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diff --git a/.gitattributes b/.gitattributes new file mode 100644 index 0000000..6833f05 --- /dev/null +++ b/.gitattributes @@ -0,0 +1,3 @@ +* text=auto +*.txt text +*.md text diff --git a/5044-h.zip b/5044-h.zip Binary files differnew file mode 100644 index 0000000..c4db01b --- /dev/null +++ b/5044-h.zip diff --git a/5044-h/5044-h.htm b/5044-h/5044-h.htm new file mode 100644 index 0000000..94eb0f5 --- /dev/null +++ b/5044-h/5044-h.htm @@ -0,0 +1,2707 @@ +<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.1//EN" + "http://www.w3.org/TR/xhtml11/DTD/xhtml11.dtd"> + +<html xmlns="http://www.w3.org/1999/xhtml" xml:lang="en"> + +<head> + +<meta http-equiv="Content-Type" content="text/html; charset=ISO-8859-1" /> + +<title> +The Project Gutenberg E-text of State of the Union Addresses, by Gerald R. Ford +</title> + +<style type="text/css"> +body { color: black; + background: white; + margin-right: 10%; + margin-left: 10%; + font-family: "Times New Roman", serif; + text-align: justify } + +p {text-indent: 4% } + +p.noindent {text-indent: 0% } + +p.t1 {text-indent: 0% ; + font-size: 200%; + text-align: center } + +p.t2 {text-indent: 0% ; + font-size: 150%; + text-align: center } + +p.t3 {text-indent: 0% ; + font-size: 100%; + text-align: center } + +p.t3b {text-indent: 0% ; + font-size: 100%; + font-weight: bold; + text-align: center } + +p.t4 {text-indent: 0% ; + font-size: 80%; + text-align: center } + +p.t4b {text-indent: 0% ; + font-size: 80%; + font-weight: bold; + text-align: center } + +p.t5 {text-indent: 0% ; + font-size: 60%; + text-align: center } + +h1 { text-align: center } +h2 { text-align: center } +h3 { text-align: center } +h4 { text-align: center } +h5 { text-align: center } + +p.poem {text-indent: 0%; + margin-left: 10%; } + +p.contents {text-indent: -3%; + margin-left: 5% } + +p.thought {text-indent: 0% ; + letter-spacing: 4em ; + text-align: center } + +p.letter {text-indent: 0%; + margin-left: 10% ; + margin-right: 10% } + +p.footnote {text-indent: 0% ; + font-size: 80%; + margin-left: 10% ; + margin-right: 10% } + +p.transnote {text-indent: 0% ; + margin-left: 0% ; + margin-right: 0% } + +p.intro {font-size: 90% ; + text-indent: -5% ; + margin-left: 5% ; + margin-right: 0% } + +p.quote {text-indent: 4% ; + margin-left: 0% ; + margin-right: 0% } + +p.finis { font-size: larger ; + text-align: center ; + text-indent: 0% ; + margin-left: 0% ; + margin-right: 0% } + +</style> + +</head> + +<body> + + +<pre> + +The Project Gutenberg EBook of State of the Union Addresses of Gerald R. +Ford, by Gerald R. Ford + +This eBook is for the use of anyone anywhere in the United States and most +other parts of the world at no cost and with almost no restrictions +whatsoever. You may copy it, give it away or re-use it under the terms of +the Project Gutenberg License included with this eBook or online at +www.gutenberg.org. If you are not located in the United States, you'll have +to check the laws of the country where you are located before using this ebook. + +Title: State of the Union Addresses of Gerald R. Ford + +Author: Gerald R. Ford + +Posting Date: November 23, 2014 [EBook #5044] +Release Date: February, 2004 +First Posted: April 11, 2002 +Last Updated: December 16, 2004 + +Language: English + +Character set encoding: ISO-8859-1 + +*** START OF THIS PROJECT GUTENBERG EBOOK STATE OF THE UNION ADDRESSES *** + + + + +Produced by James Linden. HTML version by Al Haines. + + + + + +</pre> + + +<h1> +<br /><br /><br /> +State of the Union Addresses of Gerald R. Ford +</h1> + +<p class="noindent"> +<br /><br /> +The addresses are separated by three asterisks: *** +</p> + +<p class="noindent"> +Dates of addresses by Gerald R. Ford in this eBook: +</p> + +<p class="noindent"> + <a href="#jan1975">January 15, 1975</a><br /> + <a href="#jan1976">January 19, 1976</a><br /> + <a href="#jan1977">January 12, 1977</a><br /> +</p> + +<p><br /><br /></p> + +<p class="t3"> +*** +</p> + +<p><a id="jan1975"></a></p> + +<p class="noindent"> +State of the Union Address<br /> +Gerald R. Ford<br /> +January 15, 1975<br /> +</p> + +<p class="noindent"> +Mr. Speaker, Mr. Vice President, Members of the 94th Congress, and +distinguished guests: +</p> + +<p> +Twenty-six years ago, a freshman Congressman, a young fellow with lots of +idealism who was out to change the world, stood before Sam Rayburn in the +well of the House and solemnly swore to the same oath that all of you took +yesterday--an unforgettable experience, and I congratulate you all. +</p> + +<p> +Two days later, that same freshman stood at the back of this great +Chamber--over there someplace--as President Truman, all charged up by his +single-handed election victory, reported as the Constitution requires on +the state of the Union. +</p> + +<p> +When the bipartisan applause stopped, President Truman said, "I am happy to +report to this 81st Congress that the state of the Union is good. Our +Nation is better able than ever before to meet the needs of the American +people, and to give them their fair chance in the pursuit of happiness. +[It] is foremost among the nations of the world in the search for peace." +</p> + +<p> +Today, that freshman Member from Michigan stands where Mr. Truman +stood, and I must say to you that the state of the Union is not good: +</p> + +<p> +Millions of Americans are out of work. +</p> + +<p> +Recession and inflation are eroding the money of millions more. +</p> + +<p> +Prices are too high, and sales are too slow. +</p> + +<p> +This year's Federal deficit will be about $30 billion; next year's probably +$45 billion. +</p> + +<p> +The national debt will rise to over $500 billion. +</p> + +<p> +Our plant capacity and productivity are not increasing fast enough. +</p> + +<p> +We depend on others for essential energy. +</p> + +<p> +Some people question their Government's ability to make hard decisions and +stick with them; they expect Washington politics as usual. +</p> + +<p> +Yet, what President Truman said on January 5, 1949, is even more true in +1975. We are better able to meet our people's needs. All Americans do have +a fairer chance to pursue happiness. Not only are we still the foremost +nation in the pursuit of peace but today's prospects of attaining it are +infinitely brighter. +</p> + +<p> +There were 59 million Americans employed at the start of 1949; now there +are more than 85 million Americans who have jobs. In comparable dollars, +the average income of the American family has doubled during the past 26 +years. +</p> + +<p> +Now, I want to speak very bluntly. I've got bad news, and I don't expect +much, if any, applause. The American people want action, and it will take +both the Congress and the President to give them what they want. Progress +and solutions can be achieved, and they will be achieved. +</p> + +<p> +My message today is not intended to address all of the complex needs of +America. I will send separate messages making specific recommendations for +domestic legislation, such as the extension of general revenue sharing and +the Voting Rights Act. +</p> + +<p> +The moment has come to move in a new direction. We can do this by +fashioning a new partnership between the Congress on the one hand, the +White House on the other, and the people we both represent. +</p> + +<p> +Let us mobilize the most powerful and most creative industrial nation that +ever existed on this Earth to put all our people to work. The emphasis on +our economic efforts must now shift from inflation to jobs. +</p> + +<p> +To bolster business and industry and to create new jobs, I propose a 1-year +tax reduction of $16 billion. Three-quarters would go to individuals and +one-quarter to promote business investment. +</p> + +<p> +This cash rebate to individuals amounts to 12 percent of 1974 tax +payments--a total cut of $12 billion, with a maximum of $1,000 per return. +</p> + +<p> +I call on the Congress to act by April 1. If you do--and I hope you +will--the Treasury can send the first check for half of the rebate in May +and the second by September. +</p> + +<p> +The other one-fourth of the cut, about $4 billion, will go to business, +including farms, to promote expansion and to create more jobs. The 1-year +reduction for businesses would be in the form of a liberalized investment +tax credit increasing the rate to 12 percent for all businesses. +</p> + +<p> +This tax cut does not include the more fundamental reforms needed in our +tax system. But it points us in the right direction--allowing taxpayers +rather than the Government to spend their pay. +</p> + +<p> +Cutting taxes now is essential if we are to turn the economy around. A tax +cut offers the best hope of creating more jobs. Unfortunately, it will +increase the size of the budget deficit. Therefore, it is more important +than ever that we take steps to control the growth of Federal +expenditures. +</p> + +<p> +Part of our trouble is that we have been self-indulgent. For decades, we +have been voting ever-increasing levels of Government benefits, and now the +bill has come due. We have been adding so many new programs that the size +and the growth of the Federal budget has taken on a life of its own. +</p> + +<p> +One characteristic of these programs is that their cost increases +automatically every year because the number of people eligible for most of +the benefits increases every year. When these programs are enacted, there +is no dollar amount set. No one knows what they will cost. All we know is +that whatever they cost last year, they will cost more next year. +</p> + +<p> +It is a question of simple arithmetic. Unless we check the excessive growth +of Federal expenditures or impose on ourselves matching increases in taxes, +we will continue to run huge inflationary deficits in the Federal budget. +</p> + +<p> +If we project the current built-in momentum of Federal spending through the +next 15 years, State, Federal, and local government expenditures could +easily comprise half of our gross national product. This compares with less +than a third in 1975. +</p> + +<p> +I have just concluded the process of preparing the budget submissions for +fiscal year 1976. In that budget, I will propose legislation to restrain +the growth of a number of existing programs. I have also concluded that no +new spending programs can be initiated this year, except for energy. +Further, I will not hesitate to veto any new spending programs adopted by +the Congress. +</p> + +<p> +As an additional step toward putting the Federal Government's house in +order, I recommend a 5-percent limit on Federal pay increases in 1975. In +all Government programs tied to the Consumer Price Index--including social +security, civil service and military retirement pay, and food stamps--I +also propose a 1-year maximum increase of 5 percent. +</p> + +<p> +None of these recommended ceiling limitations, over which Congress has +final authority, are easy to propose, because in most cases they involve +anticipated payments to many, many deserving people. Nonetheless, it must +be done. I must emphasize that I am not asking to eliminate, to reduce, to +freeze these payments. I am merely recommending that we slow down the rate +at which these payments increase and these programs grow. +</p> + +<p> +Only a reduction in the growth of spending can keep Federal borrowing down +and reduce the damage to the private sector from high interest rates. Only +a reduction in spending can make it possible for the Federal Reserve System +to avoid an inflationary growth in the money supply and thus restore +balance to our economy. A major reduction in the growth of Federal spending +can help dispel the uncertainty that so many feel about our economy and put +us on the way to curing our economic ills. +</p> + +<p> +If we don't act to slow down the rate of increase in Federal spending, the +United States Treasury will be legally obligated to spend more than $360 +billion in fiscal year 1976, even if no new programs are enacted. These are +not matters of conjecture or prediction, but again, a matter of simple +arithmetic. The size of these numbers and their implications for our +everyday life and the health of our economic system are shocking. +</p> + +<p> +I submitted to the last Congress a list of budget deferrals and +rescissions. There will be more cuts recommended in the budget that I will +submit. Even so, the level of outlays for fiscal year 1976 is still much, +much too high. Not only is it too high for this year but the decisions we +make now will inevitably have a major and growing impact on expenditure +levels in future years. I think this is a very fundamental issue that we, +the Congress and I, must jointly solve. +</p> + +<p> +Economic disruptions we and others are experiencing stem in part from the +fact that the world price of petroleum has quadrupled in the last year. But +in all honesty, we cannot put all of the blame on the oil-exporting +nations. We, the United States, are not blameless. Our growing dependence +upon foreign sources has been adding to our vulnerability for years and +years, and we did nothing to prepare ourselves for such an event as the +embargo of 1973. +</p> + +<p> +During the 1960's, this country had a surplus capacity of crude oil which +we were able to make available to our trading partners whenever there was a +disruption of supply. This surplus capacity enabled us to influence both +supplies and prices of crude oil throughout the world. Our excess capacity +neutralized any effort at establishing an effective cartel, and thus the +rest of the world was assured of adequate supplies of oil at reasonable +prices. +</p> + +<p> +By 1970, our surplus capacity had vanished, and as a consequence, the +latent power of the oil cartel could emerge in full force. Europe and +Japan, both heavily dependent on imported oil, now struggle to keep their +economies in balance. Even the United States, our country, which is far +more self-sufficient than most other industrial countries, has been .put +under serious pressure. +</p> + +<p> +I am proposing a program which will begin to restore our country's surplus +capacity in total energy. In this way, we will be able to assure ourselves +reliable and adequate energy and help foster a new world energy stability +for other major consuming nations. +</p> + +<p> +But this Nation and, in fact, the world must face the prospect of energy +difficulties between now and 1985. This program will impose burdens on all +of us with the aim of reducing our consumption of energy and increasing our +production. Great attention has been paid to the considerations of +fairness, and I can assure you that the burdens will not fall more harshly +on those less able to bear them. +</p> + +<p> +I am recommending a plan to make us invulnerable to cutoffs of foreign oil. +It will require sacrifices, but it--and this is most important--it will +work. +</p> + +<p> +I have set the following national energy goals to assure that our future is +as secure and as productive as our past: +</p> + +<p> +First, we must reduce oil imports by 1 million barrels per day by the end +of this year and by 2 million barrels per day by the end of 1977. +</p> + +<p> +Second, we must end vulnerability to economic disruption by foreign +suppliers by 1985. +</p> + +<p> +Third, we must develop our energy technology and resources so that the +United States has the ability to supply a significant share of the energy +needs of the free world by the end of this century. +</p> + +<p> +To attain these objectives, we need immediate action to cut imports. +Unfortunately, in the short term there are only a limited number of actions +which can increase domestic supply. I will press for all of them. +</p> + +<p> +I urge quick action on the necessary legislation to allow commercial +production at the Elk Hills, California, Naval Petroleum Reserve. In order +that we make greater use of domestic coal resources, I am submitting +amendments to the Energy Supply and Environmental Coordination Act which +will greatly increase the number of powerplants that can be promptly +converted to coal. +</p> + +<p> +Obviously, voluntary conservation continues to be essential, but tougher +programs are needed--and needed now. Therefore, I am using Presidential +powers to raise the fee on all imported crude oil and petroleum products. +The crude oil fee level will be increased $1 per barrel on February 1, by +$2 per barrel on March 1, and by $3 per barrel on April 1. I will take +actions to reduce undue hardships on any geographical region. The foregoing +are interim administrative actions. They will be rescinded when the broader +but necessary legislation is enacted. +</p> + +<p> +To that end, I am requesting the Congress to act within 90 days on a more +comprehensive energy tax program. It includes: excise taxes and import fees +totaling $2 per barrel on product imports and on all crude oil; +deregulation of new natural gas and enactment of a natural gas excise tax. +</p> + +<p> +I plan to take Presidential initiative to decontrol the price of domestic +crude oil on April 1. I urge the Congress to enact a windfall profits tax +by that date to ensure that oil producers do not profit unduly. +</p> + +<p> +The sooner Congress acts, the more effective the oil conservation program +will be and the quicker the Federal revenues can be returned to our +people. +</p> + +<p> +I am prepared to use Presidential authority to limit imports, as necessary, +to guarantee success. +</p> + +<p> +I want you to know that before deciding on my energy conservation program, +I considered rationing and higher gasoline taxes as alternatives. In my +judgment, neither would achieve the desired results and both would produce +unacceptable inequities. +</p> + +<p> +A massive program must be initiated to increase energy supply, to cut +demand, and provide new standby emergency programs to achieve the +independence we want by 1985. The largest part of increased oil production +must come from new frontier areas on the Outer Continental Shelf and from +the Naval Petroleum Reserve No. 4 in Alaska. It is the intent of this +Administration to move ahead with exploration, leasing, and production on +those frontier areas of the Outer Continental Shelf where the environmental +risks are acceptable. +</p> + +<p> +Use of our most abundant domestic resource--coal--is severely limited. We +must strike a reasonable compromise on environmental concerns with coal. I +am submitting Clean Air amendments which will allow greater coal use +without sacrificing clean air goals. +</p> + +<p> +I vetoed the strip mining legislation passed by the last Congress. With +appropriate changes, I will sign a revised version when it comes to the +White House. +</p> + +<p> +I am proposing a number of actions to energize our nuclear power program. I +will submit legislation to expedite nuclear leasing and the +rapid selection of sites. +</p> + +<p> +In recent months, utilities have cancelled or postponed over 60 percent of +planned nuclear expansion and 30 percent of planned additions to +non-nuclear capacity. Financing problems for that industry are worsening. I +am therefore recommending that the 1-year investment tax credit of 12 +percent be extended an additional 2 years to specifically speed the +construction of powerplants that do not use natural gas or oil. I am also +submitting proposals for selective reform of State utility commission +regulations. +</p> + +<p> +To provide the critical stability for our domestic energy production in the +face of world price uncertainty, I will request legislation to authorize +and require tariffs, import quotas, or price floors to protect our energy +prices at levels which will achieve energy independence. +</p> + +<p> +Increasing energy supplies is not enough. We must take additional steps to +cut long-term consumption. I therefore propose to the Congress: legislation +to make thermal efficiency standards mandatory for all new buildings in the +United States; a new tax credit of up to $150 for those homeowners who +install insulation equipment; the establishment of an energy conservation +program to help low-income families purchase insulation supplies; +legislation to modify and defer automotive pollution standards for 5 years, +which will enable us to improve automobile gas mileage by 40 percent by +1980. +</p> + +<p> +These proposals and actions, cumulatively, can reduce our dependence on +foreign energy supplies from 3 to 5 million barrels per day by 1985. To +make the United States invulnerable to foreign disruption, I propose +standby emergency legislation and a strategic storage program of 1 billion +barrels of oil for domestic needs and 300 million barrels for national +defense purposes. +</p> + +<p> +I will ask for the funds needed for energy research and development +activities. I have established a goal of 1 million barrels of synthetic +fuels and shale oil production per day by 1985 together with an incentive +program to achieve it. +</p> + +<p> +I have a very deep belief in America's capabilities. Within the next 10 +years, my program envisions: 200 major nuclear powerplants; 250 major new +coal mines; 150 major coal-fired powerplants; 30 major new refineries; 20 +major new synthetic fuel plants; the drilling of many thousands of new +oil wells; the insulation of 18 million homes; and the manufacturing +and the sale of millions of new automobiles, trucks, and buses that +use much less fuel. +</p> + +<p> +I happen to believe that we can do it. In another crisis--the one in 1942 +President Franklin D. Roosevelt said this country would build 60,000 +military aircraft. By 1943, production in that program had reached +125,000 aircraft annually. They did it then. We can do it now. +</p> + +<p> +If the Congress and the American people will work with me to attain these +targets, they will be achieved and will be surpassed. From adversity, let +us seize opportunity. Revenues of some $30 billion from higher energy taxes +designed to encourage conservation must be refunded to the American people +in a manner which corrects distortions in our tax system wrought by +inflation. +</p> + +<p> +People have been pushed into higher tax brackets by inflation, with +consequent reduction in their actual spending power. Business