System must
now be revitalized. I will send legislation and budget proposals to the
Congress next month so that we can begin registration and then meet
future mobilization needs rapidly if they arise.
We also need clear and quick passage of a new charter to define the
legal authority and accountability of our intelligence agencies. We will
guarantee that abuses do not recur, but we must tighten our controls on
sensitive intelligence information, and we need to remove unwarranted
restraints on America’s ability to collect intelligence.
The decade ahead will be a time of rapid change, as nations everywhere
seek to deal with new problems and age-old tensions. But America need
have no fear. We can thrive in a world of change if we remain true to
our values and actively engaged in promoting world peace. We will
continue to work as we have for peace in the Middle East and southern
Africa. We will continue to build our ties with developing nations,
respecting and helping to strengthen their national independence which
they have struggled so hard to achieve. And we will continue to support
the growth of democracy and the protection of human rights.
In repressive regimes, popular frustrations often have no outlet except
through violence. But when peoples and their governments can approach
their problems together through open, democratic methods, the basis for
stability and peace is far more solid and far more enduring. That is why
our support for human rights in other countries is in our own national
interest as well as part of our own national character.
Peace--a peace that preserves freedom--remains America’s first goal. In
the coming years, as a mighty nation we will continue to pursue peace.
But to be strong abroad we must be strong at home. And in order to be
strong, we must continue to face up to the difficult issues that
confront us as a nation today.
The crises in Iran and Afghanistan have dramatized a very important
lesson: Our excessive dependence on foreign oil is a clear and present
danger to our Nation’s security. The need has never been more urgent. At
long last, we must have a clear, comprehensive energy policy for the
United States.
As you well know, I have been working with the Congress in a
concentrated and persistent way over the past 3 years to meet this need.
We have made progress together. But Congress must act promptly now to
complete final action on this vital energy legislation. Our Nation will
then have a major conservation effort, important initiatives to develop
solar power, realistic pricing based on the true value of oil, strong
incentives for the production of coal and other fossil fuels in the
United States, and our Nation’s most massive peacetime investment in the
development of synthetic fuels.
The American people are making progress in energy conservation. Last
year we reduced overall petroleum consumption by 8 percent and gasoline
consumption by 5 percent below what it was the year before. Now we must
do more.
After consultation with the Governors, we will set gasoline conservation
goals for each of the 50 States, and I will make them mandatory if these
goals are not met.
I’ve established an import ceiling for 1980 of 8.2 million barrels a
day--well below the level of foreign oil purchases in 1977. I expect our
imports to be much lower than this, but the ceiling will be enforced by
an oil import fee if necessary. I’m prepared to lower these imports
still further if the other oil-consuming countries will join us in a
fair and mutual reduction. If we have a serious shortage, I will not
hesitate to impose mandatory gasoline rationing immediately.
The single biggest factor in the inflation rate last year, the increase
in the inflation rate last year, was from one cause: the skyrocketing
prices of OPEC oil. We must take whatever actions are necessary to
reduce our dependence on foreign oil--and at the same time reduce
inflation.
As individuals and as families, few of us can produce energy by
ourselves. But all of us can conserve energy--every one of us, every day
of our lives. Tonight I call on you--in fact, all the people of
America--to help our Nation. Conserve energy. Eliminate waste. Make 1980
indeed a year of energy conservation.
Of course, we must take other actions to strengthen our Nation’s
economy.
First, we will continue to reduce the deficit and then to balance the
Federal budget.
Second, as we continue to work with business to hold down prices, we’ll
build also on the historic national accord with organized labor to
restrain pay increases in a fair fight against inflation.
Third, we will continue our successful efforts to cut paperwork and to
dismantle unnecessary Government regulation.
Fourth, we will continue our progress in providing jobs for America,
concentrating on a major new program to provide training and work for
our young people, especially minority youth. It has been said that “a
mind is a terrible thing to waste.” We will give our young people new
hope for jobs and a better life in the 1980’s.
And fifth, we must use the decade of the 1980’s to attack the basic
structural weaknesses and problems in our economy through measures to
increase productivity, savings, and investment.
With these energy and economic policies, we will make America even
stronger at home in this decade--just as our foreign and defense
policies will make us stronger and safer throughout the world. We will
never abandon our struggle for a just and a decent society here at home.
That’s the heart of America--and it’s the source of our ability to
inspire other people to defend their own rights abroad.
Our material resources, great as they are, are limited. Our problems are
too complex for simple slogans or for quick solutions. We cannot solve
them without effort and sacrifice. Walter Lippmann once reminded us,
“You took the good things for granted. Now you must earn them again. For
every right that you cherish, you have a duty which you must fulfill.
For every good which you wish to preserve, you will have to sacrifice
your comfort and your ease. There is nothing for nothing any longer.”
Our challenges are formidable. But there’s a new spirit of unity and
resolve in our country. We move into the 1980’s with confidence and hope
and a bright vision of the America we want: an America strong and free,
an America at peace, an America with equal rights for all citizens--and
for women, guaranteed in the United States Constitution--an America with
jobs and good health and good education for every citizen, an America
with a clean and bountiful life in our cities and on our farms, an
America that helps to feed the world, an America secure in filling its
own energy needs, an America of justice, tolerance, and compassion. For
this vision to come true, we must sacrifice, but this national
commitment will be an exciting enterprise that will unify our people.
Together as one people, let us work to build our strength at home, and
together as one indivisible union, let us seek peace and security
throughout the world.
Together let us make of this time of challenge and danger a decade of
national resolve and of brave achievement.
Thank you very much.
***
State of the Union Address
Jimmy Carter
January 16, 1981
To the Congress of the United States:
The State of the Union is sound. Our economy is recovering from a
recession. A national energy plan is in place and our dependence on
foreign oil is decreasing. We have been at peace for four uninterrupted
years.
But, our Nation has serious problems. Inflation and unemployment are
unacceptably high. The world oil market is increasingly tight. There are
trouble spots throughout the world, and 52 American hostages are being
held in Iran against international law and against every precept of
human affairs.
However, I firmly believe that, as a result of the progress made in so
many domestic and international areas over the past four years, our
Nation is stronger, wealthier, more compassionate and freer than it was
four years ago. I am proud of that fact. And I believe the Congress
should be proud as well, for so much of what has been accomplished over
the past four years has been due to the hard work, insights and
cooperation of Congress. I applaud the Congress for its efforts and its
achievements.
