Mr. Speaker, Mr. President, distinguished Members of the Congress, honored guests, and fellow citizens: 
This solemn occasion marks the 196th time that a President of the United States has reported on the State of the Union since George Washington first did so in 1790. That's a lot of reports, but there's no shortage of new things to say about the State of the Union. The very key to our success has been our ability, foremost among nations, to preserve our lasting values by making change work for us rather than against us. I would like to talk with you this evening about what we can do together—not as Republicans and Democrats, but as Americans-to make tomorrow's America happy and prosperous at home, strong and respected abroad, and at peace in the world. As we gather here tonight, the state of our Union is strong, but our economy is troubled. For too many of our fellow citizens-farmers, steel and auto workers, lumbermen, black teenagers, working mothers-this is a painful period. We must all do everything in our power to bring their ordeal to an end. It has fallen to us, in our time, to undo damage that was a long time in the making, and to begin the hard but necessary task of building a better future for ourselves and our children. We have a long way to go, but thanks to the courage, patience, and strength of our people, America is on the mend. But let me give you just one important reason why I believe this—it involves many members of this body. Just 10 days ago, after months of debate and deadlock, the bipartisan Commission on Social Security accomplished the seemingly impossible. Social security, as some of us had warned for so long, faced disaster. I, myself, have been talking about this problem for almost 30 years. As 1983 began, the system stood on the brink of bankruptcy, a double victim of our economic ills. First, a decade of rampant inflation drained its reserves as we tried to protect beneficiaries from the spiraling cost of living. Then the recession and the sudden end of inflation withered the expanding wage base and increasing revenues the system needs to support the 36 million Americans who depend on it. When the Speaker of the House, the Senate majority leader, and I performed the bipartisan—or formed the bipartisan Commission on Social Security, pundits and experts predicted that party divisions and conflicting interests would prevent the Commission from agreeing on a plan to save social security. Well, sometimes, even here in Washington, the cynics are wrong. Through compromise and cooperation, the members of the Commission overcame their differences and achieved a fair, workable plan. They proved that, when it comes to the national welfare, Americans can still pull together for the common good. Tonight, I'm especially pleased to join with the Speaker and the Senate majority leader in urging the Congress to enact this plan by Easter. There are elements in it, of course, that none of us prefers, but taken together it performs a package that all of us can support. It asks for some sacrifice by all—the self-employed, beneficiaries, workers, government employees, and the better-off among the retired—but it imposes an undue burden on none. And, in supporting it, we keep an important pledge to the American people: The integrity of the social security system will be preserved, and no one's payments will be reduced. The Commission's plan will do the job; indeed, it must do the job. We owe it to today's older Americans and today's younger workers. So, before we go any further, I ask you to join with me in saluting the members of the Commission who are here tonight and Senate Majority Leader Howard Baker and Speaker Tip O'Neill for a job well done. I hope and pray the bipartisan spirit that guided you in this endeavor will inspire all of us as we face the challenges of the year ahead. Nearly half a century ago, in this Chamber, another American President, Franklin Delano Roosevelt, in his second State of the Union message, urged America to look to the future, to meet the challenge of change and the need for leadership that looks forward, not backward. "Throughout the world," he said, "change is the order of the day. In every nation economic problems long in the making have brought crises to [of] many kinds for which the masters of old practice and theory were unprepared." He also reminded us that "the future lies with those wise political leaders who realize that the great public is interested more in Government than in politics." So, let us, in these next 2 years—men and women of both parties, every political shade—concentrate on the long-range, bipartisan responsibilities of government, not the short-range or short-term temptations of partisan politics. The problems we inherited were far worse than most inside and out of government had expected; the recession was deeper than most inside and out of government had predicted. Curing those problems has taken more time and a higher toll than any of us wanted. Unemployment is far too high. Projected Federal spending—if government refuses to tighten its own belt-will also be far too high and could weaken and shorten the economic recovery now underway. This recovery will bring with it a revival of economic confidence and spending for consumer items and capital goods—the stimulus we need to restart our stalled economic engines. The American people have already stepped up their rate of saving, assuring that the funds needed to modernize our factories and improve our technology will once again flow to business and industry. The inflationary expectations that led to a 21 1/2-percent interest prime rate and soaring mortgage rates 2 years ago are now reduced by almost half. Leaders have started to realize that double-digit inflation is no longer a way of life. I misspoke there. I should have said "lenders." So, interest rates have tumbled, paving the way for recovery in vital industries like housing and autos. The early evidence of that recovery has started coming in. Housing starts for the fourth quarter of 1982 were up 45 percent from a year ago, and housing permits, a sure indicator of future growth, were up a whopping 60 percent. We're witnessing an upsurge of productivity and impressive evidence that American industry will once again become competitive in markets at home and abroad, ensuring more jobs and better incomes for the Nation's work force. But our confidence must also be tempered by realism and patience. Quick fixes and artificial stimulants repeatedly applied over decades are what brought us the inflationary disorders that we've now paid such a heavy price to cure. The permanent recovery in employment, production, and investment we seek won't come in a sharp, short spurt. It'll build carefully and steadily in the months and years ahead. In the meantime, the challenge of government is to identify the things that we can do now to ease the massive economic transition for the American people. The Federal budget is both a symptom and a cause of our economic problems. Unless we reduce the dangerous growth rate in government spending, we could face the prospect of sluggish economic growth into the indefinite future. Failure to cope with this problem now could mean as much as a trillion dollars more in national debt in the next 4 years alone. That would average $4,300 in additional debt for every man, woman, child, and baby in our nation. To assure a sustained recovery, we must continue getting runaway spending under control to bring those deficits down. If we don't, the recovery will be too short, unemployment will remain too high, and we will leave an unconscionable burden of national debt for our children. That we must not do. Let's be clear about where the deficit problem comes from. Contrary to the drumbeat we've been hearing for the last few months, the deficits we face are not rooted in defense spending. Taken as a percentage of the gross national product, our defense spending happens to be only about four-fifths of what it was in 1970. Nor is the deficit, as some would have it, rooted in tax cuts. Even with our tax cuts, taxes as a fraction of gross national product remain about the same as they were in 1970. The fact is, our deficits come from the uncontrolled growth of the budget for domestic spending. During the 1970's, the share of our national income devoted to this domestic spending increased by more than 60 percent, from 10 cents out of every dollar produced by the American people to 16 cents. In spite of all our economies and efficiencies, and without adding any new programs, basic, necessary domestic spending provided for in this year's budget will grow to almost a trillion dollars over the next 5 years. The deficit problem is a clear and present danger to the basic health of our Republic. We need a plan to overcome this danger—a plan based on these principles. It must be bipartisan. Conquering the deficits and putting the Government's house in order will require the best effort of all of us. It must be fair. Just as all will share in the benefits that will come from recovery, all would share fairly in the burden of transition. It must be prudent. The strength of our national defense must be restored so that we can pursue prosperity and peace and freedom while maintaining our commitment to the truly needy. And finally, it must be realistic. We can't rely on hope alone. With these guiding principles in mind, let me outline a four-part plan to increase economic growth and reduce deficits. First, in my budget message, I will recommend a Federal spending freeze. I know this is strong medicine, but so far, we have only cut the rate of increase in Federal spending. The Government has continued to spend more money each year, though not as much more as it did in the past. Taken as a whole, the budget I'm proposing for the fiscal year will increase no more than the rate of inflation. In other words, the Federal Government will hold the line on real spending. Now, that's far less than many American families have had to do in these difficult times. I will request that the proposed 6-month freeze in cost-of-living adjustments recommended by the bipartisan Social Security Commission be applied to other government-related retirement programs. I will, also, propose a 1-year freeze on a broad range of domestic spending programs, and for Federal civilian and military pay and pension programs. And let me say right here, I'm sorry, with regard to the military, in asking that of them, because for so many years they have been so far behind and so low in reward for what the men and women in uniform are doing. But I'm sure they will understand that this must be across the board and fair. Second, I will ask the Congress to adopt specific measures to control the growth of the so-called uncontrollable spending programs. These are the automatic spending programs, such as food stamps, that cannot be simply frozen and that have grown by over 400 percent since 1970. They are the largest single cause of the built-in or structural deficit problem. Our standard here will be fairness, ensuring that the taxpayers' hard-earned dollars go only to the truly needy; that none of them are turned away, but that fraud and waste are stamped out. And I'm sorry to say, there's a lot of it out there. In the food stamp program alone, last year, we identified almost [$]1.1 billion in overpayments. The taxpayers aren't the only victims of this kind of abuse. The truly needy suffer as funds intended for them are taken not by the needy, but by the greedy. For everyone's sake, we must put an end to such waste and corruption. Third, I will adjust our program to restore America's defenses by proposing $55 billion in defense savings over the next 5 years. These are savings recommended to me by the Secretary of Defense, who has assured me they can be safely achieved and will not diminish our ability to negotiate arms reductions or endanger America's security. We will not gamble with our national survival. And fourth, because we must ensure reduction and eventual elimination of deficits over the next several years, I will propose a standby tax, limited to no more than 1 percent of the gross national product, to start in fiscal 1986. It would last no more than 3 years, and it would start only if the Congress has first approved our spending freeze and budget control program. And there are several other conditions also that must be met, all of them in order for this program to be triggered. Now, you could say that this is an insurance policy for the future, a remedy that will be at hand if needed but only resorted to if absolutely necessary. In the meantime, we'll continue to study ways to simplify the tax code and make it more fair for all Americans. This is a goal that every American who's ever struggled with a tax form can understand. At the same time, however, I will oppose any efforts to undo the basic tax reforms that we've already enacted, including the 10-percent tax break coming to taxpayers this July and the tax indexing which will protect all Americans from inflationary bracket creep in the years ahead. Now, I realize that this four-part plan is easier to describe than it will be to enact. But the looming deficits that hang over us and over America's future must be reduced. The path I've outlined is fair, balanced, and realistic. If enacted, it will ensure a steady decline in deficits, aiming toward a balanced budget by the end of the decade. It's the only path that will lead to a strong, sustained recovery. Let us follow that path together. No domestic challenge is more crucial than providing stable, permanent jobs for all Americans who want to work. The recovery program will provide jobs for most, but others will need special help and training for new skills. Shortly, I will submit to the Congress the Employment Act of 1983, designed to get at the special problems of the long-term unemployed, as well as young people trying to enter the job market. I'll propose extending unemployment benefits, including special incentives to employers who hire the long-term unemployed, providing programs for displaced workers, and helping federally funded and State-administered unemployment insurance programs provide workers with training and relocation assistance. Finally, our proposal will include new incentives for summer youth employment to help young people get a start in the job market. We must offer both short-term help and long-term hope for our unemployed. I hope we can work together on this. I hope we can work together as we did last year in enacting the landmark Job Training Partnership Act. Regulatory reform legislation, a responsible clean air act, and passage of enterprise zone legislation will also create new incentives for jobs and opportunity. One of out of every five jobs in our country depends on trade. So, I will propose a broader strategy in the field of international trade—one that increases the openness of our trading system and is fairer to America's farmers and workers in the world marketplace. We must have adequate export financing to sell American products overseas. I will ask for new negotiating authority to remove barriers and to get more of our products into foreign markets. We must strengthen the organization of our trade agencies and make changes in our domestic laws and international trade policy to promote free trade and the increased flow of American goods, services, and investments. Our trade position can also be improved by making our port system more efficient. Better, more active harbors translate into stable jobs in our coalfields, railroads, trucking industry, and ports. After 2 years of debate, it's time for us to get together and enact a port modernization bill. Education, training, and retraining are fundamental to our success as are research and development and productivity. Labor, management, and government at all levels can and must participate in improving these tools of growth. Tax policy, regulatory practices, and government programs all need constant reevaluation in terms of our competitiveness. Every American has a role and a stake in international trade. We Americans are still the technological leaders in most fields. We must keep that edge, and to do so we need to begin renewing the basics—starting with our educational system. While we grew complacent, others have acted. Japan, with a population only about half the size of ours, graduates from its universities more engineers than we do. If a child doesn't receive adequate math and science teaching by the age of 16, he or she has lost the chance to be a scientist or an engineer. We must join together-parents, teachers, grass roots groups, organized labor, and the business community-to revitalize American education by setting a standard of excellence. In 1983 we seek four major education goals: a quality education initiative to encourage a substantial upgrading of math and science instruction through block grants to the States; establishment of education savings accounts that will give middle and lower-income families an incentive to save for their children's college education and, at the same time, encourage a real increase in savings for economic growth; passage of tuition tax credits for