Mr. President, Mr. Speaker, and Members of the 80th Congress: We are here today to consider the state of the Union. On this occasion, above all others, the Congress and the President should concentrate their attention, not upon party but upon the country; not upon things which divide us but upon those which bind us together--the enduring principles of our American system, and our common aspirations for the future welfare and security of the people of the United States. The United States has become great because we, as a people, have been able to work together for great objectives even while differing about details. The elements of our strength are many. They include our democratic government, our economic system, our great natural resources. But these are only partial explanations. The basic source of our strength is spiritual. For we are a people with a faith. We believe in the dignity of man. We believe that he was created in the image of the Father of us all. We do not believe that men exist merely to strengthen the state or to be cogs in the economic machine. We do believe that governments are created to serve the people and that economic systems exist to minister to their wants. We have a profound devotion to the welfare and rights of the individual as a human being. The faith of our people has particular meaning at this time in history because of the unsettled and changing state of the world. The victims of war in many lands are striving to rebuild their lives, and are seeking assurance that the tragedy of war will not occur again. Throughout the world new ideas are challenging the old. Men of all nations are reexamining the beliefs by which they live. Great scientific and industrial changes have released new forces which will affect the future course of civilization. The state of our Union reflects the changing nature of the modern world. On all sides there is heartening evidence of great energy--of capacity for economic development-and even more important, capacity for spiritual growth. But accompanying this great activity there are equally great questions, great anxieties, and great aspirations. They represent the concern of an enlightened people that conditions should be so arranged as to make life more worthwhile. We must devote ourselves to finding answers to these anxieties and aspirations. We seek answers which will embody the moral and spiritual elements of tolerance, unselfishness, and brotherhood upon which true freedom and opportunity must rest. As we examine the state of our Union today, we can benefit from viewing it on a basis of the accomplishments of the last decade and of our goals for the next. How far have we come during the last 10 years and how far can we go in the next 10? It was 10 years ago that the determination of dictators to wage war upon mankind became apparent. The years that followed brought untold death and destruction. We shared in the human suffering of the war, but we were fortunate enough to escape most of war's destruction. We were able through these 10 years to expand the productive strength of our farms and factories. More important, however, is the fact that these years brought us new courage, new confidence in the ideals of our free democracy. Our deep belief in freedom and justice was reinforced in the crucible of war. On the foundations of our greatly strengthened economy and our renewed confidence in democratic values, we can continue to move forward. There are some who look with fear and distrust upon planning for the future. Yet our great national achievements have been attained by those with vision. Our Union was formed, our frontiers were pushed back, and our great industries were built by men who looked ahead. I propose that we look ahead today toward those goals for the future which have the greatest bearing upon the foundations of our democracy and the happiness of our people. I do so, confident in the thought that with clear objectives and with firm determination, we can, in the next 10 years, build upon the accomplishments of the past decade to achieve a glorious future. Year by year, beginning now, we must make a substantial part of this progress. Our first goal is to secure fully the essential human rights of our citizens. The United States has always had a deep concern for human rights. Religious freedom, free speech, and freedom of thought are cherished realities in our land. Any denial of human rights is a denial of the basic beliefs of democracy and of our regard for the worth of each individual. Today, however, some of our citizens are still denied equal opportunity for education, for jobs and economic advancement, and for the expression of their views at the polls. Most serious of all, some are denied equal protection under laws. Whether discrimination is based on race, or creed, or color, or land of origin, it is utterly contrary to American ideals of democracy. The recent report of the President's Committee on Civil Rights points the way to corrective action by the Federal Government and by State and local governments. Because of the need for effective Federal action, I shall send a special message to the Congress on this important subject. We should also consider our obligation to assure the fullest possible measure of civil rights to the people of our territories and possessions. I believe that the time has come for Alaska and Hawaii to be admitted to the Union as States. Our second goal is to protect and develop our human resources. The safeguarding of the rights of our citizens must be accompanied by an equal regard for their opportunities for development and their protection from economic insecurity. In this Nation the ideals of freedom and equality can be given specific meaning in terms of health, education, social security, and housing. Over the past 12 years we have erected a sound framework of social security legislation. Many millions of our citizens are now protected against the loss of income which can come with unemployment, old age, or the death of wage earners. Yet our system has gaps and inconsistencies; it is only half finished. We should now extend unemployment compensation, old age benefits, and survivors' benefits to millions who are not now protected. We should also raise the level of benefits. The greatest gap in our social security structure is the lack of adequate provision for the Nation's health. We are rightly proud of the high standards of medical care we know how to provide in the United States. The fact is, however, that most of our people cannot afford to pay for the care they need. I have often and strongly urged that this condition demands a national health program. The heart of the program must be a national system of payment for medical care based on well-tried insurance principles. This great Nation cannot afford to allow its citizens to suffer needlessly from the lack of proper medical care. Our ultimate aim must be a comprehensive insurance system to protect all our people equally against insecurity and ill health. Another fundamental aim of our democracy is to provide an adequate education for every person. Our educational systems face a financial crisis. It is deplorable that in a Nation as rich as ours there are millions of children who do not have adequate schoolhouses or enough teachers for a good elementary or secondary education. If there are educational inadequacies in any State, the whole Nation suffers. The Federal Government has a responsibility for providing financial aid to meet this crisis. In addition, we must make possible greater equality of opportunity to all our citizens for education. Only by so doing can we insure that our citizens will be capable of understanding and sharing the responsibilities of democracy. The Government's programs for health, education, and security are of such great importance to our democracy that we should now establish an executive department for their administration. Health and education have their beginning in the home. No matter what our hospitals or schools are like, the youth of our Nation are handicapped when millions of them live in city slums and country shacks. Within the next decade, we must see that every American family has a decent home. As an immediate step we need the long-range housing program which I have recommended on many occasions to this Congress. This should include financial aids designed to yield more housing at lower prices. It should provide public housing for low-income families, and vigorous development of new techniques to lower the cost of building. Until we can overcome the present drastic housing shortage, we must extend and strengthen rent control. We have had, and shall continue to have, a special interest in the welfare of our veterans. Over 14 million men and women who served in the armed forces in World War II have now returned to civilian life. Over 2 million veterans are being helped through school. Millions have been aided while finding jobs, and have been helped in buying homes, in obtaining medical care, and in adjusting themselves to physical handicaps. All but a very few veterans have successfully made the transition from military life to their home communities. The success of our veterans' program is proved by this fact. This Nation is proud of the eagerness shown by our veterans to become self-reliant and self-supporting citizens. Our third goal is to conserve and use our natural resources so that they can contribute most effectively to the welfare of our people. The resources given by nature to this country are rich and extensive. The material foundations of our growth and economic development are the bounty of our fields, the wealth of our mines and forests, and the energy of our waters. As a Nation, we are coming to appreciate more each day the close relationship between the conservation of these resources and the preservation of our national strength. We are doing far less than we know how to do to make use of our resources without destroying them. Both the public and private use of these resources must have the primary objective of maintaining and increasing these basic supports for an expanding future. We must continue to take specific steps toward this goal. We must vigorously defend our natural wealth against those who would misuse it for selfish gain. We need accurate and comprehensive knowledge of our mineral resources and must intensify our efforts to develop new supplies and to acquire stockpiles of scarce materials. We need to protect and restore our land-public and private--through combating erosion and rebuilding the fertility of the soil. We must expand our reclamation program to bring millions of acres of arid land into production, and to improve water supplies for additional millions of acres. This will provide new opportunities for veterans and others, particularly in the West, and aid in providing a rising living standard for a growing population. We must protect and restore our forests by sustained-yield forestry and by planting new trees in areas now slashed and barren. We must continue to erect multiple-purpose dams on our great rivers--not only to reclaim land, but also to prevent floods, to extend our inland waterways and to provide hydroelectric power. This public power must not be monopolized for private gain. Only through well-established policies of transmitting power directly to its market and thus encouraging widespread use at low rates can the Federal Government assure the people of their full share of its benefits. Additional power--public and private--is needed to raise the ceilings now imposed by power shortages on industrial and agricultural development. We should achieve the wise use of resources through the integrated development of our great river basins. We can learn much from our Tennessee Valley experience. We should no longer delay in applying the lessons of that vast undertaking to our other great river basins. Our fourth goal is to lift the standard of living for all our people by strengthening our economic system and sharing more broadly among our people the goods we produce. The amazing economic progress of the past 10 years points the way for the next 10. Today 14 million more people have jobs than in 1938. Our yearly output of goods and services has increased by two-thirds. The average income of our people, measured in dollars of equal purchasing power, has increased--after taxes--by more than 50 percent. In no other 10 years have farmers, businessmen, and wage earners made such great gains. We may not be able to expand as rapidly in the next decade as in the last, because we are now starting from full employment and very high production. But we can increase our annual output by at least one-third above the present level. We can lift our standard of living to nearly double what it was 10 years ago. If we distribute these gains properly, we can go far toward stamping out poverty in our generation. To do this, agriculture, business, and labor must move forward together. Permanent farm prosperity and agricultural abundance will be achieved only as our whole economy grows and prospers. The farmer can sell more food at good prices when the incomes of wage earners are high and when there is full employment. Adequate diets for every American family, and the needs of our industries at full production, will absorb a farm output well above our present levels. Although the average farmer is now better off than ever before, farm families as a whole have only begun to catch up with the standards of living enjoyed in the cities. In 1946, the average income of farm people was $779, contrasted with an average income of $1,288 for nonfarm people. Within the next decade, we should eliminate elements of inequality in these living standards. To this end our farm program should enable the farmer to market his varied crops at fair price levels and to improve his standard of living. We need to continue price supports for major farm commodities on a basis which will afford reasonable protection against fluctuations in the levels of production and demand. The present price support program must be reexamined and modernized. Crop insurance should be strengthened and its benefits extended in order to protect the farmer against the special hazards to which he is subject. We also need to improve the means for getting farm products into markets and into the hands of consumers. Cooperatives which directly or indirectly serve this purpose must be encouraged--not discouraged. The school lunch program should be continued and adequately financed. We need to go forward with the rural electrification program to bring the benefits of electricity to all our farm population. We can, and must, aid and encourage farmers to conserve their soil resources and restore the fertility of the land that has suffered from neglect or unwise use. All these are practical measures upon which we should act immediately to enable agriculture to make its full contribution to our prosperity. We must also strengthen our economic system within the next decade by enlarging our industrial capacity within the framework of our free enterprise system. We are today far short of the industrial capacity we need for a growing future. At least $50 billion should be invested by industry to improve and expand our productive facilities over the next few years. But this is only the beginning. The industrial application of atomic energy and other scientific advances will constantly open up further opportunities for expansion. Farm prosperity and high employment will call for an immensely increased output of goods and services. Growth and vitality in our economy depend on vigorous private enterprise. Free competition is the key to industrial development, full production and employment, fair prices, and an ever improving standard of living. Competition is seriously limited today in many industries by the concentration of economic power and other elements of monopoly. The appropriation of sufficient funds to permit proper enforcement of the present antitrust laws is essential. Beyond that