In this State of the Union Message I want to recount the achievements
and progress of the last four years and to offer recommendations to the
Congress for this year. While my term as President will end before the
97th Congress begins its work in earnest, I hope that my recommendations
will serve as a guide for the direction this country should take so we
build on the record of the past four years.
RECORD OF PROGRESS
When I took office, our Nation faced a number of serious domestic and
international problems:
--no national energy policy existed, and our dependence on foreign oil
was rapidly increasing;
--public trust in the integrity and openness of the government was low;
--the Federal government was operating inefficiently in administering
essential programs and policies;
--major social problems were being ignored or poorly addressed by the
Federal government;
--our defense posture was declining as a result of a defense budget
which was continuously shrinking in real terms;
--the strength of the NATO Alliance needed to be bolstered;
--tensions between Israel and Egypt threatened another Middle East war;
and
--America’s resolve to oppose human rights violations was under serious
question.
Over the past 48 months, clear progress has been made in solving the
challenges we found in January of 1977:
--almost all of our comprehensive energy program have been enacted, and
the Department of Energy has been established to administer the program;
confidence in the government’s integrity has been restored, and respect
for the government’s openness and fairness has been renewed;
--the government has been made more effective and efficient: the Civil
Service system was completely reformed for the first time this century;
--14 reorganization initiatives have been proposed to the Congress,
approved, and implemented;
--two new Cabinet departments have been created to consolidate and
streamline the government’s handling of energy and education problems;
--inspectors general have been placed in each Cabinet department to
combat fraud, waste and other abuses;
--the regulatory process has been reformed through creation of the
Regulatory Council, implementation of Executive Order 12044 and its
requirement for cost-impact analyses, elimination of unnecessary
regulation, and passage of the Regulatory Flexibility Act;
--procedures have been established to assure citizen participation in
government;
--and the airline, trucking, rail and communications industries are
being deregulated;
--critical social problems, many long ignored by the Federal government,
have been addressed directly;
--an urban policy was developed and implemented to reverse the decline
in our urban areas;
--the Social Security System was refinanced to put it on a sound
financial basis;
--the Humphrey-Hawkins Full Employment Act was enacted;
--Federal assistance for education was expanded by more than 75 percent;
--the minimum wage was increased to levels needed to ease the effects of
inflation;
--affirmative action has been pursued aggressively; more blacks,
Hispanics and women have been appointed to senior government positions
and to judgeships than at any other time in our history;
--the ERA ratification deadline was extended to aid the ratification
effort;
--and minority business procurement by the Federal government has more
than doubled;
--the Nation’s first sectoral policies were put in place, for the auto
and steel industries, with my Administration demonstrating the value of
cooperation between the government, business and labor;
--reversing previous trends, real defense spending has increased every
year since 1977;
--the real increase in FY 1980 defense spending is well above 3 percent
and I expect FY 1981 defense spending to be even higher;
--looking ahead, the defense program I am proposing is premised on a
real increase in defense spending over the next five years of 20 percent
or more;
--the NATO Alliance has proven its unity in responding to the situations
in Eastern Europe and Southwest Asia and in agreeing on the issues to be
addressed in the review of the Helsinki Final Act currently underway in
Madrid;
--the peace process in the Middle East established at Camp David and by
the Peace Treaty between Egypt and Israel is being buttressed on two
fronts: steady progress in the normalization of Egyptian-Israeli
relations in many fields, and the commitment of both Egypt and Israel,
with United States’ assistance, to see through to successful conclusion
the autonomy negotiations for the West Bank and Gaza;
--the Panama Canal Treaties have been put into effect, which has helped
to improve relations with Latin America;
--we have continued this Nation’s strong commitment to the pursuit of
human rights throughout the world, evenhandedly and objectively;
--our commitment to a worldwide human rights policy has remained firm;
--and many other countries have given high priority to it;
--our resolve to oppose aggression, such as the illegal invasion of the
Soviet Union into Afghanistan, has been supported by tough action.
I. ENSURING ECONOMIC STRENGTH ECONOMY
During the last decade our Nation has withstood a series of economic
shocks unprecedented in peacetime. The most dramatic of these has been
the explosive increases of OPEC oil prices. But we have also faced world
commodity shortages, natural disasters, agricultural shortages and major
challenges to world peace and security. Our ability to deal with these
shocks has been impaired because of a decrease in the growth of
productivity and the persistence of underlying inflationary forces built
up over the past 15 years.
Nevertheless, the economy has proved to be remarkably resilient. Real
output has grown at an average rate of 3 percent per year since I took
office, and employment has grown by 10 percent. We have added about 8
million productive private sector jobs to the economy. However,
unacceptably high inflation--the most difficult economic problem I have
faced--persists.
This inflation--which threatens the growth, productivity, and stability
of our economy--requires that we restrain the growth of the budget to
the maximum extent consistent with national security and human
compassion. I have done so in my earlier budgets, and in my FY ’82
budget. However, while restraint is essential to any appropriate
economic policy, high inflation cannot be attributed solely to
government spending. The growth in budget outlays has been more the
result of economic factors than the cause of them.
We are now in the early stages of economic recovery following a short
recession. Typically, a post-recessionary period has been marked by
vigorous economic growth aided by anti-recessionary policy measures such
as large tax cuts or big, stimulation spending programs. I have declined
to recommend such actions to stimulate economic activity, because the
persistent inflationary pressures that beset our economy today dictate a
restrained fiscal policy.
Accordingly, I am asking the Congress to postpone until January 1, 1982,
the personal tax reductions I had earlier proposed to take effect on
January 1 of this year.
However, my 1982 budget proposes significant tax changes to increase the
sources of financing for business investment. While emphasizing the need
for continued fiscal restraint, this budget takes the first major step
in a long-term tax reduction program designed to increase capital
formation. The failure of our Nation’s capital stock to grow at a rate
that keeps pace with its labor force has clearly been one cause of our
productivity slowdown. Higher investment rates are also critically
needed to meet our Nation’s energy needs, and to replace
energy-inefficient plants and equipment with new energy-saving physical
plants. The level of investment that is called for will not occur in the
absence of policies to encourage it.
Therefore, my budget proposes a major liberalization of tax allowances
for depreciation, as well as simplified depreciation accounting,
increasing the allowable rates by about 40 percent. I am also proposing
improvements in the investment tax credit, making it refundable, to meet
the investment needs of firms with no current earnings.
These two proposals, along with carefully-phased tax reductions for
individuals, will improve both economic efficiency and tax equity. I
urge the Congress to enact legislation along the lines and timetable I
have proposed.