taxes are +similarly distorted because inflation exaggerates reported profits, +resulting in excessive taxes. +</p> + +<p> +Accordingly, I propose that future individual income taxes be reduced by +$16.5 billion. This will be done by raising the low-income allowance and +reducing tax rates. This continuing tax cut will primarily benefit lower- +and middle-income taxpayers. +</p> + +<p> +For example, a typical family of four with a gross income of $5,600 now +pays $185 in Federal income taxes. Under this tax cut plan, they would pay +nothing. A family of four with a gross income of $12,500 now pays $1,260 in +Federal taxes. My proposal reduces that total by $300. Families grossing +$20,000 would receive a reduction of $210. +</p> + +<p> +Those with the very lowest incomes, who can least afford higher costs, must +also be compensated. I propose a payment of $80 to every person 18 years of +age and older in that very limited category. +</p> + +<p> +State and local governments will receive $2 billion in additional revenue +sharing to offset their increased energy costs. +</p> + +<p> +To offset inflationary distortions and to generate more economic activity, +the corporate tax rate will be reduced from 48 percent to 42 percent. +</p> + +<p> +Now let me turn, if I might, to the international dimension of the present +crisis. At no time in our peacetime history has the state of the Nation +depended more heavily on the state of the world. And seldom, if ever, has +the state of the world depended more heavily on the state of our Nation. +</p> + +<p> +The economic distress is global. We will not solve it at home unless we +help to remedy the profound economic dislocation abroad. World trade and +monetary structure provides markets, energy, food, and vital raw +materials--for all nations. This international system is now in jeopardy. +</p> + +<p> +This Nation can be proud of significant achievements in recent years in +solving problems and crises. The Berlin agreement, the SALT agreements, our +new relationship with China, the unprecedented efforts in the Middle East +are immensely encouraging. But the world is not free from crisis. In a +world of 150 nations, where nuclear technology is proliferating and +regional conflicts continue, international security cannot be taken for +granted. +</p> + +<p> +So, let there be no mistake about it: International cooperation is a vital +factor of our lives today. This is not a moment for the American people to +turn inward. More than ever before, our own well-being depends on America's +determination and America's leadership in the whole wide world. +</p> + +<p> +We are a great Nation--spiritually, politically, militarily, +diplomatically, and economically. America's commitment to international +security has sustained the safety of allies and friends in many areas--in +the Middle East, in Europe, and in Asia. Our turning away would unleash new +instabilities, new dangers around the globe, which, in turn, would threaten +our own security. +</p> + +<p> +At the end of World War II, we turned a similar challenge into an historic +opportunity and, I might add, an historic achievement. An old order was in +disarray; political and economic institutions were shattered. In that +period, this Nation and its partners built new institutions, new mechanisms +of mutual support and cooperation. Today, as then, we face an historic +opportunity. If we act imaginatively and boldly, as we acted then, this +period will in retrospect be seen as one of the great creative moments of +our Nation's history. The whole world is watching to see how we respond. +</p> + +<p> +A resurgent American economy would do more to restore the confidence of the +world in its own future than anything else we can do. The program that this +Congress passes can demonstrate to the world that we have started to put +our own house in order. If we can show that this Nation is able and willing +to help other nations meet the common challenge, it can demonstrate that +the United States will fulfill its responsibilities as a leader among +nations. +</p> + +<p> +Quite frankly, at stake is the future of industrialized democracies, which +have perceived their destiny in common and sustained it in common for 30 +years. +</p> + +<p> +The developing nations are also at a turning point. The poorest nations see +their hopes of feeding their hungry and developing their societies +shattered by the economic crisis. The long-term economic future for the +producers of raw materials also depends on cooperative solutions. +</p> + +<p> +Our relations with the Communist countries are a basic factor of the world +environment. We must seek to build a long-term basis for coexistence. We +will stand by our principles. We will stand by our interests. We will act +firmly when challenged. The kind of a world we want depends on a broad +policy of creating mutual incentives for restraint and for cooperation. +</p> + +<p> +As we move forward to meet our global challenges and opportunities, we must +have the tools to do the job. +</p> + +<p> +Our military forces are strong and ready. This military strength deters +aggression against our allies, stabilizes our relations with former +adversaries, and protects our homeland. Fully adequate conventional and +strategic forces cost many, many billions, but these dollars are sound +insurance for our safety and for a more peaceful world. +</p> + +<p> +Military strength alone is not sufficient. Effective diplomacy is also +essential in preventing conflict, in building world understanding. The +Vladivostok negotiations with the Soviet Union represent a major step in +moderating strategic arms competition. My recent discussions with the +leaders of the Atlantic community, Japan, and South Korea have contributed +to meeting the common challenge. +</p> + +<p> +But we have serious problems before us that require cooperation between the +President and the Congress. By the Constitution and tradition, the +execution of foreign policy is the responsibility of the President. +</p> + +<p> +In recent years, under the stress of the Vietnam war, legislative +restrictions on the President's ability to execute foreign policy and +military decisions have proliferated. As a Member of the Congress, I +opposed some and I approved others. As President, I welcome the advice and +cooperation of the House and the Senate. +</p> + +<p> +But if our foreign policy is to be successful, we cannot rigidly restrict +in legislation the ability of the President to act. The conduct of +negotiations is ill-suited to such limitations. Legislative restrictions, +intended for the best motives and purposes, can have the opposite result, +as we have seen most recently in our trade relations with the Soviet +Union. +</p> + +<p> +For my part, I pledge this Administration will act in the closest +consultation with the Congress as we face delicate situations and troubled +times throughout the globe. +</p> + +<p> +When I became President only 5 months ago, I promised the last Congress a +policy of communication, conciliation, compromise, and cooperation. I renew +that pledge to the new Members of this Congress. +</p> + +<p> +Let me sum it up. America needs a new direction, which I have sought to +chart here today--a change of course which will: put the unemployed back to +work; increase real income and production; restrain the growth of Federal +Government spending; achieve energy independence; and advance the cause of +world understanding. +</p> + +<p> +We have the ability. We have the know-how. In partnership with the American +people, we will achieve these objectives. +</p> + +<p> +As our 200th anniversary approaches, we owe it to ourselves and to +posterity to rebuild our political and economic strength. Let us make +America once again and for centuries more to come what it has so long +been--a stronghold and a beacon-light of liberty for the whole world. +</p> + +<p> +Thank you. +</p> + +<p><br /><br /><br /></p> + +<p class="t3"> +*** +</p> + +<p><a id="jan1976"></a></p> + +<p class="noindent"> +State of the Union Address<br /> +Gerald R. Ford<br /> +January 19, 1976<br /> +</p> + +<p class="noindent"> +Mr. Speaker, Mr. Vice President, Members of the 94th Congress, and +distinguished guests: +</p> + +<p> +As we begin our Bicentennial, America is still one of the youngest nations +in recorded history. Long before our forefathers came to these shores, men +and women had been struggling on this planet to forge a better life for +themselves and their families. +</p> + +<p> +In man's long, upward march from savagery and slavery--throughout the +nearly 2,000 years of the Christian calendar, the nearly 6,000 years of +Jewish reckoning--there have been many deep, terrifying valleys, but also +many bright and towering peaks. +</p> + +<p> +One peak stands highest in the ranges of human history. One example shines +forth of a people uniting to produce abundance and to share the good life +fairly and with freedom. One union holds out the promise of justice and +opportunity for every citizen: That union is the United States of America. +</p> + +<p> +We have not remade paradise on Earth. We know perfection will not be found +here. But think for a minute how far we have come in 200 years. +</p> + +<p> +We came from many roots, and we have many branches. Yet all Americans +across the eight generations that separate us from the stirring deeds of +1776, those who know no other homeland and those who just found refuge +among our shores, say in unison: +</p> + +<p> +I am proud of America, and I am proud to be an American. Life will be a +little better here for my children than for me. I believe this not because +I am told to believe it, but because life has been better for me than it +was for my father and my mother. I know it will be better for my children +because my hands, my brains, my voice, and my vote can help make it +happen. +</p> + +<p> +It has happened here in America. It has happened to you and to me. +Government exists to create and preserve conditions in which people can +translate their ideas into practical reality. In the best of times, much is +lost in translation. But we try. Sometimes we have tried and failed. Always +we have had the best of intentions. +</p> + +<p> +But in the recent past, we sometimes forgot the sound principles that +guided us through most of our history. We wanted to accomplish great things +and solve age-old problems. And we became overconfident of our abilities. +We tried to be a policeman abroad and the indulgent parent here at home. +</p> + +<p> +We thought we could transform the country through massive national +programs, but often the programs did not work. Too often they only made +things worse. In our rush to accomplish great deeds quickly, we trampled on +sound principles of restraint and endangered the rights of individuals. We +unbalanced our economic system by the huge and unprecedented growth of +Federal expenditures and borrowing. And we were not totally honest with +ourselves about how much these programs would cost and how we would pay for +them. Finally, we shifted our emphasis from defense to domestic problems +while our adversaries continued a massive buildup of arms. +</p> + +<p> +The time has now come for a fundamentally different approach for a new +realism that is true to the great principles upon which this Nation was +founded. +</p> + +<p> +We must introduce a new balance to our economy--a balance that favors not +only sound, active government but also a much more vigorous, healthy +economy that can create new jobs and hold down prices. +</p> + +<p> +We must introduce a new balance in the relationship between the individual +and the government--a balance that favors greater individual freedom and +self-reliance. +</p> + +<p> +We must strike a new balance in our system of federalism--a balance that +favors greater responsibility and freedom for the leaders of our State and +local governments. +</p> + +<p> +We must introduce a new balance between the spending on domestic programs +and spending on defense--a balance that ensures we will fully meet our +obligation to the needy while also protecting our security in a world that +is still hostile to freedom. +</p> + +<p> +And in all that we do, we must be more honest with the American people, +promising them no more than we can deliver and delivering all that we +promise. +</p> + +<p> +The genius of America has been its incredible ability to improve the lives +of its citizens through a unique combination of governmental and free +citizen activity. +</p> + +<p> +History and experience tells us that moral progress cannot come in +comfortable and in complacent times, but out of trial and out of confusion. +Tom Paine aroused the troubled Americans of 1776 to stand up to the times +that try men's souls because the harder the conflict, the more glorious the +triumph. +</p> + +<p> +Just a year ago I reported that the state of the Union was not good. +Tonight, I report that the state of our Union is better--in many ways a lot +better--but still not good enough. +</p> + +<p> +To paraphrase Tom Paine, 1975 was not a year for summer soldiers and +sunshine patriots. It was a year of fears and alarms and of dire +forecasts--most of which never happened and won't happen. +</p> + +<p> +As you recall, the year 1975 opened with rancor and with bitterness. +Political misdeeds of the past had neither been forgotten nor forgiven. The +longest, most divisive war in our history was winding toward an unhappy +conclusion. Many feared that the end of that foreign war of men and +machines meant the beginning of a domestic war of recrimination and +reprisal. Friends and adversaries abroad were asking whether America had +lost its nerve. Finally, our economy was ravaged by inflation--inflation +that was plunging us into the worst recession in four decades. At the same +time, Americans became increasingly alienated from big institutions. They +were steadily losing confidence, not just in big government but in big +business, big labor, and big education, among others. Ours was a troubled +land. +</p> + +<p> +And so, 1975 was a year of hard decisions, difficult compromises, and a new +realism that taught us something important about America. It brought back a +needed measure of common sense, steadfastness, and self-discipline. +</p> + +<p> +Americans did not panic or demand instant but useless cures. In all +sectors, people met their difficult problems with the restraint and with +responsibility worthy of their great heritage. +</p> + +<p> +Add up the separate pieces of progress in 1975, subtract the setbacks, and +the sum total shows that we are not only headed in a new direction, a +direction which I proposed 12 months ago, but it turned out to be the right +direction. +</p> + +<p> +It is the right direction because it follows the truly revolutionary +American concept of 1776, which holds that in a free society the making of +public policy and successful problem-solving involves much more than +government. It involves a full partnership among all branches and all +levels of government, private institutions, and individual citizens. +</p> + +<p> +Common sense tells me to stick to that steady course. +</p> + +<p> +Take the state of our economy. Last January, most things were rapidly +getting worse. This January, most things are slowly but surely getting +better. +</p> + +<p> +The worst recession since World War II turned around in April. The best +cost-of-living news of the past year is that double-digit inflation of 12 +percent or higher was cut almost in half. The worst--unemployment remains +far too high. +</p> + +<p> +Today, nearly 1,700,000 more Americans are working than at the bottom of +the recession. At year's end, people were again being hired much faster +than they were being laid off. +</p> + +<p> +Yet, let's be honest. Many Americans have not yet felt these changes in +their daily lives. They still see prices going up far too fast, and they +still know the fear of unemployment. +</p> + +<p> +We are also a growing nation. We need more and more jobs every year. +Today's economy has produced over 85 million jobs for Americans, but we +need a lot more jobs, especially for the young. +</p> + +<p> +My first objective is to have sound economic growth without inflation. +</p> + +<p> +We all know from recent experience what runaway inflation does to ruin +every other worthy purpose. We are slowing it. We must stop it cold. +</p> + +<p> +For many Americans, the way to a healthy, noninflationary economy has +become increasingly apparent. The Government must stop spending so much and +stop borrowing so much of our money. More money must remain in private +hands where it will do the most good. To hold down the cost of living, we +must hold down the cost of government. +</p> + +<p> +In the past decade, the Federal budget has been growing at an average rate +of over 10 percent a year. The budget I am submitting Wednesday cuts this +rate of growth in half. I have kept my promise to submit a budget for the +next fiscal year of $395 billion. In fact, it is $394.2 billion. +</p> + +<p> +By holding down the growth of Federal spending, we can afford additional +tax cuts and return to the people who pay taxes more decisionmaking power +over their own lives. +</p> + +<p> +Last month I signed legislation to extend the 1975 tax reductions for the +first 6 months of this year. I now propose that effective July 1, 1976, we +give our taxpayers a tax cut of approximately $10 billion more than +Congress agreed to in December. +</p> + +<p> +My broader tax reduction would mean that for a family of four making +$15,000 a year, there will be $227 more in take-home pay annually. +Hardworking Americans caught in the middle can really use that kind of +extra cash. +</p> + +<p> +My recommendations for a firm restraint on the growth of Federal spending +and for greater tax reduction are simple and straightforward. For every +dollar saved in cutting the growth in the Federal budget, we can have an +added dollar of Federal tax reduction. +</p> + +<p> +We can achieve a balanced budget by 1979 if we have the courage and the +wisdom to continue to reduce the growth of Federal spending. +</p> + +<p> +One test of a healthy economy is a job for every American who wants to +work. Government--our kind of government--cannot create that many jobs. But +the Federal Government can create conditions and incentives for private +business and industry to make more and more jobs. +</p> + +<p> +Five out of six jobs in this country are in private business and in +industry. Common sense tells us this is the place to look for more jobs and +to find them faster. I mean real, rewarding, permanent jobs. +</p> + +<p> +To achieve this we must offer the American people greater incentives to +invest in the future. My tax proposals are a major step in that direction. +To supplement these proposals, I ask that Congress enact changes in Federal +tax laws that will speed up plant expansion and the purchase of new +equipment. My recommendations will concentrate this job-creation tax +incentive in areas where the unemployment rate now runs over 7 percent. +Legislation to get this started must be approved at the earliest possible +date. +</p> + +<p> +Within the strict budget total that I will recommend for the coming year, I +will ask for additional housing assistance for 500,000 families. These +programs will expand housing opportunities, spur construction, and help to +house moderate- and low-income families. +</p> + +<p> +We had a disappointing year in the housing industry in 1975. But with lower +interest rates and available mortgage money, we can have a healthy recovery +in 1976. +</p> + +<p> +A necessary condition of a healthy economy is freedom from the petty +tyranny of massive government regulation. We are wasting literally millions +of working hours costing billions of taxpayers' and consumers' dollars +because of bureaucratic redtape. The American farmer, who now feeds 215 +million Americans, but also millions worldwide, has shown how much more he +can produce without the shackles of government control. +</p> + +<p> +Now, we badly need reforms in other key areas in our economy: the airlines, +trucking, railroads, and financial institutions. I have submitted concrete +plans in each of these areas, not to help this or that industry, but to +foster competition and to bring prices down for the consumer. +</p> + +<p> +This administration, in addition, will strictly enforce the Federal +antitrust laws for the very same purposes. +</p> + +<p> +Taking a longer look at America's future, there can be neither sustained +growth nor more jobs unless we continue to have an assured supply of energy +to run our economy. Domestic production of oil and gas is still declining. +Our dependence on foreign oil at high prices is still too great, draining +jobs and dollars away from our own economy at the rate of $125 per year for +every American. +</p> + +<p> +Last month, I signed a compromise national energy bill which enacts a part +of my comprehensive energy independence program. This legislation was late, +not the complete answer to energy independence, but still a start in the +right direction. +</p> + +<p> +I again urge the Congress to move ahead immediately on the remainder of my +energy proposals to make America invulnerable to the foreign oil cartel. +</p> + +<p> +My proposals, as all of you know, would reduce domestic natural gas +shortages; allow production from Federal petroleum reserves; stimulate +effective conservation, including revitalization of our railroads and the +expansion of our urban transportation systems; develop more and cleaner +energy from our vast coal resources; expedite clean and safe nuclear power +production; create a new national energy independence authority to +stimulate vital energy investment; and accelerate development of technology +to capture energy from the Sun and the Earth for this and future +generations. +</p> + +<p> +Also, I ask, for the sake of future generations, that we preserve the +family farm and family-owned small business. Both strengthen America and +give stability to our economy. I will propose estate tax changes so that +family businesses and family farms can be handed down from generation to +generation without having to be sold to pay taxes. +</p> + +<p> +I propose tax changes to encourage people to invest in America's future, +and their own, through a plan that gives moderate-income families income +tax benefits if they make long-term investments in common stock in American +companies. +</p> + +<p> +The Federal Government must and will respond to clear-cut national +needs--for this and future generations. +</p> + +<p> +Hospital and medical services in America are among the best in the world, +but the cost of a serious and extended illness can quickly wipe out a +family's lifetime savings. Increasing health costs are of deep concern to +all and a powerful force pushing up the cost of living. The burden of +catastrophic illness can be borne by very few in our society. We must +eliminate this fear from every family. +</p> + +<p> +I propose catastrophic health insurance for everybody covered by Medicare. +To finance this added protection, fees for short-term care will go up +somewhat, but nobody after reaching age 65 will have to pay more than $500 +a year for covered hospital or nursing home care, nor more than $250 for 1 +year's doctor bills. +</p> + +<p> +We cannot realistically afford federally dictated national health insurance +providing full coverage for all 215 million Americans. The experience of +other countries raises questions about the quality as well as the cost of +such plans. But I do envision the day when we may use the private health +insurance system to offer more middle-income families high quality health +services at prices they can afford and shield them also from their +catastrophic illnesses. +</p> + +<p> +Using resources now available, I propose improving the Medicare and other +Federal health programs to help those who really need protection--older +people and the poor. To help States and local governments give better +health care to the poor, I propose that we combine 16 existing Federal +programs, including Medicaid, into a single $10 billion Federal grant. +</p> + +<p> +Funds would be divided among States under a new formula which provides a +larger share of Federal money to those States that have a larger share of +low-income families. +</p> + +<p> +I will take further steps to improve the quality of medical and hospital +care for those who have served in our Armed Forces. +</p> + +<p> +Now let me speak about social security. Our Federal social security system +for people who have worked and contributed to it for all their lives is a +vital part of our economic system. Its value is no longer debatable. In my +budget for fiscal year 1977, I am recommending that the full cost-of-living +increases in the social security benefits be paid during the coming year. +</p> + +<p> +But I am concerned about the integrity of our Social Security Trust Fund +that enables people--those retired and those still working who will +retire--to count on this source of retirement income. Younger workers watch +their deductions rise and wonder if they will be adequately protected in +the future. We must meet this challenge head on. Simple arithmetic warns +all of us that the Social Security Trust Fund is headed for trouble. Unless +we act soon to make sure the fund takes in as much as it pays out, there +will be no security for old or for young. +</p> + +<p> +I must, therefore, recommend a three-tenths of 1 percent increase in both +employer and employee social security taxes effective January 1, 1977. This +will cost each covered employee less than 1 extra dollar a week and will +ensure the integrity of the trust fund. +</p> + +<p> +As we rebuild our economy, we have a continuing responsibility to provide a +temporary cushion to the unemployed. At my request, the Congress enacted +two extensions and two expansions in unemployment insurance which helped +those who were jobless during 1975. These programs will continue in 1976. +</p> + +<p> +In my fiscal year 1977 budget, I am also requesting funds to continue +proven job training and employment opportunity programs for millions of +other Americans. +</p> + +<p> +Compassion and a sense of community--two of America's greatest strengths +throughout our history--tell us we must take care of our neighbors who +cannot take care of themselves. The host of Federal programs in this field +reflect our generosity as a people. +</p> + +<p> +But everyone realizes that when it comes to welfare, government at all +levels is not doing the job well. Too many of our welfare programs are +inequitable and invite abuse. Too many of our welfare programs have +problems from beginning to end. Worse, we are wasting badly needed +resources without reaching many of the truly needy. +</p> + +<p> +Complex welfare programs cannot be reformed overnight. Surely we cannot +simply dump welfare into the laps of the 50 States, their local taxpayers, +or their private charities, and just walk away from it. Nor is it the right +time for massive and sweeping changes while we are still recovering from +the recession. +</p> + +<p> +Nevertheless, there are still plenty of improvements that we can make. I +will ask Congress for Presidential authority to tighten up the rules for +eligibility and benefits. +</p> + +<p> +Last year I twice sought long overdue reform of the scandal-riddled food +stamp program. This year I say again: Let's give food stamps to those most +in need. Let's not give any to those who don't need them. +</p> + +<p> +Protecting the life and property of the citizen at home is the +responsibility of all public officials, but is primarily the job of local +and State law enforcement authorities. +</p> + +<p> +Americans have always found the very thought of a Federal police force +repugnant, and so do I. But there are proper ways in which we can help to +insure domestic tranquility as the Constitution charges us. +</p> + +<p> +My recommendations on how to control violent crime were submitted to the +Congress last June with strong emphasis on protecting the innocent victims +of crime. To keep a convicted criminal from committing more crimes, we must +put him in prison so he cannot harm more law-abiding citizens. To be +effective, this punishment must be swift and it must be certain. +</p> + +<p> +Too often, criminals are not sent to prison after conviction but are +allowed to return to the streets. Some judges are reluctant to send +convicted criminals to prison because of inadequate facilities. To +alleviate this problem at the Federal level, my new budget proposes the +construction of four new Federal facilities. +</p> + +<p> +To speed Federal justice, I propose an increase this year in the United +States attorneys prosecuting Federal crimes and the reinforcement of the +number of United States marshals. Additional Federal judges are needed, as +recommended by me and the Judicial Conference. +</p> + +<p> +Another major threat to every American's person and property is the +criminal carrying a handgun. The way to cut down on the criminal use of +guns is not to take guns away from the law-abiding citizen, but to impose +mandatory sentences for crimes in which a gun is used, make it harder to +obtain cheap guns for criminal purposes, and concentrate gun control +enforcement in highcrime areas. +</p> + +<p> +My budget recommends 500 additional Federal agents in the 11 largest +metropolitan high-crime areas to help local authorities stop criminals from +selling and using handguns. +</p> + +<p> +The sale of hard drugs is tragically on the increase again. I have directed +all agencies of the Federal Government to step up law enforcement efforts +against those who deal in drugs. In 1975, I am glad to report, Federal +agents seized substantially more heroin coming into our country than in +1974. +</p> + +<p> +As President, I have talked personally with the leaders of Mexico, +Colombia, and Turkey to urge greater efforts by their Governments to +control effectively the production and shipment of hard drugs. +</p> + +<p> +I recommended months ago that the Congress enact mandatory fixed sentences +for persons convicted of Federal crimes involving the sale of hard drugs. +Hard drugs, we all know, degrade the spirit as they destroy the body of +their users. +</p> + +<p> +It is unrealistic and misleading to hold out the hope that the Federal +Government can move into every neighborhood and clean up crime. Under the +Constitution, the greatest responsibility for curbing crime lies with State +and local authorities. They are the frontline fighters in the war against +crime. +</p> + +<p> +There are definite ways in which the Federal Government can help them. I +will propose in the new budget that Congress authorize almost $7 billion +over the next 5 years to assist State and local governments to protect the +safety and property of all their citizens. +</p> + +<p> +As President, I pledge the strict enforcement of Federal laws and--by +example, support, and leadership--to help State and local authorities +enforce their laws. Together, we must protect the victims of crime and +ensure domestic tranquility. +</p> + +<p> +Last year I strongly recommended a 5-year extension of the existing revenue +sharing legislation, which thus far has provided $23 1/2 billion to help +State and local units of government solve problems at home. This program +has been effective with decisionmaking transferred from the Federal +Government to locally elected officials. Congress must act this year, or +State and local units of government will have to drop programs or raise +local taxes. +</p> + +<p> +Including my health care program reforms, I propose to consolidate some 59 +separate Federal programs and provide flexible Federal dollar grants to +help States, cities, and local agencies in such important areas as +education, child nutrition, and social services. This flexible system will +do the job better and do it closer to home. +</p> + +<p> +The protection of the lives and property of Americans from foreign enemies +is one of my primary responsibilities as President. +</p> + +<p> +In a world of instant communications and intercontinental ballistic +missiles, in a world economy that is global and interdependent, our +relations with other nations become more, not less, important to the lives +of Americans. +</p> + +<p> +America has had a unique role in the world since the day of our +independence 200 years ago. And ever since the end of World War II, we have +borne--successfully--a heavy responsibility for ensuring a stable world +order and hope for human progress. +</p> + +<p> +Today, the state of our foreign policy is sound and strong. We are at +peace, and I will do all in my power to keep it that way. +</p> + +<p> +Our military forces are capable and ready. Our military power is without +equal, and I intend to keep it that way. +</p> + +<p> +Our principal alliances with the industrial democracies of the Atlantic +community and Japan have never been more solid. +</p> + +<p> +A further agreement to limit the strategic arms race may be achieved. +</p> + +<p> +We have an improving relationship with China, the world's most populous +nation. +</p> + +<p> +The key elements for peace among the nations of the Middle East now exist. +Our traditional friendships in Latin America, Africa, and Asia continue. +</p> + +<p> +We have taken the role of leadership in launching a serious and hopeful +dialog between the industrial world and the developing world. +</p> + +<p> +We have helped to achieve significant reform of the international monetary +system. +</p> + +<p> +We should be proud of what America, what our country, has accomplished in +these areas, and I believe the American people are. +</p> + +<p> +The American people have heard too much about how terrible our mistakes, +how evil our deeds, and how misguided our purposes. The American people +know better. +</p> + +<p> +The truth is we are the world's greatest democracy. We remain the symbol of +man's aspiration for liberty and well-being. We are the embodiment of hope +for progress. +</p> + +<p> +I say it is time we quit downgrading ourselves as a nation. Of course, it +is our responsibility to learn the right lesson from past mistakes. It is +our duty to see that they never happen again. But our greater duty is to +look to the future. The world's troubles will not go away. +</p> + +<p> +The American people want strong and effective international and defense +policies. In our constitutional system, these policies should reflect +consultation and accommodation between the President and the Congress. But +in the final analysis, as the framers of our Constitution knew from hard +experience, the foreign relations of the United States can be conducted +effectively only if there is strong central direction that allows +flexibility of action. That responsibility clearly rests with the +President. +</p> + +<p> +I pledge to the American people policies which seek a secure, just, and +peaceful world. I pledge to the Congress to work with you to that end. +</p> + +<p> +We must not face a future in which we can no longer help our friends, such +as Angola, even in limited and carefully controlled ways. We must not lose +all capacity to respond short of military intervention. +</p> + +<p> +Some hasty actions of the Congress during the past year--most recently in +respect to Angola--were, in my view, very shortsighted. Unfortunately, they +are still very much on the minds of our allies and our adversaries. +</p> + +<p> +A strong defense posture gives weight to our values and our views in +international negotiations. It assures the vigor of our alliances. And it +sustains our efforts to promote settlements of international conflicts. +Only from a position of strength can we negotiate a balanced agreement to +limit the growth of nuclear arms. Only a balanced agreement will serve our +interests and minimize the threat of nuclear confrontation. +</p> + +<p> +The defense budget I will submit to the Congress for fiscal year 1977 will +show an essential increase over the current year. It provides for real +growth in purchasing power over this year's defense budget, which includes +the cost of the all-volunteer force. +</p> + +<p> +We are continuing to make economies to enhance the efficiency of our +military forces. But the budget I will submit represents the necessity of +American strength for the real world in which we live. +</p> + +<p> +As conflict and rivalry persist in the world, our United States +intelligence capabilities must be the best in the world. +</p> + +<p> +The crippling of our foreign intelligence services increases the danger of +American involvement in direct armed conflict. Our adversaries are +encouraged to attempt new adventures while our own ability to monitor +events and to influence events short of military action is undermined. +Without effective intelligence capability, the United States stands +blindfolded and hobbled. +</p> + +<p> +In the near future, I will take actions to reform and strengthen our +intelligence community. I ask for your positive cooperation. It is time to +go beyond sensationalism and ensure an effective, responsible, and +responsive intelligence capability. +</p> + +<p> +Tonight I have spoken about our problems at home and abroad. I have +recommended policies that will meet the challenge of our third century. I +have no doubt that our Union will endure, better, stronger, and with more +individual freedom. We can see forward only dimly--1 year, 5 years, a +generation perhaps. Like our forefathers, we know that if we meet the +challenges of our own time with a common sense of purpose and conviction, +if we remain true to our Constitution and to our ideals, then we can know +that the future will be better than the past. +</p> + +<p> +I see America today crossing a threshold, not just because it is our +Bicentennial but because we have been tested in adversity. We have taken a +new look at what we want to be and what we want our Nation to become. +</p> + +<p> +I see America resurgent, certain once again that life will be better for +our children than it is for us, seeking strength that cannot be counted in +megatons and riches that cannot be eroded by inflation. +</p> + +<p> +I see these United States of America moving forward as before toward a more +perfect Union where the government serves and the people rule. +</p> + +<p> +We will not make this happen simply by making speeches, good or bad, yours +or mine, but by hard work and hard decisions made with courage and with +common sense. +</p> + +<p> +I have heard many inspiring Presidential speeches, but the words I remember +best were spoken by Dwight D. Eisenhower. "America is not good because it +is great," the President said. "America is great because it is good." +</p> + +<p> +President Eisenhower was raised in a poor but religious home in the heart +of America. His simple words echoed President Lincoln's eloquent testament +that "right makes might." And Lincoln in turn evoked the silent image of +George Washington kneeling in prayer at Valley Forge. +</p> + +<p> +So, all these magic memories which link eight generations of Americans are +summed up in the inscription just above me. How many times have we seen it? +"In God We Trust." +</p> + +<p> +Let us engrave it now in each of our hearts as we begin our Bicentennial. +</p> + +<p><br /><br /><br /></p> + +<p class="t3"> +*** +</p> + +<p><a id="jan1977"></a></p> + +<p class="noindent"> +State of the Union Address<br /> +Gerald R. Ford<br /> +January 12, 1977<br /> +</p> + +<p class="noindent"> +Mr. Speaker, Mr. Vice President, Members of the 95th Congress, and +distinguished guests: +</p> + +<p> +In accordance with the Constitution, I come before you once again to report +on the state of the Union. +</p> + +<p> +This report will be my last--maybe--[laughter]--but for the Union it is +only the first of such reports in our third century of independence, the +close of which none of us will ever see. We can be confident, however, that +100 years from now a freely elected President will come before a freely +elected Congress chosen to renew our great Republic's pledge to the +Government of the people, by the people, and for the people. +</p> + +<p> +For my part I pray the third century we are beginning will bring to all +Americans, our children and their children's children, a greater measure of +individual equality, opportunity, and justice, a greater abundance of +spiritual and material blessings, and a higher quality of life, liberty, +and the pursuit of happiness. +</p> + +<p> +The state of the Union is a measurement of the many elements of which it is +composed--a political union of diverse States, an economic union of varying +interests, an intellectual union of common convictions, and a moral union +of immutable ideals. +</p> + +<p> +Taken in sum, I can report that the state of the Union is good. There is +room for improvement, as always, but today we have a more perfect Union +than when my stewardship began. +</p> + +<p> +As a people we discovered that our Bicentennial was much more than a +celebration of the past; it became a joyous reaffirmation of all that it +means to be Americans, a confirmation before all the world of the vitality +and durability of our free institutions. I am proud to have been privileged +to preside over the affairs of our Federal Government during these eventful +years when we proved, as I said in my first words upon assuming office, +that "our Constitution works; our great Republic is a Government of laws +and not of men. Here the people rule." +</p> + +<p> +The people have spoken; they have chosen a new President and a new Congress +to work their will. I congratulate you--particularly the new Members--as +sincerely as I did President-elect Carter. In a few days it will be his +duty to outline for you his priorities and legislative recommendations. +Tonight I will not infringe on that responsibility, but rather wish him the +very best in all that is good for our country. +</p> + +<p> +During the period of my own service in this Capitol and in the White House, +I can recall many orderly transitions of governmental responsibility--of +problems as well as of position, of burdens as well as of power. The genius +of the American system is that we do this so naturally and so normally. +There are no soldiers marching in the street except in the Inaugural +Parade; no public demonstrations except for some of the dancers at the +Inaugural Ball; the opposition party doesn't go underground, but goes on +functioning vigorously in the Congress and in the country; and our vigilant +press goes right on probing and publishing our faults and our follies, +confirming the wisdom of the framers of the first amendment. +</p> + +<p> +Because of the transfer of authority in our form of government affects the +state of the Union and of the world, I am happy to report to you that the +current transition is proceeding very well. I was determined that it +should; I wanted the new President to get off on an easier start than I +had. +</p> + +<p> +When I became President on August 9, 1974, our Nation was deeply divided +and tormented. In rapid succession the Vice President and the President had +resigned in disgrace. We were still struggling with the after-effects of a +long, unpopular, and bloody war in Southeast Asia. The economy was unstable +and racing toward the worst recession in 40 years. People were losing jobs. +The cost of living was soaring. The Congress and the Chief Executive were +at loggerheads. The integrity of our constitutional process and other +institutions was being questioned. For more than 15 years domestic spending +had soared as Federal programs multiplied, and the expense escalated +annually. During the same period our national security needs were steadily +shortchanged. In the grave situation which prevailed in August 1974, our +will to maintain our international leadership was in doubt. +</p> + +<p> +I asked for your prayers and went to work. +</p> + +<p> +In January 1975 I reported to the Congress that the state of the Union was +not good. I proposed urgent action to improve the economy and to achieve +energy independence in 10 years. I reassured America's allies and sought to +reduce the danger of confrontation with potential adversaries. I pledged a +new direction for America. 