Mr. Speaker, Mr. Vice President, Members of the 94th Congress, and distinguished guests: As we begin our Bicentennial, America is still one of the youngest nations in recorded history. Long before our forefathers came to these shores, men and women had been struggling on this planet to forge a better life for themselves and their families. In man's long, upward march from savagery and slavery--throughout the nearly 2,000 years of the Christian calendar, the nearly 6,000 years of Jewish reckoning--there have been many deep, terrifying valleys, but also many bright and towering peaks. One peak stands highest in the ranges of human history. One example shines forth of a people uniting to produce abundance and to share the good life fairly and with freedom. One union holds out the promise of justice and opportunity for every citizen: That union is the United States of America. We have not remade paradise on Earth. We know perfection will not be found here. But think for a minute how far we have come in 200 years. We came from many roots, and we have many branches. Yet all Americans across the eight generations that separate us from the stirring deeds of 1776, those who know no other homeland and those who just found refuge among our shores, say in unison: I am proud of America, and I am proud to be an American. Life will be a little better here for my children than for me. I believe this not because I am told to believe it, but because life has been better for me than it was for my father and my mother. I know it will be better for my children because my hands, my brains, my voice, and my vote can help make it happen. It has happened here in America. It has happened to you and to me. Government exists to create and preserve conditions in which people can translate their ideas into practical reality. In the best of times, much is lost in translation. But we try. Sometimes we have tried and failed. Always we have had the best of intentions. But in the recent past, we sometimes forgot the sound principles that guided us through most of our history. We wanted to accomplish great things and solve age-old problems. And we became overconfident of our abilities. We tried to be a policeman abroad and the indulgent parent here at home. We thought we could transform the country through massive national programs, but often the programs did not work. Too often they only made things worse. In our rush to accomplish great deeds quickly, we trampled on sound principles of restraint and endangered the rights of individuals. We unbalanced our economic system by the huge and unprecedented growth of Federal expenditures and borrowing. And we were not totally honest with ourselves about how much these programs would cost and how we would pay for them. Finally, we shifted our emphasis from defense to domestic problems while our adversaries continued a massive buildup of arms. The time has now come for a fundamentally different approach for a new realism that is true to the great principles upon which this Nation was founded. We must introduce a new balance to our economy--a balance that favors not only sound, active government but also a much more vigorous, healthy economy that can create new jobs and hold down prices. We must introduce a new balance in the relationship between the individual and the government--a balance that favors greater individual freedom and self-reliance. We must strike a new balance in our system of federalism--a balance that favors greater responsibility and freedom for the leaders of our State and local governments. We must introduce a new balance between the spending on domestic programs and spending on defense--a balance that ensures we will fully meet our obligation to the needy while also protecting our security in a world that is still hostile to freedom. And in all that we do, we must be more honest with the American people, promising them no more than we can deliver and delivering all that we promise. The genius of America has been its incredible ability to improve the lives of its citizens through a unique combination of governmental and free citizen activity. History and experience tells us that moral progress cannot come in comfortable and in complacent times, but out of trial and out of confusion. Tom Paine aroused the troubled Americans of 1776 to stand up to the times that try men's souls because the harder the conflict, the more glorious the triumph. Just a year ago I reported that the state of the Union was not good. Tonight, I report that the state of our Union is better--in many ways a lot better--but still not good enough. To paraphrase Tom Paine, 1975 was not a year for summer soldiers and sum shine patriots. It was a year of fears and alarms and of dire forecasts--most of which never happened and won't happen. As you recall, the year 1975 opened with rancor and with bitterness. Political misdeeds of the past had neither been forgotten nor forgiven. The longest, most divisive war in our history was winding toward an unhappy conclusion. Many feared that the end of that foreign war of men and machines meant the beginning of a domestic war of recrimination and reprisal. Friends and adversaries abroad were asking whether America had lost its nerve. Finally, our economy was ravaged by inflation--inflation that was plunging us into the worse recession in four decades. At the same time, Americans became increasingly alienated from big institutions. They were steadily losing confidence, not just in big government but in big business, big labor, and big education, among others. Ours was a troubled land. And so, 1975 was a year of hard decisions, difficult compromises, and a new realism that taught us something important about America. It brought back a needed measure of common sense, steadfastness, and self-discipline. Americans did not panic or demand instant but useless cures. In all sectors, people met their difficult problems with the restraint and with responsibility worthy of their great heritage. Add up the separate pieces of progress in 1975, subtract the setbacks, and the sum total shows that we are not only headed in a new direction, a direction which I proposed 12 months ago, but it turned out to be the right direction. It is the right direction because it follows the truly revolutionary American concept of 1776, which holds that in a free society the making of public policy and successful problemsolving involves much more than government. It involves a full partnership among all branches and all levels of government, private institutions, and individual citizens. 
Common sense tells me to stick to that steady course. Take the state of our economy. Last January, most things were rapidly getting worse. This January, most things are slowly but surely getting better. The worst recession since World War II turned around in April. The best cost-of-living news of the past year is that double-digit inflation of 12 percent or higher was cut almost in half. The worst--unemployment remains far too high. Today, nearly 1,700,000 more Americans are working than at the bottom of the recession. At year's end, people were again being hired much faster than they Were being laid off. Yet, let's be honest. Many Americans have not yet felt these changes in their daily lives. They still see prices going up far too fast, and they still know the fear of unemployment. We are also a growing nation. We need more and more jobs every year. Today's economy has produced over 85 million jobs for Americans, but we need a lot more jobs, especially for the young. 
My first objective is to have sound economic growth without inflation. We all know from recent experience what runaway inflation does to ruin every other worthy purpose. We are slowing it. We must stop it cold. For many Americans, the way to a healthy, noninflationary economy has become increasingly apparent. The Government must stop spending so much and stop borrowing so much of our money. More money must remain in private hands where it will do the most good. To hold down the cost of living, we must hold down the cost of government. In the past decade, the Federal budget has been growing at an average rate of over 10 percent a year. The budget I am submitting Wednesday cuts this rate of growth in half. I have kept my promise to submit a budget for the next fiscal year of $395 billion. In fact, it is $394.2 billion. By holding down the growth of Federal spending, we can afford additional tax cuts and return to the people who pay taxes more decisionmaking power over their own lives. Last month I signed legislation to extend the 1975 tax reductions for the first 6 months of this year. I now propose that effective July 1, 1976, we give our taxpayers a tax cut of approximately $10 billion more than Congress agreed to in December. My broader tax reduction would mean that for a family of four making $15,000 a year, there will be $227 more in take-home pay annually. Hardworking Americans caught in the middle can really use that kind of extra cash. My recommendations for a firm restraint on the growth of Federal spending and for greater tax reduction are simple and straightforward. For every dollar saved in cutting the growth in the Federal budget, we can have an added dollar of Federal tax reduction. We can achieve a balanced budget by 1979 if we have the courage and the wisdom to continue to reduce the growth of Federal spending. One test of a healthy economy is a job for every American who wants to work. Government--our kind of government--cannot create that many jobs. But the Federal Government can create conditions and incentives for private business and industry to make more and more jobs. Five out of six jobs in this country are in private business and in industry. Common sense tells us this is the place to look for more jobs and to find them faster. I mean real, rewarding, permanent jobs. To achieve this we must offer the American people greater incentives to invest in the future. My tax proposals are a major step in that direction. To supplement these proposals, I ask that Congress enact changes in Federal tax laws that will speed up plant expansion and the purchase of new equipment. My recommendations will concentrate this job-creation tax incentive in areas where the unemployment rate now runs over 7 percent. Legislation to get this started must be approved at the earliest possible date. Within the strict budget total that I will recommend for the coming year, I will ask for additional housing assistance for 500,000 families. These programs will expand housing opportunities, spur construction, and help to house moderate- and low-income families. We had a disappointing year in the housing industry in 1975. But with lower interest rates and available mortgage money, we can have a healthy recovery in 1976. A necessary condition of a healthy economy is freedom from the petty tyranny of massive government regulation. We are wasting literally millions of working hours costing billions of taxpayers' and consumers' dollars because of bureaucratic redtape. The American farmer, who now feeds 215 million Americans, but also millions worldwide, has shown how touch more he can produce without the shackles of government control. Now, we badly need reforms in other key areas in our economy: the airlines, trucking, railroads, and financial institutions. I have submitted concrete plans in each of these areas, not to help this or that industry, but to foster competition and to bring prices down for the consumer. This administration, in addition, will strictly enforce the Federal antitrust laws for the very same purposes. Taking a longer look at America's future, there can be neither sustained growth nor more jobs unless we continue to have an assured supply of energy to run our economy. Domestic production of oil and gas is still declining. Our dependence on foreign oil at high prices is still too great, draining jobs and dollars away from our own economy at the rate of $125 per year for every American. Last month, I signed a compromise national energy bill which enacts a part of my comprehensive energy independence program. This legislation was late, not the complete answer to energy independence, but still a start in the right direction. I again urge the Congress to move ahead immediately on the remainder of my energy proposals to make America invulnerable to the foreign oil cartel. My proposals, as all of you know, would reduce domestic natural gas shortages; allow production from Federal petroleum reserves; stimulate effective conservation, including revitalization of our railroads and the expansion of our urban transportation systems; develop more and cleaner energy from our vast coal resources; expedite clean and safe nuclear power production; create a new national energy independence authority to stimulate vital energy investment; and accelerate development of technology to capture energy from the Sun and the Earth for this and future generations. Also, I ask, for the sake of future generations, that we preserve the family farm and family-owned small business. Both strengthen America and give stability to our economy. I will propose estate tax changes so that family businesses and family farms can be handed down from generation to generation without having to be sold to pay taxes. I propose tax changes to encourage people to invest in America's future, and their own, through a plan that gives moderate-income families income tax benefits if they make long-term investments in common stock in American companies. The Federal Government must and will respond to clear-cut national needs-for this and future generations. Hospital and medical services in America are among the best in the world, but the cost of a serious and extended illness can quickly wipe out a family's lifetime savings. Increasing health costs are of deep concern to all and a powerful force pushing up the cost of living. The burden of catastrophic illness can be borne by very few in our society. We must eliminate this fear from every family. I propose catastrophic health insurance for everybody covered by Medicare. To finance this added protection, fees for short-term care will go up somewhat, but nobody after reaching age 65 will have to pay more than $500 a year for covered hospital or nursing home care, nor more than $250 for 1 year's doctor bills. We cannot realistically afford federally dictated national health insurance providing full coverage for all 215 million Americans. The experience of other countries raises questions about the quality as well as the cost of such plans. But I do envision the day when we may use the private health insurance system to offer more middle-income families high