THE 1982 BUDGET
The FY 1982 budget I have sent to the Congress continues our four-year
policy of prudence and restraint. While the budget deficits during my
term are higher than I would have liked, their size is determined for
the most part by economic conditions. And in spite of these conditions,
the relative size of the deficit continues to decline. In 1976, before I
took office, the budget deficit equalled 4 percent of gross national
product. It had been cut to 2.3 percent in the 1980 fiscal year just
ended. My 1982 budget contains a deficit estimated to be less than 1
percent of our gross national product.
The rate of growth in Federal spending has been held to a minimum.
Nevertheless, outlays are still rising more rapidly than many had
anticipated, the result of many powerful forces in our society:
We face a threat to our security, as events in Afghanistan, the Middle
East, and Eastern Europe make clear. We have a steadily aging population
and, as a result, the biggest single increase in the Federal budget is
the rising cost of retirement programs, particularly social security. We
face other important domestic needs: to continue responsibility for the
disadvantaged; to provide the capital needed by our cities and our
transportation systems; to protect our environment; to revitalize
American industry; and to increase the export of American goods and
services so essential to the creation of jobs and a trade surplus.
Yet the Federal Government itself may not always be the proper source of
such assistance. For example, it must not usurp functions if they can be
more appropriately decided upon, managed, and financed by the private
sector or by State and local governments. My Administration has always
sought to consider the proper focus of responsibility for the most
efficient resolution of problems.
We have also recognized the need to simplify the system of grants to
State and local governments. I have again proposed several grant
consolidations in the 1982 budget, including a new proposal that would
consolidate several highway programs.
The pressures for growth in Federal use of national resources are great.
My Administration has initiated many new approaches to cope with these
pressures. We started a multi-year budget system, and we began a system
for controlling Federal credit programs. Yet in spite of increasing
needs to limit spending growth, we have consistently adhered to these
strong budget principles:
Our Nation’s armed forces must always stand sufficiently strong to deter
aggression and to assure our security. An effective national energy plan
is essential to increase domestic production of oil and gas, to
encourage conservation of our scarce energy resources, to stimulate
conversion to more abundant fuels, and to reduce our trade deficit. The
essential human needs for our citizens must be given the highest
priority. The Federal Government must lead the way in investment in the
Nation’s technological future. The Federal Government has an obligation
to nurture and protect our environment--the common resource, birthright,
and sustenance of the American people.
My 1982 budget continues to support these principles. It also proposes
responsible tax reductions to encourage a more productive economy, and
adequate funding of our highest priority programs within an overall
policy of constraint.
Fiscal restraint must be continued in the years ahead. Budgets must be
tight enough to convince those who set wages and prices that the Federal
Government is serious about fighting inflation but not so tight as to
choke off all growth.
Careful budget policy should be supplemented by other measures designed
to reduce inflation at lower cost in lost output and employment. These
other steps include measures to increase investment--such as the tax
proposals included in my 1982 budget--and measures to increase
competition and productivity in our economy. Voluntary incomes policies
can also directly influence wages and prices in the direction of
moderation and thereby bring inflation down faster and at lower cost to
the economy. Through a tax-based incomes policy (TIP) we could provide
tax incentives for firms and workers to moderate their wage and price
increases. In the coming years, control of Federal expenditures can make
possible periodic tax reductions. The Congress should therefore begin
now to evaluate the potentialities of a TIP program so that when the
next round of tax reductions is appropriate a TIP program will be
seriously considered.
EMPLOYMENT
During the last four years we have given top priority to meeting the
needs of workers and providing additional job opportunities to those who
seek work. Since the end of 1976:
Almost 9 million new jobs have been added to the nation’s economy total
employment has reached 97 million. More jobs than ever before are held
by women, minorities and young people. Employment over the past four
years has increased by: 17% for adult women 11% for blacks, and 30% for
Hispanics employment of black teenagers increased by more than 5%,
reversing the decline that occurred in the previous eight years.
Major initiatives launched by this Administration helped bring about
these accomplishments and have provided a solid foundation for
employment and training policy in the 1980’s. In 1977, as part of the
comprehensive economic stimulus program:
425,000 public service jobs were created A $1 billion youth employment
initiative funded 200,000 jobs the doubling of the Job Corps to 44,000
slots began and 1 million summer youth jobs were approved--a 25 percent
increase.
In 1978:
The Humphrey-Hawkins Full Employment Act became law the $400 million
Private Sector Initiatives Program was begun a targeted jobs tax credit
for disadvantaged youth and others with special employment barriers was
enacted the Comprehensive Employment and Training Act was reauthorized
for four years.
In 1979:
A $6 billion welfare reform proposal was introduced with funding for
400,000 public service jobs welfare reform demonstration projects were
launched in communities around the country the Vice President initiated
a nationwide review of youth unemployment in this country.
In 1980:
The findings of the Vice President’s Task Force revealed the major
education and employment deficits that exist for poor and minority
youngsters. As a result a $2 billion youth education and jobs initiative
was introduced to provide unemployed youth with the basic education and
work experience they need to compete in the labor market of the 1980’s.
As part of the economic revitalization program several steps were
proposed to aid workers in high unemployment communities:
An additional 13 weeks of unemployment benefits for the long term
unemployed. $600 million to train the disadvantaged and unemployed for
new private sector jobs. Positive adjustment demonstrations to aid
workers in declining industries. The important Title VII Private Sector
Initiatives Program was reauthorized for an additional two years.
In addition to making significant progress in helping the disadvantaged
and unemployed, important gains were realized for all workers:
An historic national accord with organized labor made it possible for
the views of working men and women to be heard as the nation’s economic
and domestic policies were formulated; the Mine Safety and Health Act
brought about improved working conditions for the nation’s 500,000
miners. substantial reforms of Occupational Safety and Health
Administration were accomplished to help reduce unnecessary burdens on
business and to focus on major health and safety problems; the minimum
wage was increased over a four year period from $2.30 to $3.35 an hour;
the Black Lung Benefit Reform Act was signed into law; attempts to
weaken Davis-Bacon Act were defeated.
While substantial gains have been made in the last four years, continued
efforts are required to ensure that this progress is continued:
Government must continue to make labor a full partner in the policy
decisions that affect the interests of working men and women; a broad,
bipartisan effort to combat youth unemployment must be sustained
compassionate reform of the nation’s welfare system should be continued
with employment opportunities provided for those able to work; workers
in declining industries should be provided new skills and help in
finding employment.