1975 was a year of difficult decisions, but +Americans responded with realism, common sense, and self-discipline. +</p> + +<p> +By January 1976 we were headed in a new direction, which I hold to be the +right direction for a free society. It was guided by the belief that +successful problem-solving requires more than Federal action alone, that it +involves a full partnership among all branches and all levels of government +and public policies which nurture and promote the creative energies of +private enterprises, institutions, and individual citizens. +</p> + +<p> +A year ago I reported that the state of the Union was better--in many ways +a lot better--but still not good enough. Common sense told me to stick to +the steady course we were on, to continue to restrain the inflationary +growth of government, to reduce taxes as well as spending, to return local +decisions to local officials, to provide for long-range sufficiency in +energy and national security needs. I resisted the immense pressures of an +election year to open the floodgates of Federal money and the temptation to +promise more than I could deliver. I told it as it was to the American +people and demonstrated to the world that in our spirited political +competition, as in this chamber, Americans can disagree without being +disagreeable. +</p> + +<p> +Now, after 30 months as your President, I can say that while we still have +a way to go, I am proud of the long way we have come together. +</p> + +<p> +I am proud of the part I have had in rebuilding confidence in the +Presidency, confidence in our free system, and confidence in our future. +Once again, Americans believe in themselves, in their leaders, and in the +promise that tomorrow holds for their children. +</p> + +<p> +I am proud that today America is at peace. None of our sons are fighting +and dying in battle anywhere in the world. And the chance for peace among +all nations is improved by our determination to honor our vital commitments +in defense of peace and freedom. +</p> + +<p> +I am proud that the United States has strong defenses, strong alliances, +and a sound and courageous foreign policy. +</p> + +<p> +Our alliances with major partners, the great industrial democracies of +Western Europe, Japan, and Canada, have never been more solid. +Consultations on mutual security, defense, and East-West relations have +grown closer. Collaboration has branched out into new fields such as +energy, economic policy, and relations with the Third World. We have used +many avenues for cooperation, including summit meetings held among major +allied countries. The friendship of the democracies is deeper, warmer, and +more effective than at any time in 30 years. +</p> + +<p> +We are maintaining stability in the strategic nuclear balance and pushing +back the specter of nuclear war. A decisive step forward was taken +in the Vladivostok Accord which I negotiated with General Secretary +Brezhnev--joint recognition that an equal ceiling should be placed +on the number of strategic weapons on each side. With resolve and wisdom +on the part of both nations, a good agreement is well within reach +this year. +</p> + +<p> +The framework for peace in the Middle East has been built. Hopes for future +progress in the Middle East were stirred by the historic agreements we +reached and the trust and confidence that we formed. Thanks to American +leadership, the prospects for peace in the Middle East are brighter than +they have been in three decades. The Arab states and Israel continue to +look to us to lead them from confrontation and war to a new era of +accommodation and peace. We have no alternative but to persevere, and I am +sure we will. The opportunities for a final settlement are great, and the +price of failure is a return to the bloodshed and hatred that for too long +have brought tragedy to all of the peoples of this area and repeatedly +edged the world to the brink of war. +</p> + +<p> +Our relationship with the People's Republic of China is proving its +importance and its durability. We are finding more and more common ground +between our two countries on basic questions of international affairs. +</p> + +<p> +In my two trips to Asia as President, we have reaffirmed America's +continuing vital interest in the peace and security of Asia and the Pacific +Basin, established a new partnership with Japan, confirmed our dedication +to the security of Korea, and reinforced our ties with the free nations of +Southeast Asia. +</p> + +<p> +An historic dialog has begun between industrial nations and developing +nations. Most proposals on the table are the initiatives of the United +States, including those on food, energy, technology, trade, investment, and +commodities. We are well launched on this process of shaping positive and +reliable economic relations between rich nations and poor nations over the +long term. +</p> + +<p> +We have made progress in trade negotiations and avoided protectionism +during recession. We strengthened the international monetary system. During +the past 2 years the free world's most important economic powers have +already brought about important changes that serve both developed and +developing economies. The momentum already achieved must be nurtured and +strengthened, for the prosperity of the rich and poor depends upon it. +</p> + +<p> +In Latin America, our relations have taken on a new maturity and a sense of +common enterprise. +</p> + +<p> +In Africa the quest for peace, racial justice, and economic progress is at +a crucial point. The United States, in close cooperation with the United +Kingdom, is actively engaged in this historic process. Will change come +about by warfare and chaos and foreign intervention? Or will it come about +by negotiated and fair solutions, ensuring majority rule, minority rights, +and economic advance? America is committed to the side of peace and justice +and to the principle that Africa should shape its own future, free of +outside intervention. +</p> + +<p> +American leadership has helped to stimulate new international efforts to +stem the proliferation of nuclear weapons and to shape a comprehensive +treaty governing the use of oceans. +</p> + +<p> +I am gratified by these accomplishments. They constitute a record of broad +success for America and for the peace and prosperity of all mankind. This +administration leaves to its successor a world in better condition than we +found. We leave, as well, a solid foundation for progress on a range of +issues that are vital to the well-being of America. +</p> + +<p> +What has been achieved in the field of foreign affairs and what can be +accomplished by the new administration demonstrate the genius of Americans +working together for the common good. It is this, our remarkable ability to +work together, that has made us a unique nation. It is Congress, the +President, and the people striving for a better world. +</p> + +<p> +I know all patriotic Americans want this Nation's foreign policy to +succeed. I urge members of my party in this Congress to give the new +President loyal support in this area. I express the hope that this new +Congress will reexamine its constitutional role in international affairs. +</p> + +<p> +The exclusive right to declare war, the duty to advise and consent on the +part of the Senate, the power of the purse on the part of the House are +ample authority for the legislative branch and should be jealously guarded. +But because we may have been too careless of these powers in the past does +not justify congressional intrusion into, or obstruction of, the proper +exercise of Presidential responsibilities now or in the future. There can +be only one Commander in Chief. In these times crises cannot be managed and +wars cannot be waged by committee, nor can peace be pursued solely by +parliamentary debate. To the ears of the world, the President speaks for +the Nation. While he is, of course, ultimately accountable to the Congress, +the courts, and the people, he and his emissaries must not be handicapped +in advance in their relations with foreign governments as has sometimes +happened in the past. +</p> + +<p> +At home I am encouraged by the Nation's recovery from the recession and our +steady return to sound economic growth. It is now continuing after the +recent period of uncertainty, which is part of the price we pay for free +elections. +</p> + +<p> +Our most pressing need today and the future is more jobs--productive, +permanent jobs created by a thriving economy. We must revise our tax system +both to ease the burden of heavy taxation and to encourage the investment +necessary for the creation of productive jobs for all Americans who want to +work. +</p> + +<p> +Earlier this month I proposed a permanent income tax reduction of $10 +billion below current levels, including raising the personal exemption from +$750 to $1,000. I also recommended a series of measures to stimulate +investment, such as accelerated depreciation for new plants and equipment +in areas of high unemployment, a reduction in the corporate tax rate from +48 to 46 percent, and eliminating the present double taxation of dividends. +I strongly urge the Congress to pass these measures to help create the +productive, permanent jobs in the private economy that are so essential for +our future. +</p> + +<p> +All the basic trends are good; we are not on the brink of another recession +or economic disaster. If we follow prudent policies that encourage +productive investment and discourage destructive inflation, we will come +out on top, and I am sure we will. +</p> + +<p> +We have successfully cut inflation by more than half. When I took office, +the Consumer Price Index was rising at 12.2 percent a year. During 1976 the +rate of inflation was 5 percent. +</p> + +<p> +We have created more jobs--over 4 million more jobs today than in the +spring of 1975. Throughout this Nation today we have over 88 million people +in useful, productive jobs--more than at any other time in our Nation's +history. But there are still too many Americans unemployed. This is the +greatest regret that I have as I leave office. +</p> + +<p> +We brought about with the Congress, after much delay, the renewal of the +general revenue sharing. We expanded community development and Federal +manpower programs. We began a significant urban mass transit program. +Federal programs today provide more funds for our States and local +governments than ever before--$70 billion for the current fiscal year. +Through these programs and others that provide aid directly to individuals, +we have kept faith with our tradition of compassionate help for those who +need it. As we begin our third century we can be proud of the progress that +we have made in meeting human needs for all of our citizens. +</p> + +<p> +We have cut the growth of crime by nearly 90 percent. Two years ago crime +was increasing at the rate of 18 percent annually. In the first three +quarters of 1976, that growth rate had been cut to 2 percent. But crime, +and the fear of crime, remains one of the most serious problems facing our +citizens. +</p> + +<p> +We have had some successes, and there have been some disappointments. +Bluntly, I must remind you that we have not made satisfactory progress +toward achieving energy independence. Energy is absolutely vital to the +defense of our country, to the strength of our economy, and to the quality +of our lives. +</p> + +<p> +Two years ago I proposed to the Congress the first comprehensive national +energy program--a specific and coordinated set of measures that would end +our vulnerability to embargo, blockade, or arbitrary price increases and +would mobilize U.S. technology and resources to supply a significant share +of the free world's energy after 1985. Of the major energy proposals I +submitted 2 years ago, only half, belatedly, became law. In 1973 we were +dependent upon foreign oil imports for 36 percent of our needs. Today, we +are 40-percent dependent, and we'll pay out $34 billion for foreign oil +this year. Such vulnerability at present or in the future is intolerable +and must be ended. +</p> + +<p> +The answer to where we stand on our national energy effort today reminds me +of the old argument about whether the tank is half full or half empty. The +pessimist will say we have half failed to achieve our 10-year energy goals; +the optimist will say that we have half succeeded. I am always an optimist, +but we must make up for lost time. +</p> + +<p> +We have laid a solid foundation for completing the enormous task which +confronts us. I have signed into law five major energy bills which contain +significant measures for conservation, resource development, stockpiling, +and standby authorities. We have moved forward to develop the naval +petroleum reserves; to build a 500-million barrel strategic petroleum +stockpile; to phase out unnecessary Government allocation and price +controls; to develop a lasting relationship with other oil consuming +nations; to improve the efficiency of energy use through conservation in +automobiles, buildings, and industry; and to expand research on new +technology and renewable resources such as wind power, geothermal and solar +energy. All these actions, significant as they are for the long term, are +only the beginning. +</p> + +<p> +I recently submitted to the Congress my proposals to reorganize the Federal +energy structure and the hard choices which remain if we are serious about +reducing our dependence upon foreign energy. These include programs to +reverse our declining production of natural gas and increase incentives for +domestic crude oil production. I proposed to minimize environmental +uncertainties affecting coal development, expand nuclear power generation, +and create an energy independence authority to provide government financial +assistance for vital energy programs where private capital is not +available. +</p> + +<p> +We must explore every reasonable prospect for meeting our energy needs when +our current domestic reserves of oil and natural gas begin to dwindle in +the next decade. I urgently ask Congress and the new administration to move +quickly on these issues. This Nation has the resources and the capability +to achieve our energy goals if its Government has the will to proceed, and +I think we do. +</p> + +<p> +I have been disappointed by inability to complete many of the meaningful +organizational reforms which I contemplated for the Federal Government, +although a start has been made. For example, the Federal judicial system +has long served as a model for other courts. But today it is threatened by +a shortage of qualified Federal judges and an explosion of litigation +claiming Federal jurisdiction. I commend to the new administration and the +Congress the recent report and recommendations of the Department of +Justice, undertaken at my request, on "the needs of the Federal Courts." I +especially endorse its proposals for a new commission on the judicial +appointment process. +</p> + +<p> +While the judicial branch of our Government may require reinforcement, the +budgets and payrolls of the other branches remain staggering. I cannot help +but observe that while the White House staff and the Executive Office of +the President have been reduced and the total number of civilians in the +executive branch contained during the 1970's, the legislative branch has +increased substantially although the membership of the Congress remains at +535. Congress now costs the taxpayers more than a million dollars per +Member; the whole legislative budget has passed the billion dollar mark. +</p> + +<p> +We have made some progress in cutting back the expansion of government and +its intrusion into individual lives, but believe me, there is much more to +be done--and you and I know it. It can only be done by tough and +temporarily painful surgery by a Congress as prepared as the President to +face up to this very real political problem. Again, I wish my successor, +working with a substantial majority of his own party, the best of success +in reforming the costly and cumbersome machinery of the Federal +Government. +</p> + +<p> +The task of self-government is never finished. The problems are great; the +opportunities are greater. +</p> + +<p> +America's first goal is and always will be peace with honor. America must +remain first in keeping peace in the world. We can remain first in peace +only if we are never second in defense. +</p> + +<p> +In presenting the state of the Union to the Congress and to the American +people, I have a special obligation as Commander in Chief to report on our +national defense. Our survival as a free and independent people requires, +above all, strong military forces that are well equipped and highly trained +to perform their assigned mission. +</p> + +<p> +I am particularly gratified to report that over the past 2 1/2 years, we +have been able to reverse the dangerous decline of the previous decade in +real resources this country was devoting to national defense. This was an +immediate problem I faced in 1974. The evidence was unmistakable that the +Soviet Union had been steadily increasing the resources it applied to +building its military strength. During this same period the United States +real defense spending declined. In my three budgets we not only arrested +that dangerous decline, but we have established the positive trend which is +essential to our ability to contribute to peace and stability in the +world. +</p> + +<p> +The Vietnam war, both materially and psychologically, affected our overall +defense posture. The dangerous anti-military sentiment discouraged defense +spending and unfairly disparaged the men and women who serve in our Armed +Forces. +</p> + +<p> +The challenge that now confronts this country is whether we have the +national will and determination to continue this essential defense effort +over the long term, as it must be continued. We can no longer afford to +oscillate from year to year in so vital a matter; indeed, we have a duty to +look beyond the immediate question of budgets and to examine the nature of +the problem we will face over the next generation. +</p> + +<p> +I am the first recent President able to address long-term, basic issues +without the burden of Vietnam. The war in Indochina consumed enormous +resources at the very time that the overwhelming strategic superiority we +once enjoyed was disappearing. In past years, as a result of decisions by +the United States, our strategic forces leveled off, yet the Soviet Union +continued a steady, constant buildup of its own forces, committing a high +percentage of its national economic effort to defense. +</p> + +<p> +The United States can never tolerate a shift in strategic balance against +us or even a situation where the American people or our allies believe the +balance is shifting against us. The United States would risk the most +serious political consequences if the world came to believe that our +adversaries have a decisive margin of superiority. +</p> + +<p> +To maintain a strategic balance we must look ahead to the 1980's and +beyond. The sophistication of modern weapons requires that we make +decisions now if we are to ensure our security 10 years from now. +Therefore, I have consistently advocated and strongly urged that we pursue +three critical strategic programs: the Trident missile launching submarine; +the B-1 bomber, with its superior capability to penetrate modern air +defenses; and a more advanced intercontinental ballistic missile that will +be better able to survive nuclear attack and deliver a devastating +retaliatory strike. +</p> + +<p> +In an era where the strategic nuclear forces are in rough equilibrium, the +risks of conflict below the nuclear threshold may grow more perilous. A +major, long-term objective, therefore, is to maintain capabilities to deal +with, and thereby deter, conventional challenges and crises, particularly +in Europe. +</p> + +<p> +We cannot rely solely on strategic forces to guarantee our security or to +deter all types of aggression. We must have superior naval and marine +forces to maintain freedom of the seas, strong multipurpose tactical air +forces, and mobile, modern ground forces. Accordingly, I have directed a +long-term effort to improve our worldwide capabilities to deal with +regional crises. +</p> + +<p> +I have submitted a 5-year naval building program indispensable to the +Nation's maritime strategy. Because the security of Europe and the +integrity of NATO remain the cornerstone of American defense policy, I have +initiated a special, long-term program to ensure the capacity of the +Alliance to deter or defeat aggression in Europe. +</p> + +<p> +As I leave office I can report that our national defense is effectively +deterring conflict today. Our Armed Forces are capable of carrying out the +variety of missions assigned to them. Programs are underway which will +assure we can deter war in the years ahead. But I also must warn that it +will require a sustained effort over a period of years to maintain these +capabilities. We must have the wisdom, the stamina, and the courage to +prepare today for the perils of tomorrow, and I believe we will. +</p> + +<p> +As I look to the future--and I assure you I intend to go on doing that for +a good many years--I can say with confidence that the state of the Union is +good, but we must go on making it better and better. +</p> + +<p> +This gathering symbolizes the constitutional foundation which makes +continued progress possible, synchronizing the skills of three independent +branches of Government, reserving fundamental sovereignty to the people of +this great land. It is only as the temporary representatives and servants +of the people that we meet here, we bring no hereditary status or gift of +infallibility, and none follows us from this place. +</p> + +<p> +Like President Washington, like the more fortunate of his successors, I +look forward to the status of private citizen with gladness and gratitude. +To me, being a citizen of the United States of America is the greatest +honor and privilege in this world. +</p> + +<p> +From the opportunities which fate and my fellow citizens have given me, as +a Member of the House, as Vice President and President of the Senate, and +as President of all the people, I have come to understand and place the +highest value on the checks and balances which our founders imposed on +government through the separation of powers among co-equal legislative, +executive, and judicial branches. This often results in difficulty and +delay, as I well know, but it also places supreme authority under God, +beyond any one person, any one branch, any majority great or small, or any +one party. The Constitution is the bedrock of all our freedoms. Guard and +cherish it, keep honor and order in your own house, and the Republic will +endure. +</p> + +<p> +It is not easy to end these remarks. In this Chamber, along with some of +you, I have experienced many, many of the highlights of my life. It was +here that I stood 28 years ago with my freshman colleagues, as Speaker Sam +Rayburn administered the oath. I see some of you now--Charlie Bennett, Dick +Bolling, Carl Perkins, Pete Rodino, Harley Staggers, Tom Steed, Sid Yates, +Clem Zablocki-and I remember those who have gone to their rest. It was here +we waged many, many a lively battle--won some, lost some, but always +remaining friends. It was here, surrounded by such friends, that the +distinguished Chief Justice swore me in as Vice President on December 6, +1973. It was here I returned 8 months later as your President to ask not +for a honeymoon, but for a good marriage. +</p> + +<p> +I will always treasure those memories and your many, many kindnesses. I +thank you for them all. +</p> + +<p> +My fellow Americans, I once asked you for your prayers, and now I give you +mine: May God guide this wonderful country, its people, and those they have +chosen to lead them. May our third century be illuminated by liberty and +blessed with brotherhood, so that we and all who come after us may be the +humble servants of thy peace. Amen. +</p> + +<p> +Good night. God bless you. +</p> + +<p><br /><br /><br /><br /></p> + + + + + + + + +<pre> + + + + + +End of the Project Gutenberg EBook of State of the Union Addresses of Gerald +R. Ford, by Gerald R. 