parents who want to send their children to private or religiously affiliated schools; a constitutional amendment to permit voluntary school prayer. God should never have been expelled from America's classrooms in the first place. Our commitment to fairness means that we must assure legal and economic equity for women, and eliminate, once and for all, all traces of unjust discrimination against women from the United States Code. We will not tolerate wage discrimination based on sex, and we intend to strengthen enforcement of child support laws to ensure that single parents, most of whom are women, do not suffer unfair financial hardship. We will also take action to remedy inequities in pensions. These initiatives will be joined by others to continue our efforts to promote equity for women. Also in the area of fairness and equity, we will ask for extension of the Civil Rights Commission, which is due to expire this year. The Commission is an important part of the ongoing struggle for justice in America, and we strongly support its reauthorization. Effective enforcement of our nation's fair housing laws is also essential to ensuring equal opportunity. In the year ahead, we'll work to strengthen enforcement of fair housing laws for all Americans. The time has also come for major reform of our criminal justice statutes and acceleration of the drive against organized crime and drug trafficking. It's high time that we make our cities safe again. This administration hereby declares an all-out war on big-time organized crime and the drug racketeers who are poisoning our young people. We will also implement recommendations of our Task Force on Victims of Crime, which will report to me this week. American agriculture, the envy of the world, has become the victim of its own successes. With one farmer now producing enough food to feed himself and 77 other people, America is confronted with record surplus crops and commodity prices below the cost of production. We must strive, through innovations like the payment-in-kind crop swap approach and an aggressive export policy, to restore health and vitality to rural America. Meanwhile, I have instructed the Department of Agriculture to work individually with farmers with debt problems to help them through these tough times. Over the past year, our Task Force on Private Sector Initiatives has successfully forged a working partnership involving leaders of business, labor, education, and government to address the training needs of American workers. Thanks to the Task Force, private sector initiatives are now underway in all 50 States of the Union, and thousands of working people have been helped in making the shift from dead-end jobs and low-demand skills to the growth areas of high technology and the service economy. Additionally, a major effort will be focused on encouraging the expansion of private community child care. The new advisory council on private sector initiatives will carry on and extend this vital work of encouraging private initiative in 1983. In the coming year, we will also act to improve the quality of life for Americans by curbing the skyrocketing cost of health care that is becoming an unbearable financial burden for so many. And we will submit legislation to provide catastrophic illness insurance coverage for older Americans. I will also shortly submit a comprehensive federalism proposal that will continue our efforts to restore to States and local governments their roles as dynamic laboratories of change in a creative society. During the next several weeks, I will send to the Congress a series of detailed proposals on these and other topics and look forward to working with you on the development of these initiatives. So far, now, I've concentrated mainly on the problems posed by the future. But in almost every home and workplace in America, we're already witnessing reason for great hope—the first flowering of the manmade miracles of high technology, a field pioneered and still led by our country. To many of us now, computers, silicon chips, data processing, cybernetics, and all the other innovations of the dawning high technology age are as mystifying as the workings of the combustion engine must have been when that first Model T rattled down Main Street, U.S.A. But as surely as America's pioneer spirit made us the industrial giant of the 20th century, the same pioneer spirit today is opening up on another vast front of opportunity, the frontier of high technology. In conquering the frontier we cannot write off our traditional industries, but we must develop the skills and industries that will make us a pioneer of tomorrow. This administration is committed to keeping America the technological leader of the world now and into the 21st century. But let us turn briefly to the international arena. America's leadership in the world came to us because of our own strength and because of the values which guide us as a society: free elections, a free press, freedom of religious choice, free trade unions, and above all, freedom for the individual and rejection of the arbitrary power of the state. These values are the bedrock of our strength. They unite us in a stewardship of peace and freedom with our allies and friends in NATO, in Asia, in Latin America, and elsewhere. They are also the values which in the recent past some among us had begun to doubt and view with a cynical eye. Fortunately, we and our allies have rediscovered the strength of our common democratic values, and we're applying them as a cornerstone of a comprehensive strategy for peace with freedom. In London last year, I announced the commitment of the United States to developing the infrastructure of democracy throughout the world. We intend to pursue this democratic initiative vigorously. The future belongs not to governments and ideologies which oppress their peoples, but to democratic systems of self-government which encourage individual initiative and guarantee personal freedom. But our strategy for peace with freedom must also be based on strength—economic strength and military strength. A strong American economy is essential to the well-being and security of our friends and allies. The restoration of a strong, healthy American economy has been and remains one of the central pillars of our foreign policy. The progress I've been able to report to you tonight will, I know, be as warmly welcomed by the rest of the world as it is by the American people. We must also recognize that our own economic well-being is inextricably linked to the world economy. We export over 20 percent of our industrial production, and 40 percent of our farmland produces for export. We will continue to work closely with the industrialized democracies of Europe and Japan and with the International Monetary Fund to ensure it has adequate resources to help bring the world economy back to strong, noninflationary growth. As the leader of the West and as a country that has become great and rich because of economic freedom, America must be an unrelenting advocate of free trade. As some nations are tempted to turn to protectionism, our strategy cannot be to follow them, but to lead the way toward freer trade. To this end, in May of this year America will host an economic summit meeting in Williamsburg, Virginia. As we begin our third year, we have put in place a defense program that redeems the neglect of the past decade. We have developed a realistic military strategy to deter threats to peace and to protect freedom if deterrence fails. Our Armed Forces are finally properly paid; after years of neglect are well trained and becoming better equipped and supplied. And the American uniform is once again worn with pride. Most of the major systems needed for modernizing our defenses are already underway, and we will be addressing one key system, the MX missile, in consultation with the Congress in a few months. America's foreign policy is once again based on bipartisanship, on realism, strength, full partnership, in consultation with our allies, and constructive negotiation with potential adversaries. From the Middle East to southern Africa to Geneva, American diplomats are taking the initiative to make peace and lower arms levels. We should be proud of our role as peacemakers. In the Middle East last year, the United States played the major role in ending the tragic fighting in Lebanon and negotiated the withdrawal of the PLO from Beirut. Last September, I outlined principles to carry on the peace process begun so promisingly at Camp David. All the people of the Middle East should know that in the year ahead we will not flag in our efforts to build on that foundation to bring them the blessings of peace. In Central America and the Caribbean Basin, we are likewise engaged in a partnership for peace, prosperity, and democracy. Final passage of the remaining portions of our Caribbean Basin Initiative, which passed the House last year, is one of this administration's top legislative priorities for 1983. The security and economic assistance policies of this administration in Latin America and elsewhere are based on realism and represent a critical investment in the future of the human race. This undertaking is a joint responsibility of the executive and legislative branches, and I'm counting on the cooperation and statesmanship of the Congress to help us meet this essential foreign policy goal. At the heart of our strategy for peace is our relationship with the Soviet Union. The past year saw a change in Soviet leadership. We're prepared for a positive change in Soviet-American relations. But the Soviet Union must show by deeds as well as words a sincere commitment to respect the rights and sovereignty of the family of nations. Responsible members of the world community do not threaten or invade their neighbors. And they restrain their allies from aggression. For our part, we're vigorously pursuing arms reduction negotiations with the Soviet Union. Supported by our allies, we've put forward draft agreements proposing significant weapon reductions to equal and verifiable lower levels. We insist on an equal balance of forces. And given the overwhelming evidence of Soviet violations of international treaties concerning chemical and biological weapons, we also insist that any agreement we sign can and will be verifiable. In the case of intermediate-range nuclear forces, we have proposed the complete elimination of the entire class of land-based missiles. We're also prepared to carefully explore serious Soviet proposals. At the same time, let me emphasize that allied steadfastness remains a key to achieving arms reductions. With firmness and dedication, we'll continue to negotiate. Deep down, the Soviets must know it's in their interest as well as ours to prevent a wasteful arms race. And once they recognize our unshakable resolve to maintain adequate deterrence, they will have every reason to join us in the search for greater security and major arms reductions. When that moment comes—and I'm confident that it will—we will have taken an important step toward a more peaceful future for all the world's people. A very wise man, Bernard Baruch, once said that America has never forgotten the nobler things that brought her into being and that light her path. Our country is a special place, because we Americans have always been sustained, through good times and bad, by a noble vision—a vision not only of what the world around us is today but what we as a free people can make it be tomorrow. We're realists; we solve our problems instead of ignoring them, no matter how loud the chorus of despair around us. But we're also idealists, for it was an ideal that brought our ancestors to these shores from every corner of the world. Right now we need both realism and idealism. Millions of our neighbors are without work. It is up to us to see they aren't without hope. This is a task for all of us. And may I say, Americans have rallied to this cause, proving once again that we are the most generous people on Earth. We who are in government must take the lead in restoring the economy. [Applause] And here all that time, I thought you were reading the paper. [Laughter] The single thing—the single thing that can start the wheels of industry turning again is further reduction of interest rates. Just another 1 or 2 points can mean tens of thousands of jobs. Right now, with inflation as low as it is, 3.9 percent, there is room for interest rates to come down. Only fear prevents their reduction. A lender, as we know, must charge an interest rate that recovers the depreciated value of the dollars loaned. And that depreciation is, of course, the amount of inflation. Today, interest rates are based on fear—fear that government will resort to measures, as it has in the past, that will send inflation zooming again. We who serve here in this Capital must erase that fear by making it absolutely clear that we will not stop fighting inflation; that, together, we will do only those things that will lead to lasting economic growth. Yes, the problems confronting us are large and forbidding. And, certainly, no one can or should minimize the plight of millions of our friends and neighbors who are living in the bleak emptiness of unemployment. But we must and can give them good reason to be hopeful. Back over the years, citizens like ourselves have gathered within these walls when our nation was threatened; sometimes when its very existence was at stake. Always with courage and common sense, they met the crises of their time and lived to see a stronger, better, and more prosperous country. The present situation is no worse and, in fact, is not as bad as some of those they faced. Time and again, they proved that there is nothing we Americans cannot achieve as free men and women. Yes, we still have problems—plenty of them. But it's just plain wrong—unjust to our country and unjust to our people—to let those problems stand in the way of the most important truth of all: America is on the mend. We owe it to the unfortunate to be aware of their plight and to help them in every way we can. No one can quarrel with that. We must and do have compassion for all the victims of this economic crisis. But the big story about America today is the way that millions of confident, caring people-those extraordinary "ordinary" Americans who never make the headlines and will never be interviewed—are laying the foundation, not just for recovery from our present problems but for a better tomorrow for all our people. From coast to coast, on the job and in classrooms and laboratories, at new construction sites and in churches and community groups, neighbors are helping neighbors. And they've already begun the building, the research, the work, and the giving that will make our country great again. I believe this, because I believe in them-in the strength of their hearts and minds, in the commitment that each one of them brings to their daily lives, be they high or humble. The challenge for us in government is to be worthy of them—to make government a help, not a hindrance to our people in the challenging but promising days ahead. If we do that, if we care what our children and our children's children will say of us, if we want them one day to be thankful for what we did here in these temples of freedom, we will work together to make America better for our having been here-not just in this year or this decade but in the next century and beyond. 
Thank you, and God bless you.