quality health services at prices they can afford and shield them also from their catastrophic illnesses. Using resources now available, I propose improving the Medicare and other Federal health programs to help those who really need protection--older people and the poor. To help States and local governments give better health care to the poor, I propose that we combine 16 existing Federal programs, including Medicaid, into a single $10 billion Federal grant. Funds would be divided among States under a new formula which provides a larger share of Federal money to those States that have a larger share of low-income families. I will take further steps to improve the quality of medical and hospital care for those who have served in our Armed Forces. Now let me speak about social security. Our Federal social security system for people who have worked and contributed to it for all their lives is a vital part of our economic system. Its value is no longer debatable. In my budget for fiscal year 1977, I am recommending that the full cost-of-living increases in the social security benefits be paid during the coming year. But I am concerned about the integrity of our Social Security Trust Fund that enables people--those retired and those still working who will retire--to count on this source of retirement income. Younger workers watch their deductions rise and wonder if they will be adequately protected in the future. We must meet this challenge head on. Simple arithmetic warns all of us that the Social Security Trust Fund is headed for trouble. Unless we act soon to make sure the fund takes in as much as it pays out, there will be no security for old or for young. I must, therefore, recommend a three-tenths of 1 percent increase in both employer and employee social security taxes effective January 1, 1977. This will cost each covered employee less than 1 extra dollar a week and will ensure the integrity of the trust fund. As we rebuild our economy, we have a continuing responsibility to provide a temporary cushion to the unemployed. At my request, the Congress enacted two extensions and two expansions in unemployment insurance which helped those who were jobless during 1975. These programs will continue in 1976. In my fiscal year 1977 budget, I am also requesting funds to continue proven job training and employment opportunity programs for millions of other Americans. Compassion and a sense of community--two of America's greatest strengths throughout our history-- tell us we must take care of our neighbors who cannot take care of themselves. The host of Federal programs in this field reflect our generosity as a people. But everyone realizes that when it comes to welfare, government at all levels is not doing the job well. Too many of our welfare programs are inequitable and invite abuse. Too many of our welfare programs have problems from beginning to end. Worse, we are wasting badly needed resources without reaching many of the truly needy. Complex welfare programs cannot be reformed overnight. Surely we cannot simply dump welfare into the laps of the 50 States, their local taxpayers, or their private charities, and just walk away from it. Nor is it the right time for massive and sweeping changes while we are still recovering from the recession. Nevertheless, there are still plenty of improvements that we can make. I will ask Congress for Presidential authority to tighten up the rules for eligibility and benefits. Last year I twice sought long overdue reform of the scandal-riddled food stamp program. This year I say again: Let's give food stamps to those most in need. Let's not give any to those who don't need them. Protecting the life and property of the citizen at home is the responsibility of all public officials, but is primarily the job of local and State law enforcement authorities. Americans have always found the very thought of a Federal police force repugnant, and so do I. But there are proper ways in which we can help to insure domestic tranquility as the Constitution charges us. My recommendations on how to control violent crime were submitted to the Congress last June with strong emphasis on protecting the innocent victims of crime. To keep a convicted criminal from committing more crimes, we must put him in prison so he cannot harm more law-abiding citizens. To be effective, this punishment must be swift and it must be certain. Too often, criminals are not sent to prison after conviction but are allowed to return to the streets. Some judges are reluctant to send convicted criminals to prison because of inadequate facilities. To alleviate this problem at the Federal level, my new budget proposes the construction of four new Federal facilities. To speed Federal justice, I propose an increase this year in the United States attorneys prosecuting Federal crimes and the reinforcement of the number of United States marshals. Additional Federal judges are needed, as recommended by me and the Judicial Conference. Another major threat to every American's person and property is the criminal carrying a handgun. The way to cut down on the criminal use of guns is not to take guns away from the law-abiding citizen, but to impose mandatory sentences for crimes in which a gun is used, make it harder to obtain cheap guns for criminal purposes, and concentrate gun control enforcement in highcrime areas. My budget recommends 500 additional Federal agents in the 11 largest metropolitan high-crime areas to help local authorities stop criminals from selling and using handguns. The sale of hard drugs is tragically on the increase again. I have directed all agencies of the Federal Government to step up law enforcement efforts against those who deal in drugs. In 1975, I am glad to report, Federal agents seized substantially more heroin coming into our country than in 1974. As President, I have talked personally with the leaders of Mexico, Colombia, and Turkey to urge greater efforts by their Governments to control effectively the production and shipment of hard drugs. I recommended months ago that the Congress enact mandatory fixed sentences for persons convicted of Federal crimes involving the sale of hard drugs. Hard drugs, we all know, degrade the spirit as they destroy the body of their users. It is unrealistic and misleading to hold out the hope that the Federal Government can move into every neighborhood and clean up crime. Under the Constitution, the greatest responsibility for curbing crime lies with State and local authorities. They are the frontline fighters in the war against crime. There are definite ways in which the Federal Government can help them. I will propose in the new budget that Congress authorize almost $7 billion over the next 5 years to assist State and local governments to protect the safety and property of all their citizens. As President, I pledge the strict enforcement of Federal laws and--by example, support, and leadership--to help State and local authorities enforce their laws. Together, we must protect the victims of crime and ensure domestic tranquility. Last year I strongly recommended a 5-year extension of the existing revenue sharing legislation, which thus far has provided $23½ billion to help State and local units of government solve problems at home. This program has been effective with decisionmaking transferred from the Federal Government to locally elected officials. Congress must act this year, or State and local units of government will have to drop programs or raise local taxes. Including my health care program reforms, I propose to consolidate some 59 separate Federal programs and provide flexible Federal dollar grants to help States, cities, and local agencies in such important areas as education, child nutrition, and social services. This flexible system will do the job better and do it closer to home. The protection of the lives and property of Americans from foreign enemies is one of my primary responsibilities as President. In a world of instant communications and intercontinental ballistic missiles, in a world economy that is global and interdependent, our relations with other nations become more, not less, important to the lives of Americans. America has had a unique role in the world since the day of our independence 200 years ago. And ever since the end of World War II, we have borne--successfully--a heavy responsibility for ensuring a stable world order and hope for human progress. Today, the state of our foreign policy is sound and strong. We are at peace, and I will do all in my power to keep it that way. Our military forces are capable and ready. Our military power is without equal, and I intend to keep it that way. Our principal alliances with the industrial democracies of the Atlantic community and Japan have never been more solid. 
A further agreement to limit the strategic arms race may be achieved. We have an improving relationship with China, the world's most populous nation. 
The key elements for peace among the nations of the Middle East now exist. Our traditional friendships in Latin America, Africa, and Asia continue. We have taken the role of leadership in launching a serious and hopeful dialog between the industrial world and the developing world. We have helped to achieve significant reform of the international monetary system. We should be proud of what America, what our country, has accomplished in these areas, and I believe the American people are. The American people have heard too much about how terrible our mistakes, how evil our deeds, and how misguided our purposes. The American people know better. The truth is we are the world's greatest democracy. We remain the symbol of man's aspiration for liberty and well-being. We are the embodiment of hope for progress. I say it is time we quit downgrading ourselves as a nation. Of course, it is our responsibility to learn the right lesson from past mistakes. It is our duty to see that they never happen again. But our greater duty is to look to the future. The world's troubles will not go away. The American people want strong and effective international and defense policies. In our constitutional system, these policies should reflect consultation and accommodation between the President and the Congress. But in the final analysis, as the framers of our Constitution knew from hard experience, the foreign relations of the United States can be conducted effectively only if there is strong central direction that allows flexibility of action. That responsibility clearly rests with the President. I pledge to the American people policies which seek a secure, just, and peaceful world. I pledge to the Congress to work with you to that end. We must not face a future in which we can no longer help our friends, such as Angola, even in limited and carefully controlled ways. We must not lose all capacity to respond short of military intervention. Some hasty actions of the Congress during the past year--most recently in respect to Angola--were, in my view, very shortsighted. Unfortunately, they are still very much on the minds of our allies and our adversaries. A strong defense posture gives weight to our values and our views in international negotiations. It assures the vigor of our alliances. And it sustains our efforts to promote settlements of international conflicts. Only from a position of strength can we negotiate a balanced agreement to limit the growth of nuclear arms. Only a balanced agreement will serve our interests and minimize the threat of nuclear confrontation. The defense budget I will submit to the Congress for fiscal year 1977 will show an essential increase over the current year. It provides for real growth in purchasing power over this year's defense budget, which includes the cost of the all-volunteer force. We are continuing to make economies to enhance the efficiency of our military forces. But the budget I will submit represents the necessity of American strength for the real world in which we live. As conflict and rivalry persist in the world, our United States intelligence capabilities must be the best in the world. The crippling of our foreign intelligence services increases the danger of American involvement in direct armed conflict. Our adversaries are encouraged to attempt new adventures while our own ability to monitor events and to influence events short of military action is undermined. Without effective intelligence capability, the United States stands blindfolded and hobbled. In the near future, I will take actions to reform and strengthen our intelligence community. I ask for your positive cooperation. It is time to go beyond sensationalism and ensure an effective, responsible, and responsive intelligence capability. Tonight I have spoken about our problems at home and abroad. I have recommended policies that will meet the challenge of our third century. I have no doubt that our Union will endure, better, stronger, and with more individual freedom. We can see forward only dimly--1 year, 5 years, a generation perhaps. Like our forefathers, we know that if we meet the challenges of our own time with a common sense of purpose and conviction, if we remain true to our Constitution and to our ideals, then we can know that the future will be better than the past. I see America today crossing a threshold, not just because it is our Bicentennial but because we have been tested in adversity. We have taken a new look at what we want to be and what we want our Nation to become. I see America resurgent, certain once again that life will be better for our children than it is for us, seeking strength that cannot be counted in megatons and riches that cannot be eroded by inflation. I see these United States of America moving forward as before toward a more perfect Union where the government serves and the people rule. We will not make this happen simply by making speeches, good or bad, yours or mine, but by hard work and hard decisions made with courage and with common sense. I have heard many inspiring Presidential speeches, but the words I remember best were spoken by Dwight D. Eisenhower. "America is not good because' it is great," the President said. "America is great because it is good." President Eisenhower was raised in a poor but religious home in the heart of America. His simple words echoed President Lincoln's eloquent testament that "right makes might." And Lincoln in turn evoked the silent image of George Washington kneeling in prayer at Valley Forge. So, all these magic memories which link eight generations of Americans are summed up in the inscription just above me. How many times have we seen it? "In God We Trust." 
Let us engrave it now in each of our hearts as we begin our Bicentennial.