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You may copy it, give it away or re-use it under the terms of +the Project Gutenberg License included with this eBook or online at +www.gutenberg.org. If you are not located in the United States, you'll have +to check the laws of the country where you are located before using this ebook. + +Title: State of the Union Addresses of Gerald R. Ford + +Author: Gerald R. Ford + +Posting Date: November 23, 2014 [EBook #5044] +Release Date: February, 2004 +First Posted: April 11, 2002 +Last Updated: December 16, 2004 + +Language: English + +Character set encoding: ASCII + +*** START OF THIS PROJECT GUTENBERG EBOOK STATE OF THE UNION ADDRESSES *** + + + + +Produced by James Linden. HTML version by Al Haines. + + + + + + + + + +State of the Union Addresses of Gerald R. Ford + + + +The addresses are separated by three asterisks: *** + +Dates of addresses by Gerald R. Ford in this eBook: + + January 15, 1975 + January 19, 1976 + January 12, 1977 + + + +*** + +State of the Union Address +Gerald R. Ford +January 15, 1975 + +Mr. Speaker, Mr. Vice President, Members of the 94th Congress, and +distinguished guests: + +Twenty-six years ago, a freshman Congressman, a young fellow with lots of +idealism who was out to change the world, stood before Sam Rayburn in the +well of the House and solemnly swore to the same oath that all of you took +yesterday--an unforgettable experience, and I congratulate you all. + +Two days later, that same freshman stood at the back of this great +Chamber--over there someplace--as President Truman, all charged up by his +single-handed election victory, reported as the Constitution requires on +the state of the Union. + +When the bipartisan applause stopped, President Truman said, "I am happy to +report to this 81st Congress that the state of the Union is good. Our +Nation is better able than ever before to meet the needs of the American +people, and to give them their fair chance in the pursuit of happiness. +[It] is foremost among the nations of the world in the search for peace." + +Today, that freshman Member from Michigan stands where Mr. Truman +stood, and I must say to you that the state of the Union is not good: + +Millions of Americans are out of work. + +Recession and inflation are eroding the money of millions more. + +Prices are too high, and sales are too slow. + +This year's Federal deficit will be about $30 billion; next year's probably +$45 billion. + +The national debt will rise to over $500 billion. + +Our plant capacity and productivity are not increasing fast enough. + +We depend on others for essential energy. + +Some people question their Government's ability to make hard decisions and +stick with them; they expect Washington politics as usual. + +Yet, what President Truman said on January 5, 1949, is even more true in +1975. We are better able to meet our people's needs. All Americans do have +a fairer chance to pursue happiness. Not only are we still the foremost +nation in the pursuit of peace but today's prospects of attaining it are +infinitely brighter. + +There were 59 million Americans employed at the start of 1949; now there +are more than 85 million Americans who have jobs. In comparable dollars, +the average income of the American family has doubled during the past 26 +years. + +Now, I want to speak very bluntly. I've got bad news, and I don't expect +much, if any, applause. The American people want action, and it will take +both the Congress and the President to give them what they want. Progress +and solutions can be achieved, and they will be achieved. + +My message today is not intended to address all of the complex needs of +America. I will send separate messages making specific recommendations for +domestic legislation, such as the extension of general revenue sharing and +the Voting Rights Act. + +The moment has come to move in a new direction. We can do this by +fashioning a new partnership between the Congress on the one hand, the +White House on the other, and the people we both represent. + +Let us mobilize the most powerful and most creative industrial nation that +ever existed on this Earth to put all our people to work. The emphasis on +our economic efforts must now shift from inflation to jobs. + +To bolster business and industry and to create new jobs, I propose a 1-year +tax reduction of $16 billion. Three-quarters would go to individuals and +one-quarter to promote business investment. + +This cash rebate to individuals amounts to 12 percent of 1974 tax +payments--a total cut of $12 billion, with a maximum of $1,000 per return. + +I call on the Congress to act by April 1. If you do--and I hope you +will--the Treasury can send the first check for half of the rebate in May +and the second by September. + +The other one-fourth of the cut, about $4 billion, will go to business, +including farms, to promote expansion and to create more jobs. The 1-year +reduction for businesses would be in the form of a liberalized investment +tax credit increasing the rate to 12 percent for all businesses. + +This tax cut does not include the more fundamental reforms needed in our +tax system. But it points us in the right direction--allowing taxpayers +rather than the Government to spend their pay. + +Cutting taxes now is essential if we are to turn the economy around. A tax +cut offers the best hope of creating more jobs. Unfortunately, it will +increase the size of the budget deficit. Therefore, it is more important +than ever that we take steps to control the growth of Federal +expenditures. + +Part of our trouble is that we have been self-indulgent. For decades, we +have been voting ever-increasing levels of Government benefits, and now the +bill has come due. We have been adding so many new programs that the size +and the growth of the Federal budget has taken on a life of its own. + +One characteristic of these programs is that their cost increases +automatically every year because the number of people eligible for most of +the benefits increases every year. When these programs are enacted, there +is no dollar amount set. No one knows what they will cost. All we know is +that whatever they cost last year, they will cost more next year. + +It is a question of simple arithmetic. Unless we check the excessive growth +of Federal expenditures or impose on ourselves matching increases in taxes, +we will continue to run huge inflationary deficits in the Federal budget. + +If we project the current built-in momentum of Federal spending through the +next 15 years, State, Federal, and local government expenditures could +easily comprise half of our gross national product. This compares with less +than a third in 1975. + +I have just concluded the process of preparing the budget submissions for +fiscal year 1976. In that budget, I will propose legislation to restrain +the growth of a number of existing programs. I have also concluded that no +new spending programs can be initiated this year, except for energy. +Further, I will not hesitate to veto any new spending programs adopted by +the Congress. + +As an additional step toward putting the Federal Government's house in +order, I recommend a 5-percent limit on Federal pay increases in 1975. In +all Government programs tied to the Consumer Price Index--including social +security, civil service and military retirement pay, and food stamps--I +also propose a 1-year maximum increase of 5 percent. + +None of these recommended ceiling limitations, over which Congress has +final authority, are easy to propose, because in most cases they involve +anticipated payments to many, many deserving people. Nonetheless, it must +be done. I must emphasize that I am not asking to eliminate, to reduce, to +freeze these payments. I am merely recommending that we slow down the rate +at which these payments increase and these programs grow. + +Only a reduction in the growth of spending can keep Federal borrowing down +and reduce the damage to the private sector from high interest rates. Only +a reduction in spending can make it possible for the Federal Reserve System +to avoid an inflationary growth in the money supply and thus restore +balance to our economy. A major reduction in the growth of Federal spending +can help dispel the uncertainty that so many feel about our economy and put +us on the way to curing our economic ills. + +If we don't act to slow down the rate of increase in Federal spending, the +United States Treasury will be legally obligated to spend more than $360 +billion in fiscal year 1976, even if no new programs are enacted. These are +not matters of conjecture or prediction, but again, a matter of simple +arithmetic. The size of these numbers and their implications for our +everyday life and the health of our economic system are shocking. + +I submitted to the last Congress a list of budget deferrals and +rescissions. There will be more cuts recommended in the budget that I will +submit. Even so, the level of outlays for fiscal year 1976 is still much, +much too high. Not only is it too high for this year but the decisions we +make now will inevitably have a major and growing impact on expenditure +levels in future years. I think this is a very fundamental issue that we, +the Congress and I, must jointly solve. + +Economic disruptions we and others are experiencing stem in part from the +fact that the world price of petroleum has quadrupled in the last year. But +in all honesty, we cannot put all of the blame on the oil-exporting +nations. We, the United States, are not blameless. Our growing dependence +upon foreign sources has been adding to our vulnerability for years and +years, and we did nothing to prepare ourselves for such an event as the +embargo of 1973. + +During the 1960's, this country had a surplus capacity of crude oil which +we were able to make available to our trading partners whenever there was a +disruption of supply. This surplus capacity enabled us to influence both +supplies and prices of crude oil throughout the world. Our excess capacity +neutralized any effort at establishing an effective cartel, and thus the +rest of the world was assured of adequate supplies of oil at reasonable +prices. + +By 1970, our surplus capacity had vanished, and as a consequence, the +latent power of the oil cartel could emerge in full force. Europe and +Japan, both heavily dependent on imported oil, now struggle to keep their +economies in balance. Even the United States, our country, which is far +more self-sufficient than most other industrial countries, has been .put +under serious pressure. + +I am proposing a program which will begin to restore our country's surplus +capacity in total energy. In this way, we will be able to assure ourselves +reliable and adequate energy and help foster a new world energy stability +for other major consuming nations. + +But this Nation and, in fact, the world must face the prospect of energy +difficulties between now and 1985. This program will impose burdens on all +of us with the aim of reducing our consumption of energy and increasing our +production. Great attention has been paid to the considerations of +fairness, and I can assure you that the burdens will not fall more harshly +on those less able to bear them. + +I am recommending a plan to make us invulnerable to cutoffs of foreign oil. +It will require sacrifices, but it--and this is most important--it will +work. + +I have set the following national energy goals to assure that our future is +as secure and as productive as our past: + +First, we must reduce oil imports by 1 million barrels per day by the end +of this year and by 2 million barrels per day by the end of 1977. + +Second, we must end vulnerability to economic disruption by foreign +suppliers by 1985. + +Third, we must develop our energy technology and resources so that the +United States has the ability to supply a significant share of the energy +needs of the free world by the end of this century. + +To attain these objectives, we need immediate action to cut imports. +Unfortunately, in the short term there are only a limited number of actions +which can increase domestic supply. I will press for all of them. + +I urge quick action on the necessary legislation to allow commercial +production at the Elk Hills, California, Naval Petroleum Reserve. In order +that we make greater use of domestic coal resources, I am submitting +amendments to the Energy Supply and Environmental Coordination Act which +will greatly increase the number of powerplants that can be promptly +converted to coal. + +Obviously, voluntary conservation continues to be essential, but tougher +programs are needed--and needed now. Therefore, I am using Presidential +powers to raise the fee on all imported crude oil and petroleum products. +The crude oil fee level will be increased $1 per barrel on February 1, by +$2 per barrel on March 1, and by $3 per barrel on April 1. I will take +actions to reduce undue hardships on any geographical region. The foregoing +are interim administrative actions. They will be rescinded when the broader +but necessary legislation is enacted. + +To that end, I am requesting the Congress to act within 90 days on a more +comprehensive energy tax program. It includes: excise taxes and import fees +totaling $2 per barrel on product imports and on all crude oil; +deregulation of new natural gas and enactment of a natural gas excise tax. + +I plan to take Presidential initiative to decontrol the price of domestic +crude oil on April 1. I urge the Congress to enact a windfall profits tax +by that date to ensure that oil producers do not profit unduly. + +The sooner Congress acts, the more effective the oil conservation program +will be and the quicker the Federal revenues can be returned to our +people. + +I am prepared to use Presidential authority to limit imports, as necessary, +to guarantee success. + +I want you to know that before deciding on my energy conservation program, +I considered rationing and higher gasoline taxes as alternatives. In my +judgment, neither would achieve the desired results and both would produce +unacceptable inequities. + +A massive program must be initiated to increase energy supply, to cut +demand, and provide new standby emergency programs to achieve the +independence we want by 1985. The largest part of increased oil production +must come from new frontier areas on the Outer Continental Shelf and from +the Naval Petroleum Reserve No. 4 in Alaska. It is the intent of this +Administration to move ahead with exploration, leasing, and production on +those frontier areas of the Outer Continental Shelf where the environmental +risks are acceptable. + +Use of our most abundant domestic resource--coal--is severely limited. We +must strike a reasonable compromise on environmental concerns with coal. I +am submitting Clean Air amendments which will allow greater coal use +without sacrificing clean air goals. + +I vetoed the strip mining legislation passed by the last Congress. With +appropriate changes, I will sign a revised version when it comes to the +White House. + +I am proposing a number of actions to energize our nuclear power program. I +will submit legislation to expedite nuclear leasing and the +rapid selection of sites. + +In recent months, utilities have cancelled or postponed over 60 percent of +planned nuclear expansion and 30 percent of planned additions to +non-nuclear capacity. Financing problems for that industry are worsening. I +am therefore recommending that the 1-year investment tax credit of 12 +percent be extended an additional 2 years to specifically speed the +construction of powerplants that do not use natural gas or oil. I am also +submitting proposals for selective reform of State utility commission +regulations. + +To provide the critical stability for our domestic energy production in the +face of world price uncertainty, I will request legislation to authorize +and require tariffs, import quotas, or price floors to protect our energy +prices at levels which will achieve energy independence. + +Increasing energy supplies is not enough. We must take additional steps to +cut long-term consumption. I therefore propose to the Congress: legislation +to make thermal efficiency standards mandatory for all new buildings in the +United States; a new tax credit of up to $150 for those homeowners who +install insulation equipment; the establishment of an energy conservation +program to help low-income families purchase insulation supplies; +legislation to modify and defer automotive pollution standards for 5 years, +which will enable us to improve automobile gas mileage by 40 percent by +1980. + +These proposals and actions, cumulatively, can reduce our dependence on +foreign energy supplies from 3 to 5 million barrels per day by 1985. To +make the United States invulnerable to foreign disruption, I propose +standby emergency legislation and a strategic storage program of 1 billion +barrels of oil for domestic needs and 300 million barrels for national +defense purposes. + +I will ask for the funds needed for energy research and development +activities. I have established a goal of 1 million barrels of synthetic +fuels and shale oil production per day by 1985 together with an incentive +program to achieve it. + +I have a very deep belief in America's capabilities. Within the next 10 +years, my program envisions: 200 major nuclear powerplants; 250 major new +coal mines; 150 major coal-fired powerplants; 30 major new refineries; 20 +major new synthetic fuel plants; the drilling of many thousands of new +oil wells; the insulation of 18 million homes; and the manufacturing +and the sale of millions of new automobiles, trucks, and buses that +use much less fuel. + +I happen to believe that we can do it. In another crisis--the one in 1942 +President Franklin D. Roosevelt said this country would build 60,000 +military aircraft. By 1943, production in that program had reached +125,000 aircraft annually. They did it then. We can do it now. + +If the Congress and the American people will work with me to attain these +targets, they will be achieved and will be surpassed. From adversity, let +us seize opportunity. Revenues of some $30 billion from higher energy taxes +designed to encourage conservation must be refunded to the American people +in a manner which corrects distortions in our tax system wrought by +inflation. + +People have been pushed into higher tax brackets by inflation, with +consequent reduction in their actual spending power. Business taxes are +similarly distorted because inflation exaggerates reported profits, +resulting in excessive taxes. + +Accordingly, I propose that future individual income taxes be reduced by +$16.5 billion. This will be done by raising the low-income allowance and +reducing tax rates. This continuing tax cut will primarily benefit lower- +and middle-income taxpayers. + +For example, a typical family of four with a gross income of $5,600 now +pays $185 in Federal income taxes. Under this tax cut plan, they would pay +nothing. A family of four with a gross income of $12,500 now pays $1,260 in +Federal taxes. My proposal reduces that total by $300. Families grossing +$20,000 would receive a reduction of $210. + +Those with the very lowest incomes, who can least afford higher costs, must +also be compensated. I propose a payment of $80 to every person 18 years of +age and older in that very limited category. + +State and local governments will receive $2 billion in additional revenue +sharing to offset their increased energy costs. + +To offset inflationary distortions and to generate more economic activity, +the corporate tax rate will be reduced from 48 percent to 42 percent. + +Now let me turn, if I might, to the international dimension of the present +crisis. At no time in our peacetime history has the state of the Nation +depended more heavily on the state of the world. And seldom, if ever, has +the state of the world depended more heavily on the state of our Nation. + +The economic distress is global. We will not solve it at home unless we +help to remedy the profound economic dislocation abroad. World trade and +monetary structure provides markets, energy, food, and vital raw +materials--for all