we should go on to strengthen our legislation to protect competition. Another basic element of a strong economic system is the well-being of the wage earners. We have learned that the well-being of workers depends on high production and consequent high employment. We have learned equally well that the welfare of industry and agriculture depends on high incomes for our workers. The Government has wisely chosen to set a floor under wages. But our 40-cent minimum wage is inadequate and obsolete. I recommend the lifting of the minimum wage to 75 cents an hour. In general, however, we must continue to rely on our sound system of collective bargaining to set wage scales. Workers' incomes should increase at a rate consistent with the maintenance of sound price, profit, and wage relationships and with increase of productivity. The Government's part in labor-management relations is now largely controlled by the terms of the Labor-Management Relations Act of 1947. I made my attitude clear on this act in my veto message to the Congress last June. Nothing has occurred since to change my opinion of this law. As long as it remains the law of the land, however, I shall carry out my constitutional duty and administer it. As we look ahead we can understand the crucial importance of restraint and wisdom in arriving at new labor-management contracts. Work stoppages would result in a loss of production--a loss which could bring higher prices for our citizens and could also deny the necessities of life to the hard-pressed peoples of other lands. It is my sincere hope that the representatives of labor and of industry will bear in mind that the Nation as a whole has a vital stake in the success of their bargaining efforts. If we surmount our current economic difficulties, we can move ahead to a great increase in our national income which will enable all our people to enjoy richer and fuller lives. All of us must advance together. One-fifth of our families now have average annual incomes of less than $850. We must see that our gains in national income are made more largely available to those with low incomes, whose need is greatest. This will benefit us all through providing a stable foundation of buying power to maintain prosperity. Business, labor, agriculture, and Government, working together, must develop the policies which will make possible the realization of the full benefits of our economic system. Our fifth goal is to achieve world peace based on principles of freedom and justice and the equality of all nations. Twice within our generation, world wars have taught us that we cannot isolate ourselves from the rest of the world. We have learned that the loss of freedom in any area of the world means a loss of freedom to ourselves--that the loss of independence by any nation adds directly to the insecurity of the United States and all free nations. We have learned that a healthy world economy is essential to world peace--that economic distress is a disease whose evil effects spread far beyond the boundaries of the afflicted nation. For these reasons the United States is vigorously following policies designed to achieve a peaceful and prosperous world. We are giving, and will continue to give, our full support to the United Nations. While that organization has encountered unforeseen and unwelcome difficulties, I am confident of its ultimate success. We are also devoting our efforts toward world economic recovery and the revival of world trade. These actions are closely related and mutually supporting. We believe that the United States can be an effective force for world peace only if it is strong. We look forward to the day when nations will decrease their armaments. Yet so long as there remains serious opposition to the ideals of a peaceful world, we must maintain strong armed forces. The passage of the National Security Act by the Congress at its last session was a notable step in providing for the security of this country. A further step which I consider of even greater importance is the early provision for universal training. There are many elements in a balanced national security program, all interrelated and necessary, but universal training should be the foundation for them all. A favorable decision by the Congress at an early date is of world importance. I am convinced that such action is vital to the security of this Nation and to the maintenance of its leadership. The United States is engaged today in many international activities directed toward the creation of lasting peaceful relationships among nations. We have been giving substantial aid to Greece and Turkey to assist those nations in preserving their integrity against foreign pressures. Had it not been for our aid, their situation today might well be radically different. The continued integrity of those countries will have a powerful effect upon other nations in the Middle East and in Europe struggling to maintain their independence while they repair the damages of war. The United States has special responsibilities with respect to the countries in which we have occupation forces: Germany, Austria, Japan, and Korea. Our efforts to reach agreements on peace settlements for these countries have so far been blocked. But we shall continue to exert our utmost efforts to obtain satisfactory settlements for each of these nations. Many thousands of displaced persons, still living in camps overseas, should be allowed entry into the United States. I again urge the Congress to pass suitable legislation at once so that this Nation may do its share in caring for the homeless and suffering refugees of all faiths. I believe that the admission of these persons will add to the strength and energy of this Nation. We are moving toward our goal of world peace in many ways. But the most important efforts which we are now making are those which support world economic reconstruction. We are seeking to restore the world trading system which was shattered by the war and to remedy the economic paralysis which grips many countries. To restore world trade we have recently taken the lead in bringing about the greatest reduction of world tariffs that the world has ever seen. The extension of the provisions of the Reciprocal Trade Agreements Act, which made this achievement possible, is of extreme importance. We must also go on to support the International Trade Organization, through which we hope to obtain worldwide agreement on a code of fair conduct in international trade. Our present major effort toward economic reconstruction is to support the program for recovery developed by the countries of Europe. In my recent message to the Congress, I outlined the reasons why it is wise and necessary for the United States to extend this support. I want to reaffirm my belief in the soundness and the promise of this proposal. When the European economy is strengthened, the product of its industry will be of benefit to many other areas of economic distress. The ability of free men to overcome hunger and despair will be a moral stimulus to the entire world. We intend to work also with other nations in achieving world economic recovery. We shall continue our cooperation with the nations of the Western Hemisphere. A special program of assistance to China, to provide urgent relief needs and to speed reconstruction, will be submitted to the Congress. Unfortunately, not all governments share the hope of the people of the United States that economic reconstruction in many areas of the world can be achieved through cooperative effort among nations. In spite of these differences we will go forward with our efforts to overcome economic paralysis. No nation by itself can carry these programs to success; they depend upon the cooperative and honest efforts of all participating countries. Yet the leadership is inevitably ours. I consider it of the highest importance that the Congress should authorize support for the European recovery program for the period from April 1, 1948, to June 30, 1952, with an initial amount for the first 15 months of $6.8 billion. I urge the Congress to act promptly on this vital measure of our foreign policy--on this decisive contribution to world peace. We are following a sound, constructive, and practical course in carrying out our determination to achieve peace. We are fighting poverty, hunger, and suffering. This leads to peace--not war. We are building toward a world where all nations, large and small alike, may live free from the fear of aggression. This leads to peace--not war. Above all else, we are striving to achieve a concord among the peoples of the world based upon the dignity of the individual and the brotherhood of man. This leads to peace--not war. We can go forward with confidence that we are following sound policies, both at home and with other nations, which will lead us toward our great goals for economic, social and moral achievement. As we enter the new year, we must surmount one major problem which affects all our goals. That is the problem of inflation. Already inflation in this country is undermining the living standards of millions of families. Food costs too much. Housing has reached fantastic price levels. Schools and hospitals are in financial distress. Inflation threatens to bring on disagreement and strife between labor and management. Worst of all, inflation holds the threat of another depression, just as we had a depression after the unstable boom following the First World War. When I announced last October that the Congress was being called into session, I described the price increases which had taken place since June 1946. Wholesale prices had increased 40 percent; retail prices had increased 23 percent. Since October prices have continued to rise. Wholesale prices have gone up at an annual rate of 18 percent. Retail prices have gone up at an annual rate of 10 percent. The events which have occurred since I presented my 10-point anti-inflation program to the Congress in November have made it even clearer that all 10 points are essential. High prices must not be our means of rationing. We must deal effectively and at once with the high cost of living. We must stop the spiral of inflation. I trust that within the shortest possible time the Congress will make available to the Government the weapons that are so desperately needed in the fight against inflation. One of the most powerful anti-inflationary factors in our economy today is the excess of Government revenues over expenditures. Government expenditures have been and must continue to be held at the lowest safe levels. Since V-J day Federal expenditures have been sharply reduced. They have been cut from more than $63 billion in the fiscal year 1946 to less than $38 billion in the present fiscal year. The number of civilian employees has been cut nearly in half--from 3 3/4 million down to 2 million. On the other hand, Government revenues must not be reduced. Until inflation has been stopped there should be no cut in taxes that is not offset by additions at another point in our tax structure. Certain adjustments should be made within our existing tax structure that will not affect total receipts, yet will adjust the tax burden so that those least able to pay will have their burden lessened by the transfer of a portion of it to those best able to pay. Many of our families today are suffering hardship because of the high cost of living. At the same time profits of corporations have reached an all-time record in 1947. Corporate profits total $17 billion after taxes. This compared with $12.5 billion in 1946, the previous high year. Because of this extraordinarily high level of profits, corporations can well afford to carry a larger share of the taxload at this time. During this period in which the high cost of living is bearing down on so many of our families, tax adjustments should be made to ease their burden. The low-income group particularly is being pressed very hard. To this group a tax adjustment would result in a saving that could be used to buy the necessities of life. I recommend therefore that, effective January 1, 1948, a cost of living tax credit be extended to our people consisting of a credit of $40 to each individual taxpayer and an additional credit of $40 for each dependent. Thus the income tax of a man with a wife and two children would be reduced $160. The credit would be extended to all taxpayers, but it would be particularly helpful to those in the low-income group. It is estimated that such a tax credit would reduce Federal revenue by $3.2 billion. This reduction should be made up by increasing the tax on corporate profits in an amount that will produce this sum--with appropriate adjustments for small corporations. This is the proper method of tax relief at this time. It gives relief to those who need it most without cutting the total tax revenue of the Government. When the present danger of inflation has passed we should consider tax reduction based upon a revision of our entire tax structure. When we have conquered inflation, we shall be in a position to move forward toward our chosen goals. As we do so, let us keep ever before us our high purposes. We are determined that every citizen of this Nation shall have an equal right and an equal opportunity to grow in wisdom and in stature and to take his place in the control of his Nation's destiny. We are determined that the productive resources of this Nation shall be used wisely and fully for the benefit of all. We are determined that the democratic faith of our people and the strength of our resources shall contribute their full share to the attainment of enduring peace in the world. It is our faith in human dignity that underlies these purposes. It is this faith that keeps us a strong and vital people. This is a time to remind ourselves of these fundamentals. For today the whole world looks to us for leadership. This is the hour to rededicate ourselves to the faith in mankind that makes us strong. This is the hour to rededicate ourselves to the faith in God that gives us confidence as we face the challenge of the years ahead.