TRADE
Over the past year, the U.S. trade picture improved as a result of solid
export gains in both manufactured and agricultural products.
Agricultural exports reached a new record of over $40 billion, while
manufactured exports have grown by 24 percent to a record $144 billion.
In these areas the United States recorded significant surpluses of $24
billion and $19 billion respectively. While our oil imports remained a
major drain on our foreign exchange earnings, that drain was somewhat
moderated by a 19 percent decline in the volume of oil imports.
U.S. trade negotiators made significant progress over the past year in
assuring effective implementation of the agreements negotiated during
the Tokyo Round of Multilateral Trade Negotiations. Agreements reached
with the Japanese government, for example, will assure that the United
States will be able to expand its exports to the Japanese market in such
key areas as telecommunications equipment, tobacco, and lumber. Efforts
by U.S. trade negotiators also helped to persuade a number of key
developing countries to accept many of the non-tariff codes negotiated
during the Multilateral Trade Negotiations. This will assure that these
countries will increasingly assume obligations under the international
trading system.
A difficult world economic environment posed a challenge for the
management of trade relations. U.S. trade negotiators were called upon
to manage serious sectoral problems in such areas as steel, and helped
to assure that U.S. chemical exports will have continued access to the
European market.
Close consultations with the private sector in the United States have
enabled U.S. trade negotiators to pinpoint obstacles to U.S. trade in
services, and to build a basis for future negotiations. Services have
been an increasingly important source of export earnings for the United
States, and the United States must assure continued and increased access
to foreign markets.
The trade position of the United States has improved. But vigorous
efforts are needed in a number of areas to assure continued market
access for U.S. exports, particularly agricultural and high technology
products, in which the United States continues to have a strong
competitive edge. Continued efforts are also needed to remove many
domestic disincentives, which now hamper U.S. export growth. And we must
ensure that countries do not manipulate investment, or impose investment
performance requirements which distort trade and cost us jobs in this
country.
In short, we must continue to seek free--but fair--trade. That is the
policy my Administration has pursued from the beginning, even in areas
where foreign competition has clearly affected our domestic industry. In
the steel industry, for instance, we have put Trigger Price Mechanism
into place to help prevent the dumping of steel. That action has
strengthened the domestic steel industry. In the automobile industry, we
have worked-- without resort to import quotas--to strengthen the
industry’s ability to modernize and compete effectively.
SMALL BUSINESS
I have often said that there is nothing small about small business in
America. These firms account for nearly one-half our gross national
product; over half of new technology; and much more than half of the
jobs created by industry.
Because this sector of the economy is the very lifeblood of our National
economy, we have done much together to improve the competitive climate
for smaller firms. These concerted efforts have been an integral part of
my program to revitalize the economy.
They include my campaign to shrink substantially the cash and time
consuming red tape burden imposed on business. They include my
personally-directed policy of ambitiously increasing the Federal
contracting dollars going to small firms, especially those owned by
women and minorities. And they include my proposals to reinvigorate
existing small businesses and assist the creation of new ones through
tax reform; financing assistance; market expansion; and support of
product innovation.
Many of my initiatives to facilitate the creation and growth of small
businesses were made in response to the White House Conference on Small
Business, which I convened. My Administration began the implementation
of most of the ideas produced last year by that citizen’s advisory body;
others need to be addressed. I have proposed the reconvening of the
Conference next year to review progress; reassess priorities; and set
new goals. In the interim I hope that the incoming Administration and
the new Congress will work with the committee I have established to keep
these business development ideas alive and help implement Conference
recommendations.
MINORITY BUSINESS
One of the most successful developments of my Administration has been
the growth and strengthening of minority business. This is the first
Administration to put the issue on the policy agenda as a matter of
major importance. To implement the results of our early efforts in this
field I submitted legislation to Congress designed to further the
development of minority business.
We have reorganized the Office of Minority Business into the Minority
Business Development Administration in the Department of Commerce. MBDA
has already proven to be a major factor in assisting minority businesses
to achieve equitable competitive positions in the marketplace.
The Federal government’s procurement from minority-owned firms has
nearly tripled since I took office. Federal deposits in minority-owned
banks have more than doubled and minority ownership of radio and
television stations has nearly doubled. The SBA administered 8(a) Pilot
Program for procurement with the Army proved to be successful and I
recently expanded the number of agencies involved to include NASA and
the Departments of Energy and Transportation.
I firmly believe the critical path to full freedom and equality for
America’s minorities rests with the ability of minority communities to
participate competitively in the free enterprise system. I believe the
government has a fundamental responsibility to assist in the development
of minority business and I hope the progress made in the last four years
will continue.
II. CREATING ENERGY SECURITY
Since I took office, my highest legislative priorities have involved the
reorientation and redirection of U.S. energy activities and for the
first time, to establish a coordinated national energy policy. The
struggle to achieve that policy has been long and difficult, but the
accomplishments of the past four years make clear that our country is
finally serious about the problems caused by our overdependence on
foreign oil. Our progress should not be lost. We must rely on and
encourage multiple forms of energy production--coal, crude oil, natural
gas, solar, nuclear, synthetics--and energy conservation. The framework
put in place over the last four years will enable us to do this.
NATIONAL ENERGY POLICY
As a result of actions my Administration and the Congress have taken
over the past four years, our country finally has a national energy
policy:
Under my program of phased decontrol, domestic crude oil price controls
will end September 30, 1981. As a result exploratory drilling activities
have reached an all-time high; Prices for new natural gas are being
decontrolled under the Natural Gas Policy Act--and natural gas
production is now at an all time high; the supply shortages of several
years ago have been eliminated; The windfall profits tax on crude oil
has been enacted providing $227 billion over ten years for assistance to
low-income households, increased mass transit funding, and a massive
investment in the production and development of alternative energy
sources; The Synthetic Fuels Corporation has been established to help
private companies build the facilities to produce energy from synthetic
fuels; Solar energy funding has been quadrupled, solar energy tax
credits enacted, and a Solar Energy and Energy Conservation Bank has
been established; A route has been chosen to bring natural gas from the
North Slope of Alaska to the lower 48 states; Coal production and
consumption incentives have been increased, and coal production is now
at its highest level in history; A gasoline rationing plan has been
approved by Congress for possible use in the event of a severe energy
supply shortage or interruption; Gasohol production has been
dramatically increased, with a program being put in place to produce 500
million gallons of alcohol fuel by the end of this year--an amount that
could enable gasohol to meet the demand for 10 percent of all unleaded
gasoline; New energy conservation incentives have been provided for
individuals, businesses and communities and conservation has increased
dramatically. The U.S. has reduced oil imports by 25 percent--or 2
million barrels per day--over the past four years.