Mr. Speaker, Mr. Vice President, Members of the 94th Congress, and distinguished guests: As we begin our Bicentennial, America is still one of the youngest nations in recorded history. Long before our forefathers came to these shores, men and women had been struggling on this planet to forge a better life for themselves and their families. In man's long, upward march from savagery and slavery--throughout the nearly 2,000 years of the Christian calendar, the nearly 6,000 years of Jewish reckoning--there have been many deep, terrifying valleys, but also many bright and towering peaks. One peak stands highest in the ranges of human history. One example shines forth of a people uniting to produce abundance and to share the good life fairly and with freedom. One union holds out the promise of justice and opportunity for every citizen: That union is the United States of America. We have not remade paradise on Earth. We know perfection will not be found here. But think for a minute how far we have come in 200 years. We came from many roots, and we have many branches. Yet all Americans across the eight generations that separate us from the stirring deeds of 1776, those who know no other homeland and those who just found refuge among our shores, say in unison: I am proud of America, and I am proud to be an American. Life will be a little better here for my children than for me. I believe this not because I am told to believe it, but because life has been better for me than it was for my father and my mother. I know it will be better for my children because my hands, my brains, my voice, and my vote can help make it happen. It has happened here in America. It has happened to you and to me. Government exists to create and preserve conditions in which people can translate their ideas into practical reality. In the best of times, much is lost in translation. But we try. Sometimes we have tried and failed. Always we have had the best of intentions. But in the recent past, we sometimes forgot the sound principles that guided us through most of our history. We wanted to accomplish great things and solve age-old problems. And we became overconfident of our abilities. We tried to be a policeman abroad and the indulgent parent here at home. We thought we could transform the country through massive national programs, but often the programs did not work. Too often they only made things worse. In our rush to accomplish great deeds quickly, we trampled on sound principles of restraint and endangered the rights of individuals. We unbalanced our economic system by the huge and unprecedented growth of Federal expenditures and borrowing. And we were not totally honest with ourselves about how much these programs would cost and how we would pay for them. Finally, we shifted our emphasis from defense to domestic problems while our adversaries continued a massive buildup of arms. The time has now come for a fundamentally different approach for a new realism that is true to the great principles upon which this Nation was founded. We must introduce a new balance to our economy--a balance that favors not only sound, active government but also a much more vigorous, healthy economy that can create new jobs and hold down prices. We must introduce a new balance in the relationship between the individual and the government--a balance that favors greater individual freedom and self-reliance. We must strike a new balance in our system of federalism--a balance that favors greater responsibility and freedom for the leaders of our State and local governments. We must introduce a new balance between the spending on domestic programs and spending on defense--a balance that ensures we will fully meet our obligation to the needy while also protecting our security in a world that is still hostile to freedom. And in all that we do, we must be more honest with the American people, promising them no more than we can deliver and delivering all that we promise. The genius of America has been its incredible ability to improve the lives of its citizens through a unique combination of governmental and free citizen activity. History and experience tells us that moral progress cannot come in comfortable and in complacent times, but out of trial and out of confusion. Tom Paine aroused the troubled Americans of 1776 to stand up to the times that try men's souls because the harder the conflict, the more glorious the triumph. Just a year ago I reported that the state of the Union was not good. Tonight, I report that the state of our Union is better--in many ways a lot better--but still not good enough. To paraphrase Tom Paine, 1975 was not a year for summer soldiers and sum shine patriots. It was a year of fears and alarms and of dire forecasts--most of which never happened and will not happen. As you recall, the year 1975 opened with rancor and with bitterness. Political misdeeds of the past had neither been forgotten nor forgiven. The longest, most divisive war in our history was winding toward an unhappy conclusion. Many feared that the end of that foreign war of men and machines meant the beginning of a domestic war of recrimination and reprisal. Friends and adversaries abroad were asking whether America had lost its nerve. Finally, our economy was ravaged by inflation--inflation that was plunging us into the worse recession in four decades. At the same time, Americans became increasingly alienated from big institutions. They were steadily losing confidence, not just in big government but in big business, big labor, and big education, among others. Ours was a troubled land. And so, 1975 was a year of hard decisions, difficult compromises, and a new realism that taught us something important about America. It brought back a needed measure of common sense, steadfastness, and self-discipline. Americans did not panic or demand instant but useless cures. In all sectors, people met their difficult problems with the restraint and with responsibility worthy of their great heritage. Add up the separate pieces of progress in 1975, subtract the setbacks, and the sum total shows that we are not only headed in a new direction, a direction which I proposed 12 months ago, but it turned out to be the right direction. It is the right direction because it follows the truly revolutionary American concept of 1776, which holds that in a free society the making of public policy and successful problemsolving involves much more than government. It involves a full partnership among all branches and all levels of government, private institutions, and individual citizens. Common sense tells me to stick to that steady course. Take the state of our economy. Last January, most things were rapidly getting worse. This January, most things are slowly but surely getting better. The worst recession since World War II turned around in April. The best cost-of-living news of the past year is that double-digit inflation of 12 percent or higher was cut almost in half. The worst--unemployment remains far too high. Today, nearly 1,700,000 more Americans are working than at the bottom of the recession. At year's end, people were again being hired much faster than they Were being laid off. Yet, let us be honest. Many Americans have not yet felt these changes in their daily lives. They still see prices going up far too fast, and they still know the fear of unemployment. We are also a growing nation. We need more and more jobs every year. Today's economy has produced over 85 million jobs for Americans, but we need a lot more jobs, especially for the young. My first objective is to have sound economic growth without inflation. We all know from recent experience what runaway inflation does to ruin every other worthy purpose. We are slowing it. We must stop it cold. For many Americans, the way to a healthy, noninflationary economy has become increasingly apparent. The Government must stop spending so much and stop borrowing so much of our money. More money must remain in private hands where it will do the most good. To hold down the cost of living, we must hold down the cost of government. In the past decade, the Federal budget has been growing at an average rate of over 10 percent a year. The budget I am submitting Wednesday cuts this rate of growth in half. I have kept my promise to submit a budget for the next fiscal year of $395 billion. In fact, it is $394.2 billion. By holding down the growth of Federal spending, we can afford additional tax cuts and return to the people who pay taxes more decisionmaking power over their own lives. Last month I signed legislation to extend the 1975 tax reductions for the first 6 months of this year. I now propose that effective July 1, 1976, we give our taxpayers a tax cut of approximately $10 billion more than Congress agreed to in December. My broader tax reduction would mean that for a family of four making $15,000 a year, there will be $227 more in take-home pay annually. Hardworking Americans caught in the middle can really use that kind of extra cash. My recommendations for a firm restraint on the growth of Federal spending and for greater tax reduction are simple and straightforward. For every dollar saved in cutting the growth in the Federal budget, we can have an added dollar of Federal tax reduction. We can achieve a balanced budget by 1979 if we have the courage and the wisdom to continue to reduce the growth of Federal spending. One test of a healthy economy is a job for every American who wants to work. Government--our kind of government--cannot create that many jobs. But the Federal Government can create conditions and incentives for private business and industry to make more and more jobs. Five out of six jobs in this country are in private business and in industry. Common sense tells us this is the place to look for more jobs and to find them faster. I mean real, rewarding, permanent jobs. To achieve this we must offer the American people greater incentives to invest in the future. My tax proposals are a major step in that direction. To supplement these proposals, I ask that Congress enact changes in Federal tax laws that will speed up plant expansion and the purchase of new equipment. My recommendations will concentrate this job-creation tax incentive in areas where the unemployment rate now runs over 7 percent. Legislation to get this started must be approved at the earliest possible date. Within the strict budget total that I will recommend for the coming year, I will ask for additional housing assistance for 500,000 families. These programs will expand housing opportunities, spur construction, and help to house moderate- and low-income families. We had a disappointing year in the housing industry in 1975. But with lower interest rates and available mortgage money, we can have a healthy recovery in 1976. A necessary condition of a healthy economy is freedom from the petty tyranny of massive government regulation. We are wasting literally millions of working hours costing billions of taxpayers' and consumers' dollars because of bureaucratic redtape. The American farmer, who now feeds 215 million Americans, but also millions worldwide, has shown how touch more he can produce without the shackles of government control. Now, we badly need reforms in other key areas in our economy: the airlines, trucking, railroads, and financial institutions. I have submitted concrete plans in each of these areas, not to help this or that industry, but to foster competition and to bring prices down for the consumer. This administration, in addition, will strictly enforce the Federal antitrust laws for the very same purposes. Taking a longer look at America's future, there can be neither sustained growth nor more jobs unless we continue to have an assured supply of energy to run our economy. Domestic production of oil and gas is still declining. Our dependence on foreign oil at high prices is still too great, draining jobs and dollars away from our own economy at the rate of $125 per year for every American. Last month, I signed a compromise national energy bill which enacts a part of my comprehensive energy independence program. This legislation was late, not the complete answer to energy independence, but still a start in the right direction. I again urge the Congress to move ahead immediately on the remainder of my energy proposals to make America invulnerable to the foreign oil cartel. My proposals, as all of you know, would reduce domestic natural gas shortages; allow production from Federal petroleum reserves; stimulate effective conservation, including revitalization of our railroads and the expansion of our urban transportation systems; develop more and cleaner energy from our vast coal resources; expedite clean and safe nuclear power production; create a new national energy independence authority to stimulate vital energy investment; and accelerate development of technology to capture energy from the Sun and the Earth for this and future generations. Also, I ask, for the sake of future generations, that we preserve the family farm and family-owned small business. Both strengthen America and give stability to our economy. I will propose estate tax changes so that family businesses and family farms can be handed down from generation to generation without having to be sold to pay taxes. I propose tax changes to encourage people to invest in America's future, and their own, through a plan that gives moderate-income families income tax benefits if they make long-term investments in common stock in American companies. The Federal Government must and will respond to clear-cut national needs-for this and future generations. Hospital and medical services in America are among the best in the world, but the cost of a serious and extended illness can quickly wipe out a family's lifetime savings. Increasing health costs are of deep concern to all and a powerful force pushing up the cost of living. The burden of catastrophic illness can be borne by very few in our society. We must eliminate this fear from every family. I propose catastrophic health insurance for everybody covered by Medicare. To finance this added protection, fees for short-term care will go up somewhat, but nobody after reaching age 65 will have to pay more than $500 a year for covered hospital or nursing home care, nor more than $250 for 1 year's doctor bills. We cannot realistically afford federally dictated national health insurance providing full coverage for all 215 million Americans. The experience of other countries raises questions about the quality as well as the cost of such plans. But I do envision the day when we may use the private health insurance system to offer more middle-income families high