Mr. President, Mr. Speaker, and Members of the 80th Congress: We are here today to consider the state of the Union. On this occasion, above all others, the Congress and the President should concentrate their attention, not upon party but upon the country; not upon things which divide us but upon those which bind us together--the enduring principles of our American system, and our common aspirations for the future welfare and security of the people of the United States. The United States has become great because we, as a people, have been able to work together for great objectives even while differing about details. The elements of our strength are many. They include our democratic government, our economic system, our great natural resources. But these are only partial explanations. The basic source of our strength is spiritual. For we are a people with a faith. We believe in the dignity of man. We believe that he was created in the image of the Father of us all. We do not believe that men exist merely to strengthen the state or to be cogs in the economic machine. We do believe that governments are created to serve the people and that economic systems exist to minister to their wants. We have a profound devotion to the welfare and rights of the individual as a human being. The faith of our people has particular meaning at this time in history because of the unsettled and changing state of the world. The victims of war in many lands are striving to rebuild their lives, and are seeking assurance that the tragedy of war will not occur again. Throughout the world new ideas are challenging the old. Men of all nations are reexamining the beliefs by which they live. Great scientific and industrial changes have released new forces which will affect the future course of civilization. The state of our Union reflects the changing nature of the modern world. On all sides there is heartening evidence of great energy--of capacity for economic development-and even more important, capacity for spiritual growth. But accompanying this great activity there are equally great questions, great anxieties, and great aspirations. They represent the concern of an enlightened people that conditions should be so arranged as to make life more worthwhile. We must devote ourselves to finding answers to these anxieties and aspirations. We seek answers which will embody the moral and spiritual elements of tolerance, unselfishness, and brotherhood upon which true freedom and opportunity must rest. As we examine the state of our Union today, we can benefit from viewing it on a basis of the accomplishments of the last decade and of our goals for the next. How far have we come during the last 10 years and how far can we go in the next 10? It was 10 years ago that the determination of dictators to wage war upon mankind became apparent. The years that followed brought untold death and destruction. We shared in the human suffering of the war, but we were fortunate enough to escape most of war's destruction. We were able through these 10 years to expand the productive strength of our farms and factories. More important, however, is the fact that these years brought us new courage, new confidence in the ideals of our free democracy. Our deep belief in freedom and justice was reinforced in the crucible of war. On the foundations of our greatly strengthened economy and our renewed confidence in democratic values, we can continue to move forward. There are some who look with fear and distrust upon planning for the future. Yet our great national achievements have been attained by those with vision. Our Union was formed, our frontiers were pushed back, and our great industries were built by men who looked ahead. I propose that we look ahead today toward those goals for the future which have the greatest bearing upon the foundations of our democracy and the happiness of our people. I do so, confident in the thought that with clear objectives and with firm determination, we can, in the next 10 years, build upon the accomplishments of the past decade to achieve a glorious future. Year by year, beginning now, we must make a substantial part of this progress. Our first goal is to secure fully the essential human rights of our citizens. The United States has always had a deep concern for human rights. Religious freedom, free speech, and freedom of thought are cherished realities in our land. Any denial of human rights is a denial of the basic beliefs of democracy and of our regard for the worth of each individual. Today, however, some of our citizens are still denied equal opportunity for education, for jobs and economic advancement, and for the expression of their views at the polls. Most serious of all, some are denied equal protection under laws. Whether discrimination is based on race, or creed, or color, or land of origin, it is utterly contrary to American ideals of democracy. The recent report of the President's Committee on Civil Rights points the way to corrective action by the Federal Government and by State and local governments. Because of the need for effective Federal action, I shall send a special message to the Congress on this important subject. We should also consider our obligation to assure the fullest possible measure of civil rights to the people of our territories and possessions. I believe that the time has come for Alaska and Hawaii to be admitted to the Union as States. Our second goal is to protect and develop our human resources. The safeguarding of the rights of our citizens must be accompanied by an equal regard for their opportunities for development and their protection from economic insecurity. In this Nation the ideals of freedom and equality can be given specific meaning in terms of health, education, social security, and housing. Over the past 12 years we have erected a sound framework of social security legislation. Many millions of our citizens are now protected against the loss of income which can come with unemployment, old age, or the death of wage earners. Yet our system has gaps and inconsistencies; it is only half finished. We should now extend unemployment compensation, old age benefits, and survivors' benefits to millions who are not now protected. We should also raise the level of benefits. The greatest gap in our social security structure is the lack of adequate provision for the Nation's health. We are rightly proud of the high standards of medical care we know how to provide in the United States. The fact is, however, that most of our people cannot afford to pay for the care they need. I have often and strongly urged that this condition demands a national health program. The heart of the program must be a national system of payment for medical care based on well-tried insurance principles. This great Nation cannot afford to allow its citizens to suffer needlessly from the lack of proper medical care. Our ultimate aim must be a comprehensive insurance system to protect all our people equally against insecurity and ill health. Another fundamental aim of our democracy is to provide an adequate education for every person. Our educational systems face a financial crisis. It is deplorable that in a Nation as rich as ours there are millions of children who do not have adequate schoolhouses or enough teachers for a good elementary or secondary education. If there are educational inadequacies in any State, the whole Nation suffers. The Federal Government has a responsibility for providing financial aid to meet this crisis. In addition, we must make possible greater equality of opportunity to all our citizens for education. Only by so doing can we insure that our citizens will be capable of understanding and sharing the responsibilities of democracy. The Government's programs for health, education, and security are of such great importance to our democracy that we should now establish an executive department for their administration. Health and education have their beginning in the home. No matter what our hospitals or schools are like, the youth of our Nation are handicapped when millions of them live in city slums and country shacks. Within the next decade, we must see that every American family has a decent home. As an immediate step we need the long-range housing program which I have recommended on many occasions to this Congress. This should include financial aids designed to yield more housing at lower prices. It should provide public housing for low-income families, and vigorous development of new techniques to lower the cost of building. Until we can overcome the present drastic housing shortage, we must extend and strengthen rent control. We have had, and shall continue to have, a special interest in the welfare of our veterans. Over 14 million men and women who served in the armed forces in World War II have now returned to civilian life. Over 2 million veterans are being helped through school. Millions have been aided while finding jobs, and have been helped in buying homes, in obtaining medical care, and in adjusting themselves to physical handicaps. All but a very few veterans have successfully made the transition from military life to their home communities. The success of our veterans' program is proved by this fact. This Nation is proud of the eagerness shown by our veterans to become self-reliant and self-supporting citizens. Our third goal is to conserve and use our natural resources so that they can contribute most effectively to the welfare of our people. The resources given by nature to this country are rich and extensive. The material foundations of our growth and economic development are the bounty of our fields, the wealth of our mines and forests, and the energy of our waters. As a Nation, we are coming to appreciate more each day the close relationship between the conservation of these resources and the preservation of our national strength. We are doing far less than we know how to do to make use of our resources without destroying them. Both the public and private use of these resources must have the primary objective of maintaining and increasing these basic supports for an expanding future. We must continue to take specific steps toward this goal. We must vigorously defend our natural wealth against those who would misuse it for selfish gain. We need accurate and comprehensive knowledge of our mineral resources and must intensify our efforts to develop new supplies and to acquire stockpiles of scarce materials. We need to protect and restore our land-public and private--through combating erosion and rebuilding the fertility of the soil. We must expand our reclamation program to bring millions of acres of arid land into production, and to improve water supplies for additional millions of acres. This will provide new opportunities for veterans and others, particularly in the West, and aid in providing a rising living standard for a growing population. We must protect and restore our forests by sustained-yield forestry and by planting new trees in areas now slashed and barren. We must continue to erect multiple-purpose dams on our great rivers--not only to reclaim land, but also to prevent floods, to extend our inland waterways and to provide hydroelectric power. This public power must not be monopolized for private gain. Only through well-established policies of transmitting power directly to its market and thus encouraging widespread use at low rates can the Federal Government assure the people of their full share of its benefits. Additional power--public and private--is needed to raise the ceilings now imposed by power shortages on industrial and agricultural development. We should achieve the wise use of resources through the integrated development of our great river basins. We can learn much from our Tennessee Valley experience. We should no longer delay in applying the lessons of that vast undertaking to our other great river basins. Our fourth goal is to lift the standard of living for all our people by strengthening our economic system and sharing more broadly among our people the goods we produce. The amazing economic progress of the past 10 years points the way for the next 10. Today 14 million more people have jobs than in 1938. Our yearly output of goods and services has increased by two-thirds. The average income of our people, measured in dollars of equal purchasing power, has increased--after taxes--by more than 50 percent. In no other 10 years have farmers, businessmen, and wage earners made such great gains. We may not be able to expand as rapidly in the next decade as in the last, because we are now starting from full employment and very high production. But we can increase our annual output by at least one-third above the present level. We can lift our standard of living to nearly double what it was 10 years ago. If we distribute these gains properly, we can go far toward stamping out poverty in our generation. To do this, agriculture, business, and labor must move forward together. Permanent farm prosperity and agricultural abundance will be achieved only as our whole economy grows and prospers. The farmer can sell more food at good prices when the incomes of wage earners are high and when there is full employment. Adequate diets for every American family, and the needs of our industries at full production, will absorb a farm output well above our present levels. Although the average farmer is now better off than ever before, farm families as a whole have only begun to catch up with the standards of living enjoyed in the cities. In 1946, the average income of farm people was $779, contrasted with an average income of $1,288 for nonfarm people. Within the next decade, we should eliminate elements of inequality in these living standards. To this end our farm program should enable the farmer to market his varied crops at fair price levels and to improve his standard of living. We need to continue price supports for major farm commodities on a basis which will afford reasonable protection against fluctuations in the levels of production and demand. The present price support program must be reexamined and modernized. Crop insurance should be strengthened and its benefits extended in order to protect the farmer against the special hazards to which he is subject. We also need to improve the means for getting farm products into markets and into the hands of consumers. Cooperatives which directly or indirectly serve this purpose must be encouraged--not discouraged. The school lunch program should be continued and adequately financed. We need to go forward with the rural electrification program to bring the benefits of electricity to all our farm population. We can, and must, aid and encourage farmers to conserve their soil resources and restore the fertility of the land that has suffered from neglect or unwise use. All these are practical measures upon which we should act immediately to enable agriculture to make its full contribution to our prosperity. We must also strengthen our economic system within the next decade by enlarging our industrial capacity within the framework of our free enterprise system. We are today far short of the industrial capacity we need for a growing future. At least $50 billion should be invested by industry to improve and expand our productive facilities over the next few years. But this is only the beginning. The industrial application of atomic energy and other scientific advances will constantly open up further opportunities for expansion. Farm prosperity and high employment will call for an immensely increased output of goods and services. Growth and vitality in our economy depend on vigorous private enterprise. Free competition is the key to industrial development, full production and employment, fair prices, and an ever improving standard of living. Competition is seriously limited today in many industries by the concentration of economic power and other elements of monopoly. The appropriation of sufficient funds to permit proper enforcement of the present antitrust laws is essential. Beyond that we should go on to strengthen our legislation to protect competition. Another basic element of a strong economic system is the well-being of the wage earners. We have learned that the well-being of workers depends on high production and consequent high employment. We have learned equally well that the welfare of industry and agriculture depends on high incomes for our workers. The Government has wisely chosen to set a floor under wages. But our 40-cent minimum wage is inadequate and obsolete. I recommend the lifting of the minimum wage to 75 cents an hour. In general, however, we must continue to rely on our sound system of collective bargaining to set wage scales. Workers' incomes should increase at a rate consistent with the maintenance of sound price, profit, and wage relationships and with increase of productivity. The Government's part in labor-management relations is now largely controlled by the terms of the Labor-Management Relations Act of 1947. I made my attitude clear on this act in my veto message to the Congress last June. Nothing has occurred since to change my opinion of this law. As long as it remains the law of the land, however, I shall carry out my constitutional duty and administer it. As we look ahead we can understand the crucial importance of restraint and wisdom in arriving at new labor-management contracts. Work stoppages would result in a loss of production--a loss which could bring higher prices for our citizens and could also deny the necessities of life to the hard-pressed peoples of other lands. It is my sincere hope that the representatives of labor and of industry will bear in mind that the Nation as a whole has a vital stake in the success of their bargaining efforts. If we surmount our current economic difficulties, we can move ahead to a great increase in our national income which will enable all our people to enjoy richer and fuller lives. All of us must advance together. One-fifth of our families now have average annual