INCREASED DEVELOPMENT OF DOMESTIC ENERGY SOURCES
Although it is essential that the Nation reduce its dependence on
imported fossil fuels and complete the transition to reliance on
domestic renewable sources of energy, it is also important that this
transition be accomplished in an orderly, economic, and environmentally
sound manner. To this end, the Administration has launched several
initiatives.
Leasing of oil and natural gas on federal lands, particularly the outer
continental shelf, has been accelerated at the same time as the
Administration has reformed leasing procedures through the 1978
amendments to the Outer Continental Shelf Lands Act. In 1979 the
Interior Department held six OCS lease sales, the greatest number ever,
which resulted in federal receipts of $6.5 billion, another record. The
five-year OCS Leasing schedule was completed, requiring 36 sales over
the next five years.
Since 1971 no general federal coal lease sales were suspended. Over the
past four years the Administration has completely revised the federal
coal leasing program to bring it into compliance with the requirements
of 1976 Federal Land Planning and Management Act and other statutory
provisions. The program is designed to balance the competing interests
that affect resource development on public lands and to ensure that
adequate supplies of coal will be available to meet national needs. As a
result, the first general competitive federal coal lease sale in ten
years will be held this month.
In July 1980, I signed into law the Energy Security Act of 1980 which
established the Synthetic Fuels Corporation. The Corporation is designed
to spur the development of commercial technologies for production of
synthetic fuels, such as liquid and gaseous fuels from coal and the
production of oil from oil shale. The Act provides the Corporation with
an initial $22 billion to accomplish these objectives. The principal
purpose of the legislation is to ensure that the nation will have
available in the late 1980’s the option to undertake commercial
development of synthetic fuels if that becomes necessary. The Energy
Security Act also provides significant incentives for the development of
gasohol and biomass fuels, thereby enhancing the nation’s supply of
alternative energy sources.
COMMITMENT TO A SUSTAINABLE ENERGY FUTURE
The Administration’s 1977 National Energy Plan marked an historic
departure from the policies of previous Administrations. The plan
stressed the importance of both energy production and conservation to
achieving our ultimate national goal of relying primarily on secure
sources of energy. The National Energy Plan made energy conservation a
cornerstone of our national energy policy.
In 1978, I initiated the Administration’s Solar Domestic Policy Review.
This represented the first step towards widespread introduction of
renewable energy sources into the Nation’s economy. As a result of the
Review, I issued the 1979 Solar Message to Congress, the first such
message in the Nation’s history. The Message outlined the
Administration’s solar program and established an ambitious national
goal for the year 2000 of obtaining 20 percent of this Nation’s energy
from solar and renewable sources. The thrust of the federal solar
program is to help industry develop solar energy sources by emphasizing
basic research and development of solar technologies which are not
currently economic, such as photovoltaics, which generate energy
directly from the sun. At the same time, through tax incentives,
education, and the Solar Energy and Energy Conservation Bank, the solar
program seeks to encourage state and local governments, industry, and
our citizens to expand their use of solar and renewable resource
technologies currently available.
As a result of these policies and programs, the energy efficiency of the
American economy has improved markedly and investments in renewable
energy sources have grown significantly. It now takes 3 1/2 percent less
energy to produce a constant dollar of GNP than it did in January 1977.
This increase in efficiency represents a savings of over 1.3 million
barrels per day of oil equivalent, about the level of total oil
production now occurring in Alaska. Over the same period, Federal
support for conservation and solar energy has increased by more than
3000 percent, to $3.3 billion in FY 1981, including the tax credits for
solar energy and energy conservation investments--these credits are
expected to amount to $1.2 billion in FY 1981 and $1.5 billion in FY
1982.
COMMITMENT TO NUCLEAR SAFETY AND SECURITY
Since January 1977, significant progress has been achieved in resolving
three critical problems resulting from the use of nuclear energy:
radioactive waste management, nuclear safety and weapons proliferation.
In 1977, the Administration announced its nuclear nonproliferation
policy and initiated the International Fuel Cycle Evaluation. In 1978,
Congress passed the Nuclear Nonproliferation Act, an historic piece of
legislation.
In February 1980, the Administration transmitted its nuclear waste
management policy to the Congress. This policy was a major advance over
all previous efforts. The principal aspects of that policy are:
acknowledging the seriousness of the problem and the numerous technical
and institutional issues; adopting a technically and environmentally
conservative approach to the first permanent repository; and providing
the states with significant involvement in nuclear waste disposal
decisions by creating the State Planning Council. While much of the plan
can be and is being implemented administratively, some new authorities
are needed. The Congress should give early priority to enacting
provisions for away-from-reactor storage and the State Planning Council.
The accident at Three Mile Island made the nation acutely aware of the
safety risks posed by nuclear power plants. In response, the President
established the Kemeny Commission to review the accident and make
recommendations. Virtually all of the Commission’s substantive
recommendations were adopted by the Administration and are now being
implemented by the Nuclear Regulatory Commission. The Congress adopted
the President’s proposed plan for the Nuclear Regulatory Commission and
the Nuclear Safety Oversight Committee was established to ensure that
the Administration’s decisions were implemented.
Nuclear safety will remain a vital concern in the years ahead. We must
continue to press ahead for the safe, secure disposal of radioactive
wastes, and prevention of nuclear proliferation.
While significant growth in foreign demand for U.S. steam coal is
foreseen, congestion must be removed at major U.S. coal exporting ports
such as Hampton Roads, Virginia, and Baltimore, Maryland. My
Administration has worked through the Interagency Coal Task Force Study
to promote cooperation and coordination of resources between shippers,
railroads, vessel broker/ operators and port operators, and to determine
the most appropriate Federal role in expanding and modernizing coal
export facilities, including dredging deeper channels at selected ports.
As a result of the Task Force’s efforts, administrative steps have been
taken by the Corps of Engineers to reduce significantly the amount of
time required for planning and economic review of port dredging
proposals. The Administration has also recommended that the Congress
enact legislation to give the President generic authority to recommend
appropriations for channel dredging activities. Private industry will,
of course, play the major role in developing the United States’ coal
export facilities, but the government must continue to work to
facilitate transportation to foreign markets.