Mr. Speaker, Mr. President, distinguished Members of the Congress, honored guests, and fellow citizens: This solemn occasion marks the 196th time that a President of the United States has reported on the State of the Union since George Washington first did so in 1790. That is a lot of reports, but there is no shortage of new things to say about the State of the Union. The very key to our success has been our ability, foremost among nations, to preserve our lasting values by making change work for us rather than against us. I would like to talk with you this evening about what we can do together—not as Republicans and Democrats, but as Americans-to make tomorrow's America happy and prosperous at home, strong and respected abroad, and at peace in the world. As we gather here tonight, the state of our Union is strong, but our economy is troubled. For too many of our fellow citizens-farmers, steel and auto workers, lumbermen, black teenagers, working mothers-this is a painful period. We must all do everything in our power to bring their ordeal to an end. It has fallen to us, in our time, to undo damage that was a long time in the making, and to begin the hard but necessary task of building a better future for ourselves and our children. We have a long way to go, but thanks to the courage, patience, and strength of our people, America is on the mend. But let me give you just one important reason why I believe this—it involves many members of this body. Just 10 days ago, after months of debate and deadlock, the bipartisan Commission on Social Security accomplished the seemingly impossible. Social security, as some of us had warned for so long, faced disaster. I, myself, have been talking about this problem for almost 30 years. As 1983 began, the system stood on the brink of bankruptcy, a double victim of our economic ills. First, a decade of rampant inflation drained its reserves as we tried to protect beneficiaries from the spiraling cost of living. Then the recession and the sudden end of inflation withered the expanding wage base and increasing revenues the system needs to support the 36 million Americans who depend on it. When the Speaker of the House, the Senate majority leader, and I performed the bipartisan—or formed the bipartisan Commission on Social Security, pundits and experts predicted that party divisions and conflicting interests would prevent the Commission from agreeing on a plan to save social security. Well, sometimes, even here in Washington, the cynics are wrong. Through compromise and cooperation, the members of the Commission overcame their differences and achieved a fair, workable plan. They proved that, when it comes to the national welfare, Americans can still pull together for the common good. Tonight, I am especially pleased to join with the Speaker and the Senate majority leader in urging the Congress to enact this plan by Easter. There are elements in it, of course, that none of us prefers, but taken together it performs a package that all of us can support. It asks for some sacrifice by all—the self-employed, beneficiaries, workers, government employees, and the better-off among the retired—but it imposes an undue burden on none. And, in supporting it, we keep an important pledge to the American people: The integrity of the social security system will be preserved, and no one's payments will be reduced. The Commission's plan will do the job; indeed, it must do the job. We owe it to today's older Americans and today's younger workers. So, before we go any further, I ask you to join with me in saluting the members of the Commission who are here tonight and Senate Majority Leader Howard Baker and Speaker Tip O'Neill for a job well done. I hope and pray the bipartisan spirit that guided you in this endeavor will inspire all of us as we face the challenges of the year ahead. Nearly half a century ago, in this Chamber, another American President, Franklin Delano Roosevelt, in his second State of the Union message, urged America to look to the future, to meet the challenge of change and the need for leadership that looks forward, not backward. "Throughout the world," he said, "change is the order of the day. In every nation economic problems long in the making have brought crises to [of] many kinds for which the masters of old practice and theory were unprepared." He also reminded us that "the future lies with those wise political leaders who realize that the great public is interested more in Government than in politics." So, let us, in these next 2 years—men and women of both parties, every political shade—concentrate on the long-range, bipartisan responsibilities of government, not the short-range or short-term temptations of partisan politics. The problems we inherited were far worse than most inside and out of government had expected; the recession was deeper than most inside and out of government had predicted. Curing those problems has taken more time and a higher toll than any of us wanted. Unemployment is far too high. Projected Federal spending—if government refuses to tighten its own belt-will also be far too high and could weaken and shorten the economic recovery now underway. This recovery will bring with it a revival of economic confidence and spending for consumer items and capital goods—the stimulus we need to restart our stalled economic engines. The American people have already stepped up their rate of saving, assuring that the funds needed to modernize our factories and improve our technology will once again flow to business and industry. The inflationary expectations that led to a 21 1/2-percent interest prime rate and soaring mortgage rates 2 years ago are now reduced by almost half. Leaders have started to realize that double-digit inflation is no longer a way of life. I misspoke there. I should have said "lenders." So, interest rates have tumbled, paving the way for recovery in vital industries like housing and autos. The early evidence of that recovery has started coming in. Housing starts for the fourth quarter of 1982 were up 45 percent from a year ago, and housing permits, a sure indicator of future growth, were up a whopping 60 percent. We are witnessing an upsurge of productivity and impressive evidence that American industry will once again become competitive in markets at home and abroad, ensuring more jobs and better incomes for the Nation's work force. But our confidence must also be tempered by realism and patience. Quick fixes and artificial stimulants repeatedly applied over decades are what brought us the inflationary disorders that we have now paid such a heavy price to cure. The permanent recovery in employment, production, and investment we seek will not come in a sharp, short spurt. It will build carefully and steadily in the months and years ahead. In the meantime, the challenge of government is to identify the things that we can do now to ease the massive economic transition for the American people. The Federal budget is both a symptom and a because of our economic problems. Unless we reduce the dangerous growth rate in government spending, we could face the prospect of sluggish economic growth into the indefinite future. Failure to cope with this problem now could mean as much as a trillion dollars more in national debt in the next 4 years alone. That would average $4,300 in additional debt for every man, woman, child, and baby in our nation. To assure a sustained recovery, we must continue getting runaway spending under control to bring those deficits down. If we do not, the recovery will be too short, unemployment will remain too high, and we will leave an unconscionable burden of national debt for our children. That we must not do. Let us be clear about where the deficit problem comes from. Contrary to the drumbeat we have been hearing for the last few months, the deficits we face are not rooted in defense spending. Taken as a percentage of the gross national product, our defense spending happens to be only about four-fifths of what it was in 1970. Nor is the deficit, as some would have it, rooted in tax cuts. Even with our tax cuts, taxes as a fraction of gross national product remain about the same as they were in 1970. The fact is, our deficits come from the uncontrolled growth of the budget for domestic spending. During the 1970's, the share of our national income devoted to this domestic spending increased by more than 60 percent, from 10 cents out of every dollar produced by the American people to 16 cents. In spite of all our economies and efficiencies, and without adding any new programs, basic, necessary domestic spending provided for in this year's budget will grow to almost a trillion dollars over the next 5 years. The deficit problem is a clear and present danger to the basic health of our Republic. We need a plan to overcome this danger—a plan based on these principles. It must be bipartisan. Conquering the deficits and putting the Government's house in order will require the best effort of all of us. It must be fair. Just as all will share in the benefits that will come from recovery, all would share fairly in the burden of transition. It must be prudent. The strength of our national defense must be restored so that we can pursue prosperity and peace and freedom while maintaining our commitment to the truly needy. And finally, it must be realistic. We cannot rely on hope alone. With these guiding principles in mind, let me outline a four-part plan to increase economic growth and reduce deficits. First, in my budget message, I will recommend a Federal spending freeze. I know this is strong medicine, but so far, we have only cut the rate of increase in Federal spending. The Government has continued to spend more money each year, though not as much more as it did in the past. Taken as a whole, the budget I am proposing for the fiscal year will increase no more than the rate of inflation. In other words, the Federal Government will hold the line on real spending. Now, that is far less than many American families have had to do in these difficult times. I will request that the proposed 6-month freeze in cost-of-living adjustments recommended by the bipartisan Social Security Commission be applied to other government-related retirement programs. I will, also, propose a 1-year freeze on a broad range of domestic spending programs, and for Federal civilian and military pay and pension programs. And let me say right here, I am sorry, with regard to the military, in asking that of them, because for so many years they have been so far behind and so low in reward for what the men and women in uniform are doing. But I am sure they will understand that this must be across the board and fair. Second, I will ask the Congress to adopt specific measures to control the growth of the so-called uncontrollable spending programs. These are the automatic spending programs, such as food stamps, that cannot be simply frozen and that have grown by over 400 percent since 1970. They are the largest single because of the built-in or structural deficit problem. Our standard here will be fairness, ensuring that the taxpayers' hard-earned dollars go only to the truly needy; that none of them are turned away, but that fraud and waste are stamped out. And I am sorry to say, there is a lot of it out there. In the food stamp program alone, last year, we identified almost [$]1.1 billion in overpayments. The taxpayers are not the only victims of this kind of abuse. The truly needy suffer as funds intended for them are taken not by the needy, but by the greedy. For everyone is sake, we must put an end to such waste and corruption. Third, I will adjust our program to restore America's defenses by proposing $55 billion in defense savings over the next 5 years. These are savings recommended to me by the Secretary of Defense, who has assured me they can be safely achieved and will not diminish our ability to negotiate arms reductions or endanger America's security. We will not gamble with our national survival. And fourth, because we must ensure reduction and eventual elimination of deficits over the next several years, I will propose a standby tax, limited to no more than 1 percent of the gross national product, to start in fiscal 1986. It would last no more than 3 years, and it would start only if the Congress has first approved our spending freeze and budget control program. And there are several other conditions also that must be met, all of them in order for this program to be triggered. Now, you could say that this is an insurance policy for the future, a remedy that will be at hand if needed but only resorted to if absolutely necessary. In the meantime, we will continue to study ways to simplify the tax code and make it more fair for all Americans. This is a goal that every American who is ever struggled with a tax form can understand. At the same time, however, I will oppose any efforts to undo the basic tax reforms that we have already enacted, including the 10-percent tax break coming to taxpayers this July and the tax indexing which will protect all Americans from inflationary bracket creep in the years ahead. Now, I realize that this four-part plan is easier to describe than it will be to enact. But the looming deficits that hang over us and over America's future must be reduced. The path I have outlined is fair, balanced, and realistic. If enacted, it will ensure a steady decline in deficits, aiming toward a balanced budget by the end of the decade. It is the only path that will lead to a strong, sustained recovery. Let us follow that path together. No domestic challenge is more crucial than providing stable, permanent jobs for all Americans who want to work. The recovery program will provide jobs for most, but others will need special help and training for new skills. Shortly, I will submit to the Congress the Employment Act of 1983, designed to get at the special problems of the long-term unemployed, as well as young people trying to enter the job market. I will propose extending unemployment benefits, including special incentives to employers who hire the long-term unemployed, providing programs for displaced workers, and helping federally funded and State-administered unemployment insurance programs provide workers with training and relocation assistance. Finally, our proposal will include new incentives for summer youth employment to help young people get a start in the job market. We must offer both short-term help and long-term hope for our unemployed. I hope we can work together on this. I hope we can work together as we did last year in enacting the landmark Job Training Partnership Act. Regulatory reform legislation, a responsible clean air act, and passage of enterprise zone legislation will also create new incentives for jobs and opportunity. One of out of every five jobs in our country depends on trade. So, I will propose a broader strategy in the field of international trade—one that increases the openness of our trading system and is fairer to America's farmers and workers in the world marketplace. We must have adequate export financing to sell American products overseas. I will ask for new negotiating authority to remove barriers and to get more of our products into foreign markets. We must strengthen the organization of our trade agencies and make changes in our domestic laws and international trade policy to promote free trade and the increased flow of American goods, services, and investments. Our trade position can also be improved by making our port system more efficient. Better, more active harbors translate into stable jobs in our coalfields, railroads, trucking industry, and ports. After 2 years of debate, it is time for us to get together and enact a port modernization bill. Education, training, and retraining are fundamental to our success as are research and development and productivity. Labor, management, and government at all levels can and must participate in improving these tools of growth. Tax policy, regulatory practices, and government programs all need constant reevaluation in terms of our competitiveness. Every American has a role and a stake in international trade. We Americans are still the technological leaders in most fields. We must keep that edge, and to do so we need to begin renewing the basics—starting with our educational system. While we grew complacent, others have acted. Japan, with a population only about half the size of ours, graduates from its universities more engineers than we do. If a child does not receive adequate math and science teaching by the age of 16, he or she has lost the chance to be a scientist or an engineer. We must join together-parents, teachers, grass roots groups, organized labor, and the business community-to revitalize American education by setting a standard of excellence. In 1983 we seek four major education goals: a quality education initiative to encourage a substantial upgrading of math and science instruction through block grants to the States; establishment of education savings accounts that will give middle and lower-income families an incentive to save for their children's college education and, at the same time, encourage a real increase in savings for economic growth; passage of tuition tax credits for parents who want to send their children to private or religiously affiliated schools; a constitutional amendment to permit voluntary school prayer. God should never have been expelled from America's classrooms in the first place. Our commitment to fairness means that we must assure legal and economic equity for women, and eliminate, once and for all, all traces of unjust discrimination against women from the United States Code. We will not tolerate wage discrimination based on sex, and we intend to strengthen enforcement of child support laws to ensure that single parents, most of whom are women, do not suffer unfair financial hardship. We will also take action to remedy inequities in pensions. These initiatives will be joined by others to continue our efforts to promote equity for women. Also in the area of fairness and equity, we will ask for extension of the Civil Rights Commission, which is due to expire this year. The Commission is an important part of the ongoing struggle for justice in America, and we strongly support its reauthorization. Effective enforcement of our nation's fair housing laws is also essential to ensuring equal opportunity. In the year ahead, we will work to strengthen enforcement of fair housing laws for all Americans. The time has also come for major reform of our criminal justice statutes and acceleration of the drive against organized crime and drug trafficking. It is high time that we make our cities safe again. This administration hereby declares an all-out war on big-time organized crime and the drug racketeers who are poisoning our young people. We will also implement recommendations of our Task Force on Victims of Crime, which will report to me this week. American