nations. This international system is now in jeopardy. + +This Nation can be proud of significant achievements in recent years in +solving problems and crises. The Berlin agreement, the SALT agreements, our +new relationship with China, the unprecedented efforts in the Middle East +are immensely encouraging. But the world is not free from crisis. In a +world of 150 nations, where nuclear technology is proliferating and +regional conflicts continue, international security cannot be taken for +granted. + +So, let there be no mistake about it: International cooperation is a vital +factor of our lives today. This is not a moment for the American people to +turn inward. More than ever before, our own well-being depends on America's +determination and America's leadership in the whole wide world. + +We are a great Nation--spiritually, politically, militarily, +diplomatically, and economically. America's commitment to international +security has sustained the safety of allies and friends in many areas--in +the Middle East, in Europe, and in Asia. Our turning away would unleash new +instabilities, new dangers around the globe, which, in turn, would threaten +our own security. + +At the end of World War II, we turned a similar challenge into an historic +opportunity and, I might add, an historic achievement. An old order was in +disarray; political and economic institutions were shattered. In that +period, this Nation and its partners built new institutions, new mechanisms +of mutual support and cooperation. Today, as then, we face an historic +opportunity. If we act imaginatively and boldly, as we acted then, this +period will in retrospect be seen as one of the great creative moments of +our Nation's history. The whole world is watching to see how we respond. + +A resurgent American economy would do more to restore the confidence of the +world in its own future than anything else we can do. The program that this +Congress passes can demonstrate to the world that we have started to put +our own house in order. If we can show that this Nation is able and willing +to help other nations meet the common challenge, it can demonstrate that +the United States will fulfill its responsibilities as a leader among +nations. + +Quite frankly, at stake is the future of industrialized democracies, which +have perceived their destiny in common and sustained it in common for 30 +years. + +The developing nations are also at a turning point. The poorest nations see +their hopes of feeding their hungry and developing their societies +shattered by the economic crisis. The long-term economic future for the +producers of raw materials also depends on cooperative solutions. + +Our relations with the Communist countries are a basic factor of the world +environment. We must seek to build a long-term basis for coexistence. We +will stand by our principles. We will stand by our interests. We will act +firmly when challenged. The kind of a world we want depends on a broad +policy of creating mutual incentives for restraint and for cooperation. + +As we move forward to meet our global challenges and opportunities, we must +have the tools to do the job. + +Our military forces are strong and ready. This military strength deters +aggression against our allies, stabilizes our relations with former +adversaries, and protects our homeland. Fully adequate conventional and +strategic forces cost many, many billions, but these dollars are sound +insurance for our safety and for a more peaceful world. + +Military strength alone is not sufficient. Effective diplomacy is also +essential in preventing conflict, in building world understanding. The +Vladivostok negotiations with the Soviet Union represent a major step in +moderating strategic arms competition. My recent discussions with the +leaders of the Atlantic community, Japan, and South Korea have contributed +to meeting the common challenge. + +But we have serious problems before us that require cooperation between the +President and the Congress. By the Constitution and tradition, the +execution of foreign policy is the responsibility of the President. + +In recent years, under the stress of the Vietnam war, legislative +restrictions on the President's ability to execute foreign policy and +military decisions have proliferated. As a Member of the Congress, I +opposed some and I approved others. As President, I welcome the advice and +cooperation of the House and the Senate. + +But if our foreign policy is to be successful, we cannot rigidly restrict +in legislation the ability of the President to act. The conduct of +negotiations is ill-suited to such limitations. Legislative restrictions, +intended for the best motives and purposes, can have the opposite result, +as we have seen most recently in our trade relations with the Soviet +Union. + +For my part, I pledge this Administration will act in the closest +consultation with the Congress as we face delicate situations and troubled +times throughout the globe. + +When I became President only 5 months ago, I promised the last Congress a +policy of communication, conciliation, compromise, and cooperation. I renew +that pledge to the new Members of this Congress. + +Let me sum it up. America needs a new direction, which I have sought to +chart here today--a change of course which will: put the unemployed back to +work; increase real income and production; restrain the growth of Federal +Government spending; achieve energy independence; and advance the cause of +world understanding. + +We have the ability. We have the know-how. In partnership with the American +people, we will achieve these objectives. + +As our 200th anniversary approaches, we owe it to ourselves and to +posterity to rebuild our political and economic strength. Let us make +America once again and for centuries more to come what it has so long +been--a stronghold and a beacon-light of liberty for the whole world. + +Thank you. + +*** + +State of the Union Address +Gerald R. Ford +January 19, 1976 + +Mr. Speaker, Mr. Vice President, Members of the 94th Congress, and +distinguished guests: + +As we begin our Bicentennial, America is still one of the youngest nations +in recorded history. Long before our forefathers came to these shores, men +and women had been struggling on this planet to forge a better life for +themselves and their families. + +In man's long, upward march from savagery and slavery--throughout the +nearly 2,000 years of the Christian calendar, the nearly 6,000 years of +Jewish reckoning--there have been many deep, terrifying valleys, but also +many bright and towering peaks. + +One peak stands highest in the ranges of human history. One example shines +forth of a people uniting to produce abundance and to share the good life +fairly and with freedom. One union holds out the promise of justice and +opportunity for every citizen: That union is the United States of America. + +We have not remade paradise on Earth. We know perfection will not be found +here. But think for a minute how far we have come in 200 years. + +We came from many roots, and we have many branches. Yet all Americans +across the eight generations that separate us from the stirring deeds of +1776, those who know no other homeland and those who just found refuge +among our shores, say in unison: + +I am proud of America, and I am proud to be an American. Life will be a +little better here for my children than for me. I believe this not because +I am told to believe it, but because life has been better for me than it +was for my father and my mother. I know it will be better for my children +because my hands, my brains, my voice, and my vote can help make it +happen. + +It has happened here in America. It has happened to you and to me. +Government exists to create and preserve conditions in which people can +translate their ideas into practical reality. In the best of times, much is +lost in translation. But we try. Sometimes we have tried and failed. Always +we have had the best of intentions. + +But in the recent past, we sometimes forgot the sound principles that +guided us through most of our history. We wanted to accomplish great things +and solve age-old problems. And we became overconfident of our abilities. +We tried to be a policeman abroad and the indulgent parent here at home. + +We thought we could transform the country through massive national +programs, but often the programs did not work. Too often they only made +things worse. In our rush to accomplish great deeds quickly, we trampled on +sound principles of restraint and endangered the rights of individuals. We +unbalanced our economic system by the huge and unprecedented growth of +Federal expenditures and borrowing. And we were not totally honest with +ourselves about how much these programs would cost and how we would pay for +them. Finally, we shifted our emphasis from defense to domestic problems +while our adversaries continued a massive buildup of arms. + +The time has now come for a fundamentally different approach for a new +realism that is true to the great principles upon which this Nation was +founded. + +We must introduce a new balance to our economy--a balance that favors not +only sound, active government but also a much more vigorous, healthy +economy that can create new jobs and hold down prices. + +We must introduce a new balance in the relationship between the individual +and the government--a balance that favors greater individual freedom and +self-reliance. + +We must strike a new balance in our system of federalism--a balance that +favors greater responsibility and freedom for the leaders of our State and +local governments. + +We must introduce a new balance between the spending on domestic programs +and spending on defense--a balance that ensures we will fully meet our +obligation to the needy while also protecting our security in a world that +is still hostile to freedom. + +And in all that we do, we must be more honest with the American people, +promising them no more than we can deliver and delivering all that we +promise. + +The genius of America has been its incredible ability to improve the lives +of its citizens through a unique combination of governmental and free +citizen activity. + +History and experience tells us that moral progress cannot come in +comfortable and in complacent times, but out of trial and out of confusion. +Tom Paine aroused the troubled Americans of 1776 to stand up to the times +that try men's souls because the harder the conflict, the more glorious the +triumph. + +Just a year ago I reported that the state of the Union was not good. +Tonight, I report that the state of our Union is better--in many ways a lot +better--but still not good enough. + +To paraphrase Tom Paine, 1975 was not a year for summer soldiers and +sunshine patriots. It was a year of fears and alarms and of dire +forecasts--most of which never happened and won't happen. + +As you recall, the year 1975 opened with rancor and with bitterness. +Political misdeeds of the past had neither been forgotten nor forgiven. The +longest, most divisive war in our history was winding toward an unhappy +conclusion. Many feared that the end of that foreign war of men and +machines meant the beginning of a domestic war of recrimination and +reprisal. Friends and adversaries abroad were asking whether America had +lost its nerve. Finally, our economy was ravaged by inflation--inflation +that was plunging us into the worst recession in four decades. At the same +time, Americans became increasingly alienated from big institutions. They +were steadily losing confidence, not just in big government but in big +business, big labor, and big education, among others. Ours was a troubled +land. + +And so, 1975 was a year of hard decisions, difficult compromises, and a new +realism that taught us something important about America. It brought back a +needed measure of common sense, steadfastness, and self-discipline. + +Americans did not panic or demand instant but useless cures. In all +sectors, people met their difficult problems with the restraint and with +responsibility worthy of their great heritage. + +Add up the separate pieces of progress in 1975, subtract the setbacks, and +the sum total shows that we are not only headed in a new direction, a +direction which I proposed 12 months ago, but it turned out to be the right +direction. + +It is the right direction because it follows the truly revolutionary +American concept of 1776, which holds that in a free society the making of +public policy and successful problem-solving involves much more than +government. It involves a full partnership among all branches and all +levels of government, private institutions, and individual citizens. + +Common sense tells me to stick to that steady course. + +Take the state of our economy. Last January, most things were rapidly +getting worse. This January, most things are slowly but surely getting +better. + +The worst recession since World War II turned around in April. The best +cost-of-living news of the past year is that double-digit inflation of 12 +percent or higher was cut almost in half. The worst--unemployment remains +far too high. + +Today, nearly 1,700,000 more Americans are working than at the bottom of +the recession. At year's end, people were again being hired much faster +than they were being laid off. + +Yet, let's be honest. Many Americans have not yet felt these changes in +their daily lives. They still see prices going up far too fast, and they +still know the fear of unemployment. + +We are also a growing nation. We need more and more jobs every year. +Today's economy has produced over 85 million jobs for Americans, but we +need a lot more jobs, especially for the young. + +My first objective is to have sound economic growth without inflation. + +We all know from recent experience what runaway inflation does to ruin +every other worthy purpose. We are slowing it. We must stop it cold. + +For many Americans, the way to a healthy, noninflationary economy has +become increasingly apparent. The Government must stop spending so much and +stop borrowing so much of our money. More money must remain in private +hands where it will do the most good. To hold down the cost of living, we +must hold down the cost of government. + +In the past decade, the Federal budget has been growing at an average rate +of over 10 percent a year. The budget I am submitting Wednesday cuts this +rate of growth in half. I have kept my promise to submit a budget for the +next fiscal year of $395 billion. In fact, it is $394.2 billion. + +By holding down the growth of Federal spending, we can afford additional +tax cuts and return to the people who pay taxes more decisionmaking power +over their own lives. + +Last month I signed legislation to extend the 1975 tax reductions for the +first 6 months of this year. I now propose that effective July 1, 1976, we +give our taxpayers a tax cut of approximately $10 billion more than +Congress agreed to in December. + +My broader tax reduction would mean that for a family of four making +$15,000 a year, there will be $227 more in take-home pay annually. +Hardworking Americans caught in the middle can really use that kind of +extra cash. + +My recommendations for a firm restraint on the growth of Federal spending +and for greater tax reduction are simple and straightforward. For every +dollar saved in cutting the growth in the Federal budget, we can have an +added dollar of Federal tax reduction. + +We can achieve a balanced budget by 1979 if we have the courage and the +wisdom to continue to reduce the growth of Federal spending. + +One test of a healthy economy is a job for every American who wants to +work. Government--our kind of government--cannot create that many jobs. But +the Federal Government can create conditions and incentives for private +business and industry to make more and more jobs. + +Five out of six jobs in this country are in private business and in +industry. Common sense tells us this is the place to look for more jobs and +to find them faster. I mean real, rewarding, permanent jobs. + +To achieve this we must offer the American people greater incentives to +invest in the future. My tax proposals are a major step in that direction. +To supplement these proposals, I ask that Congress enact changes in Federal +tax laws that will speed up plant expansion and the purchase of new +equipment. My recommendations will concentrate this job-creation tax +incentive in areas where the unemployment rate now runs over 7 percent. +Legislation to get this started must be approved at the earliest possible +date. + +Within the strict budget total that I will recommend for the coming year, I +will ask for additional housing assistance for 500,000 families. These +programs will expand housing opportunities, spur construction, and help to +house moderate- and low-income families. + +We had a disappointing year in the housing industry in 1975. But with lower +interest rates and available mortgage money, we can have a healthy recovery +in 1976. + +A necessary condition of a healthy economy is freedom from the petty +tyranny of massive government regulation. We are wasting literally millions +of working hours costing billions of taxpayers' and consumers' dollars +because of bureaucratic redtape. The American farmer, who now feeds 215 +million Americans, but also millions worldwide, has shown how much more he +can produce without the shackles of government control. + +Now, we badly need reforms in other key areas in our economy: the airlines, +trucking, railroads, and financial institutions. I have submitted concrete +plans in each of these areas, not to help this or that industry, but to +foster competition and to bring prices down for the consumer. + +This administration, in addition, will strictly enforce the Federal +antitrust laws for the very same purposes. + +Taking a longer look at America's future, there can be neither sustained +growth nor more jobs unless we continue to have an assured supply of energy +to run our economy. Domestic production of oil and gas is still declining. +Our dependence on foreign oil at high prices is still too great, draining +jobs and dollars away from our own economy at the rate of $125 per year for +every American. + +Last month, I signed a compromise national energy bill which enacts a part +of my comprehensive energy independence program. This legislation was late, +not the complete answer to energy independence, but still a start in the +right direction. + +I again urge the Congress to move ahead immediately on the remainder of my +energy proposals to make America invulnerable to the foreign oil cartel. + +My proposals, as all of you know, would reduce domestic natural gas +shortages; allow production from Federal petroleum reserves; stimulate +effective conservation, including revitalization of our railroads and the +expansion of our urban transportation systems; develop more and cleaner +energy from our vast coal resources; expedite clean and safe nuclear power +production; create a new national energy independence authority to +stimulate vital energy investment; and accelerate development of technology +to capture energy from the Sun and the Earth for this and future +generations. + +Also, I ask, for the sake of future generations, that we preserve the +family farm and family-owned small business. Both strengthen America and +give stability to our economy. I will propose estate tax changes so that +family businesses and family farms can be handed down from generation to +generation without having to be sold to pay taxes. + +I propose tax changes to encourage people to invest in America's future, +and their own, through a plan that gives moderate-income families income +tax benefits if they make long-term investments in common stock in American +companies. + +The Federal Government must and will respond to clear-cut national +needs--for this and future generations. + +Hospital and medical services in America are among the best in the world, +but the cost of a serious and extended illness can quickly wipe out a +family's lifetime savings. Increasing health costs are of deep concern to +all and a powerful force pushing up the cost of living. The burden of +catastrophic illness can be borne by very few in our society. We must +eliminate this fear from every family. + +I propose catastrophic health insurance for everybody covered by Medicare. +To finance this added protection, fees for short-term care will go up +somewhat, but nobody after reaching age 65 will have to pay more than $500 +a year for covered hospital or nursing home care, nor more than $250 for 1 +year's doctor bills. + +We cannot realistically afford federally dictated national health insurance +providing full coverage for all 215 million Americans. The experience of +other countries raises questions about the quality as well as the cost of +such plans. But I do envision the day when we may use the private health +insurance system to offer more middle-income families high quality health +services at prices they can afford and shield them also from their +catastrophic illnesses. + +Using resources now available, I propose improving the Medicare and other +Federal health programs to help those who really need protection--older +people and the poor. To help States and local governments give better +health care to the poor, I propose that we combine 16 existing Federal +programs, including Medicaid, into a single $10 billion Federal grant. + +Funds would be divided among States under a new formula which provides a +larger share of Federal money to those States that have a larger share of +low-income families. + +I will take further steps to improve the quality of medical and hospital +care for those who have served in our Armed Forces. + +Now let me speak about social security. Our Federal social security system +for people who have worked and contributed to it for all their lives is a +vital part of our economic system. Its value is no longer debatable. In my +budget for fiscal year 1977, I am recommending that the full cost-of-living +increases in the social security benefits be paid during the coming year. + +But I am concerned about the integrity of our Social Security Trust Fund +that enables people--those retired