III. ENHANCING BASIC HUMAN AND SOCIAL NEEDS
For too long prior to my Administration, many of our Nation’s basic
human and social needs were being ignored or handled insensitively by
the Federal government. Over the last four years, we have significantly
increased funding for many of the vital programs in these areas;
developed new programs where needs were unaddressed; targeted Federal
support to those individuals and areas most in need of our assistance;
and removed barriers that have unnecessarily kept many disadvantaged
citizens from obtaining aid for their most basic needs.
Our record has produced clear progress in the effort to solve some of
the country’s fundamental human and social problems. My Administration
and the Congress, working together, have demonstrated that government
must and can meet our citizens’ basic human and social needs in a
responsible and compassionate way.
But there is an unfinished agenda still before the Congress. If we are
to meet our obligations to help all Americans realize the dreams of
sound health care, decent housing, effective social services, a good
education, and a meaningful job, important legislation still must be
enacted. National Health Insurance, Welfare Reform, Child Health
Assessment Program, are before the Congress and I urge their passage.
HEALTH NATIONAL HEALTH PLAN
During my Administration, I proposed to Congress a National Health Plan
which will enable the country to reach the goal of comprehensive,
universal health care coverage. The legislation I submitted lays the
foundation for this comprehensive plan and addresses the most serious
problems of health financing and delivery. It is realistic and
enactable. It does not overpromise or overspend, and, as a result, can
be the solution to the thirty years of Congressional battles on national
health insurance. My Plan includes the following key features:
Nearly 15 million additional poor would receive fully-subsidized
comprehensive coverage; pre-natal and delivery services are provided for
all pregnant women and coverage is provided for all acute care for
infants in their first year of life; the elderly and disabled would have
a limit of $1,250 placed on annual out-of-pocket medical expenses and
would no longer face limits on hospital coverage; all full-time
employees and their families would receive insurance against at least
major medical expenses under mandated employer coverage; Medicare and
Medicaid would be combined and expanded into an umbrella Federal
program, Healthcare, for increased program efficiency, accountability
and uniformity; and strong cost controls and health system reforms would
be implemented, including greater incentives for Health Maintenance
Organizations.
I urge the new Congress to compare my Plan with the
alternatives--programs which either do too little to improve the health
care needs of Americans most in need or programs which would impose
substantial financial burdens on the American taxpayers. I hope the
Congress will see the need for and the benefits of my Plan and work
toward prompt enactment. We cannot afford further delay in this vital
area.
HEALTH CARE COST CONTROL
Inflation in health care costs remains unacceptably high. Throughout my
Administration, legislation to reduce health care cost inflation was one
of my highest priorities, but was not passed by the Congress. Therefore,
my FY 1982 budget proposes sharing the responsibility for health care
cost control with the private sector, through voluntary hospital cost
guidelines and intensified monitoring. In the longer term, the health
care reimbursement system must be reformed. We must move away from
inflationary cost-based reimbursement and fee-for-service, and toward a
system of prospective reimbursement, under which health care providers
would operate within predetermined budgets. This reimbursement reform is
essential to ultimately control inflation in health care costs, and will
be a significant challenge to the new Congress.
HEALTH PROMOTION AND DISEASE PREVENTION
During my Administration, the Surgeon General released “Healthy People,”
a landmark report on health promotion and disease prevention. The report
signals the growing consensus that the Nation’s health strategy must be
refocused in the 1980’s to emphasize the prevention of disease.
Specifically, the report lays out measurable and achieveable goals in
the reduction of mortality which can be reached by 1990.
I urge the new Congress to endorse the principles of “Healthy People,”
and to adopt the recommendations to achieve its goals. This will
necessitate adoption of a broader concept of health care, to include
such areas as environmental health, workplace health and safety,
commercial product safety, traffic safety, and health education,
promotion and information.
MATERNAL AND CHILD HEALTH
Ensuring a healthy start in life for children remains not only a high
priority of my Administration, but also one of the most cost effective
forms of health care.
When I took office, immunization levels for preventable childhood
diseases had fallen to 70%. As a result of a concerted nationwide effort
during my Administration, I am pleased to report that now at least 90%
of children under 15, and virtually all school-age children are
immunized. In addition, reported cases of measles and mumps are at their
lowest levels ever.
Under the National Health Plan I have proposed, there would be no
cost-sharing for prenatal and delivery services for all pregnant women
and for acute care provided to infants in their first year of life.
These preventive services have extremely high returns in terms of
improved newborn and long-term child health.
Under the Child Health Assurance Program (CHAP) legislation which I
submitted to the Congress, and which passed the House, an additional two
million low-income children under 18 would become eligible for Medicaid
benefits, which would include special health assessments. CHAP would
also improve the continuity of care for the nearly 14 million children
now eligible for Medicaid. An additional 100,000 low-income pregnant
women would become eligible for prenatal care under the proposal. I
strongly urge the new Congress to enact CHAP and thereby provide
millions of needy children with essential health services. The
legislation has had strong bipartisan support, which should continue as
the details of the bill are completed.
I also urge the new Congress to provide strong support for two highly
successful ongoing programs: the special supplemental food program for
women, infants and children (WIC) and Family Planning. The food
supplements under WIC have been shown to effectively prevent ill health
and thereby reduce later medical costs. The Family Planning program has
been effective at reducing unwanted pregnancies among low-income women
and adolescents.
EXPANSION OF SERVICES TO THE POOR AND UNDERSERVED
During my Administration, health services to the poor and underserved
have been dramatically increased. The number of National Health Service
Corps (NHSC) assignees providing services in medically underserved
communities has grown from 500 in 1977 to nearly 3,000 in 1981. The
population served by the NHSC has more than tripled since 1977. The
number of Community Health Centers providing services in high priority
underserved areas has doubled during my Administration, and will serve
an estimated six million people in 1981. I strongly urge the new
Congress to support these highly successful programs.
MENTAL HEALTH
One of the most significant health achievements during my Administration
was the recent passage of the Mental Health Systems Act, which grew out
of recommendations of my Commission on Mental Health. I join many others
in my gratitude to the First Lady for her tireless and effective
contribution to the passage of this important legislation.
The Act is designed to inaugurate a new era of Federal and State
partnership in the planning and provision of mental health services. In
addition, the Act specifically provides for prevention and support
services to the chronically mentally ill to prevent unnecessary
institutionalization and for the development of community-based mental
health services. I urge the new Congress to provide adequate support for
the full and timely implementation of this Act.