quality health services at prices they can afford and shield them also from their catastrophic illnesses. Using resources now available, I propose improving the Medicare and other Federal health programs to help those who really need protection--older people and the poor. To help States and local governments give better health care to the poor, I propose that we combine 16 existing Federal programs, including Medicaid, into a single $10 billion Federal grant. Funds would be divided among States under a new formula which provides a larger share of Federal money to those States that have a larger share of low-income families. I will take further steps to improve the quality of medical and hospital care for those who have served in our Armed Forces. Now let me speak about social security. Our Federal social security system for people who have worked and contributed to it for all their lives is a vital part of our economic system. Its value is no longer debatable. In my budget for fiscal year 1977, I am recommending that the full cost-of-living increases in the social security benefits be paid during the coming year. But I am concerned about the integrity of our Social Security Trust Fund that enables people--those retired and those still working who will retire--to count on this source of retirement income. Younger workers watch their deductions rise and wonder if they will be adequately protected in the future. We must meet this challenge head on. Simple arithmetic warns all of us that the Social Security Trust Fund is headed for trouble. Unless we act soon to make sure the fund takes in as much as it pays out, there will be no security for old or for young. I must, therefore, recommend a three-tenths of 1 percent increase in both employer and employee social security taxes effective January 1, 1977. This will cost each covered employee less than 1 extra dollar a week and will ensure the integrity of the trust fund. As we rebuild our economy, we have a continuing responsibility to provide a temporary cushion to the unemployed. At my request, the Congress enacted two extensions and two expansions in unemployment insurance which helped those who were jobless during 1975. These programs will continue in 1976. In my fiscal year 1977 budget, I am also requesting funds to continue proven job training and employment opportunity programs for millions of other Americans. Compassion and a sense of community--two of America's greatest strengths throughout our history-- tell us we must take care of our neighbors who cannot take care of themselves. The host of Federal programs in this field reflect our generosity as a people. But everyone realizes that when it comes to welfare, government at all levels is not doing the job well. Too many of our welfare programs are inequitable and invite abuse. Too many of our welfare programs have problems from beginning to end. Worse, we are wasting badly needed resources without reaching many of the truly needy. Complex welfare programs cannot be reformed overnight. Surely we cannot simply dump welfare into the laps of the 50 States, their local taxpayers, or their private charities, and just walk away from it. Nor is it the right time for massive and sweeping changes while we are still recovering from the recession. Nevertheless, there are still plenty of improvements that we can make. I will ask Congress for Presidential authority to tighten up the rules for eligibility and benefits. Last year I twice sought long overdue reform of the scandal-riddled food stamp program. This year I say again: Let us give food stamps to those most in need. Let us not give any to those who do not need them. Protecting the life and property of the citizen at home is the responsibility of all public officials, but is primarily the job of local and State law enforcement authorities. Americans have always found the very thought of a Federal police force repugnant, and so do I. But there are proper ways in which we can help to insure domestic tranquility as the Constitution charges us. My recommendations on how to control violent crime were submitted to the Congress last June with strong emphasis on protecting the innocent victims of crime. To keep a convicted criminal from committing more crimes, we must put him in prison so he cannot harm more law-abiding citizens. To be effective, this punishment must be swift and it must be certain. Too often, criminals are not sent to prison after conviction but are allowed to return to the streets. Some judges are reluctant to send convicted criminals to prison because of inadequate facilities. To alleviate this problem at the Federal level, my new budget proposes the construction of four new Federal facilities. To speed Federal justice, I propose an increase this year in the United States attorneys prosecuting Federal crimes and the reinforcement of the number of United States marshals. Additional Federal judges are needed, as recommended by me and the Judicial Conference. Another major threat to every American's person and property is the criminal carrying a handgun. The way to cut down on the criminal use of guns is not to take guns away from the law-abiding citizen, but to impose mandatory sentences for crimes in which a gun is used, make it harder to obtain cheap guns for criminal purposes, and concentrate gun control enforcement in highcrime areas. My budget recommends 500 additional Federal agents in the 11 largest metropolitan high-crime areas to help local authorities stop criminals from selling and using handguns. The sale of hard drugs is tragically on the increase again. I have directed all agencies of the Federal Government to step up law enforcement efforts against those who deal in drugs. In 1975, I am glad to report, Federal agents seized substantially more heroin coming into our country than in 1974. As President, I have talked personally with the leaders of Mexico, Colombia, and Turkey to urge greater efforts by their Governments to control effectively the production and shipment of hard drugs. I recommended months ago that the Congress enact mandatory fixed sentences for persons convicted of Federal crimes involving the sale of hard drugs. Hard drugs, we all know, degrade the spirit as they destroy the body of their users. It is unrealistic and misleading to hold out the hope that the Federal Government can move into every neighborhood and clean up crime. Under the Constitution, the greatest responsibility for curbing crime lies with State and local authorities. They are the frontline fighters in the war against crime. There are definite ways in which the Federal Government can help them. I will propose in the new budget that Congress authorize almost $7 billion over the next 5 years to assist State and local governments to protect the safety and property of all their citizens. As President, I pledge the strict enforcement of Federal laws and--by example, support, and leadership--to help State and local authorities enforce their laws. Together, we must protect the victims of crime and ensure domestic tranquility. Last year I strongly recommended a 5-year extension of the existing revenue sharing legislation, which thus far has provided $23½ billion to help State and local units of government solve problems at home. This program has been effective with decisionmaking transferred from the Federal Government to locally elected officials. Congress must act this year, or State and local units of government will have to drop programs or raise local taxes. Including my health care program reforms, I propose to consolidate some 59 separate Federal programs and provide flexible Federal dollar grants to help States, cities, and local agencies in such important areas as education, child nutrition, and social services. This flexible system will do the job better and do it closer to home. The protection of the lives and property of Americans from foreign enemies is one of my primary responsibilities as President. In a world of instant communications and intercontinental ballistic missiles, in a world economy that is global and interdependent, our relations with other nations become more, not less, important to the lives of Americans. America has had a unique role in the world since the day of our independence 200 years ago. And ever since the end of World War II, we have borne--successfully--a heavy responsibility for ensuring a stable world order and hope for human progress. Today, the state of our foreign policy is sound and strong. We are at peace, and I will do all in my power to keep it that way. Our military forces are capable and ready. Our military power is without equal, and I intend to keep it that way. Our principal alliances with the industrial democracies of the Atlantic community and Japan have never been more solid. A further agreement to limit the strategic arms race may be achieved. We have an improving relationship with China, the world's most populous nation. The key elements for peace among the nations of the Middle East now exist. Our traditional friendships in Latin America, Africa, and Asia continue. We have taken the role of leadership in launching a serious and hopeful dialog between the industrial world and the developing world. We have helped to achieve significant reform of the international monetary system. We should be proud of what America, what our country, has accomplished in these areas, and I believe the American people are. The American people have heard too much about how terrible our mistakes, how evil our deeds, and how misguided our purposes. The American people know better. The truth is we are the world's greatest democracy. We remain the symbol of man's aspiration for liberty and well-being. We are the embodiment of hope for progress. I say it is time we quit downgrading ourselves as a nation. Of course, it is our responsibility to learn the right lesson from past mistakes. It is our duty to see that they never happen again. But our greater duty is to look to the future. The world's troubles will not go away. The American people want strong and effective international and defense policies. In our constitutional system, these policies should reflect consultation and accommodation between the President and the Congress. But in the final analysis, as the framers of our Constitution knew from hard experience, the foreign relations of the United States can be conducted effectively only if there is strong central direction that allows flexibility of action. That responsibility clearly rests with the President. I pledge to the American people policies which seek a secure, just, and peaceful world. I pledge to the Congress to work with you to that end. We must not face a future in which we can no longer help our friends, such as Angola, even in limited and carefully controlled ways. We must not lose all capacity to respond short of military intervention. Some hasty actions of the Congress during the past year--most recently in respect to Angola--were, in my view, very shortsighted. Unfortunately, they are still very much on the minds of our allies and our adversaries. A strong defense posture gives weight to our values and our views in international negotiations. It assures the vigor of our alliances. And it sustains our efforts to promote settlements of international conflicts. Only from a position of strength can we negotiate a balanced agreement to limit the growth of nuclear arms. Only a balanced agreement will serve our interests and minimize the threat of nuclear confrontation. The defense budget I will submit to the Congress for fiscal year 1977 will show an essential increase over the current year. It provides for real growth in purchasing power over this year's defense budget, which includes the cost of the all-volunteer force. We are continuing to make economies to enhance the efficiency of our military forces. But the budget I will submit represents the necessity of American strength for the real world in which we live. As conflict and rivalry persist in the world, our United States intelligence capabilities must be the best in the world. The crippling of our foreign intelligence services increases the danger of American involvement in direct armed conflict. Our adversaries are encouraged to attempt new adventures while our own ability to monitor events and to influence events short of military action is undermined. Without effective intelligence capability, the United States stands blindfolded and hobbled. In the near future, I will take actions to reform and strengthen our intelligence community. I ask for your positive cooperation. It is time to go beyond sensationalism and ensure an effective, responsible, and responsive intelligence capability. Tonight I have spoken about our problems at home and abroad. I have recommended policies that will meet the challenge of our third century. I have no doubt that our Union will endure, better, stronger, and with more individual freedom. We can see forward only dimly--1 year, 5 years, a generation perhaps. Like our forefathers, we know that if we meet the challenges of our own time with a common sense of purpose and conviction, if we remain true to our Constitution and to our ideals, then we can know that the future will be better than the past. I see America today crossing a threshold, not just because it is our Bicentennial but because we have been tested in adversity. We have taken a new look at what we want to be and what we want our Nation to become. I see America resurgent, certain once again that life will be better for our children than it is for us, seeking strength that cannot be counted in megatons and riches that cannot be eroded by inflation. I see these United States of America moving forward as before toward a more perfect Union where the government serves and the people rule. We will not make this happen simply by making speeches, good or bad, yours or mine, but by hard work and hard decisions made with courage and with common sense. I have heard many inspiring Presidential speeches, but the words I remember best were spoken by Dwight D. Eisenhower. "America is not good because' it is great," the President said. "America is great because it is good." President Eisenhower was raised in a poor but religious home in the heart of America. His simple words echoed President Lincoln's eloquent testament that "right makes might." And Lincoln in turn evoked the silent image of George Washington kneeling in prayer at Valley Forge. So, all these magic memories which link eight generations of Americans are summed up in the inscription just above me. How many times have we seen it? "In God We Trust." Let us engrave it now in each of our hearts as we begin our Bicentennial.