agriculture, the envy of the world, has become the victim of its own successes. With one farmer now producing enough food to feed himself and 77 other people, America is confronted with record surplus crops and commodity prices below the cost of production. We must strive, through innovations like the payment-in-kind crop swap approach and an aggressive export policy, to restore health and vitality to rural America. Meanwhile, I have instructed the Department of Agriculture to work individually with farmers with debt problems to help them through these tough times. Over the past year, our Task Force on Private Sector Initiatives has successfully forged a working partnership involving leaders of business, labor, education, and government to address the training needs of American workers. Thanks to the Task Force, private sector initiatives are now underway in all 50 States of the Union, and thousands of working people have been helped in making the shift from dead-end jobs and low-demand skills to the growth areas of high technology and the service economy. Additionally, a major effort will be focused on encouraging the expansion of private community child care. The new advisory council on private sector initiatives will carry on and extend this vital work of encouraging private initiative in 1983. In the coming year, we will also act to improve the quality of life for Americans by curbing the skyrocketing cost of health care that is becoming an unbearable financial burden for so many. And we will submit legislation to provide catastrophic illness insurance coverage for older Americans. I will also shortly submit a comprehensive federalism proposal that will continue our efforts to restore to States and local governments their roles as dynamic laboratories of change in a creative society. During the next several weeks, I will send to the Congress a series of detailed proposals on these and other topics and look forward to working with you on the development of these initiatives. So far, now, I have concentrated mainly on the problems posed by the future. But in almost every home and workplace in America, we are already witnessing reason for great hope—the first flowering of the manmade miracles of high technology, a field pioneered and still led by our country. To many of us now, computers, silicon chips, data processing, cybernetics, and all the other innovations of the dawning high technology age are as mystifying as the workings of the combustion engine must have been when that first Model T rattled down Main Street, YOU.S.A. But as surely as America's pioneer spirit made us the industrial giant of the 20th century, the same pioneer spirit today is opening up on another vast front of opportunity, the frontier of high technology. In conquering the frontier we cannot write off our traditional industries, but we must develop the skills and industries that will make us a pioneer of tomorrow. This administration is committed to keeping America the technological leader of the world now and into the 21st century. But let us turn briefly to the international arena. America's leadership in the world came to us because of our own strength and because of the values which guide us as a society: free elections, a free press, freedom of religious choice, free trade unions, and above all, freedom for the individual and rejection of the arbitrary power of the state. These values are the bedrock of our strength. They unite us in a stewardship of peace and freedom with our allies and friends in NATO, in Asia, in Latin America, and elsewhere. They are also the values which in the recent past some among us had begun to doubt and view with a cynical eye. Fortunately, we and our allies have rediscovered the strength of our common democratic values, and we are applying them as a cornerstone of a comprehensive strategy for peace with freedom. In London last year, I announced the commitment of the United States to developing the infrastructure of democracy throughout the world. We intend to pursue this democratic initiative vigorously. The future belongs not to governments and ideologies which oppress their peoples, but to democratic systems of self-government which encourage individual initiative and guarantee personal freedom. But our strategy for peace with freedom must also be based on strength—economic strength and military strength. A strong American economy is essential to the well-being and security of our friends and allies. The restoration of a strong, healthy American economy has been and remains one of the central pillars of our foreign policy. The progress I have been able to report to you tonight will, I know, be as warmly welcomed by the rest of the world as it is by the American people. We must also recognize that our own economic well-being is inextricably linked to the world economy. We export over 20 percent of our industrial production, and 40 percent of our farmland produces for export. We will continue to work closely with the industrialized democracies of Europe and Japan and with the International Monetary Fund to ensure it has adequate resources to help bring the world economy back to strong, noninflationary growth. As the leader of the West and as a country that has become great and rich because of economic freedom, America must be an unrelenting advocate of free trade. As some nations are tempted to turn to protectionism, our strategy cannot be to follow them, but to lead the way toward freer trade. To this end, in May of this year America will host an economic summit meeting in Williamsburg, Virginia. As we begin our third year, we have put in place a defense program that redeems the neglect of the past decade. We have developed a realistic military strategy to deter threats to peace and to protect freedom if deterrence fails. Our Armed Forces are finally properly paid; after years of neglect are well trained and becoming better equipped and supplied. And the American uniform is once again worn with pride. Most of the major systems needed for modernizing our defenses are already underway, and we will be addressing one key system, the MX missile, in consultation with the Congress in a few months. America's foreign policy is once again based on bipartisanship, on realism, strength, full partnership, in consultation with our allies, and constructive negotiation with potential adversaries. From the Middle East to southern Africa to Geneva, American diplomats are taking the initiative to make peace and lower arms levels. We should be proud of our role as peacemakers. In the Middle East last year, the United States played the major role in ending the tragic fighting in Lebanon and negotiated the withdrawal of the PLO from Beirut. Last September, I outlined principles to carry on the peace process begun so promisingly at Camp David. All the people of the Middle East should know that in the year ahead we will not flag in our efforts to build on that foundation to bring them the blessings of peace. In Central America and the Caribbean Basin, we are likewise engaged in a partnership for peace, prosperity, and democracy. Final passage of the remaining portions of our Caribbean Basin Initiative, which passed the House last year, is one of this administration's top legislative priorities for 1983. The security and economic assistance policies of this administration in Latin America and elsewhere are based on realism and represent a critical investment in the future of the human race. This undertaking is a joint responsibility of the executive and legislative branches, and I am counting on the cooperation and statesmanship of the Congress to help us meet this essential foreign policy goal. At the heart of our strategy for peace is our relationship with the Soviet Union. The past year saw a change in Soviet leadership. We are prepared for a positive change in Soviet-American relations. But the Soviet Union must show by deeds as well as words a sincere commitment to respect the rights and sovereignty of the family of nations. Responsible members of the world community do not threaten or invade their neighbors. And they restrain their allies from aggression. For our part, we are vigorously pursuing arms reduction negotiations with the Soviet Union. Supported by our allies, we have put forward draft agreements proposing significant weapon reductions to equal and verifiable lower levels. We insist on an equal balance of forces. And given the overwhelming evidence of Soviet violations of international treaties concerning chemical and biological weapons, we also insist that any agreement we sign can and will be verifiable. In the case of intermediate-range nuclear forces, we have proposed the complete elimination of the entire class of land-based missiles. We are also prepared to carefully explore serious Soviet proposals. At the same time, let me emphasize that allied steadfastness remains a key to achieving arms reductions. With firmness and dedication, we will continue to negotiate. Deep down, the Soviets must know it is in their interest as well as ours to prevent a wasteful arms race. And once they recognize our unshakable resolve to maintain adequate deterrence, they will have every reason to join us in the search for greater security and major arms reductions. When that moment comes—and I am confident that it will—we will have taken an important step toward a more peaceful future for all the world's people. A very wise man, Bernard Baruch, once said that America has never forgotten the nobler things that brought her into being and that light her path. Our country is a special place, because we Americans have always been sustained, through good times and bad, by a noble vision—a vision not only of what the world around us is today but what we as a free people can make it be tomorrow. We are realists; we solve our problems instead of ignoring them, no matter how loud the chorus of despair around us. But we are also idealists, for it was an ideal that brought our ancestors to these shores from every corner of the world. Right now we need both realism and idealism. Millions of our neighbors are without work. It is up to us to see they are not without hope. This is a task for all of us. And may I say, Americans have rallied to this because, proving once again that we are the most generous people on Earth. We who are in government must take the lead in restoring the economy. [Applause] And here all that time, I thought you were reading the paper. [Laughter] The single thing—the single thing that can start the wheels of industry turning again is further reduction of interest rates. Just another 1 or 2 points can mean tens of thousands of jobs. Right now, with inflation as low as it is, 3.9 percent, there is room for interest rates to come down. Only fear prevents their reduction. A lender, as we know, must charge an interest rate that recovers the depreciated value of the dollars loaned. And that depreciation is, of course, the amount of inflation. Today, interest rates are based on fear—fear that government will resort to measures, as it has in the past, that will send inflation zooming again. We who serve here in this Capital must erase that fear by making it absolutely clear that we will not stop fighting inflation; that, together, we will do only those things that will lead to lasting economic growth. Yes, the problems confronting us are large and forbidding. And, certainly, no one can or should minimize the plight of millions of our friends and neighbors who are living in the bleak emptiness of unemployment. But we must and can give them good reason to be hopeful. Back over the years, citizens like ourselves have gathered within these walls when our nation was threatened; sometimes when its very existence was at stake. Always with courage and common sense, they met the crises of their time and lived to see a stronger, better, and more prosperous country. The present situation is no worse and, in fact, is not as bad as some of those they faced. Time and again, they proved that there is nothing we Americans cannot achieve as free men and women. Yes, we still have problems—plenty of them. But it is just plain wrong—unjust to our country and unjust to our people—to let those problems stand in the way of the most important truth of all: America is on the mend. We owe it to the unfortunate to be aware of their plight and to help them in every way we can. No one can quarrel with that. We must and do have compassion for all the victims of this economic crisis. But the big story about America today is the way that millions of confident, caring people-those extraordinary "ordinary" Americans who never make the headlines and will never be interviewed—are laying the foundation, not just for recovery from our present problems but for a better tomorrow for all our people. From coast to coast, on the job and in classrooms and laboratories, at new construction sites and in churches and community groups, neighbors are helping neighbors. And they have already begun the building, the research, the work, and the giving that will make our country great again. I believe this, because I believe in them-in the strength of their hearts and minds, in the commitment that each one of them brings to their daily lives, be they high or humble. The challenge for us in government is to be worthy of them—to make government a help, not a hindrance to our people in the challenging but promising days ahead. If we do that, if we care what our children and our children's children will say of us, if we want them one day to be thankful for what we did here in these temples of freedom, we will work together to make America better for our having been here-not just in this year or this decade but in the next century and beyond. Thank you, and God bless you.
speaker president distinguished members of the congress honored guests and fellow citizens this solemn occasion marks the 196th time that a president of the united states has reported on the state of the union since george washington first did so in 1790 that is a lot of reports but there is no shortage of new things to say about the state of the union the very key to our success has been our ability foremost among nations to preserve our lasting values by making change work for us rather than against us i would like to talk with you this evening about what we can do as republicans and democrats but as make tomorrow america happy and prosperous at home strong and respected abroad and at peace in the world as we gather here tonight the state of our union is strong but our economy is troubled for too many of our fellow steel and auto workers lumbermen black teenagers working is a painful period we must all do everything in our power to bring their ordeal to an end it has fallen to us in our time to undo damage that was a long time in the making and to begin the hard but necessary task of building a better future for ourselves and our children we have a long way to go but thanks to the courage patience and strength of our people america is on the mend but let me give you just one important reason why i believe involves many members of this body just 10 days ago after months of debate and deadlock the bipartisan commission on social security accomplished the seemingly impossible social security as some of us had warned for so long faced disaster i myself have been talking about this problem for almost 30 years as 1983 began the system stood on the brink of bankruptcy a double victim of our economic ills first a decade of rampant inflation drained its reserves as we tried to protect beneficiaries from the spiraling cost of living then the recession and the sudden end of inflation withered the expanding wage base and increasing revenues the system needs to support the 36 million americans who depend on it when the speaker of the house the senate majority leader and i performed the formed the bipartisan commission on social security pundits and experts predicted that party divisions and conflicting interests would prevent the commission from agreeing on a plan to save social security well sometimes even here in washington the cynics are wrong through compromise and cooperation the members of the commission overcame their differences and achieved a fair workable plan they proved that when it comes to the national welfare americans can still pull together for the common good tonight i am especially pleased to join with the speaker and the senate majority leader in urging the congress to enact this plan by easter there are elements in it of course that none of us prefers but taken together it performs a package that all of us can support it asks for some sacrifice by beneficiaries workers government employees and the among the it imposes an undue burden on none and in supporting it we keep an important pledge to the american people the integrity of the social security system will be preserved and no one payments will be reduced the commission plan will do the job indeed it must do the job we owe it to today older americans and today younger workers so before we go any further i ask you to join with me in saluting the members of the commission who are here tonight and senate majority leader howard baker and speaker