incomes of less than $850. We must see that our gains in national income are made more largely available to those with low incomes, whose need is greatest. This will benefit us all through providing a stable foundation of buying power to maintain prosperity. Business, labor, agriculture, and Government, working together, must develop the policies which will make possible the realization of the full benefits of our economic system. Our fifth goal is to achieve world peace based on principles of freedom and justice and the equality of all nations. Twice within our generation, world wars have taught us that we cannot isolate ourselves from the rest of the world. We have learned that the loss of freedom in any area of the world means a loss of freedom to ourselves--that the loss of independence by any nation adds directly to the insecurity of the United States and all free nations. We have learned that a healthy world economy is essential to world peace--that economic distress is a disease whose evil effects spread far beyond the boundaries of the afflicted nation. For these reasons the United States is vigorously following policies designed to achieve a peaceful and prosperous world. We are giving, and will continue to give, our full support to the United Nations. While that organization has encountered unforeseen and unwelcome difficulties, I am confident of its ultimate success. We are also devoting our efforts toward world economic recovery and the revival of world trade. These actions are closely related and mutually supporting. We believe that the United States can be an effective force for world peace only if it is strong. We look forward to the day when nations will decrease their armaments. Yet so long as there remains serious opposition to the ideals of a peaceful world, we must maintain strong armed forces. The passage of the National Security Act by the Congress at its last session was a notable step in providing for the security of this country. A further step which I consider of even greater importance is the early provision for universal training. There are many elements in a balanced national security program, all interrelated and necessary, but universal training should be the foundation for them all. A favorable decision by the Congress at an early date is of world importance. I am convinced that such action is vital to the security of this Nation and to the maintenance of its leadership. The United States is engaged today in many international activities directed toward the creation of lasting peaceful relationships among nations. We have been giving substantial aid to Greece and Turkey to assist those nations in preserving their integrity against foreign pressures. Had it not been for our aid, their situation today might well be radically different. The continued integrity of those countries will have a powerful effect upon other nations in the Middle East and in Europe struggling to maintain their independence while they repair the damages of war. The United States has special responsibilities with respect to the countries in which we have occupation forces: Germany, Austria, Japan, and Korea. Our efforts to reach agreements on peace settlements for these countries have so far been blocked. But we shall continue to exert our utmost efforts to obtain satisfactory settlements for each of these nations. Many thousands of displaced persons, still living in camps overseas, should be allowed entry into the United States. I again urge the Congress to pass suitable legislation at once so that this Nation may do its share in caring for the homeless and suffering refugees of all faiths. I believe that the admission of these persons will add to the strength and energy of this Nation. We are moving toward our goal of world peace in many ways. But the most important efforts which we are now making are those which support world economic reconstruction. We are seeking to restore the world trading system which was shattered by the war and to remedy the economic paralysis which grips many countries. To restore world trade we have recently taken the lead in bringing about the greatest reduction of world tariffs that the world has ever seen. The extension of the provisions of the Reciprocal Trade Agreements Act, which made this achievement possible, is of extreme importance. We must also go on to support the International Trade Organization, through which we hope to obtain worldwide agreement on a code of fair conduct in international trade. Our present major effort toward economic reconstruction is to support the program for recovery developed by the countries of Europe. In my recent message to the Congress, I outlined the reasons why it is wise and necessary for the United States to extend this support. I want to reaffirm my belief in the soundness and the promise of this proposal. When the European economy is strengthened, the product of its industry will be of benefit to many other areas of economic distress. The ability of free men to overcome hunger and despair will be a moral stimulus to the entire world. We intend to work also with other nations in achieving world economic recovery. We shall continue our cooperation with the nations of the Western Hemisphere. A special program of assistance to China, to provide urgent relief needs and to speed reconstruction, will be submitted to the Congress. Unfortunately, not all governments share the hope of the people of the United States that economic reconstruction in many areas of the world can be achieved through cooperative effort among nations. In spite of these differences we will go forward with our efforts to overcome economic paralysis. No nation by itself can carry these programs to success; they depend upon the cooperative and honest efforts of all participating countries. Yet the leadership is inevitably ours. I consider it of the highest importance that the Congress should authorize support for the European recovery program for the period from April 1, 1948, to June 30, 1952, with an initial amount for the first 15 months of $6.8 billion. I urge the Congress to act promptly on this vital measure of our foreign policy--on this decisive contribution to world peace. We are following a sound, constructive, and practical course in carrying out our determination to achieve peace. We are fighting poverty, hunger, and suffering. This leads to peace--not war. We are building toward a world where all nations, large and small alike, may live free from the fear of aggression. This leads to peace--not war. Above all else, we are striving to achieve a concord among the peoples of the world based upon the dignity of the individual and the brotherhood of man. This leads to peace--not war. We can go forward with confidence that we are following sound policies, both at home and with other nations, which will lead us toward our great goals for economic, social and moral achievement. As we enter the new year, we must surmount one major problem which affects all our goals. That is the problem of inflation. Already inflation in this country is undermining the living standards of millions of families. Food costs too much. Housing has reached fantastic price levels. Schools and hospitals are in financial distress. Inflation threatens to bring on disagreement and strife between labor and management. Worst of all, inflation holds the threat of another depression, just as we had a depression after the unstable boom following the First World War. When I announced last October that the Congress was being called into session, I described the price increases which had taken place since June 1946. Wholesale prices had increased 40 percent; retail prices had increased 23 percent. Since October prices have continued to rise. Wholesale prices have gone up at an annual rate of 18 percent. Retail prices have gone up at an annual rate of 10 percent. The events which have occurred since I presented my 10-point anti-inflation program to the Congress in November have made it even clearer that all 10 points are essential. High prices must not be our means of rationing. We must deal effectively and at once with the high cost of living. We must stop the spiral of inflation. I trust that within the shortest possible time the Congress will make available to the Government the weapons that are so desperately needed in the fight against inflation. One of the most powerful anti-inflationary factors in our economy today is the excess of Government revenues over expenditures. Government expenditures have been and must continue to be held at the lowest safe levels. Since V-J day Federal expenditures have been sharply reduced. They have been cut from more than $63 billion in the fiscal year 1946 to less than $38 billion in the present fiscal year. The number of civilian employees has been cut nearly in half--from 3 3/4 million down to 2 million. On the other hand, Government revenues must not be reduced. Until inflation has been stopped there should be no cut in taxes that is not offset by additions at another point in our tax structure. Certain adjustments should be made within our existing tax structure that will not affect total receipts, yet will adjust the tax burden so that those least able to pay will have their burden lessened by the transfer of a portion of it to those best able to pay. Many of our families today are suffering hardship because of the high cost of living. At the same time profits of corporations have reached an all-time record in 1947. Corporate profits total $17 billion after taxes. This compared with $12.5 billion in 1946, the previous high year. Because of this extraordinarily high level of profits, corporations can well afford to carry a larger share of the taxload at this time. During this period in which the high cost of living is bearing down on so many of our families, tax adjustments should be made to ease their burden. The low-income group particularly is being pressed very hard. To this group a tax adjustment would result in a saving that could be used to buy the necessities of life. I recommend therefore that, effective January 1, 1948, a cost of living tax credit be extended to our people consisting of a credit of $40 to each individual taxpayer and an additional credit of $40 for each dependent. Thus the income tax of a man with a wife and two children would be reduced $160. The credit would be extended to all taxpayers, but it would be particularly helpful to those in the low-income group. It is estimated that such a tax credit would reduce Federal revenue by $3.2 billion. This reduction should be made up by increasing the tax on corporate profits in an amount that will produce this sum--with appropriate adjustments for small corporations. This is the proper method of tax relief at this time. It gives relief to those who need it most without cutting the total tax revenue of the Government. When the present danger of inflation has passed we should consider tax reduction based upon a revision of our entire tax structure. When we have conquered inflation, we shall be in a position to move forward toward our chosen goals. As we do so, let us keep ever before us our high purposes. We are determined that every citizen of this Nation shall have an equal right and an equal opportunity to grow in wisdom and in stature and to take his place in the control of his Nation's destiny. We are determined that the productive resources of this Nation shall be used wisely and fully for the benefit of all. We are determined that the democratic faith of our people and the strength of our resources shall contribute their full share to the attainment of enduring peace in the world. It is our faith in human dignity that underlies these purposes. It is this faith that keeps us a strong and vital people. This is a time to remind ourselves of these fundamentals. For today the whole world looks to us for leadership. This is the hour to rededicate ourselves to the faith in mankind that makes us strong. This is the hour to rededicate ourselves to the faith in God that gives us confidence as we face the challenge of the years ahead.
president speaker and members of the 80th congress we are here today to consider the state of the union on this occasion above all others the congress and the president should concentrate their attention not upon party but upon the country not upon things which divide us but upon those which bind us together the enduring principles of our american system and our common aspirations for the future welfare and security of the people of the united states the united states has become great because we as a people have been able to work together for great objectives even while differing about details the elements of our strength are many they include our democratic government our economic system our great natural resources but these are only partial explanations the basic source of our strength is spiritual for we are a people with a faith we believe in the dignity of man we believe that he was created in the image of the father of us all we do not believe that men exist merely to strengthen the state or to be cogs in the economic machine we do believe that governments are created to serve the people and that economic systems exist to minister to their wants we have a profound devotion to the welfare and rights of the individual as a human being the faith of our people has particular meaning at this time in history because of the unsettled and changing state of the world the victims of war in many lands are striving to rebuild their lives and are seeking assurance that the tragedy of war will not occur again throughout the world new ideas are challenging the old men of all nations are reexamining the beliefs by which they live great scientific and industrial changes have released new forces which will affect the future course of civilization the state of our union reflects the changing nature of the modern world on all sides there is heartening evidence of great energy of capacity for economic even more important capacity for spiritual growth but accompanying this great activity there are equally great questions great anxieties and great aspirations they represent the concern of an enlightened people that conditions should be so arranged as to make life more worthwhile we must devote ourselves to finding answers to these anxieties and aspirations we seek answers which will embody the moral and spiritual elements of tolerance unselfishness and brotherhood upon which true freedom and opportunity must rest as we examine the state of our union today we can benefit from viewing it on a basis of the accomplishments of the last decade and of our goals for the next how far have we come during the last 10 years and how far can we go in the next 10 it was 10 years ago that the determination of dictators to wage war upon mankind became apparent the years that followed brought untold death and destruction we shared in the human suffering of the war but we were fortunate enough to escape most of war destruction we were able through these 10 years to expand the productive strength of our farms and factories more important however is the fact that these years brought us new courage new confidence in the ideals of our free democracy our deep belief in freedom and justice was reinforced in the crucible of war on the foundations of our greatly strengthened economy and our renewed confidence in democratic values we can continue to move forward there are some who look with fear and distrust upon planning for the future yet our great national achievements have been attained by those with vision our union was formed our frontiers were pushed back and our great industries were built by men who looked ahead i propose that we look ahead today toward those goals for the future which have the greatest bearing upon the foundations of our democracy and the happiness of our people i do so confident in the thought that with clear objectives and with firm determination we can in the next 10 years build upon the accomplishments of the past decade to