speaker vice president members of the 94th congress and distinguished guests as we begin our bicentennial america is still one of the youngest nations in recorded history long before our forefathers came to these shores men and women had been struggling on this planet to forge a better life for themselves and their families in man long upward march from savagery and slavery throughout the nearly years of the christian calendar the nearly years of jewish reckoning there have been many deep terrifying valleys but also many bright and towering peaks one peak stands highest in the ranges of human history one example shines forth of a people uniting to produce abundance and to share the good life fairly and with freedom one union holds out the promise of justice and opportunity for every citizen that union is the united states of america we have not remade paradise on earth we know perfection will not be found here but think for a minute how far we have come in 200 years we came from many roots and we have many branches yet all americans across the eight generations that separate us from the stirring deeds of 1776 those who know no other homeland and those who just found refuge among our shores say in unison i am proud of america and i am proud to be an american life will be a little better here for my children than for me i believe this not because i am told to believe it but because life has been better for me than it was for my father and my mother i know it will be better for my children because my hands my brains my voice and my vote can help make it happen it has happened here in america it has happened to you and to me government exists to create and preserve conditions in which people can translate their ideas into practical reality in the best of times much is lost in translation but we try sometimes we have tried and failed always we have had the best of intentions but in the recent past we sometimes forgot the sound principles that guided us through most of our history we wanted to accomplish great things and solve problems and we became overconfident of our abilities we tried to be a policeman abroad and the indulgent parent here at home we thought we could transform the country through massive national programs but often the programs did not work too often they only made things worse in our rush to accomplish great deeds quickly we trampled on sound principles of restraint and endangered the rights of individuals we unbalanced our economic system by the huge and unprecedented growth of federal expenditures and borrowing and we were not totally honest with ourselves about how much these programs would cost and how we would pay for them finally we shifted our emphasis from defense to domestic problems while our adversaries continued a massive buildup of arms the time has now come for a fundamentally different approach for a new realism that is true to the great principles upon which this nation was founded we must introduce a new balance to our economy a balance that favors not only sound active government but also a much more vigorous healthy economy that can create new jobs and hold down prices we must introduce a new balance in the relationship between the individual and the government a balance that favors greater individual freedom and we must strike a new balance in our system of federalism a balance that favors greater responsibility and freedom for the leaders of our state and local governments we must introduce a new balance between the spending on domestic programs and spending on defense a balance that ensures we will fully meet our obligation to the needy while also protecting our security in a world that is still hostile to freedom and in all that we do we must be more honest with the american people promising them no more than we can deliver and delivering all that we promise the genius of america has been its incredible ability to improve the lives of its citizens through a unique combination of governmental and free citizen activity history and experience tells us that moral progress can not come in comfortable and in complacent times but out of trial and out of confusion tom paine aroused the troubled americans of 1776 to stand up to the times that try men souls because the harder the conflict the more glorious the triumph just a year ago i reported that the state of the union was not good tonight i report that the state of our union is better in many ways a lot better but still not good enough to paraphrase tom paine 1975 was not a year for summer soldiers and sum shine patriots it was a year of fears and alarms and of dire forecasts most of which never happened and will not happen as you recall the year 1975 opened with rancor and with bitterness political misdeeds of the past had neither been forgotten nor forgiven the longest most divisive war in our history was winding toward an unhappy conclusion many feared that the end of that foreign war of men and machines meant the beginning of a domestic war of recrimination and reprisal friends and adversaries abroad were asking whether america had lost its nerve finally our economy was ravaged by inflation inflation that was plunging us into the worse recession in four decades at the same time americans became increasingly alienated from big institutions they were steadily losing confidence not just in big government but in big business big labor and big education among others ours was a troubled land and so 1975 was a year of hard decisions difficult compromises and a new realism that taught us something important about america it brought back a needed measure of common sense steadfastness and americans did not panic or demand instant but useless cures in all sectors people met their difficult problems with the restraint and with responsibility worthy of their great heritage add up the separate pieces of progress in 1975 subtract the setbacks and the sum total shows that we are not only headed in a new direction a direction which i proposed 12 months ago but it turned out to be the right direction it is the right direction because it follows the truly revolutionary american concept of 1776 which holds that in a free society the making of public policy and successful problemsolving involves much more than government it involves a full partnership among all branches and all levels of government private institutions and individual citizens common sense tells me to stick to that steady course take the state of our economy last january most things were rapidly getting worse this january most things are slowly but surely getting better the worst recession since world war ii turned around in april the best news of the past year is that inflation of 12 percent or higher was cut almost in half the worst unemployment remains far too high today nearly more americans are working than at the bottom of the recession at year end people were again being hired much faster than they were being laid off yet let us be honest many americans have not yet felt these changes in their daily lives they still see prices going up far too fast and they still know the fear of unemployment we are also a growing nation we need more and more jobs every year today economy has produced over 85 million jobs for americans but we need a lot more jobs especially for the young my first objective is to have sound economic growth without inflation we all know from recent experience what runaway inflation does to ruin every other worthy purpose we are slowing it we must stop it cold for many americans the way to a healthy noninflationary economy has become increasingly apparent the government must stop spending so much and stop borrowing so much of our money more money must remain in private hands where it will do the most good to hold down the cost of living we must hold down the cost of government in the past decade the federal budget has been growing at an average rate of over 10 percent a year the budget i am submitting wednesday cuts this rate of growth in half i have kept my promise to submit a budget for the next fiscal year of 395 billion in fact it is billion by holding down the growth of federal spending we can afford additional tax cuts and return to the people who pay taxes more decisionmaking power over their own lives last month i signed legislation to extend the 1975 tax reductions for the first 6 months of this year i now propose that effective july 1 1976 we give our taxpayers a tax cut of approximately 10 billion more than congress agreed to in december my broader tax reduction would mean that for a family of four making a year there will be 227 more in pay annually hardworking americans caught in the middle can really use that kind of extra cash my recommendations for a firm restraint on the growth of federal spending and for greater tax reduction are simple and straightforward for every dollar saved in cutting the growth in the federal budget we can have an added dollar of federal tax reduction we can achieve a balanced budget by 1979 if we have the courage and the wisdom to continue to reduce the growth of federal spending one test of a healthy economy is a job for every american who wants to work government our kind of government can not create that many jobs but the federal government can create conditions and incentives for private business and industry to make more and more jobs five out of six jobs in this country are in private business and in industry common sense tells us this is the place to look for more jobs and to find them faster i mean real rewarding permanent jobs to achieve this we must offer the american people greater incentives to invest in the future my tax proposals are a major step in that direction to supplement these proposals i ask that congress enact changes in federal tax laws that will speed up plant expansion and the purchase of new equipment my recommendations will concentrate this tax incentive in areas where the unemployment rate now runs over 7 percent legislation to get this started must be approved at the earliest possible date within the strict budget total that i will recommend for the coming year i will ask for additional housing assistance for families these programs will expand housing opportunities spur construction and help to house and families we had a disappointing year in the housing industry in 1975 but with lower interest rates and available mortgage money we can have a healthy recovery in 1976 a necessary condition of a healthy economy is freedom from the petty tyranny of massive government regulation we are wasting literally millions of working hours costing billions of taxpayers and consumers dollars because of bureaucratic redtape the american farmer who now feeds 215 million americans but also millions worldwide has shown how touch more he can produce without the shackles of government control now we badly need reforms in other key areas in our economy the airlines trucking railroads and financial institutions i have submitted concrete plans in each of these areas not to help this or that industry but to foster competition and to bring prices down for the consumer this administration in addition will strictly enforce the federal antitrust laws for the very same purposes taking a longer look at america future there can be neither sustained growth nor more jobs unless we continue to have an assured supply of energy to run our economy domestic production of oil and gas is still declining our dependence on foreign oil at high prices is still too great draining jobs and dollars away from our own economy at the rate of 125 per year for every american last month i signed a compromise national energy bill which enacts a part of my comprehensive energy independence program this legislation was late not the complete answer to energy independence but still a start in the right direction i again urge the congress to move ahead immediately on the remainder of my energy proposals to make america invulnerable to the foreign oil cartel my proposals as all of you know would reduce domestic natural gas shortages allow production from federal petroleum reserves stimulate effective conservation including revitalization of our railroads and the expansion of our urban transportation systems develop more and cleaner energy from our vast coal resources expedite clean and safe nuclear power production create a new national energy independence authority to stimulate vital energy investment and accelerate development of technology to capture energy from the sun and the earth for this and future generations also i ask for the sake of future generations that we preserve the family farm and small business both strengthen america and give stability to our economy i will propose estate tax changes so that family businesses and family farms can be handed down from generation to generation without having to be sold to pay taxes i propose tax changes to encourage people to invest in america future and their own through a plan that gives families income tax benefits if they make investments in common stock in american companies the federal government must and will respond to national this and future generations hospital and medical services in america are among the best in the world but the cost of a serious and extended illness can quickly wipe out a family lifetime savings increasing health costs are of deep concern to all and a powerful force pushing up the cost of living the burden of catastrophic illness can be borne by very few in our society we must eliminate this fear from every family i propose catastrophic health insurance for everybody covered by medicare to finance this added protection fees for care will go up somewhat but nobody after reaching age 65 will have to pay more than 500 a year for covered hospital or nursing home care nor more than 250 for 1 year doctor bills we can not realistically afford federally dictated national health insurance providing full coverage for all 215 million americans the experience of other countries raises questions about the quality as well as the cost of such plans but i do envision the day when we may use the private health insurance system to offer more families high quality health services at prices they can afford and shield them also from their catastrophic illnesses using resources now available i propose improving the medicare and other federal health programs to help those who really need protection older people and the poor to help states and local governments give better health care to the poor i propose that we combine 16 existing federal programs including medicaid into a single 10 billion federal grant funds would be divided among states under a new formula which provides a larger share of federal money to those states that have a larger share of families i will take further steps to improve the quality of medical and hospital care for those who have served in our armed forces now let me speak about social security our federal social security system for people who have worked and contributed to it for all their lives is a vital part of our economic system its value is no longer debatable in my budget for fiscal year 1977 i am recommending that the full increases in the social security benefits be paid during the coming year but i am concerned about the integrity of our social security trust fund that enables people those retired and those still working who will retire to count on this source of retirement income younger workers watch their deductions rise and wonder if they will be adequately protected in the future we must meet this challenge head on simple arithmetic warns all of us that the social security trust fund is headed for trouble unless we act soon to make sure the fund takes in as much as it pays out there will be no security for old or for young i must therefore recommend a of 1 percent increase in both employer and employee social security taxes effective january 1 1977 this will cost each covered employee less than 1 extra dollar a week and will ensure the integrity of the trust fund as we rebuild our economy we have a continuing responsibility to provide a temporary cushion to the unemployed at my request the congress enacted two extensions and two expansions in unemployment insurance which helped those who were jobless during 1975 these programs will continue in 1976 in my fiscal year 1977 budget i am also requesting funds to continue proven job training and employment opportunity programs for millions of other americans compassion and a sense of community two of america greatest strengths throughout our history tell us we must take care of our neighbors who can not take care of themselves the host of federal programs in this field reflect our generosity as a