tip for a job well done i hope and pray the bipartisan spirit that guided you in this endeavor will inspire all of us as we face the challenges of the year ahead nearly half a century ago in this chamber another american president franklin delano roosevelt in his second state of the union message urged america to look to the future to meet the challenge of change and the need for leadership that looks forward not backward throughout the world he said change is the order of the day in every nation economic problems long in the making have brought crises to of many kinds for which the masters of old practice and theory were unprepared he also reminded us that the future lies with those wise political leaders who realize that the great public is interested more in government than in politics so let us in these next 2 and women of both parties every political on the bipartisan responsibilities of government not the or temptations of partisan politics the problems we inherited were far worse than most inside and out of government had expected the recession was deeper than most inside and out of government had predicted curing those problems has taken more time and a higher toll than any of us wanted unemployment is far too high projected federal government refuses to tighten its own also be far too high and could weaken and shorten the economic recovery now underway this recovery will bring with it a revival of economic confidence and spending for consumer items and capital stimulus we need to restart our stalled economic engines the american people have already stepped up their rate of saving assuring that the funds needed to modernize our factories and improve our technology will once again flow to business and industry the inflationary expectations that led to a 21 interest prime rate and soaring mortgage rates 2 years ago are now reduced by almost half leaders have started to realize that inflation is no longer a way of life i misspoke there i should have said lenders so interest rates have tumbled paving the way for recovery in vital industries like housing and autos the early evidence of that recovery has started coming in housing starts for the fourth quarter of 1982 were up 45 percent from a year ago and housing permits a sure indicator of future growth were up a whopping 60 percent we are witnessing an upsurge of productivity and impressive evidence that american industry will once again become competitive in markets at home and abroad ensuring more jobs and better incomes for the nation work force but our confidence must also be tempered by realism and patience quick fixes and artificial stimulants repeatedly applied over decades are what brought us the inflationary disorders that we have now paid such a heavy price to cure the permanent recovery in employment production and investment we seek will not come in a sharp short spurt it will build carefully and steadily in the months and years ahead in the meantime the challenge of government is to identify the things that we can do now to ease the massive economic transition for the american people the federal budget is both a symptom and a because of our economic problems unless we reduce the dangerous growth rate in government spending we could face the prospect of sluggish economic growth into the indefinite future failure to cope with this problem now could mean as much as a trillion dollars more in national debt in the next 4 years alone that would average in additional debt for every man woman child and baby in our nation to assure a sustained recovery we must continue getting runaway spending under control to bring those deficits down if we do not the recovery will be too short unemployment will remain too high and we will leave an unconscionable burden of national debt for our children that we must not do let us be clear about where the deficit problem comes from contrary to the drumbeat we have been hearing for the last few months the deficits we face are not rooted in defense spending taken as a percentage of the gross national product our defense spending happens to be only about of what it was in 1970 nor is the deficit as some would have it rooted in tax cuts even with our tax cuts taxes as a fraction of gross national product remain about the same as they were in 1970 the fact is our deficits come from the uncontrolled growth of the budget for domestic spending during the 1970 the share of our national income devoted to this domestic spending increased by more than 60 percent from 10 cents out of every dollar produced by the american people to 16 cents in spite of all our economies and efficiencies and without adding any new programs basic necessary domestic spending provided for in this year budget will grow to almost a trillion dollars over the next 5 years the deficit problem is a clear and present danger to the basic health of our republic we need a plan to overcome this plan based on these principles it must be bipartisan conquering the deficits and putting the government house in order will require the best effort of all of us it must be fair just as all will share in the benefits that will come from recovery all would share fairly in the burden of transition it must be prudent the strength of our national defense must be restored so that we can pursue prosperity and peace and freedom while maintaining our commitment to the truly needy and finally it must be realistic we can not rely on hope alone with these guiding principles in mind let me outline a plan to increase economic growth and reduce deficits first in my budget message i will recommend a federal spending freeze i know this is strong medicine but so far we have only cut the rate of increase in federal spending the government has continued to spend more money each year though not as much more as it did in the past taken as a whole the budget i am proposing for the fiscal year will increase no more than the rate of inflation in other words the federal government will hold the line on real spending now that is far less than many american families have had to do in these difficult times i will request that the proposed freeze in adjustments recommended by the bipartisan social security commission be applied to other retirement programs i will also propose a freeze on a broad range of domestic spending programs and for federal civilian and military pay and pension programs and let me say right here i am sorry with regard to the military in asking that of them because for so many years they have been so far behind and so low in reward for what the men and women in uniform are doing but i am sure they will understand that this must be across the board and fair second i will ask the congress to adopt specific measures to control the growth of the uncontrollable spending programs these are the automatic spending programs such as food stamps that can not be simply frozen and that have grown by over 400 percent since 1970 they are the largest single because of the or structural deficit problem our standard here will be fairness ensuring that the taxpayers dollars go only to the truly needy that none of them are turned away but that fraud and waste are stamped out and i am sorry to say there is a lot of it out there in the food stamp program alone last year we identified almost billion in overpayments the taxpayers are not the only victims of this kind of abuse the truly needy suffer as funds intended for them are taken not by the needy but by the greedy for everyone is sake we must put an end to such waste and corruption third i will adjust our program to restore america defenses by proposing 55 billion in defense savings over the next 5 years these are savings recommended to me by the secretary of defense who has assured me they can be safely achieved and will not diminish our ability to negotiate arms reductions or endanger america security we will not gamble with our national survival and fourth because we must ensure reduction and eventual elimination of deficits over the next several years i will propose a standby tax limited to no more than 1 percent of the gross national product to start in fiscal 1986 it would last no more than 3 years and it would start only if the congress has first approved our spending freeze and budget control program and there are several other conditions also that must be met all of them in order for this program to be triggered now you could say that this is an insurance policy for the future a remedy that will be at hand if needed but only resorted to if absolutely necessary in the meantime we will continue to study ways to simplify the tax code and make it more fair for all americans this is a goal that every american who is ever struggled with a tax form can understand at the same time however i will oppose any efforts to undo the basic tax reforms that we have already enacted including the tax break coming to taxpayers this july and the tax indexing which will protect all americans from inflationary bracket creep in the years ahead now i realize that this plan is easier to describe than it will be to enact but the looming deficits that hang over us and over america future must be reduced the path i have outlined is fair balanced and realistic if enacted it will ensure a steady decline in deficits aiming toward a balanced budget by the end of the decade it is the only path that will lead to a strong sustained recovery let us follow that path together no domestic challenge is more crucial than providing stable permanent jobs for all americans who want to work the recovery program will provide jobs for most but others will need special help and training for new skills shortly i will submit to the congress the employment act of 1983 designed to get at the special problems of the unemployed as well as young people trying to enter the job market i will propose extending unemployment benefits including special incentives to employers who hire the unemployed providing programs for displaced workers and helping federally funded and unemployment insurance programs provide workers with training and relocation assistance finally our proposal will include new incentives for summer youth employment to help young people get a start in the job market we must offer both help and hope for our unemployed i hope we can work together on this i hope we can work together as we did last year in enacting the landmark job training partnership act regulatory reform legislation a responsible clean air act and passage of enterprise zone legislation will also create new incentives for jobs and opportunity one of out of every five jobs in our country depends on trade so i will propose a broader strategy in the field of international that increases the openness of our trading system and is fairer to america farmers and workers in the world marketplace we must have adequate export financing to sell american products overseas i will ask for new negotiating authority to remove barriers and to get more of our products into foreign markets we must strengthen the organization of our trade agencies and make changes in our domestic laws and international trade policy to promote free trade and the increased flow of american goods services and investments our trade position can also be improved by making our port system more efficient better more active harbors translate into stable jobs in our coalfields railroads trucking industry and ports after 2 years of debate it is time for us to get together and enact a port modernization bill education training and retraining are fundamental to our success as are research and development and productivity labor management and government at all levels can and must participate in improving these tools of growth tax policy regulatory practices and government programs all need constant reevaluation in terms of our competitiveness every american has a role and a stake in international trade we americans are still the technological leaders in most fields we must keep that edge and to do so we need to begin renewing the with our educational system while we grew complacent others have acted japan with a population only about half the size of ours graduates from its universities more engineers than we do if a child does not receive adequate math and science teaching by the age of 16 he or she has lost the chance to be a scientist or an engineer we must join teachers grass roots groups organized labor and the business revitalize american education by setting a standard of excellence in 1983 we seek four major education goals a quality education initiative to encourage a substantial upgrading of math and science instruction through block grants to the states establishment of education savings accounts that will give middle and families an incentive to save for their children college education and at the same time encourage a real increase in savings for economic growth passage of tuition tax credits for parents who want to send their children to private or religiously affiliated schools a constitutional amendment to permit voluntary school prayer god should never have been expelled from america classrooms in the first place our commitment to fairness means that we must assure legal and economic equity for women and eliminate once and for all all traces of unjust discrimination against women from the united states code we will not tolerate wage discrimination based on sex and we intend to strengthen enforcement of child support laws to ensure that single parents most of whom are women do not suffer unfair financial hardship we will also take action to remedy inequities in pensions these initiatives will be joined by others to continue our efforts to promote equity for women also in the area of fairness and equity we will ask for extension of the civil rights commission which is due to expire this year the commission is an important part of the ongoing struggle for justice in america and we strongly support its reauthorization effective enforcement of our nation fair housing laws is also essential to ensuring equal opportunity in the year ahead we will work to strengthen enforcement of fair housing laws for all americans the time has also come for major reform of our criminal justice statutes and acceleration of the drive against organized crime and drug trafficking it is high time that we make our cities safe again this administration hereby declares an war on organized crime and the drug racketeers who are poisoning our young people we will also implement recommendations of our task force on victims of crime which will report to me this week american agriculture the envy of the world has become the victim of its own successes with one farmer now producing enough food to feed himself and 77 other people america is confronted with record surplus crops and commodity prices below the cost of production we must strive through innovations like the crop swap approach and an aggressive export policy to restore health and vitality to rural america meanwhile i have instructed the department of agriculture to work individually with farmers with debt problems to help them through these tough times over the past year our task force on private sector initiatives has successfully forged a working partnership involving leaders of business labor education and government to address the training needs of american workers thanks to the task force private sector initiatives are now underway in all 50 states of the union and thousands of working people have been helped in making the shift from jobs and skills to the growth areas of high technology and the service economy additionally a major effort will be focused on encouraging the expansion of private community child care the new advisory council on private sector initiatives will carry on and extend this vital work of encouraging private initiative in 1983 in the coming year we will also act to improve the quality of life for americans by curbing the skyrocketing cost of health care that is becoming an unbearable financial burden for so many and we will submit legislation to provide catastrophic illness insurance coverage for older americans i will also shortly submit a comprehensive federalism proposal that will continue our efforts to restore to states and local governments their roles as dynamic laboratories of change in a creative society during the next several weeks i will send to the congress a series of detailed proposals on these and other topics and look forward to working with you on the development of these initiatives so far now i have concentrated mainly on the problems posed by the future but in almost every home and workplace in america we are already witnessing reason for great first flowering of the manmade miracles of high technology a field pioneered and still led by our country to many of us now computers silicon chips data processing cybernetics and all the other innovations of the dawning high technology age are as mystifying as the workings of the combustion engine must have been when that first model t rattled down main street but as surely as america pioneer spirit made us the industrial giant of the 20th century the same pioneer spirit today is opening up on another vast front of opportunity the