and those still working who will +retire--to count on this source of retirement income. Younger workers watch +their deductions rise and wonder if they will be adequately protected in +the future. We must meet this challenge head on. Simple arithmetic warns +all of us that the Social Security Trust Fund is headed for trouble. Unless +we act soon to make sure the fund takes in as much as it pays out, there +will be no security for old or for young. + +I must, therefore, recommend a three-tenths of 1 percent increase in both +employer and employee social security taxes effective January 1, 1977. This +will cost each covered employee less than 1 extra dollar a week and will +ensure the integrity of the trust fund. + +As we rebuild our economy, we have a continuing responsibility to provide a +temporary cushion to the unemployed. At my request, the Congress enacted +two extensions and two expansions in unemployment insurance which helped +those who were jobless during 1975. These programs will continue in 1976. + +In my fiscal year 1977 budget, I am also requesting funds to continue +proven job training and employment opportunity programs for millions of +other Americans. + +Compassion and a sense of community--two of America's greatest strengths +throughout our history--tell us we must take care of our neighbors who +cannot take care of themselves. The host of Federal programs in this field +reflect our generosity as a people. + +But everyone realizes that when it comes to welfare, government at all +levels is not doing the job well. Too many of our welfare programs are +inequitable and invite abuse. Too many of our welfare programs have +problems from beginning to end. Worse, we are wasting badly needed +resources without reaching many of the truly needy. + +Complex welfare programs cannot be reformed overnight. Surely we cannot +simply dump welfare into the laps of the 50 States, their local taxpayers, +or their private charities, and just walk away from it. Nor is it the right +time for massive and sweeping changes while we are still recovering from +the recession. + +Nevertheless, there are still plenty of improvements that we can make. I +will ask Congress for Presidential authority to tighten up the rules for +eligibility and benefits. + +Last year I twice sought long overdue reform of the scandal-riddled food +stamp program. This year I say again: Let's give food stamps to those most +in need. Let's not give any to those who don't need them. + +Protecting the life and property of the citizen at home is the +responsibility of all public officials, but is primarily the job of local +and State law enforcement authorities. + +Americans have always found the very thought of a Federal police force +repugnant, and so do I. But there are proper ways in which we can help to +insure domestic tranquility as the Constitution charges us. + +My recommendations on how to control violent crime were submitted to the +Congress last June with strong emphasis on protecting the innocent victims +of crime. To keep a convicted criminal from committing more crimes, we must +put him in prison so he cannot harm more law-abiding citizens. To be +effective, this punishment must be swift and it must be certain. + +Too often, criminals are not sent to prison after conviction but are +allowed to return to the streets. Some judges are reluctant to send +convicted criminals to prison because of inadequate facilities. To +alleviate this problem at the Federal level, my new budget proposes the +construction of four new Federal facilities. + +To speed Federal justice, I propose an increase this year in the United +States attorneys prosecuting Federal crimes and the reinforcement of the +number of United States marshals. Additional Federal judges are needed, as +recommended by me and the Judicial Conference. + +Another major threat to every American's person and property is the +criminal carrying a handgun. The way to cut down on the criminal use of +guns is not to take guns away from the law-abiding citizen, but to impose +mandatory sentences for crimes in which a gun is used, make it harder to +obtain cheap guns for criminal purposes, and concentrate gun control +enforcement in highcrime areas. + +My budget recommends 500 additional Federal agents in the 11 largest +metropolitan high-crime areas to help local authorities stop criminals from +selling and using handguns. + +The sale of hard drugs is tragically on the increase again. I have directed +all agencies of the Federal Government to step up law enforcement efforts +against those who deal in drugs. In 1975, I am glad to report, Federal +agents seized substantially more heroin coming into our country than in +1974. + +As President, I have talked personally with the leaders of Mexico, +Colombia, and Turkey to urge greater efforts by their Governments to +control effectively the production and shipment of hard drugs. + +I recommended months ago that the Congress enact mandatory fixed sentences +for persons convicted of Federal crimes involving the sale of hard drugs. +Hard drugs, we all know, degrade the spirit as they destroy the body of +their users. + +It is unrealistic and misleading to hold out the hope that the Federal +Government can move into every neighborhood and clean up crime. Under the +Constitution, the greatest responsibility for curbing crime lies with State +and local authorities. They are the frontline fighters in the war against +crime. + +There are definite ways in which the Federal Government can help them. I +will propose in the new budget that Congress authorize almost $7 billion +over the next 5 years to assist State and local governments to protect the +safety and property of all their citizens. + +As President, I pledge the strict enforcement of Federal laws and--by +example, support, and leadership--to help State and local authorities +enforce their laws. Together, we must protect the victims of crime and +ensure domestic tranquility. + +Last year I strongly recommended a 5-year extension of the existing revenue +sharing legislation, which thus far has provided $23 1/2 billion to help +State and local units of government solve problems at home. This program +has been effective with decisionmaking transferred from the Federal +Government to locally elected officials. Congress must act this year, or +State and local units of government will have to drop programs or raise +local taxes. + +Including my health care program reforms, I propose to consolidate some 59 +separate Federal programs and provide flexible Federal dollar grants to +help States, cities, and local agencies in such important areas as +education, child nutrition, and social services. This flexible system will +do the job better and do it closer to home. + +The protection of the lives and property of Americans from foreign enemies +is one of my primary responsibilities as President. + +In a world of instant communications and intercontinental ballistic +missiles, in a world economy that is global and interdependent, our +relations with other nations become more, not less, important to the lives +of Americans. + +America has had a unique role in the world since the day of our +independence 200 years ago. And ever since the end of World War II, we have +borne--successfully--a heavy responsibility for ensuring a stable world +order and hope for human progress. + +Today, the state of our foreign policy is sound and strong. We are at +peace, and I will do all in my power to keep it that way. + +Our military forces are capable and ready. Our military power is without +equal, and I intend to keep it that way. + +Our principal alliances with the industrial democracies of the Atlantic +community and Japan have never been more solid. + +A further agreement to limit the strategic arms race may be achieved. + +We have an improving relationship with China, the world's most populous +nation. + +The key elements for peace among the nations of the Middle East now exist. +Our traditional friendships in Latin America, Africa, and Asia continue. + +We have taken the role of leadership in launching a serious and hopeful +dialog between the industrial world and the developing world. + +We have helped to achieve significant reform of the international monetary +system. + +We should be proud of what America, what our country, has accomplished in +these areas, and I believe the American people are. + +The American people have heard too much about how terrible our mistakes, +how evil our deeds, and how misguided our purposes. The American people +know better. + +The truth is we are the world's greatest democracy. We remain the symbol of +man's aspiration for liberty and well-being. We are the embodiment of hope +for progress. + +I say it is time we quit downgrading ourselves as a nation. Of course, it +is our responsibility to learn the right lesson from past mistakes. It is +our duty to see that they never happen again. But our greater duty is to +look to the future. The world's troubles will not go away. + +The American people want strong and effective international and defense +policies. In our constitutional system, these policies should reflect +consultation and accommodation between the President and the Congress. But +in the final analysis, as the framers of our Constitution knew from hard +experience, the foreign relations of the United States can be conducted +effectively only if there is strong central direction that allows +flexibility of action. That responsibility clearly rests with the +President. + +I pledge to the American people policies which seek a secure, just, and +peaceful world. I pledge to the Congress to work with you to that end. + +We must not face a future in which we can no longer help our friends, such +as Angola, even in limited and carefully controlled ways. We must not lose +all capacity to respond short of military intervention. + +Some hasty actions of the Congress during the past year--most recently in +respect to Angola--were, in my view, very shortsighted. Unfortunately, they +are still very much on the minds of our allies and our adversaries. + +A strong defense posture gives weight to our values and our views in +international negotiations. It assures the vigor of our alliances. And it +sustains our efforts to promote settlements of international conflicts. +Only from a position of strength can we negotiate a balanced agreement to +limit the growth of nuclear arms. Only a balanced agreement will serve our +interests and minimize the threat of nuclear confrontation. + +The defense budget I will submit to the Congress for fiscal year 1977 will +show an essential increase over the current year. It provides for real +growth in purchasing power over this year's defense budget, which includes +the cost of the all-volunteer force. + +We are continuing to make economies to enhance the efficiency of our +military forces. But the budget I will submit represents the necessity of +American strength for the real world in which we live. + +As conflict and rivalry persist in the world, our United States +intelligence capabilities must be the best in the world. + +The crippling of our foreign intelligence services increases the danger of +American involvement in direct armed conflict. Our adversaries are +encouraged to attempt new adventures while our own ability to monitor +events and to influence events short of military action is undermined. +Without effective intelligence capability, the United States stands +blindfolded and hobbled. + +In the near future, I will take actions to reform and strengthen our +intelligence community. I ask for your positive cooperation. It is time to +go beyond sensationalism and ensure an effective, responsible, and +responsive intelligence capability. + +Tonight I have spoken about our problems at home and abroad. I have +recommended policies that will meet the challenge of our third century. I +have no doubt that our Union will endure, better, stronger, and with more +individual freedom. We can see forward only dimly--1 year, 5 years, a +generation perhaps. Like our forefathers, we know that if we meet the +challenges of our own time with a common sense of purpose and conviction, +if we remain true to our Constitution and to our ideals, then we can know +that the future will be better than the past. + +I see America today crossing a threshold, not just because it is our +Bicentennial but because we have been tested in adversity. We have taken a +new look at what we want to be and what we want our Nation to become. + +I see America resurgent, certain once again that life will be better for +our children than it is for us, seeking strength that cannot be counted in +megatons and riches that cannot be eroded by inflation. + +I see these United States of America moving forward as before toward a more +perfect Union where the government serves and the people rule. + +We will not make this happen simply by making speeches, good or bad, yours +or mine, but by hard work and hard decisions made with courage and with +common sense. + +I have heard many inspiring Presidential speeches, but the words I remember +best were spoken by Dwight D. Eisenhower. "America is not good because it +is great," the President said. "America is great because it is good." + +President Eisenhower was raised in a poor but religious home in the heart +of America. His simple words echoed President Lincoln's eloquent testament +that "right makes might." And Lincoln in turn evoked the silent image of +George Washington kneeling in prayer at Valley Forge. + +So, all these magic memories which link eight generations of Americans are +summed up in the inscription just above me. How many times have we seen it? +"In God We Trust." + +Let us engrave it now in each of our hearts as we begin our Bicentennial. + +*** + +State of the Union Address +Gerald R. Ford +January 12, 1977 + +Mr. Speaker, Mr. Vice President, Members of the 95th Congress, and +distinguished guests: + +In accordance with the Constitution, I come before you once again to report +on the state of the Union. + +This report will be my last--maybe--[laughter]--but for the Union it is +only the first of such reports in our third century of independence, the +close of which none of us will ever see. We can be confident, however, that +100 years from now a freely elected President will come before a freely +elected Congress chosen to renew our great Republic's pledge to the +Government of the people, by the people, and for the people. + +For my part I pray the third century we are beginning will bring to all +Americans, our children and their children's children, a greater measure of +individual equality, opportunity, and justice, a greater abundance of +spiritual and material blessings, and a higher quality of life, liberty, +and the pursuit of happiness. + +The state of the Union is a measurement of the many elements of which it is +composed--a political union of diverse States, an economic union of varying +interests, an intellectual union of common convictions, and a moral union +of immutable ideals. + +Taken in sum, I can report that the state of the Union is good. There is +room for improvement, as always, but today we have a more perfect Union +than when my stewardship began. + +As a people we discovered that our Bicentennial was much more than a +celebration of the past; it became a joyous reaffirmation of all that it +means to be Americans, a confirmation before all the world of the vitality +and durability of our free institutions. I am proud to have been privileged +to preside over the affairs of our Federal Government during these eventful +years when we proved, as I said in my first words upon assuming office, +that "our Constitution works; our great Republic is a Government of laws +and not of men. Here the people rule." + +The people have spoken; they have chosen a new President and a new Congress +to work their will. I congratulate you--particularly the new Members--as +sincerely as I did President-elect Carter. In a few days it will be his +duty to outline for you his priorities and legislative recommendations. +Tonight I will not infringe on that responsibility, but rather wish him the +very best in all that is good for our country. + +During the period of my own service in this Capitol and in the White House, +I can recall many orderly transitions of governmental responsibility--of +problems as well as of position, of burdens as well as of power. The genius +of the American system is that we do this so naturally and so normally. +There are no soldiers marching in the street except in the Inaugural +Parade; no public demonstrations except for some of the dancers at the +Inaugural Ball; the opposition party doesn't go underground, but goes on +functioning vigorously in the Congress and in the country; and our vigilant +press goes right on probing and publishing our faults and our follies, +confirming the wisdom of the framers of the first amendment. + +Because of the transfer of authority in our form of government affects the +state of the Union and of the world, I am happy to report to you that the +current transition is proceeding very well. I was determined that it +should; I wanted the new President to get off on an easier start than I +had. + +When I became President on August 9, 1974, our Nation was deeply divided +and tormented. In rapid succession the Vice President and the President had +resigned in disgrace. We were still struggling with the after-effects of a +long, unpopular, and bloody war in Southeast Asia. The economy was unstable +and racing toward the worst recession in 40 years. People were losing jobs. +The cost of living was soaring. The Congress and the Chief Executive were +at loggerheads. The integrity of our constitutional process and other +institutions was being questioned. For more than 15 years domestic spending +had soared as Federal programs multiplied, and the expense escalated +annually. During the same period our national security needs were steadily +shortchanged. In the grave situation which prevailed in August 1974, our +will to maintain our international leadership was in doubt. + +I asked for your prayers and went to work. + +In January 1975 I reported to the Congress that the state of the Union was +not good. I proposed urgent action to improve the economy and to achieve +energy independence in 10 years. I reassured America's allies and sought to +reduce the danger of confrontation with potential adversaries. I pledged a +new direction for America. 1975 was a year of difficult decisions, but +Americans responded with realism, common sense, and self-discipline. + +By January 1976 we were headed in a new direction, which I hold to be the +right direction for a free society. It was guided by the belief that +successful problem-solving requires more than Federal action alone, that it +involves a full partnership among all branches and all levels of government +and public policies which nurture and promote the creative energies of +private enterprises, institutions, and individual citizens. + +A year ago I reported that the state of the Union was better--in many ways +a lot better--but still not good enough. Common sense told me to stick to +the steady course we were on, to continue to restrain the inflationary +growth of government, to reduce taxes as well as spending, to return local +decisions to local officials, to provide for long-range sufficiency in +energy and national security needs. I resisted the immense pressures of an +election year to open the floodgates of Federal money and the temptation to +promise more than I could deliver. I told it as it was to the American +people and demonstrated to the world that in our spirited political +competition, as in this chamber, Americans can disagree without being +disagreeable. + +Now, after 30 months as your President, I can say that while we still have +a way to go, I am proud of the long way we have come together. + +I am proud of the part I have had in rebuilding confidence in the +Presidency, confidence in our free system, and confidence in our future. +Once again, Americans believe in themselves, in their leaders, and in the +promise that tomorrow holds for their children. + +I am proud that today America is at peace. None of our sons are fighting +and dying in battle anywhere in the world. And the chance for peace among +all nations is improved by our determination to honor our vital commitments +in defense of peace and freedom. + +I am proud that the United States has strong defenses, strong alliances, +and a sound and courageous foreign policy. + +Our alliances with major partners, the great industrial democracies of +Western Europe, Japan, and Canada, have never been more solid. +Consultations on mutual security, defense, and East-West relations have +grown closer. Collaboration has branched out into new fields such as +energy, economic policy, and relations with the Third World. We have used +many avenues for cooperation, including summit meetings held among major +allied countries. The friendship of the democracies is deeper, warmer, and +more effective than at any time in 30 years. + +We are maintaining stability in the strategic nuclear balance and pushing +back the specter of nuclear war. A decisive step forward was taken +in the Vladivostok Accord which I negotiated with General Secretary +Brezhnev--joint recognition that an equal ceiling should be placed +on the number of strategic weapons on each side. With resolve and wisdom +on the part of both nations, a good agreement is well within reach +this year. + +The framework for peace in the Middle East has been built. Hopes for future +progress in the Middle East were stirred by the historic agreements we +reached and the trust and confidence that we formed. Thanks to American +leadership, the prospects for peace in the Middle East are brighter than +they have been in three decades. The Arab states and Israel continue to +look to us to lead them from confrontation and war to a new era of +accommodation and peace. We have no alternative but to persevere, and I am +sure we will. The opportunities for a final settlement are great, and the +price of failure is a return to the bloodshed and hatred that for too long +have brought tragedy to all of the peoples of this area