people but everyone realizes that when it comes to welfare government at all levels is not doing the job well too many of our welfare programs are inequitable and invite abuse too many of our welfare programs have problems from beginning to end worse we are wasting badly needed resources without reaching many of the truly needy complex welfare programs can not be reformed overnight surely we can not simply dump welfare into the laps of the 50 states their local taxpayers or their private charities and just walk away from it nor is it the right time for massive and sweeping changes while we are still recovering from the recession nevertheless there are still plenty of improvements that we can make i will ask congress for presidential authority to tighten up the rules for eligibility and benefits last year i twice sought long overdue reform of the food stamp program this year i say again let us give food stamps to those most in need let us not give any to those who do not need them protecting the life and property of the citizen at home is the responsibility of all public officials but is primarily the job of local and state law enforcement authorities americans have always found the very thought of a federal police force repugnant and so do i but there are proper ways in which we can help to insure domestic tranquility as the constitution charges us my recommendations on how to control violent crime were submitted to the congress last june with strong emphasis on protecting the innocent victims of crime to keep a convicted criminal from committing more crimes we must put him in prison so he can not harm more citizens to be effective this punishment must be swift and it must be certain too often criminals are not sent to prison after conviction but are allowed to return to the streets some judges are reluctant to send convicted criminals to prison because of inadequate facilities to alleviate this problem at the federal level my new budget proposes the construction of four new federal facilities to speed federal justice i propose an increase this year in the united states attorneys prosecuting federal crimes and the reinforcement of the number of united states marshals additional federal judges are needed as recommended by me and the judicial conference another major threat to every american person and property is the criminal carrying a handgun the way to cut down on the criminal use of guns is not to take guns away from the citizen but to impose mandatory sentences for crimes in which a gun is used make it harder to obtain cheap guns for criminal purposes and concentrate gun control enforcement in highcrime areas my budget recommends 500 additional federal agents in the 11 largest metropolitan areas to help local authorities stop criminals from selling and using handguns the sale of hard drugs is tragically on the increase again i have directed all agencies of the federal government to step up law enforcement efforts against those who deal in drugs in 1975 i am glad to report federal agents seized substantially more heroin coming into our country than in 1974 as president i have talked personally with the leaders of mexico colombia and turkey to urge greater efforts by their governments to control effectively the production and shipment of hard drugs i recommended months ago that the congress enact mandatory fixed sentences for persons convicted of federal crimes involving the sale of hard drugs hard drugs we all know degrade the spirit as they destroy the body of their users it is unrealistic and misleading to hold out the hope that the federal government can move into every neighborhood and clean up crime under the constitution the greatest responsibility for curbing crime lies with state and local authorities they are the frontline fighters in the war against crime there are definite ways in which the federal government can help them i will propose in the new budget that congress authorize almost 7 billion over the next 5 years to assist state and local governments to protect the safety and property of all their citizens as president i pledge the strict enforcement of federal laws and by example support and leadership to help state and local authorities enforce their laws together we must protect the victims of crime and ensure domestic tranquility last year i strongly recommended a extension of the existing revenue sharing legislation which thus far has provided 23½ billion to help state and local units of government solve problems at home this program has been effective with decisionmaking transferred from the federal government to locally elected officials congress must act this year or state and local units of government will have to drop programs or raise local taxes including my health care program reforms i propose to consolidate some 59 separate federal programs and provide flexible federal dollar grants to help states cities and local agencies in such important areas as education child nutrition and social services this flexible system will do the job better and do it closer to home the protection of the lives and property of americans from foreign enemies is one of my primary responsibilities as president in a world of instant communications and intercontinental ballistic missiles in a world economy that is global and interdependent our relations with other nations become more not less important to the lives of americans america has had a unique role in the world since the day of our independence 200 years ago and ever since the end of world war ii we have borne successfully a heavy responsibility for ensuring a stable world order and hope for human progress today the state of our foreign policy is sound and strong we are at peace and i will do all in my power to keep it that way our military forces are capable and ready our military power is without equal and i intend to keep it that way our principal alliances with the industrial democracies of the atlantic community and japan have never been more solid a further agreement to limit the strategic arms race may be achieved we have an improving relationship with china the world most populous nation the key elements for peace among the nations of the middle east now exist our traditional friendships in latin america africa and asia continue we have taken the role of leadership in launching a serious and hopeful dialog between the industrial world and the developing world we have helped to achieve significant reform of the international monetary system we should be proud of what america what our country has accomplished in these areas and i believe the american people are the american people have heard too much about how terrible our mistakes how evil our deeds and how misguided our purposes the american people know better the truth is we are the world greatest democracy we remain the symbol of man aspiration for liberty and we are the embodiment of hope for progress i say it is time we quit downgrading ourselves as a nation of course it is our responsibility to learn the right lesson from past mistakes it is our duty to see that they never happen again but our greater duty is to look to the future the world troubles will not go away the american people want strong and effective international and defense policies in our constitutional system these policies should reflect consultation and accommodation between the president and the congress but in the final analysis as the framers of our constitution knew from hard experience the foreign relations of the united states can be conducted effectively only if there is strong central direction that allows flexibility of action that responsibility clearly rests with the president i pledge to the american people policies which seek a secure just and peaceful world i pledge to the congress to work with you to that end we must not face a future in which we can no longer help our friends such as angola even in limited and carefully controlled ways we must not lose all capacity to respond short of military intervention some hasty actions of the congress during the past year most recently in respect to angola were in my view very shortsighted unfortunately they are still very much on the minds of our allies and our adversaries a strong defense posture gives weight to our values and our views in international negotiations it assures the vigor of our alliances and it sustains our efforts to promote settlements of international conflicts only from a position of strength can we negotiate a balanced agreement to limit the growth of nuclear arms only a balanced agreement will serve our interests and minimize the threat of nuclear confrontation the defense budget i will submit to the congress for fiscal year 1977 will show an essential increase over the current year it provides for real growth in purchasing power over this year defense budget which includes the cost of the force we are continuing to make economies to enhance the efficiency of our military forces but the budget i will submit represents the necessity of american strength for the real world in which we live as conflict and rivalry persist in the world our united states intelligence capabilities must be the best in the world the crippling of our foreign intelligence services increases the danger of american involvement in direct armed conflict our adversaries are encouraged to attempt new adventures while our own ability to monitor events and to influence events short of military action is undermined without effective intelligence capability the united states stands blindfolded and hobbled in the near future i will take actions to reform and strengthen our intelligence community i ask for your positive cooperation it is time to go beyond sensationalism and ensure an effective responsible and responsive intelligence capability tonight i have spoken about our problems at home and abroad i have recommended policies that will meet the challenge of our third century i have no doubt that our union will endure better stronger and with more individual freedom we can see forward only dimly 1 year 5 years a generation perhaps like our forefathers we know that if we meet the challenges of our own time with a common sense of purpose and conviction if we remain true to our constitution and to our ideals then we can know that the future will be better than the past i see america today crossing a threshold not just because it is our bicentennial but because we have been tested in adversity we have taken a new look at what we want to be and what we want our nation to become i see america resurgent certain once again that life will be better for our children than it is for us seeking strength that can not be counted in megatons and riches that can not be eroded by inflation i see these united states of america moving forward as before toward a more perfect union where the government serves and the people rule we will not make this happen simply by making speeches good or bad yours or mine but by hard work and hard decisions made with courage and with common sense i have heard many inspiring presidential speeches but the words i remember best were spoken by dwight eisenhower america is not good because it is great the president said america is great because it is good president eisenhower was raised in a poor but religious home in the heart of america his simple words echoed president lincoln eloquent testament that right makes might and lincoln in turn evoked the silent image of george washington kneeling in prayer at valley forge so all these magic memories which link eight generations of americans are summed up in the inscription just above me how many times have we seen it in god we trust let us engrave it now in each of our hearts as we begin our bicentennial
speaker vice president members 94th congress distinguished guests begin bicentennial america still one youngest nations recorded history long forefathers came shores men women struggling planet forge better life families man long upward march savagery slavery throughout nearly years christian calendar nearly years jewish reckoning many deep terrifying valleys also many bright towering peaks one peak stands highest ranges human history one example shines forth people uniting produce abundance share good life fairly freedom one union holds promise justice opportunity every citizen union united states america remade paradise earth know perfection found think minute far come 200 years came many roots many branches yet americans across eight generations separate us stirring deeds 1776 know homeland found refuge among shores say unison proud america proud american life little better children believe told believe life better father mother know better children hands brains voice vote help make happen happened america happened government exists create preserve conditions people translate ideas practical reality best times much lost translation try sometimes tried failed always best intentions recent past sometimes forgot sound principles guided us history wanted accomplish great things solve problems became overconfident abilities tried policeman abroad indulgent parent home thought could transform country massive national programs often programs work often made things worse rush accomplish great deeds quickly trampled sound principles restraint endangered rights individuals unbalanced economic system huge unprecedented growth federal expenditures borrowing totally honest much programs would cost would pay finally shifted emphasis defense domestic problems adversaries continued massive buildup arms time come fundamentally different approach new realism true great principles upon nation founded must introduce new balance economy balance favors sound active government also much vigorous healthy economy create new jobs hold prices must introduce new balance relationship individual government balance favors greater individual freedom must strike new balance system federalism balance favors greater responsibility freedom leaders state local governments must introduce new balance spending domestic programs spending defense balance ensures fully meet obligation needy also protecting security world still hostile freedom must honest american people promising deliver delivering promise genius america incredible ability improve lives citizens unique combination governmental free citizen activity history experience tells us moral progress come comfortable complacent times trial confusion tom paine aroused troubled americans 1776 stand times try men souls harder conflict glorious triumph year ago reported state union good tonight report state union better many ways lot better still good enough paraphrase tom paine 1975 year summer soldiers sum shine patriots year fears alarms dire forecasts never happened happen recall year 1975 opened rancor bitterness political misdeeds past neither forgotten forgiven longest divisive war history winding toward unhappy conclusion many feared end foreign war men machines meant beginning domestic war recrimination reprisal friends adversaries abroad asking whether america lost nerve finally economy ravaged inflation inflation plunging us worse recession four decades time americans became increasingly alienated big institutions steadily losing confidence big government big business big labor big education among others troubled land 1975 year hard decisions difficult compromises new realism taught us something important america brought back needed measure common sense steadfastness americans panic demand instant useless cures sectors people met difficult problems restraint responsibility worthy great heritage add separate pieces progress 1975 subtract setbacks sum total shows headed new direction direction proposed 12 months ago turned right direction right direction follows truly revolutionary american concept 1776 holds free society making public policy successful problemsolving involves much government involves full partnership among branches levels government private institutions individual citizens common sense tells stick steady course take state economy last january things rapidly getting worse january things slowly surely getting better worst recession since world war ii turned around april best news past year inflation 12 percent higher cut almost half worst unemployment remains far high today nearly americans working bottom recession year end people hired much faster laid yet let us honest many americans yet felt changes daily lives still see prices going far fast still know fear unemployment also growing nation need jobs every year today economy produced 85 million jobs americans need lot jobs especially young first objective sound economic growth without inflation know recent experience