frontier of high technology in conquering the frontier we can not write off our traditional industries but we must develop the skills and industries that will make us a pioneer of tomorrow this administration is committed to keeping america the technological leader of the world now and into the 21st century but let us turn briefly to the international arena america leadership in the world came to us because of our own strength and because of the values which guide us as a society free elections a free press freedom of religious choice free trade unions and above all freedom for the individual and rejection of the arbitrary power of the state these values are the bedrock of our strength they unite us in a stewardship of peace and freedom with our allies and friends in nato in asia in latin america and elsewhere they are also the values which in the recent past some among us had begun to doubt and view with a cynical eye fortunately we and our allies have rediscovered the strength of our common democratic values and we are applying them as a cornerstone of a comprehensive strategy for peace with freedom in london last year i announced the commitment of the united states to developing the infrastructure of democracy throughout the world we intend to pursue this democratic initiative vigorously the future belongs not to governments and ideologies which oppress their peoples but to democratic systems of which encourage individual initiative and guarantee personal freedom but our strategy for peace with freedom must also be based on strength and military strength a strong american economy is essential to the and security of our friends and allies the restoration of a strong healthy american economy has been and remains one of the central pillars of our foreign policy the progress i have been able to report to you tonight will i know be as warmly welcomed by the rest of the world as it is by the american people we must also recognize that our own economic is inextricably linked to the world economy we export over 20 percent of our industrial production and 40 percent of our farmland produces for export we will continue to work closely with the industrialized democracies of europe and japan and with the international monetary fund to ensure it has adequate resources to help bring the world economy back to strong noninflationary growth as the leader of the west and as a country that has become great and rich because of economic freedom america must be an unrelenting advocate of free trade as some nations are tempted to turn to protectionism our strategy can not be to follow them but to lead the way toward freer trade to this end in may of this year america will host an economic summit meeting in williamsburg virginia as we begin our third year we have put in place a defense program that redeems the neglect of the past decade we have developed a realistic military strategy to deter threats to peace and to protect freedom if deterrence fails our armed forces are finally properly paid after years of neglect are well trained and becoming better equipped and supplied and the american uniform is once again worn with pride most of the major systems needed for modernizing our defenses are already underway and we will be addressing one key system the mx missile in consultation with the congress in a few months america foreign policy is once again based on bipartisanship on realism strength full partnership in consultation with our allies and constructive negotiation with potential adversaries from the middle east to southern africa to geneva american diplomats are taking the initiative to make peace and lower arms levels we should be proud of our role as peacemakers in the middle east last year the united states played the major role in ending the tragic fighting in lebanon and negotiated the withdrawal of the plo from beirut last september i outlined principles to carry on the peace process begun so promisingly at camp david all the people of the middle east should know that in the year ahead we will not flag in our efforts to build on that foundation to bring them the blessings of peace in central america and the caribbean basin we are likewise engaged in a partnership for peace prosperity and democracy final passage of the remaining portions of our caribbean basin initiative which passed the house last year is one of this administration top legislative priorities for 1983 the security and economic assistance policies of this administration in latin america and elsewhere are based on realism and represent a critical investment in the future of the human race this undertaking is a joint responsibility of the executive and legislative branches and i am counting on the cooperation and statesmanship of the congress to help us meet this essential foreign policy goal at the heart of our strategy for peace is our relationship with the soviet union the past year saw a change in soviet leadership we are prepared for a positive change in relations but the soviet union must show by deeds as well as words a sincere commitment to respect the rights and sovereignty of the family of nations responsible members of the world community do not threaten or invade their neighbors and they restrain their allies from aggression for our part we are vigorously pursuing arms reduction negotiations with the soviet union supported by our allies we have put forward draft agreements proposing significant weapon reductions to equal and verifiable lower levels we insist on an equal balance of forces and given the overwhelming evidence of soviet violations of international treaties concerning chemical and biological weapons we also insist that any agreement we sign can and will be verifiable in the case of nuclear forces we have proposed the complete elimination of the entire class of missiles we are also prepared to carefully explore serious soviet proposals at the same time let me emphasize that allied steadfastness remains a key to achieving arms reductions with firmness and dedication we will continue to negotiate deep down the soviets must know it is in their interest as well as ours to prevent a wasteful arms race and once they recognize our unshakable resolve to maintain adequate deterrence they will have every reason to join us in the search for greater security and major arms reductions when that moment i am confident that it will have taken an important step toward a more peaceful future for all the world people a very wise man bernard baruch once said that america has never forgotten the nobler things that brought her into being and that light her path our country is a special place because we americans have always been sustained through good times and bad by a noble vision not only of what the world around us is today but what we as a free people can make it be tomorrow we are realists we solve our problems instead of ignoring them no matter how loud the chorus of despair around us but we are also idealists for it was an ideal that brought our ancestors to these shores from every corner of the world right now we need both realism and idealism millions of our neighbors are without work it is up to us to see they are not without hope this is a task for all of us and may i say americans have rallied to this because proving once again that we are the most generous people on earth we who are in government must take the lead in restoring the economy applause and here all that time i thought you were reading the paper laughter the single single thing that can start the wheels of industry turning again is further reduction of interest rates just another 1 or 2 points can mean tens of thousands of jobs right now with inflation as low as it is percent there is room for interest rates to come down only fear prevents their reduction a lender as we know must charge an interest rate that recovers the depreciated value of the dollars loaned and that depreciation is of course the amount of inflation today interest rates are based on that government will resort to measures as it has in the past that will send inflation zooming again we who serve here in this capital must erase that fear by making it absolutely clear that we will not stop fighting inflation that together we will do only those things that will lead to lasting economic growth yes the problems confronting us are large and forbidding and certainly no one can or should minimize the plight of millions of our friends and neighbors who are living in the bleak emptiness of unemployment but we must and can give them good reason to be hopeful back over the years citizens like ourselves have gathered within these walls when our nation was threatened sometimes when its very existence was at stake always with courage and common sense they met the crises of their time and lived to see a stronger better and more prosperous country the present situation is no worse and in fact is not as bad as some of those they faced time and again they proved that there is nothing we americans can not achieve as free men and women yes we still have of them but it is just plain to our country and unjust to our let those problems stand in the way of the most important truth of all america is on the mend we owe it to the unfortunate to be aware of their plight and to help them in every way we can no one can quarrel with that we must and do have compassion for all the victims of this economic crisis but the big story about america today is the way that millions of confident caring extraordinary ordinary americans who never make the headlines and will never be laying the foundation not just for recovery from our present problems but for a better tomorrow for all our people from coast to coast on the job and in classrooms and laboratories at new construction sites and in churches and community groups neighbors are helping neighbors and they have already begun the building the research the work and the giving that will make our country great again i believe this because i believe in the strength of their hearts and minds in the commitment that each one of them brings to their daily lives be they high or humble the challenge for us in government is to be worthy of make government a help not a hindrance to our people in the challenging but promising days ahead if we do that if we care what our children and our children children will say of us if we want them one day to be thankful for what we did here in these temples of freedom we will work together to make america better for our having been just in this year or this decade but in the next century and beyond thank you and god bless you
speaker president distinguished members congress honored guests fellow citizens solemn occasion marks 196th time president united states reported state union since george washington first 1790 lot reports shortage new things say state union key success ability foremost among nations preserve lasting values making change work us rather us would like talk evening republicans democrats make tomorrow america happy prosperous home strong respected abroad peace world gather tonight state union strong economy troubled many fellow steel auto workers lumbermen black teenagers working painful period must everything power bring ordeal end fallen us time undo damage long time making begin hard necessary task building better future children long way go thanks courage patience strength people america mend let give one important reason believe involves many members body 10 days ago months debate deadlock bipartisan commission social security accomplished seemingly impossible social security us warned long faced disaster talking problem almost 30 years 1983 began system stood brink bankruptcy double victim economic ills first decade rampant inflation drained reserves tried protect beneficiaries spiraling cost living recession sudden end inflation withered expanding wage base increasing revenues system needs support 36 million americans depend speaker house senate majority leader performed formed bipartisan commission social security pundits experts predicted party divisions conflicting interests would prevent commission agreeing plan save social security well sometimes even washington cynics wrong compromise cooperation members commission overcame differences achieved fair workable plan proved comes national welfare americans still pull together common good tonight especially pleased join speaker senate majority leader urging congress enact plan easter elements course none us prefers taken together performs package us support asks sacrifice beneficiaries workers government employees among imposes undue burden none supporting keep important pledge american people integrity social security system preserved one payments reduced commission plan job indeed must job owe today older americans today younger workers go ask join saluting members commission tonight senate majority leader howard baker speaker tip job well done hope pray bipartisan spirit guided endeavor inspire us face challenges year ahead nearly half century ago chamber another american president franklin delano roosevelt second state union message urged america look future meet challenge change need leadership looks forward backward throughout world said change order day every nation economic problems long making brought crises many kinds masters old practice theory unprepared also reminded us future lies wise political leaders realize great public interested government politics let us next 2 women parties every political bipartisan responsibilities government temptations partisan politics problems inherited far worse inside government expected recession deeper inside government predicted curing problems taken time higher toll us wanted unemployment far high projected federal government refuses tighten also far high could weaken shorten economic recovery underway recovery bring revival economic confidence spending consumer items capital stimulus need restart stalled economic engines american people already stepped rate saving assuring funds needed modernize factories improve technology flow business industry inflationary expectations led 21 interest prime rate soaring mortgage rates 2 years ago reduced almost half leaders started realize inflation longer way life misspoke said lenders interest rates tumbled paving way recovery vital industries like housing autos early evidence recovery started coming housing starts fourth quarter 1982 45 percent year ago housing permits sure indicator future growth whopping 60 percent witnessing upsurge productivity impressive evidence american industry become competitive markets home abroad ensuring jobs better incomes nation work force confidence must also tempered realism patience quick fixes artificial stimulants repeatedly applied decades brought us inflationary disorders paid heavy price cure permanent recovery employment production investment seek come sharp short spurt build carefully steadily months years ahead meantime challenge government identify things ease massive economic transition american people federal budget symptom economic problems unless reduce dangerous growth rate government spending could face prospect sluggish economic growth indefinite future failure cope problem could mean much trillion dollars national debt next 4 years alone would average additional debt every man woman child baby nation assure sustained recovery must continue getting runaway spending control bring deficits recovery short unemployment remain high leave unconscionable burden national debt children must let us clear deficit problem comes contrary drumbeat hearing last months deficits face rooted defense spending taken percentage gross national product defense spending happens 1970 deficit would rooted tax cuts even tax cuts taxes fraction gross national product remain 1970 fact deficits come uncontrolled growth budget domestic spending 1970 share national income devoted domestic spending increased 60 percent 10 cents every dollar produced american people 16 cents spite economies efficiencies without adding new programs basic necessary domestic spending provided year budget grow almost trillion dollars next 5 years deficit problem clear present danger basic health republic need plan overcome plan based principles must bipartisan conquering deficits putting government house order require best effort us must fair share benefits come recovery would share fairly burden transition must prudent strength national defense must restored pursue prosperity peace freedom maintaining commitment truly needy finally must realistic rely hope alone guiding principles mind let outline plan increase economic growth reduce deficits first budget message recommend federal spending freeze know strong medicine far cut rate increase federal spending government continued spend money year though much past taken whole budget proposing fiscal year increase rate inflation words federal government hold line real spending far less many american families difficult times request proposed freeze adjustments recommended bipartisan social security commission applied retirement programs also propose freeze broad range domestic spending programs federal civilian military pay pension programs let say right sorry regard