HEALTH PROTECTION
With my active support, the Congress recently passed “Medigap”
legislation, which provides for voluntary certification of health
insurance policies supplemental to Medicare, to curb widespread abuses
in this area.
In the area of toxic agent control, legislation which I submitted to the
Congress recently passed. This will provide for a “super-fund” to cover
hazardous waste cleanup costs.
In the area of accidental injury control, we have established automobile
safety standards and increased enforcement activities with respect to
the 55 MPH speed limit. By the end of the decade these actions are
expected to save over 13,000 lives and 100,000 serious injuries each
year.
I urge the new Congress to continue strong support for all these
activities.
FOOD AND NUTRITION
Building on the comprehensive reform of the Food Stamp Program that I
proposed and Congress passed in 1977, my Administration and the Congress
worked together in 1979 and 1980 to enact several other important
changes in the Program. These changes will further simplify
administration and reduce fraud and error, will make the program more
responsive to the needs of the elderly and disabled, and will increase
the cap on allowable program expenditures. The Food Stamp Act will
expire at the end of fiscal 1981. It is essential that the new
Administration and the Congress continue this program to ensure complete
eradication of the debilitating malnutrition witnessed and documented
among thousands of children in the 1960’s.
DRUG ABUSE PREVENTION
At the beginning of my Administration there were over a half million
heroin addicts in the United States. Our continued emphasis on reducing
the supply of heroin, as well as providing treatment and rehabilitation
to its victims, has reduced the heroin addict population, reduced the
number of heroin overdose deaths by 80%, and reduced the number of
heroin related injuries by 50%. We have also seen and encouraged a
national movement of parents and citizens committed to reversing the
very serious and disturbing trends of adolescent drug abuse.
Drug abuse in many forms will continue to detract, however, from the
quality of life of many Americans. To prevent that, I see four great
challenges in the years ahead. First, we must deal aggressively with the
supplies of illegal drugs at their source, through joint crop
destruction programs with foreign nations and increased law enforcement
and border interdiction. Second, we must look to citizens and parents
across the country to help educate the increasing numbers of American
youth who are experimenting with drugs to the dangers of drug abuse.
Education is a key factor in reducing drug abuse. Third, we must focus
our efforts on drug and alcohol abuse in the workplace for not only does
this abuse contribute to low productivity but it also destroys the
satisfaction and sense of purpose all Americans can gain from the work
experience. Fourth, we need a change in attitude, from an attitude which
condones the casual use of drugs to one that recognizes the appropriate
use of drugs for medical purposes and condemns the inappropriate and
harmful abuse of drugs. I hope the Congress and the new Administration
will take action to meet each of these challenges.
EDUCATION
The American people have always recognized that education is one of the
soundest investments they can make. The dividends are reflected in every
dimension of our national life--from the strength of our economy and
national security to the vitality of our music, art, and literature.
Among the accomplishments that have given me the most satisfaction over
the last four years are the contributions that my Administration has
been able to make to the well-being of students and educators throughout
the country.
This Administration has collaborated successfully with the Congress on
landmark education legislation. Working with the Congressional
leadership, my Administration spotlighted the importance of education by
creating a new Department of Education. The Department has given
education a stronger voice at the Federal level, while at the same time
reserving the actual control and operation of education to states,
localities, and private institutions. The Department has successfully
combined nearly 150 Federal education programs into a cohesive,
streamlined organization that is more responsive to the needs of
educators and students. The Department has made strides to cut red tape
and paperwork and thereby to make the flow of Federal dollars to school
districts and institutions of higher education more efficient. It is
crucial that the Department be kept intact and strengthened.
Our collaboration with the Congress has resulted in numerous other
important legislative accomplishments for education. A little over two
years ago, I signed into law on the same day two major bills--one
benefiting elementary and secondary education and the other,
postsecondary education. The Education Amendments of 1978 embodied
nearly all of my Administration’s proposals for improvements in the
Elementary and Secondary Education Act, including important new programs
to improve students’ achievement in the basic skills and to aid school
districts with exceptionally high concentrations of children from
low-income families. The Middle Income Student Assistance Act,
legislation jointly sponsored by this Administration and the
Congressional leadership, expanded eligibility for need-based Basic
Educational Opportunity Grants to approximately one-third of the
students enrolled in post-secondary education and made many more
students eligible for the first time for other types of grants,
work-study, and loans.
Just three and a half months ago, my Administration and the Congress
successfully concluded over two years of work on a major reauthorization
bill that further expands benefits to postsecondary education. Reflected
in the Education Amendments of 1980 are major Administration
recommendations for improvements in the Higher Education Act--including
proposals for better loan access for students; a new parent loan
program; simplified application procedures for student financial aid; a
strengthened Federal commitment to developing colleges, particularly the
historically Black institutions; a new authorization for equipment and
facilities modernization funding for the nation’s major research
universities; and revitalized international education programs.
Supplementing these legislative accomplishments have been important
administrative actions aimed at reducing paperwork and simplifying
regulations associated with Federal education programs. We also launched
major initiatives to reduce the backlog of defaulted student loans and
otherwise to curb fraud, abuse, and waste in education programs.
To insure that the education enterprise is ready to meet the scientific
and technological changes of the future, we undertook a major study of
the status of science and engineering education throughout the nation. I
hope that the findings from this report will serve as a springboard for
needed reforms at all levels of education.
I am proud that this Administration has been able to provide the
financial means to realize many of our legislative and administrative
goals. Compared to the previous administration’s last budget, I have
requested the largest overall increase in Federal funding for education
in our nation’s history. My budget requests have been particularly
sensitive to the needs of special populations like minorities, women,
the educationally and economically disadvantaged, the handicapped, and
students with limited English-speaking ability. At the same time, I have
requested significant increases for many programs designed to enhance
the quality of American education, including programs relating to
important areas as diverse as international education, research
libraries, museums, and teacher centers.
Last year, I proposed to the Congress a major legislative initiative
that would direct $2 billion into education and job training programs
designed to alleviate youth unemployment through improved linkages
between the schools and the work place. This legislation generated
bipartisan support; but unfortunately, action on it was not completed in
the final, rushed days of the 96th Congress. I urge the new Congress--as
it undertakes broad efforts to strengthen the economy as well as more
specific tasks like reauthorizing the Vocational Education Act--to make
the needs of our nation’s unemployed youth a top priority for action.