runaway inflation ruin every worthy purpose slowing must stop cold many americans way healthy noninflationary economy become increasingly apparent government must stop spending much stop borrowing much money money must remain private hands good hold cost living must hold cost government past decade federal budget growing average rate 10 percent year budget submitting wednesday cuts rate growth half kept promise submit budget next fiscal year 395 billion fact billion holding growth federal spending afford additional tax cuts return people pay taxes decisionmaking power lives last month signed legislation extend 1975 tax reductions first 6 months year propose effective july 1 1976 give taxpayers tax cut approximately 10 billion congress agreed december broader tax reduction would mean family four making year 227 pay annually hardworking americans caught middle really use kind extra cash recommendations firm restraint growth federal spending greater tax reduction simple straightforward every dollar saved cutting growth federal budget added dollar federal tax reduction achieve balanced budget 1979 courage wisdom continue reduce growth federal spending one test healthy economy job every american wants work government kind government create many jobs federal government create conditions incentives private business industry make jobs five six jobs country private business industry common sense tells us place look jobs find faster mean real rewarding permanent jobs achieve must offer american people greater incentives invest future tax proposals major step direction supplement proposals ask congress enact changes federal tax laws speed plant expansion purchase new equipment recommendations concentrate tax incentive areas unemployment rate runs 7 percent legislation get started must approved earliest possible date within strict budget total recommend coming year ask additional housing assistance families programs expand housing opportunities spur construction help house families disappointing year housing industry 1975 lower interest rates available mortgage money healthy recovery 1976 necessary condition healthy economy freedom petty tyranny massive government regulation wasting literally millions working hours costing billions taxpayers consumers dollars bureaucratic redtape american farmer feeds 215 million americans also millions worldwide shown touch produce without shackles government control badly need reforms key areas economy airlines trucking railroads financial institutions submitted concrete plans areas help industry foster competition bring prices consumer administration addition strictly enforce federal antitrust laws purposes taking longer look america future neither sustained growth jobs unless continue assured supply energy run economy domestic production oil gas still declining dependence foreign oil high prices still great draining jobs dollars away economy rate 125 per year every american last month signed compromise national energy bill enacts part comprehensive energy independence program legislation late complete answer energy independence still start right direction urge congress move ahead immediately remainder energy proposals make america invulnerable foreign oil cartel proposals know would reduce domestic natural gas shortages allow production federal petroleum reserves stimulate effective conservation including revitalization railroads expansion urban transportation systems develop cleaner energy vast coal resources expedite clean safe nuclear power production create new national energy independence authority stimulate vital energy investment accelerate development technology capture energy sun earth future generations also ask sake future generations preserve family farm small business strengthen america give stability economy propose estate tax changes family businesses family farms handed generation generation without sold pay taxes propose tax changes encourage people invest america future plan gives families income tax benefits make investments common stock american companies federal government must respond national future generations hospital medical services america among best world cost serious extended illness quickly wipe family lifetime savings increasing health costs deep concern powerful force pushing cost living burden catastrophic illness borne society must eliminate fear every family propose catastrophic health insurance everybody covered medicare finance added protection fees care go somewhat nobody reaching age 65 pay 500 year covered hospital nursing home care 250 1 year doctor bills realistically afford federally dictated national health insurance providing full coverage 215 million americans experience countries raises questions quality well cost plans envision day may use private health insurance system offer families high quality health services prices afford shield also catastrophic illnesses using resources available propose improving medicare federal health programs help really need protection older people poor help states local governments give better health care poor propose combine 16 existing federal programs including medicaid single 10 billion federal grant funds would divided among states new formula provides larger share federal money states larger share families take steps improve quality medical hospital care served armed forces let speak social security federal social security system people worked contributed lives vital part economic system value longer debatable budget fiscal year 1977 recommending full increases social security benefits paid coming year concerned integrity social security trust fund enables people retired still working retire count source retirement income younger workers watch deductions rise wonder adequately protected future must meet challenge head simple arithmetic warns us social security trust fund headed trouble unless act soon make sure fund takes much pays security old young must therefore recommend 1 percent increase employer employee social security taxes effective january 1 1977 cost covered employee less 1 extra dollar week ensure integrity trust fund rebuild economy continuing responsibility provide temporary cushion unemployed request congress enacted two extensions two expansions unemployment insurance helped jobless 1975 programs continue 1976 fiscal year 1977 budget also requesting funds continue proven job training employment opportunity programs millions americans compassion sense community two america greatest strengths throughout history tell us must take care neighbors take care host federal programs field reflect generosity people everyone realizes comes welfare government levels job well many welfare programs inequitable invite abuse many welfare programs problems beginning end worse wasting badly needed resources without reaching many truly needy complex welfare programs reformed overnight surely simply dump welfare laps 50 states local taxpayers private charities walk away right time massive sweeping changes still recovering recession nevertheless still plenty improvements make ask congress presidential authority tighten rules eligibility benefits last year twice sought long overdue reform food stamp program year say let us give food stamps need let us give need protecting life property citizen home responsibility public officials primarily job local state law enforcement authorities americans always found thought federal police force repugnant proper ways help insure domestic tranquility constitution charges us recommendations control violent crime submitted congress last june strong emphasis protecting innocent victims crime keep convicted criminal committing crimes must put prison harm citizens effective punishment must swift must certain often criminals sent prison conviction allowed return streets judges reluctant send convicted criminals prison inadequate facilities alleviate problem federal level new budget proposes construction four new federal facilities speed federal justice propose increase year united states attorneys prosecuting federal crimes reinforcement number united states marshals additional federal judges needed recommended judicial conference another major threat every american person property criminal carrying handgun way cut criminal use guns take guns away citizen impose mandatory sentences crimes gun used make harder obtain cheap guns criminal purposes concentrate gun control enforcement highcrime areas budget recommends 500 additional federal agents 11 largest metropolitan areas help local authorities stop criminals selling using handguns sale hard drugs tragically increase directed agencies federal government step law enforcement efforts deal drugs 1975 glad report federal agents seized substantially heroin coming country 1974 president talked personally leaders mexico colombia turkey urge greater efforts governments control effectively production shipment hard drugs recommended months ago congress enact mandatory fixed sentences persons convicted federal crimes involving sale hard drugs hard drugs know degrade spirit destroy body users unrealistic misleading hold hope federal government move every neighborhood clean crime constitution greatest responsibility curbing crime lies state local authorities frontline fighters war crime definite ways federal government help propose new budget congress authorize almost 7 billion next 5 years assist state local governments protect safety property citizens president pledge strict enforcement federal laws example support leadership help state local authorities enforce laws together must protect victims crime ensure domestic tranquility last year strongly recommended extension existing revenue sharing legislation thus far provided 23½ billion help state local units government solve problems home program effective decisionmaking transferred federal government locally elected officials congress must act year state local units government drop programs raise local taxes including health care program reforms propose consolidate 59 separate federal programs provide flexible federal dollar grants help states cities local agencies important areas education child nutrition social services flexible system job better closer home protection lives property americans foreign enemies one primary responsibilities president world instant communications intercontinental ballistic missiles world economy global interdependent relations nations become less important lives americans america unique role world since day independence 200 years ago ever since end world war ii borne successfully heavy responsibility ensuring stable world order hope human progress today state foreign policy sound strong peace power keep way military forces capable ready military power without equal intend keep way principal alliances industrial democracies atlantic community japan never solid agreement limit strategic arms race may achieved improving relationship china world populous nation key elements peace among nations middle east exist traditional friendships latin america africa asia continue taken role leadership launching serious hopeful dialog industrial world developing world helped achieve significant reform international monetary system proud america country accomplished areas believe american people american people heard much terrible mistakes evil deeds misguided purposes american people know better truth world greatest democracy remain symbol man aspiration liberty embodiment hope progress say time quit downgrading nation course responsibility learn right lesson past mistakes duty see never happen greater duty look future world troubles go away american people want strong effective international defense policies constitutional system policies reflect consultation accommodation president congress final analysis framers constitution knew hard experience foreign relations united states conducted effectively strong central direction allows flexibility action responsibility clearly rests president pledge american people policies seek secure peaceful world pledge congress work end must face future longer help friends angola even limited carefully controlled ways must lose capacity respond short military intervention hasty actions congress past year recently respect angola view shortsighted unfortunately still much minds allies adversaries strong defense posture gives weight values views international negotiations assures vigor alliances sustains efforts promote settlements international conflicts position strength negotiate balanced agreement limit growth nuclear arms balanced agreement serve interests minimize threat nuclear confrontation defense budget submit congress fiscal year 1977 show essential increase current year provides real growth purchasing power year defense budget includes cost force continuing make economies enhance efficiency military forces budget submit represents necessity american strength real world live conflict rivalry persist world united states intelligence capabilities must best world crippling foreign intelligence services increases danger american involvement direct armed conflict adversaries encouraged attempt new adventures ability monitor events influence events short military action undermined without effective intelligence capability united states stands blindfolded hobbled near future take actions reform strengthen intelligence community ask positive cooperation time go beyond sensationalism ensure effective responsible responsive intelligence capability tonight spoken problems home abroad recommended policies meet challenge third century doubt union endure better stronger individual freedom see forward dimly 1 year 5 years generation perhaps like forefathers know meet challenges time common sense purpose conviction remain true constitution ideals know future better past see america today crossing threshold bicentennial tested adversity taken new look want want nation become see america resurgent certain life better children us seeking strength counted megatons riches eroded inflation see united states america moving forward toward perfect union government serves people rule make happen simply making speeches good bad mine hard work hard decisions made courage common sense heard many inspiring presidential speeches words remember best spoken dwight eisenhower america good great president said america great good president eisenhower raised poor religious home heart america simple words echoed president lincoln eloquent testament right makes might lincoln turn evoked silent image george washington kneeling prayer valley forge magic memories link eight generations americans summed inscription many times seen god trust let us engrave hearts begin bicentennial