achieve a glorious future year by year beginning now we must make a substantial part of this progress our first goal is to secure fully the essential human rights of our citizens the united states has always had a deep concern for human rights religious freedom free speech and freedom of thought are cherished realities in our land any denial of human rights is a denial of the basic beliefs of democracy and of our regard for the worth of each individual today however some of our citizens are still denied equal opportunity for education for jobs and economic advancement and for the expression of their views at the polls most serious of all some are denied equal protection under laws whether discrimination is based on race or creed or color or land of origin it is utterly contrary to american ideals of democracy the recent report of the president committee on civil rights points the way to corrective action by the federal government and by state and local governments because of the need for effective federal action i shall send a special message to the congress on this important subject we should also consider our obligation to assure the fullest possible measure of civil rights to the people of our territories and possessions i believe that the time has come for alaska and hawaii to be admitted to the union as states our second goal is to protect and develop our human resources the safeguarding of the rights of our citizens must be accompanied by an equal regard for their opportunities for development and their protection from economic insecurity in this nation the ideals of freedom and equality can be given specific meaning in terms of health education social security and housing over the past 12 years we have erected a sound framework of social security legislation many millions of our citizens are now protected against the loss of income which can come with unemployment old age or the death of wage earners yet our system has gaps and inconsistencies it is only half finished we should now extend unemployment compensation old age benefits and survivors benefits to millions who are not now protected we should also raise the level of benefits the greatest gap in our social security structure is the lack of adequate provision for the nation health we are rightly proud of the high standards of medical care we know how to provide in the united states the fact is however that most of our people can not afford to pay for the care they need i have often and strongly urged that this condition demands a national health program the heart of the program must be a national system of payment for medical care based on insurance principles this great nation can not afford to allow its citizens to suffer needlessly from the lack of proper medical care our ultimate aim must be a comprehensive insurance system to protect all our people equally against insecurity and ill health another fundamental aim of our democracy is to provide an adequate education for every person our educational systems face a financial crisis it is deplorable that in a nation as rich as ours there are millions of children who do not have adequate schoolhouses or enough teachers for a good elementary or secondary education if there are educational inadequacies in any state the whole nation suffers the federal government has a responsibility for providing financial aid to meet this crisis in addition we must make possible greater equality of opportunity to all our citizens for education only by so doing can we insure that our citizens will be capable of understanding and sharing the responsibilities of democracy the government programs for health education and security are of such great importance to our democracy that we should now establish an executive department for their administration health and education have their beginning in the home no matter what our hospitals or schools are like the youth of our nation are handicapped when millions of them live in city slums and country shacks within the next decade we must see that every american family has a decent home as an immediate step we need the housing program which i have recommended on many occasions to this congress this should include financial aids designed to yield more housing at lower prices it should provide public housing for families and vigorous development of new techniques to lower the cost of building until we can overcome the present drastic housing shortage we must extend and strengthen rent control we have had and shall continue to have a special interest in the welfare of our veterans over 14 million men and women who served in the armed forces in world war ii have now returned to civilian life over 2 million veterans are being helped through school millions have been aided while finding jobs and have been helped in buying homes in obtaining medical care and in adjusting themselves to physical handicaps all but a very few veterans have successfully made the transition from military life to their home communities the success of our veterans program is proved by this fact this nation is proud of the eagerness shown by our veterans to become and citizens our third goal is to conserve and use our natural resources so that they can contribute most effectively to the welfare of our people the resources given by nature to this country are rich and extensive the material foundations of our growth and economic development are the bounty of our fields the wealth of our mines and forests and the energy of our waters as a nation we are coming to appreciate more each day the close relationship between the conservation of these resources and the preservation of our national strength we are doing far less than we know how to do to make use of our resources without destroying them both the public and private use of these resources must have the primary objective of maintaining and increasing these basic supports for an expanding future we must continue to take specific steps toward this goal we must vigorously defend our natural wealth against those who would misuse it for selfish gain we need accurate and comprehensive knowledge of our mineral resources and must intensify our efforts to develop new supplies and to acquire stockpiles of scarce materials we need to protect and restore our and private through combating erosion and rebuilding the fertility of the soil we must expand our reclamation program to bring millions of acres of arid land into production and to improve water supplies for additional millions of acres this will provide new opportunities for veterans and others particularly in the west and aid in providing a rising living standard for a growing population we must protect and restore our forests by forestry and by planting new trees in areas now slashed and barren we must continue to erect dams on our great rivers not only to reclaim land but also to prevent floods to extend our inland waterways and to provide hydroelectric power this public power must not be monopolized for private gain only through policies of transmitting power directly to its market and thus encouraging widespread use at low rates can the federal government assure the people of their full share of its benefits additional power public and private is needed to raise the ceilings now imposed by power shortages on industrial and agricultural development we should achieve the wise use of resources through the integrated development of our great river basins we can learn much from our tennessee valley experience we should no longer delay in applying the lessons of that vast undertaking to our other great river basins our fourth goal is to lift the standard of living for all our people by strengthening our economic system and sharing more broadly among our people the goods we produce the amazing economic progress of the past 10 years points the way for the next 10 today 14 million more people have jobs than in 1938 our yearly output of goods and services has increased by the average income of our people measured in dollars of equal purchasing power has increased after taxes by more than 50 percent in no other 10 years have farmers businessmen and wage earners made such great gains we may not be able to expand as rapidly in the next decade as in the last because we are now starting from full employment and very high production but we can increase our annual output by at least above the present level we can lift our standard of living to nearly double what it was 10 years ago if we distribute these gains properly we can go far toward stamping out poverty in our generation to do this agriculture business and labor must move forward together permanent farm prosperity and agricultural abundance will be achieved only as our whole economy grows and prospers the farmer can sell more food at good prices when the incomes of wage earners are high and when there is full employment adequate diets for every american family and the needs of our industries at full production will absorb a farm output well above our present levels although the average farmer is now better off than ever before farm families as a whole have only begun to catch up with the standards of living enjoyed in the cities in 1946 the average income of farm people was 779 contrasted with an average income of for nonfarm people within the next decade we should eliminate elements of inequality in these living standards to this end our farm program should enable the farmer to market his varied crops at fair price levels and to improve his standard of living we need to continue price supports for major farm commodities on a basis which will afford reasonable protection against fluctuations in the levels of production and demand the present price support program must be reexamined and modernized crop insurance should be strengthened and its benefits extended in order to protect the farmer against the special hazards to which he is subject we also need to improve the means for getting farm products into markets and into the hands of consumers cooperatives which directly or indirectly serve this purpose must be encouraged not discouraged the school lunch program should be continued and adequately financed we need to go forward with the rural electrification program to bring the benefits of electricity to all our farm population we can and must aid and encourage farmers to conserve their soil resources and restore the fertility of the land that has suffered from neglect or unwise use all these are practical measures upon which we should act immediately to enable agriculture to make its full contribution to our prosperity we must also strengthen our economic system within the next decade by enlarging our industrial capacity within the framework of our free enterprise system we are today far short of the industrial capacity we need for a growing future at least 50 billion should be invested by industry to improve and expand our productive facilities over the next few years but this is only the beginning the industrial application of atomic energy and other scientific advances will constantly open up further opportunities for expansion farm prosperity and high employment will call for an immensely increased output of goods and services growth and vitality in our economy depend on vigorous private enterprise free competition is the key to industrial development full production and employment fair prices and an ever improving standard of living competition is seriously limited today in many industries by the concentration of economic power and other elements of monopoly the appropriation of sufficient funds to permit proper enforcement of the present antitrust laws is essential beyond that we should go on to strengthen our legislation to protect competition another basic element of a strong economic system is the of the wage earners we have learned that the of workers depends on high production and consequent high employment we have learned equally well that the welfare of industry and agriculture depends on high incomes for our workers the government has wisely chosen to set a floor under wages but our minimum wage is inadequate and obsolete i recommend the lifting of the minimum wage to 75 cents an hour in general however we must continue to rely on our sound system of collective bargaining to set wage scales workers incomes should increase at a rate consistent with the maintenance of sound price profit and wage relationships and with increase of productivity the government part in relations is now largely controlled by the terms of the relations act of 1947 i made my attitude clear on this act in my veto message to the congress last june nothing has occurred since to change my opinion of this law as long as it remains the law of the land however i shall carry out my constitutional duty and administer it as we look ahead we can understand the crucial importance of restraint and wisdom in arriving at new contracts work stoppages would result in a loss of production a loss which could bring higher prices for our citizens and could also deny the necessities of life to the peoples of other lands it is my sincere hope that the representatives of labor and of industry will bear in mind that the nation as a whole has a vital stake in the success of their bargaining efforts if we surmount our current economic difficulties we can move ahead to a great increase in our national income which will enable all our people to enjoy richer and fuller lives all of us must advance together of our families now have average annual incomes of less than 850 we must see that our gains in national income are made more largely available to those with low incomes whose need is greatest this will benefit us all through providing a stable foundation of buying power to maintain prosperity business labor agriculture and government working together must develop the policies which will make possible the realization of the full benefits of our economic system our fifth goal is to achieve world peace based on principles of freedom and justice and the equality of all nations twice within our generation world wars have taught us that we can not isolate ourselves from the rest of the world we have learned that the loss of freedom in any area of the world means a loss of freedom to ourselves that the loss of independence by any nation adds directly to the insecurity of the united states and all free nations we have learned that a healthy world economy is essential to world peace that economic distress is a disease whose evil effects spread far beyond the boundaries of the afflicted nation for these reasons the united states is vigorously following policies designed to achieve a peaceful and prosperous world we are giving and will continue to give our full support to the united nations while that organization has encountered unforeseen and unwelcome difficulties i am confident of its ultimate success we are also devoting our efforts toward world economic recovery and the revival of world trade these actions are closely related and mutually supporting we believe that the united states can be an effective force for world peace only if it is strong we look forward to the day when nations will decrease their armaments yet so long as there remains serious opposition to the ideals of a peaceful world we must maintain strong armed forces the passage of the national security act by the congress at its last session was a notable step in providing for the security of this country a further step which i consider of even greater importance is the early provision for universal training there are many elements in a balanced national security program all interrelated and necessary but universal training should be the foundation for them all a favorable decision by the congress at an early date is of world importance i am convinced that such action is vital to the security of this nation and to the maintenance of its leadership the united states is engaged today in many international activities directed toward the creation of lasting peaceful relationships among nations we have