Only by combining a basic skills education program together with work
training and employment incentives can we make substantial progress in
eliminating one of the most severe social problems in our nation--youth
unemployment, particularly among minorities. I am proud of the progress
already made through passage of the Youth Employment and Demonstration
Project Act of 1977 and the substantial increase in our investment in
youth employment programs. The new legislation would cap these efforts.
INCOME SECURITY SOCIAL SECURITY
One of the highest priorities of my Administration has been to continue
the tradition of effectiveness and efficiency widely associated with the
social security program, and to assure present and future beneficiaries
that they will receive their benefits as expected. The earned benefits
that are paid monthly to retired and disabled American workers and their
families provide a significant measure of economic protection to
millions of people who might otherwise face retirement or possible
disability with fear. I have enacted changes to improve the benefits of
many social security beneficiaries during my years as President.
The last four years have presented a special set of concerns over the
financial stability of the social security system. Shortly after taking
office I proposed and Congress enacted legislation to protect the
stability of the old age and survivors trust fund and prevent the
imminent exhaustion of the disability insurance trust fund, and to
correct a flaw in the benefit formula that was threatening the long run
health of the entire social security system. The actions taken by the
Congress at my request helped stabilize the system. That legislation was
later complemented by the Disability Insurance Amendments of 1980 which
further bolstered the disability insurance program, and reduced certain
inequities among beneficiaries.
My commitment to the essential retirement and disability protection
provided to 35 million people each month has been demonstrated by the
fact that without interruption those beneficiaries have continued to
receive their social security benefits, including annual cost of living
increases. Changing and unpredictable economic circumstances require
that we continue to monitor the financial stability of the social
security system. To correct anticipated short-term strains on the
system, I proposed last year that the three funds be allowed to borrow
from one another, and I urge the Congress again this year to adopt such
interfund borrowing. To further strengthen the social security system
and provide a greater degree of assurance to beneficiaries, given
projected future economic uncertainties, additional action should be
taken. Among the additional financing options available are borrowing
from the general fund, financing half of the hospital insurance fund
with general revenues, and increasing the payroll tax rate. The latter
option is particularly unpalatable given the significant increase in the
tax rate already mandated in law.
This Administration continues to oppose cuts in basic social security
benefits and taxing social security benefits. The Administration
continues to support annual indexing of social security benefits.
WELFARE REFORM
In 1979 I proposed a welfare reform package which offers solutions to
some of the most urgent problems in our welfare system. This proposal is
embodied in two bills, The Work and Training Opportunities Act and The
Social Welfare Reform Amendments Act. The House passed the second of
these two proposals. Within the framework of our present welfare system,
my reform proposals offer achievable means to increase self-sufficiency
through work rather than welfare, more adequate assistance to people
unable to work, the removal of inequities in coverage under current
programs, and fiscal relief needed by States and localities.
Our current welfare system is long overdue for serious reform; the
system is wasteful and not fully effective. The legislation I have
proposed will help eliminate inequities by establishing a national
minimum benefit, and by directly relating benefit levels to the poverty
threshold. It will reduce program complexity, which leads to
inefficiency and waste, by simplifying and coordinating administration
among different programs.
I urge the Congress to take action in this area along the lines I have
recommended.
CHILD WELFARE
My Administration has worked closely with the Congress on legislation
which is designed to improve greatly the child welfare services and
foster care programs and to create a Federal system of adoption
assistance. These improvements will be achieved with the recent
enactment of H.R. 3434, the Adoption Assistance and Child Welfare Act of
1980. The well-being of children in need of homes and their permanent
placement have been a primary concern of my Administration. This
legislation will ensure that children are not lost in the foster care
system, but instead will be returned to their families where possible or
placed in permanent adoptive homes.
LOW-INCOME ENERGY ASSISTANCE
In 1979 I proposed a program to provide an annual total of $1.6 billion
to low-income households which are hardest hit by rising energy bills.
With the cooperation of Congress, we were able to move quickly to
provide assistance to eligible households in time to meet their winter
heating bills.
In response to the extreme heat conditions affecting many parts of the
country during 1980, I directed the Community Services Administration to
make available over $27 million to assist low-income individuals,
especially the elderly, facing life threatening circumstances due to
extreme heat.
Congress amended and reauthorized the low-income energy assistance
program for fiscal year 1981, and provided $1.85 billion to meet
anticipated increasing need. The need for a program to help low-income
households with rising energy expenses will not abate in the near
future. The low-income energy assistance program should be reauthorized
to meet those needs.
HOUSING
For the past 14 months, high interest rates have had a severe impact on
the nation’s housing market. Yet the current pressures and uncertainties
should not obscure the achievements of the past four years.
Working with the Congress, the regulatory agencies, and the financial
community, my Administration has brought about an expanded and steadier
flow of funds into home mortgages. Deregulation of the interest rates
payable by depository institutions, the evolution of variable and
renegotiated rate mortgages, development of high yielding savings
certificates, and expansion of the secondary mortgage market have all
increased housing’s ability to attract capital and have assured that
mortgage money would not be cut off when interest rates rose. These
actions will diminish the cyclicality of the housing industry. Further,
we have secured legislation updating the Federal Government’s emergency
authority to provide support for the housing industry through the
Brooke-Cranston program, and creating a new Section 235 housing stimulus
program. These tools will enable the Federal Government to deal quickly
and effectively with serious distress in this critical industry.
We have also worked to expand homeownership opportunities for Americans.
By using innovative financing mechanisms, such as the graduated payment
mortgage, we have increased the access of middle income families to
housing credit. By revitalizing the Section 235 program, we have enabled
nearly 100,000 moderate income households to purchase new homes. By
reducing paperwork and regulation in Federal programs, and by working
with State and local governments to ease the regulatory burden, we have
helped to hold down housing costs and produce affordable housing.
As a result of these governmentwide efforts, 5 1/2 million more American
families bought homes in the past four years than in any equivalent
period in history. And more than 7 million homes have begun construction
during my Administration, 1 million more than in the previous four
years.
We have devoted particular effort to meeting the housing needs of low
and moderate income families. In the past four years, more than 1
million subsidized units have been made available for occupancy by lower
income Americans and more than 600,000 assisted units have gone into
construction. In addition, we have undertaken a series of measures to
revitalize and preserve the nation’s 2 million units of public and
assisted housing.
For Fiscal Year 1982, I am proposing to continue our commitment to lower
income housing. I am requesting funds to support 260,000 units of