speaker vice president member 94th congress distinguish guest begin bicentennial america still one young nation record history long forefather come shore men woman struggle planet forge well life family man long upward march savagery slavery throughout nearly year christian calendar nearly year jewish reckon many deep terrifying valley also many bright tower peak one peak stand high range human history one example shine forth people unite produce abundance share good life fairly freedom one union hold promise justice opportunity every citizen union unite state america remake paradise earth know perfection find think minute far come 200 year come many root many branch yet american across eight generation separate u stir deed 1776 know homeland find refuge among shore say unison proud america proud american life little good child believe tell believe life well father mother know good child hand brain voice vote help make happen happen america happen government exists create preserve condition people translate idea practical reality best times much lose translation try sometimes try failed always best intention recent past sometimes forget sound principle guide u history want accomplish great thing solve problem become overconfident ability try policeman abroad indulgent parent home thought could transform country massive national program often program work often make thing bad rush accomplish great deed quickly trample sound principle restraint endanger right individual unbalanced economic system huge unprecedented growth federal expenditure borrow totally honest much program would cost would pay finally shift emphasis defense domestic problem adversary continue massive buildup arm time come fundamentally different approach new realism true great principle upon nation found must introduce new balance economy balance favor sound active government also much vigorous healthy economy create new job hold price must introduce new balance relationship individual government balance favor great individual freedom must strike new balance system federalism balance favor great responsibility freedom leader state local government must introduce new balance spending domestic program spend defense balance ensure fully meet obligation needy also protect security world still hostile freedom must honest american people promise deliver deliver promise genius america incredible ability improve live citizen unique combination governmental free citizen activity history experience tell u moral progress come comfortable complacent time trial confusion tom paine arouse troubled american 1776 stand time try men souls hard conflict glorious triumph year ago report state union good tonight report state union well many way lot good still good enough paraphrase tom paine 1975 year summer soldier sum shine patriot year fear alarm dire forecast never happen happen recall year 1975 open rancor bitterness political misdeed past neither forgotten forgiven long divisive war history wind toward unhappy conclusion many feared end foreign war men machine mean begin domestic war recrimination reprisal friends adversary abroad ask whether america lose nerve finally economy ravage inflation inflation plunge u bad recession four decade time american become increasingly alienate big institution steadily lose confidence big government big business big labor big education among others trouble land 1975 year hard decision difficult compromise new realism teach u something important america bring back need measure common sense steadfastness americans panic demand instant useless cure sector people meet difficult problem restraint responsibility worthy great heritage add separate piece progress 1975 subtract setback sum total show head new direction direction propose 12 month ago turn right direction right direction follow truly revolutionary american concept 1776 hold free society make public policy successful problemsolving involves much government involve full partnership among branch level government private institution individual citizen common sense tell stick steady course take state economy last january thing rapidly get bad january thing slowly surely get good bad recession since world war ii turn around april best news past year inflation 12 percent high cut almost half bad unemployment remain far high today nearly americans work bottom recession year end people hire much fast lay yet let u honest many american yet felt change daily live still see price go far fast still know fear unemployment also grow nation need job every year today economy produce 85 million job american need lot job especially young first objective sound economic growth without inflation know recent experience runaway inflation ruin every worthy purpose slow must stop cold many american way healthy noninflationary economy become increasingly apparent government must stop spending much stop borrowing much money money must remain private hand good hold cost living must hold cost government past decade federal budget grow average rate 10 percent year budget submitting wednesday cut rate growth half keep promise submit budget next fiscal year 395 billion fact billion hold growth federal spending afford additional tax cut return people pay tax decisionmaking power life last month sign legislation extend 1975 tax reduction first 6 month year propose effective july 1 1976 give taxpayer tax cut approximately 10 billion congress agree december broader tax reduction would mean family four make year 227 pay annually hardworking american catch middle really use kind extra cash recommendation firm restraint growth federal spending great tax reduction simple straightforward every dollar save cut growth federal budget add dollar federal tax reduction achieve balance budget 1979 courage wisdom continue reduce growth federal spending one test healthy economy job every american want work government kind government create many job federal government create condition incentives private business industry make job five six job country private business industry common sense tell u place look job find fast mean real reward permanent job achieve must offer american people great incentive invest future tax proposal major step direction supplement proposal ask congress enact change federal tax law speed plant expansion purchase new equipment recommendation concentrate tax incentive area unemployment rate run 7 percent legislation get start must approve early possible date within strict budget total recommend come year ask additional housing assistance family program expand housing opportunity spur construction help house family disappoint year housing industry 1975 low interest rate available mortgage money healthy recovery 1976 necessary condition healthy economy freedom petty tyranny massive government regulation waste literally million work hour cost billion taxpayer consumer dollar bureaucratic redtape american farmer feed 215 million american also million worldwide show touch produce without shackles government control badly need reform key area economy airline truck railroad financial institution submit concrete plan area help industry foster competition bring price consumer administration addition strictly enforce federal antitrust law purpose take longer look america future neither sustained growth job unless continue assure supply energy run economy domestic production oil gas still decline dependence foreign oil high price still great drain job dollar away economy rate 125 per year every american last month sign compromise national energy bill enact part comprehensive energy independence program legislation late complete answer energy independence still start right direction urge congress move ahead immediately remainder energy proposal make america invulnerable foreign oil cartel proposal know would reduce domestic natural gas shortage allow production federal petroleum reserve stimulate effective conservation include revitalization railroad expansion urban transportation system develop clean energy vast coal resource expedite clean safe nuclear power production create new national energy independence authority stimulate vital energy investment accelerate development technology capture energy sun earth future generation also ask sake future generation preserve family farm small business strengthen america give stability economy propose estate tax change family business family farm hand generation generation without sold pay tax propose tax change encourage people invest america future plan give family income tax benefit make investment common stock american company federal government must respond national future generation hospital medical service america among best world cost serious extend illness quickly wipe family lifetime saving increase health cost deep concern powerful force push cost living burden catastrophic illness borne society must eliminate fear every family propose catastrophic health insurance everybody cover medicare finance add protection fee care go somewhat nobody reach age 65 pay 500 year cover hospital nursing home care 250 1 year doctor bill realistically afford federally dictate national health insurance provide full coverage 215 million american experience country raise question quality well cost plan envision day may use private health insurance system offer family high quality health service price afford shield also catastrophic illness use resource available propose improve medicare federal health program help really need protection old people poor help state local government give good health care poor propose combine 16 exist federal program include medicaid single 10 billion federal grant fund would divide among state new formula provide large share federal money state large share family take step improve quality medical hospital care serve armed force let speak social security federal social security system people work contributed life vital part economic system value longer debatable budget fiscal year 1977 recommend full increase social security benefit pay come year concern integrity social security trust fund enable people retire still work retire count source retirement income young worker watch deduction rise wonder adequately protected future must meet challenge head simple arithmetic warns u social security trust fund head trouble unless act soon make sure fund take much pay security old young must therefore recommend 1 percent increase employer employee social security tax effective january 1 1977 cost cover employee less 1 extra dollar week ensure integrity trust fund rebuild economy continue responsibility provide temporary cushion unemployed request congress enact two extension two expansion unemployment insurance help jobless 1975 program continue 1976 fiscal year 1977 budget also request fund continue proven job train employment opportunity program million american compassion sense community two america great strength throughout history tell u must take care neighbor take care host federal program field reflect generosity people everyone realize come welfare government level job well many welfare program inequitable invite abuse many welfare program problem begin end bad waste badly need resource without reach many truly needy complex welfare program reform overnight surely simply dump welfare lap 50 state local taxpayer private charity walk away right time massive sweeping change still recover recession nevertheless still plenty improvement make ask congress presidential authority tighten rule eligibility benefit last year twice seek long overdue reform food stamp program year say let u give food stamp need let u give need protect life property citizen home responsibility public official primarily job local state law enforcement authority americans always find think federal police force repugnant proper way help insure domestic tranquility constitution charge u recommendation control violent crime submit congress last june strong emphasis protect innocent victim crime keep convict criminal committing crime must put prison harm citizen effective punishment must swift must certain often criminal send prison conviction allow return street judge reluctant send convict criminal prison inadequate facility alleviate problem federal level new budget propose construction four new federal facility speed federal justice propose increase year united state attorney prosecute federal crime reinforcement number united state marshal additional federal judge need recommended judicial conference another major threat every american person property criminal carry handgun way cut criminal use gun take gun away citizen impose mandatory sentence crime gun use make hard obtain cheap gun criminal purpose concentrate gun control enforcement highcrime area budget recommend 500 additional federal agent 11 large metropolitan area help local authority stop criminal sell use handgun sale hard drug tragically increase directed agency federal government step law enforcement effort deal drug 1975 glad report federal agent seize substantially heroin come country 1974 president talk personally leader mexico colombia turkey urge great effort government control effectively production shipment hard drug recommend month ago congress enact mandatory fix sentence person convict federal crime involve sale hard drug hard drug know degrade spirit destroy body user unrealistic mislead hold hope federal government move every neighborhood clean crime constitution great responsibility curb crime lie state local authority frontline fighter war crime definite way federal government help propose new budget congress authorize almost 7 billion next 5 year assist state local government protect safety property citizen president pledge strict enforcement federal law example support leadership help state local authority enforce law together must protect victim crime ensure domestic tranquility last year strongly recommend extension exist revenue share legislation thus far provided 23½ billion help state local unit government solve problem home program effective decisionmaking transfer federal government locally elect official congress must act year state local unit government drop program raise local tax include health care program reform propose consolidate 59 separate federal program provide flexible federal dollar grant help state city local agency important area education child nutrition social service flexible system job well closer home protection live property american foreign enemy one primary responsibility president world instant communication intercontinental ballistic missile world economy global interdependent relation nation become less important life american america unique role world since day independence 200 year ago ever since end world war ii borne successfully heavy responsibility ensure stable world order hope human progress today state foreign policy sound strong peace power keep way military force capable ready military power without equal intend keep way principal alliance industrial democracy atlantic community japan never solid agreement limit strategic arm race may achieve improve relationship china world populous nation key element peace among nation middle east exist traditional friendship latin america africa asia continue take role leadership launch serious hopeful dialog industrial world develop world help achieve significant reform international monetary system proud america country accomplish area believe american people american people heard much terrible mistake evil deed misguide purpose american people know good truth world great democracy remain symbol man aspiration liberty embodiment hope progress say time quit downgrade nation course responsibility learn right lesson past mistake duty see never happen great duty look future world trouble go away american people want strong effective international defense policy constitutional system policy reflect consultation accommodation president congress final analysis framer constitution know hard experience foreign relation united state conduct effectively strong central direction allow flexibility action responsibility clearly rest president pledge american people policy seek secure peaceful world pledge congress work end must face future long help friend angola even limit carefully control way must lose capacity respond short military intervention hasty action congress past year recently respect angola view shortsighted unfortunately still much mind ally adversary strong defense posture give weight value view international negotiation assure vigor alliance sustain effort promote settlement international conflict position strength negotiate balance agreement limit growth nuclear arm balance agreement serve interest minimize threat nuclear confrontation defense budget submit congress fiscal year 1977 show essential increase current year provide real growth purchase power year defense budget include cost force continue make economy enhance efficiency military force budget submit represent necessity american strength real world live conflict rivalry persist world united state intelligence capability must best world cripple foreign intelligence service increase danger american involvement direct arm conflict adversary encourage attempt new adventure ability monitor event influence event short military action undermine without effective intelligence capability united state stand blindfold hobble near future take action reform strengthen intelligence community ask positive cooperation time go beyond sensationalism ensure effective responsible responsive intelligence capability tonight speak problem home abroad recommended policy meet challenge third century doubt union endure well strong individual freedom see forward dimly 1 year 5 year generation perhaps like forefather know meet challenge time common sense purpose conviction remain true constitution ideal know future good past see america today cross threshold bicentennial test adversity take new look want want nation become see america resurgent certain life well child u seek strength count megaton rich erode inflation see united state america move forward toward perfect union government serve people rule make happen simply make speech good bad mine hard work hard decision make courage common sense hear many inspire presidential speech word remember best spoken dwight eisenhower america good great president say america great good president eisenhower raise poor religious home heart america simple word echo president lincoln eloquent testament right make might lincoln turn evoke silent image george washington kneel prayer valley forge magic memory link eight generation american sum inscription many time see god trust let u engrave heart begin bicentennial