been giving substantial aid to greece and turkey to assist those nations in preserving their integrity against foreign pressures had it not been for our aid their situation today might well be radically different the continued integrity of those countries will have a powerful effect upon other nations in the middle east and in europe struggling to maintain their independence while they repair the damages of war the united states has special responsibilities with respect to the countries in which we have occupation forces germany austria japan and korea our efforts to reach agreements on peace settlements for these countries have so far been blocked but we shall continue to exert our utmost efforts to obtain satisfactory settlements for each of these nations many thousands of displaced persons still living in camps overseas should be allowed entry into the united states i again urge the congress to pass suitable legislation at once so that this nation may do its share in caring for the homeless and suffering refugees of all faiths i believe that the admission of these persons will add to the strength and energy of this nation we are moving toward our goal of world peace in many ways but the most important efforts which we are now making are those which support world economic reconstruction we are seeking to restore the world trading system which was shattered by the war and to remedy the economic paralysis which grips many countries to restore world trade we have recently taken the lead in bringing about the greatest reduction of world tariffs that the world has ever seen the extension of the provisions of the reciprocal trade agreements act which made this achievement possible is of extreme importance we must also go on to support the international trade organization through which we hope to obtain worldwide agreement on a code of fair conduct in international trade our present major effort toward economic reconstruction is to support the program for recovery developed by the countries of europe in my recent message to the congress i outlined the reasons why it is wise and necessary for the united states to extend this support i want to reaffirm my belief in the soundness and the promise of this proposal when the european economy is strengthened the product of its industry will be of benefit to many other areas of economic distress the ability of free men to overcome hunger and despair will be a moral stimulus to the entire world we intend to work also with other nations in achieving world economic recovery we shall continue our cooperation with the nations of the western hemisphere a special program of assistance to china to provide urgent relief needs and to speed reconstruction will be submitted to the congress unfortunately not all governments share the hope of the people of the united states that economic reconstruction in many areas of the world can be achieved through cooperative effort among nations in spite of these differences we will go forward with our efforts to overcome economic paralysis no nation by itself can carry these programs to success they depend upon the cooperative and honest efforts of all participating countries yet the leadership is inevitably ours i consider it of the highest importance that the congress should authorize support for the european recovery program for the period from april 1 1948 to june 30 1952 with an initial amount for the first 15 months of billion i urge the congress to act promptly on this vital measure of our foreign policy on this decisive contribution to world peace we are following a sound constructive and practical course in carrying out our determination to achieve peace we are fighting poverty hunger and suffering this leads to peace not war we are building toward a world where all nations large and small alike may live free from the fear of aggression this leads to peace not war above all else we are striving to achieve a concord among the peoples of the world based upon the dignity of the individual and the brotherhood of man this leads to peace not war we can go forward with confidence that we are following sound policies both at home and with other nations which will lead us toward our great goals for economic social and moral achievement as we enter the new year we must surmount one major problem which affects all our goals that is the problem of inflation already inflation in this country is undermining the living standards of millions of families food costs too much housing has reached fantastic price levels schools and hospitals are in financial distress inflation threatens to bring on disagreement and strife between labor and management worst of all inflation holds the threat of another depression just as we had a depression after the unstable boom following the first world war when i announced last october that the congress was being called into session i described the price increases which had taken place since june 1946 wholesale prices had increased 40 percent retail prices had increased 23 percent since october prices have continued to rise wholesale prices have gone up at an annual rate of 18 percent retail prices have gone up at an annual rate of 10 percent the events which have occurred since i presented my program to the congress in november have made it even clearer that all 10 points are essential high prices must not be our means of rationing we must deal effectively and at once with the high cost of living we must stop the spiral of inflation i trust that within the shortest possible time the congress will make available to the government the weapons that are so desperately needed in the fight against inflation one of the most powerful factors in our economy today is the excess of government revenues over expenditures government expenditures have been and must continue to be held at the lowest safe levels since day federal expenditures have been sharply reduced they have been cut from more than 63 billion in the fiscal year 1946 to less than 38 billion in the present fiscal year the number of civilian employees has been cut nearly in half from 3 million down to 2 million on the other hand government revenues must not be reduced until inflation has been stopped there should be no cut in taxes that is not offset by additions at another point in our tax structure certain adjustments should be made within our existing tax structure that will not affect total receipts yet will adjust the tax burden so that those least able to pay will have their burden lessened by the transfer of a portion of it to those best able to pay many of our families today are suffering hardship because of the high cost of living at the same time profits of corporations have reached an record in 1947 corporate profits total 17 billion after taxes this compared with billion in 1946 the previous high year because of this extraordinarily high level of profits corporations can well afford to carry a larger share of the taxload at this time during this period in which the high cost of living is bearing down on so many of our families tax adjustments should be made to ease their burden the group particularly is being pressed very hard to this group a tax adjustment would result in a saving that could be used to buy the necessities of life i recommend therefore that effective january 1 1948 a cost of living tax credit be extended to our people consisting of a credit of 40 to each individual taxpayer and an additional credit of 40 for each dependent thus the income tax of a man with a wife and two children would be reduced 160 the credit would be extended to all taxpayers but it would be particularly helpful to those in the group it is estimated that such a tax credit would reduce federal revenue by billion this reduction should be made up by increasing the tax on corporate profits in an amount that will produce this sum with appropriate adjustments for small corporations this is the proper method of tax relief at this time it gives relief to those who need it most without cutting the total tax revenue of the government when the present danger of inflation has passed we should consider tax reduction based upon a revision of our entire tax structure when we have conquered inflation we shall be in a position to move forward toward our chosen goals as we do so let us keep ever before us our high purposes we are determined that every citizen of this nation shall have an equal right and an equal opportunity to grow in wisdom and in stature and to take his place in the control of his nation destiny we are determined that the productive resources of this nation shall be used wisely and fully for the benefit of all we are determined that the democratic faith of our people and the strength of our resources shall contribute their full share to the attainment of enduring peace in the world it is our faith in human dignity that underlies these purposes it is this faith that keeps us a strong and vital people this is a time to remind ourselves of these fundamentals for today the whole world looks to us for leadership this is the hour to rededicate ourselves to the faith in mankind that makes us strong this is the hour to rededicate ourselves to the faith in god that gives us confidence as we face the challenge of the years ahead
president speaker members 80th congress today consider state union occasion others congress president concentrate attention upon party upon country upon things divide us upon bind us together enduring principles american system common aspirations future welfare security people united states united states become great people able work together great objectives even differing details elements strength many include democratic government economic system great natural resources partial explanations basic source strength spiritual people faith believe dignity man believe created image father us believe men exist merely strengthen state cogs economic machine believe governments created serve people economic systems exist minister wants profound devotion welfare rights individual human faith people particular meaning time history unsettled changing state world victims war many lands striving rebuild lives seeking assurance tragedy war occur throughout world new ideas challenging old men nations reexamining beliefs live great scientific industrial changes released new forces affect future course civilization state union reflects changing nature modern world sides heartening evidence great energy capacity economic even important capacity spiritual growth accompanying great activity equally great questions great anxieties great aspirations represent concern enlightened people conditions arranged make life worthwhile must devote finding answers anxieties aspirations seek answers embody moral spiritual elements tolerance unselfishness brotherhood upon true freedom opportunity must rest examine state union today benefit viewing basis accomplishments last decade goals next far come last 10 years far go next 10 10 years ago determination dictators wage war upon mankind became apparent years followed brought untold death destruction shared human suffering war fortunate enough escape war destruction able 10 years expand productive strength farms factories important however fact years brought us new courage new confidence ideals free democracy deep belief freedom justice reinforced crucible war foundations greatly strengthened economy renewed confidence democratic values continue move forward look fear distrust upon planning future yet great national achievements attained vision union formed frontiers pushed back great industries built men looked ahead propose look ahead today toward goals future greatest bearing upon foundations democracy happiness people confident thought clear objectives firm determination next 10 years build upon accomplishments past decade achieve glorious future year year beginning must make substantial part progress first goal secure fully essential human rights citizens united states always deep concern human rights religious freedom free speech freedom thought cherished realities land denial human rights denial basic beliefs democracy regard worth individual today however citizens still denied equal opportunity education jobs economic advancement expression views polls serious denied equal protection laws whether discrimination based race creed color land origin utterly contrary american ideals democracy recent report president committee civil rights points way corrective action federal government state local governments need effective federal action shall send special message congress important subject also consider obligation assure fullest possible measure civil rights people territories possessions believe time come alaska hawaii admitted union states second goal protect develop human resources safeguarding rights citizens must accompanied equal regard opportunities development protection economic insecurity nation ideals freedom equality given specific meaning terms health education social security housing past 12 years erected sound framework social security legislation many millions citizens protected loss income come unemployment old age death wage earners yet system gaps inconsistencies half finished extend unemployment compensation old age benefits survivors benefits millions protected also raise level benefits greatest gap social security structure lack adequate provision nation health rightly proud high standards medical care know provide united states fact however people afford pay care need often strongly urged condition demands national health program heart program must national system payment medical care based insurance principles great nation afford allow citizens suffer needlessly lack proper medical care ultimate aim must comprehensive insurance system protect people equally insecurity ill health another fundamental aim democracy provide adequate education every person educational systems face financial crisis deplorable nation rich millions children adequate schoolhouses enough teachers good elementary secondary education educational inadequacies state whole nation suffers federal government responsibility providing financial aid meet crisis addition must make possible greater equality opportunity citizens education insure citizens capable understanding sharing responsibilities democracy government programs health education security great importance democracy establish executive department administration health education beginning home matter hospitals schools like youth nation handicapped millions live city slums country shacks within next decade must see every american family decent home immediate step need housing program recommended many occasions congress include financial aids designed yield housing lower prices provide public housing families vigorous development new techniques lower cost building overcome present drastic housing shortage must extend strengthen rent control shall continue special interest welfare veterans 14 million men women served armed forces world war ii returned civilian life 2 million veterans helped school millions aided finding jobs helped buying homes obtaining medical care adjusting physical handicaps veterans successfully made transition military life home communities success veterans program proved fact nation proud eagerness shown veterans become citizens third goal conserve use natural resources contribute effectively welfare people resources given nature country rich extensive material foundations growth economic development bounty fields wealth mines forests energy waters nation coming appreciate day close relationship conservation resources preservation national strength far less know make use resources without destroying public private use resources must primary objective maintaining increasing basic supports expanding future must continue take specific steps toward goal must vigorously defend natural wealth would misuse selfish gain need accurate comprehensive knowledge mineral resources must intensify efforts develop new supplies