military asking many years far behind low reward men women uniform sure understand must across board fair second ask congress adopt specific measures control growth uncontrollable spending programs automatic spending programs food stamps simply frozen grown 400 percent since 1970 largest single structural deficit problem standard fairness ensuring taxpayers dollars go truly needy none turned away fraud waste stamped sorry say lot food stamp program alone last year identified almost billion overpayments taxpayers victims kind abuse truly needy suffer funds intended taken needy greedy everyone sake must put end waste corruption third adjust program restore america defenses proposing 55 billion defense savings next 5 years savings recommended secretary defense assured safely achieved diminish ability negotiate arms reductions endanger america security gamble national survival fourth must ensure reduction eventual elimination deficits next several years propose standby tax limited 1 percent gross national product start fiscal 1986 would last 3 years would start congress first approved spending freeze budget control program several conditions also must met order program triggered could say insurance policy future remedy hand needed resorted absolutely necessary meantime continue study ways simplify tax code make fair americans goal every american ever struggled tax form understand time however oppose efforts undo basic tax reforms already enacted including tax break coming taxpayers july tax indexing protect americans inflationary bracket creep years ahead realize plan easier describe enact looming deficits hang us america future must reduced path outlined fair balanced realistic enacted ensure steady decline deficits aiming toward balanced budget end decade path lead strong sustained recovery let us follow path together domestic challenge crucial providing stable permanent jobs americans want work recovery program provide jobs others need special help training new skills shortly submit congress employment act 1983 designed get special problems unemployed well young people trying enter job market propose extending unemployment benefits including special incentives employers hire unemployed providing programs displaced workers helping federally funded unemployment insurance programs provide workers training relocation assistance finally proposal include new incentives summer youth employment help young people get start job market must offer help hope unemployed hope work together hope work together last year enacting landmark job training partnership act regulatory reform legislation responsible clean air act passage enterprise zone legislation also create new incentives jobs opportunity one every five jobs country depends trade propose broader strategy field international increases openness trading system fairer america farmers workers world marketplace must adequate export financing sell american products overseas ask new negotiating authority remove barriers get products foreign markets must strengthen organization trade agencies make changes domestic laws international trade policy promote free trade increased flow american goods services investments trade position also improved making port system efficient better active harbors translate stable jobs coalfields railroads trucking industry ports 2 years debate time us get together enact port modernization bill education training retraining fundamental success research development productivity labor management government levels must participate improving tools growth tax policy regulatory practices government programs need constant reevaluation terms competitiveness every american role stake international trade americans still technological leaders fields must keep edge need begin renewing educational system grew complacent others acted japan population half size graduates universities engineers child receive adequate math science teaching age 16 lost chance scientist engineer must join teachers grass roots groups organized labor business revitalize american education setting standard excellence 1983 seek four major education goals quality education initiative encourage substantial upgrading math science instruction block grants states establishment education savings accounts give middle families incentive save children college education time encourage real increase savings economic growth passage tuition tax credits parents want send children private religiously affiliated schools constitutional amendment permit voluntary school prayer god never expelled america classrooms first place commitment fairness means must assure legal economic equity women eliminate traces unjust discrimination women united states code tolerate wage discrimination based sex intend strengthen enforcement child support laws ensure single parents women suffer unfair financial hardship also take action remedy inequities pensions initiatives joined others continue efforts promote equity women also area fairness equity ask extension civil rights commission due expire year commission important part ongoing struggle justice america strongly support reauthorization effective enforcement nation fair housing laws also essential ensuring equal opportunity year ahead work strengthen enforcement fair housing laws americans time also come major reform criminal justice statutes acceleration drive organized crime drug trafficking high time make cities safe administration hereby declares war organized crime drug racketeers poisoning young people also implement recommendations task force victims crime report week american agriculture envy world become victim successes one farmer producing enough food feed 77 people america confronted record surplus crops commodity prices cost production must strive innovations like crop swap approach aggressive export policy restore health vitality rural america meanwhile instructed department agriculture work individually farmers debt problems help tough times past year task force private sector initiatives successfully forged working partnership involving leaders business labor education government address training needs american workers thanks task force private sector initiatives underway 50 states union thousands working people helped making shift jobs skills growth areas high technology service economy additionally major effort focused encouraging expansion private community child care new advisory council private sector initiatives carry extend vital work encouraging private initiative 1983 coming year also act improve quality life americans curbing skyrocketing cost health care becoming unbearable financial burden many submit legislation provide catastrophic illness insurance coverage older americans also shortly submit comprehensive federalism proposal continue efforts restore states local governments roles dynamic laboratories change creative society next several weeks send congress series detailed proposals topics look forward working development initiatives far concentrated mainly problems posed future almost every home workplace america already witnessing reason great first flowering manmade miracles high technology field pioneered still led country many us computers silicon chips data processing cybernetics innovations dawning high technology age mystifying workings combustion engine must first model rattled main street surely america pioneer spirit made us industrial giant 20th century pioneer spirit today opening another vast front opportunity frontier high technology conquering frontier write traditional industries must develop skills industries make us pioneer tomorrow administration committed keeping america technological leader world 21st century let us turn briefly international arena america leadership world came us strength values guide us society free elections free press freedom religious choice free trade unions freedom individual rejection arbitrary power state values bedrock strength unite us stewardship peace freedom allies friends nato asia latin america elsewhere also values recent past among us begun doubt view cynical eye fortunately allies rediscovered strength common democratic values applying cornerstone comprehensive strategy peace freedom london last year announced commitment united states developing infrastructure democracy throughout world intend pursue democratic initiative vigorously future belongs governments ideologies oppress peoples democratic systems encourage individual initiative guarantee personal freedom strategy peace freedom must also based strength military strength strong american economy essential security friends allies restoration strong healthy american economy remains one central pillars foreign policy progress able report tonight know warmly welcomed rest world american people must also recognize economic inextricably linked world economy export 20 percent industrial production 40 percent farmland produces export continue work closely industrialized democracies europe japan international monetary fund ensure adequate resources help bring world economy back strong noninflationary growth leader west country become great rich economic freedom america must unrelenting advocate free trade nations tempted turn protectionism strategy follow lead way toward freer trade end may year america host economic summit meeting williamsburg virginia begin third year put place defense program redeems neglect past decade developed realistic military strategy deter threats peace protect freedom deterrence fails armed forces finally properly paid years neglect well trained becoming better equipped supplied american uniform worn pride major systems needed modernizing defenses already underway addressing one key system mx missile consultation congress months america foreign policy based bipartisanship realism strength full partnership consultation allies constructive negotiation potential adversaries middle east southern africa geneva american diplomats taking initiative make peace lower arms levels proud role peacemakers middle east last year united states played major role ending tragic fighting lebanon negotiated withdrawal plo beirut last september outlined principles carry peace process begun promisingly camp david people middle east know year ahead flag efforts build foundation bring blessings peace central america caribbean basin likewise engaged partnership peace prosperity democracy final passage remaining portions caribbean basin initiative passed house last year one administration top legislative priorities 1983 security economic assistance policies administration latin america elsewhere based realism represent critical investment future human race undertaking joint responsibility executive legislative branches counting cooperation statesmanship congress help us meet essential foreign policy goal heart strategy peace relationship soviet union past year saw change soviet leadership prepared positive change relations soviet union must show deeds well words sincere commitment respect rights sovereignty family nations responsible members world community threaten invade neighbors restrain allies aggression part vigorously pursuing arms reduction negotiations soviet union supported allies put forward draft agreements proposing significant weapon reductions equal verifiable lower levels insist equal balance forces given overwhelming evidence soviet violations international treaties concerning chemical biological weapons also insist agreement sign verifiable case nuclear forces proposed complete elimination entire class missiles also prepared carefully explore serious soviet proposals time let emphasize allied steadfastness remains key achieving arms reductions firmness dedication continue negotiate deep soviets must know interest well prevent wasteful arms race recognize unshakable resolve maintain adequate deterrence every reason join us search greater security major arms reductions moment confident taken important step toward peaceful future world people wise man bernard baruch said america never forgotten nobler things brought light path country special place americans always sustained good times bad noble vision world around us today free people make tomorrow realists solve problems instead ignoring matter loud chorus despair around us also idealists ideal brought ancestors shores every corner world right need realism idealism millions neighbors without work us see without hope task us may say americans rallied proving generous people earth government must take lead restoring economy applause time thought reading paper laughter single single thing start wheels industry turning reduction interest rates another 1 2 points mean tens thousands jobs right inflation low percent room interest rates come fear prevents reduction lender know must charge interest rate recovers depreciated value dollars loaned depreciation course amount inflation today interest rates based government resort measures past send inflation zooming serve capital must erase fear making absolutely clear stop fighting inflation together things lead lasting economic growth yes problems confronting us large forbidding certainly one minimize plight millions friends neighbors living bleak emptiness unemployment must give good reason hopeful back years citizens like gathered within walls nation threatened sometimes existence stake always courage common sense met crises time lived see stronger better prosperous country present situation worse fact bad faced time proved nothing americans achieve free men women yes still plain country unjust let problems stand way important truth america mend owe unfortunate aware plight help every way one quarrel must compassion victims economic crisis big story america today way millions confident caring extraordinary ordinary americans never make headlines never laying foundation recovery present problems better tomorrow people coast coast job classrooms laboratories new construction sites churches community groups neighbors helping neighbors already begun building research work giving make country great believe believe strength hearts minds commitment one brings daily lives high humble challenge us government worthy make government help hindrance people challenging promising days ahead care children children children say us want one day thankful temples freedom work together make america better year decade next century beyond thank god bless
speaker president distinguish member congress honor guest fellow citizen solemn occasion mark 196th time president united state report state union since george washington first 1790 lot report shortage new thing say state union key success ability foremost among nation preserve last value make change work u rather u would like talk even republican democrat make tomorrow america happy prosperous home strong respect abroad peace world gather tonight state union strong economy trouble many fellow steel auto worker lumbermen black teenager work painful period must everything power bring ordeal end fall u time undo damage long time make begin hard necessary task building well future child long way go thanks courage patience strength people america mend let give one important reason believe involve many member body 10 day ago month debate deadlock bipartisan commission social security accomplish seemingly impossible social security u warn long faced disaster talk problem almost 30 year 1983 begin system stand brink bankruptcy double victim economic ill first decade rampant inflation drain reserve try protect beneficiary spiral cost living recession sudden end inflation wither expand wage base increase revenue system need support 36 million american depend speaker house senate majority leader perform form bipartisan commission social security pundit expert predict party division conflict interest would prevent commission agree plan save social security well sometimes even washington cynic wrong compromise cooperation member commission overcame difference achieve fair workable plan prove come national welfare american still pull together common good tonight especially pleased join speaker senate majority leader urge congress enact plan easter element course none u prefers take together performs package u support asks sacrifice beneficiary worker government employee among imposes undue burden none support keep important pledge american people integrity social security system preserve one payment reduce commission plan job indeed must job owe today old american today young worker go ask join salute member commission tonight senate majority leader howard baker speaker tip job well do hope pray bipartisan spirit guide endeavor inspire u face challenge year ahead nearly half century ago chamber another american president franklin delano roosevelt second state union message urge america look future meet challenge change need leadership look forward backward throughout world say change order day every nation economic problem long make brought crisis many kind master old practice theory unprepared also remind u future lie wise political leader realize great public interested government politics let u next 2 woman party every political bipartisan responsibility government temptation partisan politics