acquire stockpiles scarce materials need protect restore private combating erosion rebuilding fertility soil must expand reclamation program bring millions acres arid land production improve water supplies additional millions acres provide new opportunities veterans others particularly west aid providing rising living standard growing population must protect restore forests forestry planting new trees areas slashed barren must continue erect dams great rivers reclaim land also prevent floods extend inland waterways provide hydroelectric power public power must monopolized private gain policies transmitting power directly market thus encouraging widespread use low rates federal government assure people full share benefits additional power public private needed raise ceilings imposed power shortages industrial agricultural development achieve wise use resources integrated development great river basins learn much tennessee valley experience longer delay applying lessons vast undertaking great river basins fourth goal lift standard living people strengthening economic system sharing broadly among people goods produce amazing economic progress past 10 years points way next 10 today 14 million people jobs 1938 yearly output goods services increased average income people measured dollars equal purchasing power increased taxes 50 percent 10 years farmers businessmen wage earners made great gains may able expand rapidly next decade last starting full employment high production increase annual output least present level lift standard living nearly double 10 years ago distribute gains properly go far toward stamping poverty generation agriculture business labor must move forward together permanent farm prosperity agricultural abundance achieved whole economy grows prospers farmer sell food good prices incomes wage earners high full employment adequate diets every american family needs industries full production absorb farm output well present levels although average farmer better ever farm families whole begun catch standards living enjoyed cities 1946 average income farm people 779 contrasted average income nonfarm people within next decade eliminate elements inequality living standards end farm program enable farmer market varied crops fair price levels improve standard living need continue price supports major farm commodities basis afford reasonable protection fluctuations levels production demand present price support program must reexamined modernized crop insurance strengthened benefits extended order protect farmer special hazards subject also need improve means getting farm products markets hands consumers cooperatives directly indirectly serve purpose must encouraged discouraged school lunch program continued adequately financed need go forward rural electrification program bring benefits electricity farm population must aid encourage farmers conserve soil resources restore fertility land suffered neglect unwise use practical measures upon act immediately enable agriculture make full contribution prosperity must also strengthen economic system within next decade enlarging industrial capacity within framework free enterprise system today far short industrial capacity need growing future least 50 billion invested industry improve expand productive facilities next years beginning industrial application atomic energy scientific advances constantly open opportunities expansion farm prosperity high employment call immensely increased output goods services growth vitality economy depend vigorous private enterprise free competition key industrial development full production employment fair prices ever improving standard living competition seriously limited today many industries concentration economic power elements monopoly appropriation sufficient funds permit proper enforcement present antitrust laws essential beyond go strengthen legislation protect competition another basic element strong economic system wage earners learned workers depends high production consequent high employment learned equally well welfare industry agriculture depends high incomes workers government wisely chosen set floor wages minimum wage inadequate obsolete recommend lifting minimum wage 75 cents hour general however must continue rely sound system collective bargaining set wage scales workers incomes increase rate consistent maintenance sound price profit wage relationships increase productivity government part relations largely controlled terms relations act 1947 made attitude clear act veto message congress last june nothing occurred since change opinion law long remains law land however shall carry constitutional duty administer look ahead understand crucial importance restraint wisdom arriving new contracts work stoppages would result loss production loss could bring higher prices citizens could also deny necessities life peoples lands sincere hope representatives labor industry bear mind nation whole vital stake success bargaining efforts surmount current economic difficulties move ahead great increase national income enable people enjoy richer fuller lives us must advance together families average annual incomes less 850 must see gains national income made largely available low incomes whose need greatest benefit us providing stable foundation buying power maintain prosperity business labor agriculture government working together must develop policies make possible realization full benefits economic system fifth goal achieve world peace based principles freedom justice equality nations twice within generation world wars taught us isolate rest world learned loss freedom area world means loss freedom loss independence nation adds directly insecurity united states free nations learned healthy world economy essential world peace economic distress disease whose evil effects spread far beyond boundaries afflicted nation reasons united states vigorously following policies designed achieve peaceful prosperous world giving continue give full support united nations organization encountered unforeseen unwelcome difficulties confident ultimate success also devoting efforts toward world economic recovery revival world trade actions closely related mutually supporting believe united states effective force world peace strong look forward day nations decrease armaments yet long remains serious opposition ideals peaceful world must maintain strong armed forces passage national security act congress last session notable step providing security country step consider even greater importance early provision universal training many elements balanced national security program interrelated necessary universal training foundation favorable decision congress early date world importance convinced action vital security nation maintenance leadership united states engaged today many international activities directed toward creation lasting peaceful relationships among nations giving substantial aid greece turkey assist nations preserving integrity foreign pressures aid situation today might well radically different continued integrity countries powerful effect upon nations middle east europe struggling maintain independence repair damages war united states special responsibilities respect countries occupation forces germany austria japan korea efforts reach agreements peace settlements countries far blocked shall continue exert utmost efforts obtain satisfactory settlements nations many thousands displaced persons still living camps overseas allowed entry united states urge congress pass suitable legislation nation may share caring homeless suffering refugees faiths believe admission persons add strength energy nation moving toward goal world peace many ways important efforts making support world economic reconstruction seeking restore world trading system shattered war remedy economic paralysis grips many countries restore world trade recently taken lead bringing greatest reduction world tariffs world ever seen extension provisions reciprocal trade agreements act made achievement possible extreme importance must also go support international trade organization hope obtain worldwide agreement code fair conduct international trade present major effort toward economic reconstruction support program recovery developed countries europe recent message congress outlined reasons wise necessary united states extend support want reaffirm belief soundness promise proposal european economy strengthened product industry benefit many areas economic distress ability free men overcome hunger despair moral stimulus entire world intend work also nations achieving world economic recovery shall continue cooperation nations western hemisphere special program assistance china provide urgent relief needs speed reconstruction submitted congress unfortunately governments share hope people united states economic reconstruction many areas world achieved cooperative effort among nations spite differences go forward efforts overcome economic paralysis nation carry programs success depend upon cooperative honest efforts participating countries yet leadership inevitably consider highest importance congress authorize support european recovery program period april 1 1948 june 30 1952 initial amount first 15 months billion urge congress act promptly vital measure foreign policy decisive contribution world peace following sound constructive practical course carrying determination achieve peace fighting poverty hunger suffering leads peace war building toward world nations large small alike may live free fear aggression leads peace war else striving achieve concord among peoples world based upon dignity individual brotherhood man leads peace war go forward confidence following sound policies home nations lead us toward great goals economic social moral achievement enter new year must surmount one major problem affects goals problem inflation already inflation country undermining living standards millions families food costs much housing reached fantastic price levels schools hospitals financial distress inflation threatens bring disagreement strife labor management worst inflation holds threat another depression depression unstable boom following first world war announced last october congress called session described price increases taken place since june 1946 wholesale prices increased 40 percent retail prices increased 23 percent since october prices continued rise wholesale prices gone annual rate 18 percent retail prices gone annual rate 10 percent events occurred since presented program congress november made even clearer 10 points essential high prices must means rationing must deal effectively high cost living must stop spiral inflation trust within shortest possible time congress make available government weapons desperately needed fight inflation one powerful factors economy today excess government revenues expenditures government expenditures must continue held lowest safe levels since day federal expenditures sharply reduced cut 63 billion fiscal year 1946 less 38 billion present fiscal year number civilian employees cut nearly half 3 million 2 million hand government revenues must reduced inflation stopped cut taxes offset additions another point tax structure certain adjustments made within existing tax structure affect total receipts yet adjust tax burden least able pay burden lessened transfer portion best able pay many families today suffering hardship high cost living time profits corporations reached record 1947 corporate profits total 17 billion taxes compared billion 1946 previous high year extraordinarily high level profits corporations well afford carry larger share taxload time period high cost living bearing many families tax adjustments made ease burden group particularly pressed hard group tax adjustment would result saving could used buy necessities life recommend therefore effective january 1 1948 cost living tax credit extended people consisting credit 40 individual taxpayer additional credit 40 dependent thus income tax man wife two children would reduced 160 credit would extended taxpayers would particularly helpful group estimated tax credit would reduce federal revenue billion reduction made increasing tax corporate profits amount produce sum appropriate adjustments small corporations proper method tax relief time gives relief need without cutting total tax revenue government present danger inflation passed consider tax reduction based upon revision entire tax structure conquered inflation shall position move forward toward chosen goals let us keep ever us high purposes determined every citizen nation shall equal right equal opportunity grow wisdom stature take place control nation destiny determined productive resources nation shall used wisely fully benefit determined democratic faith people strength resources shall contribute full share attainment enduring peace world faith human dignity underlies purposes faith keeps us strong vital people time remind fundamentals today whole world looks us leadership hour rededicate faith mankind makes us strong hour rededicate faith god gives us confidence face challenge years ahead
president speaker member 80th congress today consider state union occasion others congress president concentrate attention upon party upon country upon thing divide u upon bind u together endure principle american system common aspiration future welfare security people united state united state become great people able work together great objective even differ detail element strength many include democratic government economic system great natural resource partial explanation basic source strength spiritual people faith believe dignity man believe create image father u believe men exist merely strengthen state cog economic machine believe government create serve people economic system exist minister want profound devotion welfare right individual human faith people particular meaning time history unsettle change state world victim war many land strive rebuild life seek assurance tragedy war occur throughout world new idea challenge old men nation reexamine beliefs live great scientific industrial change release new force affect future course civilization state union reflect change nature modern world side hearten evidence great energy capacity economic even important capacity spiritual growth accompany great activity equally great question great anxiety great aspiration represent concern enlighten people condition arrange make life worthwhile must devote find answer anxiety aspiration seek answer embody moral spiritual element tolerance unselfishness brotherhood upon true freedom opportunity must rest examine state union today benefit view basis accomplishment last decade goal next far come last 10 year far go next 10 10 year ago determination dictator wage war upon mankind become apparent year follow brought untold death destruction share human suffer war fortunate enough escape war destruction able 10 year expand productive strength farm factory important however fact year bring u new courage new confidence ideal free democracy deep belief freedom justice reinforce crucible war foundation greatly strengthen economy renew confidence democratic value continue move forward look fear distrust upon plan future yet great national achievement attain vision union form frontier push back great industry build men look ahead propose look ahead today toward goal future great bear upon foundation democracy happiness people confident think clear objective firm determination next 10 year build upon accomplishment past decade achieve glorious future year year beginning must make substantial part progress first goal secure fully essential human right citizen united state always deep concern human right religious freedom free speech freedom think cherish reality land denial human right denial basic belief democracy regard worth individual today however citizen still deny equal opportunity education job economic advancement expression view poll serious deny equal protection law whether discrimination base race creed color land origin utterly contrary american ideal democracy recent report president committee civil right point way corrective action federal government state local government need effective federal action shall send special message congress important subject also consider obligation assure full possible measure civil right people territory possession believe time come alaska hawaii admit union state second goal protect develop human resource safeguard right citizen must accompany equal regard opportunity development protection economic insecurity nation ideal freedom equality give specific mean term health education social security housing past 12 year erect sound framework social security legislation many million citizen protect loss income come unemployment old age death wage earner yet system gaps inconsistency half finish extend unemployment compensation old age benefit survivor benefit million protect also raise level benefit great gap social security structure lack adequate provision nation health rightly proud high standard medical care know provide united state fact however people afford pay care need often strongly urged condition demand national health program heart program must national system payment medical care base insurance principle great nation afford allow citizen suffer needlessly lack proper medical care ultimate aim must comprehensive insurance system protect people equally insecurity ill health another fundamental aim democracy provide adequate education every person educational system face financial crisis deplorable nation rich million child adequate schoolhouse enough teacher good elementary secondary education educational inadequacy state whole nation suffers federal government responsibility provide financial aid meet crisis addition must make possible great equality opportunity citizens education insure citizens capable understand share responsibility democracy government program health education security great importance democracy establish executive department administration health education begin home matter hospital school like youth nation handicap million live city slum country shack within next decade must see every american family decent home immediate step need housing program recommend many occasion congress include financial aid design yield housing low price provide public housing family vigorous development new technique low cost building overcome present drastic housing shortage must extend strengthen rent control shall continue special interest welfare veterans 14 million men woman serve armed force world war ii return civilian life 2 million veteran help school million aid find job help buy home obtain medical care adjust physical handicap veteran successfully make transition military life home community success veteran program prove fact nation proud eagerness show veteran become citizens third goal conserve use natural resource contribute effectively welfare people resource give nature country rich extensive material foundation growth economic development bounty field wealth mine forest energy water nation come appreciate day close relationship conservation resource preservation national strength far less know make use resource without destroy public private use resource must primary objective maintain increase basic support expand future must continue take specific step toward goal must vigorously defend natural wealth would misuse selfish gain need accurate comprehensive knowledge mineral resource must intensify effort develop new supply acquire stockpile scarce material need protect restore private combating erosion rebuild fertility soil must expand reclamation program bring million acres arid land production improve water supply additional million acre provide new opportunity veterans others particularly west aid provide rise live standard grow population must protect restore forest forestry plant new tree area slash barren must continue erect dam great river reclaim land also prevent flood extend inland waterway provide hydroelectric power public power must monopolize private gain policy transmit power directly market thus encourage widespread use low rate federal government assure people full share benefit additional power public private need raise ceiling impose power shortage industrial agricultural development achieve wise use resource integrate development great river basins learn much tennessee valley experience longer delay apply lesson vast undertaking great river basin fourth goal lift standard living people strengthen economic system share broadly among people good produce amazing economic progress past 10 year point way next 10 today 14 million people job 1938 yearly output good service increase average income people measure dollar equal purchasing power increase tax 50 percent 10 year farmer businessmen wage earner make great gain may able expand rapidly next decade last start full employment high production increase annual output least present level lift standard live nearly double 10 year ago distribute gain properly go far toward stamp poverty generation agriculture business labor must move forward together permanent farm prosperity agricultural abundance achieve whole economy grow prospers farmer sell food good price income wage earner high full employment adequate diet every american family need industry full production absorb farm output well present level although average farmer well ever farm family whole begin catch standard live enjoyed city 1946 average income farm people 779 contrasted average income nonfarm people within next decade eliminate element inequality living standard end farm program enable farmer market vary crop fair price level improve standard live need continue price support major farm commodity basis afford reasonable protection fluctuation level production demand present price support program must reexamine modernize crop insurance strengthen benefit extend order protect farmer special hazard subject also need improve mean get farm product market hand consumer cooperative directly indirectly serve purpose must encourage discouraged school lunch program continue adequately financed need go forward rural electrification program bring benefit electricity farm population must aid encourage farmer conserve soil resource restore fertility land suffer neglect unwise use practical measure upon act immediately enable agriculture make full contribution prosperity must also strengthen economic system within next decade enlarge industrial capacity within framework free enterprise system today far short industrial capacity need grow future least 50 billion invest industry improve expand productive facility next year begin industrial application atomic energy scientific advance constantly open opportunity expansion farm prosperity high employment call immensely increase output good service growth vitality economy depend vigorous private enterprise free competition key industrial development full production employment fair price ever improve standard living competition seriously limit today many industry concentration economic power element monopoly appropriation sufficient fund permit proper enforcement present antitrust law essential beyond go strengthen legislation protect competition another basic element strong economic system wage earner learn worker depend high production consequent high employment learn equally well welfare industry agriculture depend high income worker government wisely choose set floor wage minimum wage inadequate obsolete recommend lift minimum wage 75 cent hour general however must continue rely sound system collective bargaining set wage scale worker incomes increase rate consistent maintenance sound price profit wage relationship increase productivity government part relation largely control term relation act 1947 make attitude clear act veto message congress last june nothing occur since change opinion law long remain law land however shall carry constitutional duty administer look ahead understand crucial importance restraint wisdom arrive new contract work stoppage would result loss production loss could bring high price citizen could also deny necessity life people land sincere hope representative labor industry bear mind nation whole vital stake success bargaining effort surmount current economic difficulty move ahead great increase national income enable people enjoy rich fuller live u must advance together family average annual incomes less 850 must see gain national income make largely available low income whose need great benefit u provide stable foundation buy power maintain prosperity business labor agriculture government work together must develop policy make possible realization full benefit economic system fifth goal achieve world peace base principle freedom justice equality nation twice within generation world war teach u isolate rest world learn loss freedom area world mean loss freedom loss independence nation add directly insecurity united state free nation learn healthy world economy essential world peace economic distress disease whose evil effect spread far beyond boundary afflict nation reason united state vigorously follow policy design achieve peaceful prosperous world give continue give full support unite nation organization encounter unforeseen unwelcome difficulty confident ultimate success also devote effort toward world economic recovery revival world trade action closely relate mutually support believe united state effective force world peace strong look forward day nation decrease armament yet long remain serious opposition ideal peaceful world must maintain strong armed force passage national security act congress last session notable step provide security country step consider even great importance early provision universal train many element balance national security program interrelate necessary universal train foundation favorable decision congress early date world importance convince action vital security nation maintenance leadership united state engage today many international activity direct toward creation last peaceful relationship among nation give substantial aid greece turkey assist nation preserve integrity foreign pressure aid situation today might well radically different continue integrity country powerful effect upon nation middle east europe struggle maintain independence repair damage war united state special responsibility respect country occupation force germany austria japan korea effort reach agreement peace settlement country far block shall continue exert utmost effort obtain satisfactory settlement nation many thousand displace person still live camp overseas allow entry united state urge congress pas suitable legislation nation may share care homeless suffer refugee faith believe admission person add strength energy nation move toward goal world peace many way important effort make support world economic reconstruction seek restore world trading system shatter war remedy economic paralysis grip many country restore world trade recently take lead bring great reduction world tariff world ever see extension provision reciprocal trade agreement act make achievement possible extreme importance must also go support international trade organization hope obtain worldwide agreement code fair conduct international trade present major effort toward economic reconstruction support program recovery develop country europe recent message congress outline reason wise necessary united state extend support want reaffirm belief soundness promise proposal european economy strengthen product industry benefit many area economic distress ability free men overcome hunger despair moral stimulus entire world intend work also nation achieve world economic recovery shall continue cooperation nation western hemisphere special program assistance china provide urgent relief need speed reconstruction submit congress unfortunately government share hope people united state economic reconstruction many area world achieve cooperative effort among nation spite difference go forward effort overcome economic paralysis nation carry program success depend upon cooperative honest effort participate country yet leadership inevitably consider high importance congress authorize support european recovery program period april 1 1948 june 30 1952 initial amount first 15 month billion urge congress act promptly vital measure foreign policy decisive contribution world peace follow sound constructive practical course carry determination achieve peace fight poverty hunger suffer lead peace war building toward world nation large small alike may live free fear aggression lead peace war else strive achieve concord among people world base upon dignity individual brotherhood man lead peace war go forward confidence follow sound policy home nation lead u toward great goal economic social moral achievement enter new year must surmount one major problem affect goal problem inflation already inflation country undermine living standard million family food cost much housing reach fantastic price level school hospital financial distress inflation threaten bring disagreement strife labor management bad inflation hold threat another depression depression unstable boom follow first world war announce last october congress call session describe price increase take place since june 1946 wholesale price increase 40 percent retail price increase 23 percent since october price continue rise wholesale price go annual rate 18 percent retail price go annual rate 10 percent event occur since present program congress november make even clear 10 point essential high price must mean ration must deal effectively high cost living must stop spiral inflation trust within short possible time congress make available government weapon desperately need fight inflation one powerful factor economy today excess government revenue expenditures government expenditure must continue hold low safe level since day federal expenditure sharply reduce cut 63 billion fiscal year 1946 less 38 billion present fiscal year number civilian employee cut nearly half 3 million 2 million hand government revenue must reduce inflation stop cut tax offset addition another point tax structure certain adjustment make within exist tax structure affect total receipt yet adjust tax burden least able pay burden lessen transfer portion best able pay many family today suffer hardship high cost living time profit corporation reach record 1947 corporate profit total 17 billion tax compare billion 1946 previous high year extraordinarily high level profit corporation well afford carry large share taxload time period high cost live bear many family tax adjustment make ease burden group particularly press hard group tax adjustment would result save could use buy necessity life recommend therefore effective january 1 1948 cost live tax credit extend people consist credit 40 individual taxpayer additional credit 40 dependent thus income tax man wife two child would reduce 160 credit would extend taxpayer would particularly helpful group estimate tax credit would reduce federal revenue billion reduction make increase tax corporate profit amount produce sum appropriate adjustment small corporation proper method tax relief time give relief need without cut total tax revenue government present danger inflation pass consider tax reduction base upon revision entire tax structure conquer inflation shall position move forward toward choose goal let u keep ever u high purpose determine every citizen nation shall equal right equal opportunity grow wisdom stature take place control nation destiny determine productive resource nation shall use wisely fully benefit determined democratic faith people strength resource shall contribute full share attainment endure peace world faith human dignity underlies purpose faith keep u strong vital people time remind fundamental today whole world look u leadership hour rededicate faith mankind make u strong hour rededicate faith god give u confidence face challenge year ahead