problem inherit far bad inside government expect recession deeper inside government predict cure problem take time high toll u want unemployment far high project federal government refuse tighten also far high could weaken shorten economic recovery underway recovery bring revival economic confidence spending consumer item capital stimulus need restart stall economic engine american people already step rate save assure fund need modernize factory improve technology flow business industry inflationary expectation lead 21 interest prime rate soar mortgage rate 2 year ago reduce almost half leader start realize inflation longer way life misspoke say lender interest rate tumble pave way recovery vital industry like housing auto early evidence recovery start come housing start fourth quarter 1982 45 percent year ago housing permit sure indicator future growth whop 60 percent witness upsurge productivity impressive evidence american industry become competitive market home abroad ensure job well income nation work force confidence must also temper realism patience quick fix artificial stimulant repeatedly apply decade bring u inflationary disorder pay heavy price cure permanent recovery employment production investment seek come sharp short spurt build carefully steadily month year ahead meantime challenge government identify thing ease massive economic transition american people federal budget symptom economic problem unless reduce dangerous growth rate government spending could face prospect sluggish economic growth indefinite future failure cope problem could mean much trillion dollar national debt next 4 year alone would average additional debt every man woman child baby nation assure sustain recovery must continue get runaway spending control bring deficit recovery short unemployment remain high leave unconscionable burden national debt child must let u clear deficit problem come contrary drumbeat hear last month deficit face root defense spending take percentage gross national product defense spending happen 1970 deficit would root tax cut even tax cut tax fraction gross national product remain 1970 fact deficit come uncontrolled growth budget domestic spending 1970 share national income devote domestic spending increase 60 percent 10 cent every dollar produce american people 16 cent spite economy efficiency without add new program basic necessary domestic spending provide year budget grow almost trillion dollar next 5 year deficit problem clear present danger basic health republic need plan overcome plan base principle must bipartisan conquer deficit put government house order require best effort u must fair share benefit come recovery would share fairly burden transition must prudent strength national defense must restore pursue prosperity peace freedom maintain commitment truly needy finally must realistic rely hope alone guide principle mind let outline plan increase economic growth reduce deficit first budget message recommend federal spending freeze know strong medicine far cut rate increase federal spending government continue spend money year though much past take whole budget proposing fiscal year increase rate inflation word federal government hold line real spending far less many american family difficult time request propose freeze adjustment recommend bipartisan social security commission apply retirement program also propose freeze broad range domestic spending program federal civilian military pay pension program let say right sorry regard military ask many year far behind low reward men woman uniform sure understand must across board fair second ask congress adopt specific measure control growth uncontrollable spending program automatic spending program food stamp simply frozen grown 400 percent since 1970 large single structural deficit problem standard fairness ensure taxpayer dollar go truly needy none turn away fraud waste stamp sorry say lot food stamp program alone last year identify almost billion overpayment taxpayer victim kind abuse truly needy suffer fund intend take needy greedy everyone sake must put end waste corruption third adjust program restore america defenses propose 55 billion defense saving next 5 year saving recommend secretary defense assure safely achieve diminish ability negotiate arm reduction endanger america security gamble national survival fourth must ensure reduction eventual elimination deficit next several year propose standby tax limit 1 percent gross national product start fiscal 1986 would last 3 year would start congress first approve spending freeze budget control program several condition also must meet order program trigger could say insurance policy future remedy hand need resort absolutely necessary meantime continue study way simplify tax code make fair american goal every american ever struggle tax form understand time however oppose effort undo basic tax reform already enact include tax break come taxpayer july tax indexing protect americans inflationary bracket creep year ahead realize plan easy describe enact loom deficit hang u america future must reduce path outline fair balance realistic enacted ensure steady decline deficit aim toward balanced budget end decade path lead strong sustained recovery let u follow path together domestic challenge crucial provide stable permanent job american want work recovery program provide job others need special help train new skill shortly submit congress employment act 1983 design get special problem unemployed well young people try enter job market propose extend unemployment benefit include special incentive employer hire unemployed provide program displace worker help federally fund unemployment insurance program provide worker train relocation assistance finally proposal include new incentive summer youth employment help young people get start job market must offer help hope unemployed hope work together hope work together last year enact landmark job train partnership act regulatory reform legislation responsible clean air act passage enterprise zone legislation also create new incentive job opportunity one every five job country depend trade propose broad strategy field international increase openness trade system fairer america farmer worker world marketplace must adequate export finance sell american product overseas ask new negotiate authority remove barrier get product foreign market must strengthen organization trade agency make change domestic law international trade policy promote free trade increase flow american good service investment trade position also improve make port system efficient well active harbor translate stable job coalfield railroad truck industry port 2 year debate time u get together enact port modernization bill education train retrain fundamental success research development productivity labor management government level must participate improving tool growth tax policy regulatory practice government program need constant reevaluation term competitiveness every american role stake international trade american still technological leader field must keep edge need begin renew educational system grow complacent others act japan population half size graduate university engineer child receive adequate math science teach age 16 lose chance scientist engineer must join teacher grass root group organize labor business revitalize american education set standard excellence 1983 seek four major education goal quality education initiative encourage substantial upgrading math science instruction block grant state establishment education saving account give middle family incentive save child college education time encourage real increase saving economic growth passage tuition tax credit parent want send child private religiously affiliated school constitutional amendment permit voluntary school prayer god never expel america classroom first place commitment fairness mean must assure legal economic equity woman eliminate trace unjust discrimination woman united state code tolerate wage discrimination base sex intend strengthen enforcement child support law ensure single parent woman suffer unfair financial hardship also take action remedy inequity pension initiative join others continue effort promote equity woman also area fairness equity ask extension civil right commission due expire year commission important part ongoing struggle justice america strongly support reauthorization effective enforcement nation fair housing law also essential ensure equal opportunity year ahead work strengthen enforcement fair housing law american time also come major reform criminal justice statute acceleration drive organize crime drug traffic high time make city safe administration hereby declare war organize crime drug racketeer poison young people also implement recommendation task force victim crime report week american agriculture envy world become victim successes one farmer produce enough food fee 77 people america confront record surplus crop commodity price cost production must strive innovation like crop swap approach aggressive export policy restore health vitality rural america meanwhile instruct department agriculture work individually farmer debt problem help tough time past year task force private sector initiative successfully forge work partnership involve leader business labor education government address train needs american worker thanks task force private sector initiatives underway 50 state union thousand work people help make shift job skills growth area high technology service economy additionally major effort focus encouraging expansion private community child care new advisory council private sector initiative carry extend vital work encourage private initiative 1983 come year also act improve quality life american curb skyrocket cost health care become unbearable financial burden many submit legislation provide catastrophic illness insurance coverage old american also shortly submit comprehensive federalism proposal continue effort restore state local government role dynamic laboratory change creative society next several week send congress series detail proposal topic look forward work development initiative far concentrate mainly problem pose future almost every home workplace america already witness reason great first flower manmade miracle high technology field pioneer still lead country many u computer silicon chip data process cybernetics innovation dawn high technology age mystify working combustion engine must first model rattle main street surely america pioneer spirit make u industrial giant 20th century pioneer spirit today open another vast front opportunity frontier high technology conquer frontier write traditional industry must develop skill industry make u pioneer tomorrow administration commit keep america technological leader world 21st century let u turn briefly international arena america leadership world come u strength value guide u society free election free press freedom religious choice free trade union freedom individual rejection arbitrary power state value bedrock strength unite u stewardship peace freedom ally friends nato asia latin america elsewhere also value recent past among u begin doubt view cynical eye fortunately ally rediscover strength common democratic value apply cornerstone comprehensive strategy peace freedom london last year announce commitment united state develop infrastructure democracy throughout world intend pursue democratic initiative vigorously future belongs government ideology oppress people democratic system encourage individual initiative guarantee personal freedom strategy peace freedom must also base strength military strength strong american economy essential security friend ally restoration strong healthy american economy remain one central pillar foreign policy progress able report tonight know warmly welcome rest world american people must also recognize economic inextricably link world economy export 20 percent industrial production 40 percent farmland produce export continue work closely industrialized democracy europe japan international monetary fund ensure adequate resource help bring world economy back strong noninflationary growth leader west country become great rich economic freedom america must unrelenting advocate free trade nation tempt turn protectionism strategy follow lead way toward free trade end may year america host economic summit meeting williamsburg virginia begin third year put place defense program redeems neglect past decade develop realistic military strategy deter threat peace protect freedom deterrence fail armed force finally properly pay year neglect well trained become well equipped supplied american uniform wear pride major system need modernizing defense already underway address one key system mx missile consultation congress month america foreign policy base bipartisanship realism strength full partnership consultation ally constructive negotiation potential adversary middle east southern africa geneva american diplomat take initiative make peace low arm level proud role peacemaker middle east last year unite state play major role end tragic fight lebanon negotiate withdrawal plo beirut last september outline principle carry peace process begin promisingly camp david people middle east know year ahead flag effort build foundation bring blessing peace central america caribbean basin likewise engage partnership peace prosperity democracy final passage remain portion caribbean basin initiative pass house last year one administration top legislative priority 1983 security economic assistance policy administration latin america elsewhere base realism represent critical investment future human race undertake joint responsibility executive legislative branch count cooperation statesmanship congress help u meet essential foreign policy goal heart strategy peace relationship soviet union past year saw change soviet leadership prepare positive change relation soviet union must show deed well word sincere commitment respect right sovereignty family nation responsible member world community threaten invade neighbor restrain ally aggression part vigorously pursue arm reduction negotiation soviet union support ally put forward draft agreement propose significant weapon reduction equal verifiable low level insist equal balance force give overwhelming evidence soviet violation international treaty concern chemical biological weapon also insist agreement sign verifiable case nuclear force propose complete elimination entire class missile also prepare carefully explore serious soviet proposal time let emphasize allied steadfastness remain key achieve arm reduction firmness dedication continue negotiate deep soviet must know interest well prevent wasteful arm race recognize unshakable resolve maintain adequate deterrence every reason join u search great security major arm reduction moment confident take important step toward peaceful future world people wise man bernard baruch say america never forget noble thing bring light path country special place american always sustain good time bad noble vision world around u today free people make tomorrow realist solve problem instead ignore matter loud chorus despair around u also idealists ideal brought ancestor shore every corner world right need realism idealism million neighbor without work u see without hope task u may say american rally prove generous people earth government must take lead restore economy applause time thought read paper laughter single single thing start wheel industry turn reduction interest rate another 1 2 point mean ten thousand job right inflation low percent room interest rate come fear prevents reduction lender know must charge interest rate recovers depreciate value dollar loan depreciation course amount inflation today interest rate base government resort measure past send inflation zoom serve capital must erase fear make absolutely clear stop fight inflation together thing lead last economic growth yes problem confront u large forbid certainly one minimize plight million friends neighbor live bleak emptiness unemployment must give good reason hopeful back year citizen like gather within wall nation threaten sometimes existence stake always courage common sense meet crisis time live see strong well prosperous country present situation bad fact bad face time prove nothing american achieve free men woman yes still plain country unjust let problem stand way important truth america mend owe unfortunate aware plight help every way one quarrel must compassion victim economic crisis big story america today way million confident care extraordinary ordinary american never make headline never lay foundation recovery present problem well tomorrow people coast coast job classroom laboratories new construction sit church community group neighbor help neighbor already begin build research work give make country great believe believe strength heart mind commitment one bring daily life high humble challenge u government worthy make government help hindrance people challenge promising day ahead care child child child say u want one day thankful temple freedom work together make america well year decade next century beyond thank god bless