and repeatedly +edged the world to the brink of war. + +Our relationship with the People's Republic of China is proving its +importance and its durability. We are finding more and more common ground +between our two countries on basic questions of international affairs. + +In my two trips to Asia as President, we have reaffirmed America's +continuing vital interest in the peace and security of Asia and the Pacific +Basin, established a new partnership with Japan, confirmed our dedication +to the security of Korea, and reinforced our ties with the free nations of +Southeast Asia. + +An historic dialog has begun between industrial nations and developing +nations. Most proposals on the table are the initiatives of the United +States, including those on food, energy, technology, trade, investment, and +commodities. We are well launched on this process of shaping positive and +reliable economic relations between rich nations and poor nations over the +long term. + +We have made progress in trade negotiations and avoided protectionism +during recession. We strengthened the international monetary system. During +the past 2 years the free world's most important economic powers have +already brought about important changes that serve both developed and +developing economies. The momentum already achieved must be nurtured and +strengthened, for the prosperity of the rich and poor depends upon it. + +In Latin America, our relations have taken on a new maturity and a sense of +common enterprise. + +In Africa the quest for peace, racial justice, and economic progress is at +a crucial point. The United States, in close cooperation with the United +Kingdom, is actively engaged in this historic process. Will change come +about by warfare and chaos and foreign intervention? Or will it come about +by negotiated and fair solutions, ensuring majority rule, minority rights, +and economic advance? America is committed to the side of peace and justice +and to the principle that Africa should shape its own future, free of +outside intervention. + +American leadership has helped to stimulate new international efforts to +stem the proliferation of nuclear weapons and to shape a comprehensive +treaty governing the use of oceans. + +I am gratified by these accomplishments. They constitute a record of broad +success for America and for the peace and prosperity of all mankind. This +administration leaves to its successor a world in better condition than we +found. We leave, as well, a solid foundation for progress on a range of +issues that are vital to the well-being of America. + +What has been achieved in the field of foreign affairs and what can be +accomplished by the new administration demonstrate the genius of Americans +working together for the common good. It is this, our remarkable ability to +work together, that has made us a unique nation. It is Congress, the +President, and the people striving for a better world. + +I know all patriotic Americans want this Nation's foreign policy to +succeed. I urge members of my party in this Congress to give the new +President loyal support in this area. I express the hope that this new +Congress will reexamine its constitutional role in international affairs. + +The exclusive right to declare war, the duty to advise and consent on the +part of the Senate, the power of the purse on the part of the House are +ample authority for the legislative branch and should be jealously guarded. +But because we may have been too careless of these powers in the past does +not justify congressional intrusion into, or obstruction of, the proper +exercise of Presidential responsibilities now or in the future. There can +be only one Commander in Chief. In these times crises cannot be managed and +wars cannot be waged by committee, nor can peace be pursued solely by +parliamentary debate. To the ears of the world, the President speaks for +the Nation. While he is, of course, ultimately accountable to the Congress, +the courts, and the people, he and his emissaries must not be handicapped +in advance in their relations with foreign governments as has sometimes +happened in the past. + +At home I am encouraged by the Nation's recovery from the recession and our +steady return to sound economic growth. It is now continuing after the +recent period of uncertainty, which is part of the price we pay for free +elections. + +Our most pressing need today and the future is more jobs--productive, +permanent jobs created by a thriving economy. We must revise our tax system +both to ease the burden of heavy taxation and to encourage the investment +necessary for the creation of productive jobs for all Americans who want to +work. + +Earlier this month I proposed a permanent income tax reduction of $10 +billion below current levels, including raising the personal exemption from +$750 to $1,000. I also recommended a series of measures to stimulate +investment, such as accelerated depreciation for new plants and equipment +in areas of high unemployment, a reduction in the corporate tax rate from +48 to 46 percent, and eliminating the present double taxation of dividends. +I strongly urge the Congress to pass these measures to help create the +productive, permanent jobs in the private economy that are so essential for +our future. + +All the basic trends are good; we are not on the brink of another recession +or economic disaster. If we follow prudent policies that encourage +productive investment and discourage destructive inflation, we will come +out on top, and I am sure we will. + +We have successfully cut inflation by more than half. When I took office, +the Consumer Price Index was rising at 12.2 percent a year. During 1976 the +rate of inflation was 5 percent. + +We have created more jobs--over 4 million more jobs today than in the +spring of 1975. Throughout this Nation today we have over 88 million people +in useful, productive jobs--more than at any other time in our Nation's +history. But there are still too many Americans unemployed. This is the +greatest regret that I have as I leave office. + +We brought about with the Congress, after much delay, the renewal of the +general revenue sharing. We expanded community development and Federal +manpower programs. We began a significant urban mass transit program. +Federal programs today provide more funds for our States and local +governments than ever before--$70 billion for the current fiscal year. +Through these programs and others that provide aid directly to individuals, +we have kept faith with our tradition of compassionate help for those who +need it. As we begin our third century we can be proud of the progress that +we have made in meeting human needs for all of our citizens. + +We have cut the growth of crime by nearly 90 percent. Two years ago crime +was increasing at the rate of 18 percent annually. In the first three +quarters of 1976, that growth rate had been cut to 2 percent. But crime, +and the fear of crime, remains one of the most serious problems facing our +citizens. + +We have had some successes, and there have been some disappointments. +Bluntly, I must remind you that we have not made satisfactory progress +toward achieving energy independence. Energy is absolutely vital to the +defense of our country, to the strength of our economy, and to the quality +of our lives. + +Two years ago I proposed to the Congress the first comprehensive national +energy program--a specific and coordinated set of measures that would end +our vulnerability to embargo, blockade, or arbitrary price increases and +would mobilize U.S. technology and resources to supply a significant share +of the free world's energy after 1985. Of the major energy proposals I +submitted 2 years ago, only half, belatedly, became law. In 1973 we were +dependent upon foreign oil imports for 36 percent of our needs. Today, we +are 40-percent dependent, and we'll pay out $34 billion for foreign oil +this year. Such vulnerability at present or in the future is intolerable +and must be ended. + +The answer to where we stand on our national energy effort today reminds me +of the old argument about whether the tank is half full or half empty. The +pessimist will say we have half failed to achieve our 10-year energy goals; +the optimist will say that we have half succeeded. I am always an optimist, +but we must make up for lost time. + +We have laid a solid foundation for completing the enormous task which +confronts us. I have signed into law five major energy bills which contain +significant measures for conservation, resource development, stockpiling, +and standby authorities. We have moved forward to develop the naval +petroleum reserves; to build a 500-million barrel strategic petroleum +stockpile; to phase out unnecessary Government allocation and price +controls; to develop a lasting relationship with other oil consuming +nations; to improve the efficiency of energy use through conservation in +automobiles, buildings, and industry; and to expand research on new +technology and renewable resources such as wind power, geothermal and solar +energy. All these actions, significant as they are for the long term, are +only the beginning. + +I recently submitted to the Congress my proposals to reorganize the Federal +energy structure and the hard choices which remain if we are serious about +reducing our dependence upon foreign energy. These include programs to +reverse our declining production of natural gas and increase incentives for +domestic crude oil production. I proposed to minimize environmental +uncertainties affecting coal development, expand nuclear power generation, +and create an energy independence authority to provide government financial +assistance for vital energy programs where private capital is not +available. + +We must explore every reasonable prospect for meeting our energy needs when +our current domestic reserves of oil and natural gas begin to dwindle in +the next decade. I urgently ask Congress and the new administration to move +quickly on these issues. This Nation has the resources and the capability +to achieve our energy goals if its Government has the will to proceed, and +I think we do. + +I have been disappointed by inability to complete many of the meaningful +organizational reforms which I contemplated for the Federal Government, +although a start has been made. For example, the Federal judicial system +has long served as a model for other courts. But today it is threatened by +a shortage of qualified Federal judges and an explosion of litigation +claiming Federal jurisdiction. I commend to the new administration and the +Congress the recent report and recommendations of the Department of +Justice, undertaken at my request, on "the needs of the Federal Courts." I +especially endorse its proposals for a new commission on the judicial +appointment process. + +While the judicial branch of our Government may require reinforcement, the +budgets and payrolls of the other branches remain staggering. I cannot help +but observe that while the White House staff and the Executive Office of +the President have been reduced and the total number of civilians in the +executive branch contained during the 1970's, the legislative branch has +increased substantially although the membership of the Congress remains at +535. Congress now costs the taxpayers more than a million dollars per +Member; the whole legislative budget has passed the billion dollar mark. + +We have made some progress in cutting back the expansion of government and +its intrusion into individual lives, but believe me, there is much more to +be done--and you and I know it. It can only be done by tough and +temporarily painful surgery by a Congress as prepared as the President to +face up to this very real political problem. Again, I wish my successor, +working with a substantial majority of his own party, the best of success +in reforming the costly and cumbersome machinery of the Federal +Government. + +The task of self-government is never finished. The problems are great; the +opportunities are greater. + +America's first goal is and always will be peace with honor. America must +remain first in keeping peace in the world. We can remain first in peace +only if we are never second in defense. + +In presenting the state of the Union to the Congress and to the American +people, I have a special obligation as Commander in Chief to report on our +national defense. Our survival as a free and independent people requires, +above all, strong military forces that are well equipped and highly trained +to perform their assigned mission. + +I am particularly gratified to report that over the past 2 1/2 years, we +have been able to reverse the dangerous decline of the previous decade in +real resources this country was devoting to national defense. This was an +immediate problem I faced in 1974. The evidence was unmistakable that the +Soviet Union had been steadily increasing the resources it applied to +building its military strength. During this same period the United States +real defense spending declined. In my three budgets we not only arrested +that dangerous decline, but we have established the positive trend which is +essential to our ability to contribute to peace and stability in the +world. + +The Vietnam war, both materially and psychologically, affected our overall +defense posture. The dangerous anti-military sentiment discouraged defense +spending and unfairly disparaged the men and women who serve in our Armed +Forces. + +The challenge that now confronts this country is whether we have the +national will and determination to continue this essential defense effort +over the long term, as it must be continued. We can no longer afford to +oscillate from year to year in so vital a matter; indeed, we have a duty to +look beyond the immediate question of budgets and to examine the nature of +the problem we will face over the next generation. + +I am the first recent President able to address long-term, basic issues +without the burden of Vietnam. The war in Indochina consumed enormous +resources at the very time that the overwhelming strategic superiority we +once enjoyed was disappearing. In past years, as a result of decisions by +the United States, our strategic forces leveled off, yet the Soviet Union +continued a steady, constant buildup of its own forces, committing a high +percentage of its national economic effort to defense. + +The United States can never tolerate a shift in strategic balance against +us or even a situation where the American people or our allies believe the +balance is shifting against us. The United States would risk the most +serious political consequences if the world came to believe that our +adversaries have a decisive margin of superiority. + +To maintain a strategic balance we must look ahead to the 1980's and +beyond. The sophistication of modern weapons requires that we make +decisions now if we are to ensure our security 10 years from now. +Therefore, I have consistently advocated and strongly urged that we pursue +three critical strategic programs: the Trident missile launching submarine; +the B-1 bomber, with its superior capability to penetrate modern air +defenses; and a more advanced intercontinental ballistic missile that will +be better able to survive nuclear attack and deliver a devastating +retaliatory strike. + +In an era where the strategic nuclear forces are in rough equilibrium, the +risks of conflict below the nuclear threshold may grow more perilous. A +major, long-term objective, therefore, is to maintain capabilities to deal +with, and thereby deter, conventional challenges and crises, particularly +in Europe. + +We cannot rely solely on strategic forces to guarantee our security or to +deter all types of aggression. We must have superior naval and marine +forces to maintain freedom of the seas, strong multipurpose tactical air +forces, and mobile, modern ground forces. Accordingly, I have directed a +long-term effort to improve our worldwide capabilities to deal with +regional crises. + +I have submitted a 5-year naval building program indispensable to the +Nation's maritime strategy. Because the security of Europe and the +integrity of NATO remain the cornerstone of American defense policy, I have +initiated a special, long-term program to ensure the capacity of the +Alliance to deter or defeat aggression in Europe. + +As I leave office I can report that our national defense is effectively +deterring conflict today. Our Armed Forces are capable of carrying out the +variety of missions assigned to them. Programs are underway which will +assure we can deter war in the years ahead. But I also must warn that it +will require a sustained effort over a period of years to maintain these +capabilities. We must have the wisdom, the stamina, and the courage to +prepare today for the perils of tomorrow, and I believe we will. + +As I look to the future--and I assure you I intend to go on doing that for +a good many years--I can say with confidence that the state of the Union is +good, but we must go on making it better and better. + +This gathering symbolizes the constitutional foundation which makes +continued progress possible, synchronizing the skills of three independent +branches of Government, reserving fundamental sovereignty to the people of +this great land. It is only as the temporary representatives and servants +of the people that we meet here, we bring no hereditary status or gift of +infallibility, and none follows us from this place. + +Like President Washington, like the more fortunate of his successors, I +look forward to the status of private citizen with gladness and gratitude. +To me, being a citizen of the United States of America is the greatest +honor and privilege in this world. + +From the opportunities which fate and my fellow citizens have given me, as +a Member of the House, as Vice President and President of the Senate, and +as President of all the people, I have come to understand and place the +highest value on the checks and balances which our founders imposed on +government through the separation of powers among co-equal legislative, +executive, and judicial branches. This often results in difficulty and +delay, as I well know, but it also places supreme authority under God, +beyond any one person, any one branch, any majority great or small, or any +one party. The Constitution is the bedrock of all our freedoms. Guard and +cherish it, keep honor and order in your own house, and the Republic will +endure. + +It is not easy to end these remarks. In this Chamber, along with some of +you, I have experienced many, many of the highlights of my life. It was +here that I stood 28 years ago with my freshman colleagues, as Speaker Sam +Rayburn administered the oath. I see some of you now--Charlie Bennett, Dick +Bolling, Carl Perkins, Pete Rodino, Harley Staggers, Tom Steed, Sid Yates, +Clem Zablocki-and I remember those who have gone to their rest. It was here +we waged many, many a lively battle--won some, lost some, but always +remaining friends. It was here, surrounded by such friends, that the +distinguished Chief Justice swore me in as Vice President on December 6, +1973. It was here I returned 8 months later as your President to ask not +for a honeymoon, but for a good marriage. + +I will always treasure those memories and your many, many kindnesses. I +thank you for them all. + +My fellow Americans, I once asked you for your prayers, and now I give you +mine: May God guide this wonderful country, its people, and those they have +chosen to lead them. May our third century be illuminated by liberty and +blessed with brotherhood, so that we and all who come after us may be the +humble servants of thy peace. Amen. + +Good night. God bless you. + + + + + + + + + +End of the Project Gutenberg EBook of State of the Union Addresses of Gerald +R. Ford, by Gerald R. 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Do not change or edit the +header without written permission. + +Please read the "legal small print," and other information about the +eBook and Project Gutenberg at the bottom of this file. Included is +important information about your specific rights and restrictions in +how the file may be used. You can also find out about how to make a +donation to Project Gutenberg, and how to get involved. + + +**Welcome To The World of Free Plain Vanilla Electronic Texts** + +**eBooks Readable By Both Humans and By Computers, Since 1971** + +*****These eBooks Were Prepared By Thousands of Volunteers!***** + + +Title: State of the Union Addresses of Gerald R. Ford + +Author: Gerald R. Ford + +Release Date: February, 2004 [EBook #5044] +[Yes, we are more than one year ahead of schedule] +[This file was first posted on April 11, 2002] + +Edition: 10 + +Language: English + +Character set encoding: ASCII + +*** START OF THE PROJECT GUTENBERG EBOOK OF ADDRESSES BY GERALD R. FORD *** + + + + +This eBook was produced by James Linden. + +The addresses are separated by three asterisks: *** + +Dates of addresses by Gerald R. Ford in this eBook: + January 15, 1975 + January 19, 1976 + January 12, 1977 + + + +*** + +State of the Union Address +Gerald R. Ford +January 15, 1975 + +Mr. Speaker, Mr. Vice President, Members of the 94th Congress, and +distinguished guests: + +Twenty-six years ago, a freshman Congressman, a young fellow with lots of +idealism who was out to change the world, stood before Sam Rayburn in the +well of the House and solemnly swore to the same oath that all of you took +yesterday--an unforgettable experience, and I congratulate you all. + +Two days later, that same freshman stood at the back of this great +Chamber-over there someplace--as President Truman, all charged up by his +single-handed election victory, reported as the Constitution requires on +the state of the Union. + +When the bipartisan applause stopped, President Truman said, "I am happy to +report to this 81st Congress that the state of the Union is good. Our +Nation is better able than ever before to meet the needs of the American +people, and to give them their fair chance in the pursuit of happiness. +[It] is foremost among the nations of the world in the search for peace." + +Today, that freshman Member from Michigan stands where Mr. Truman + +stood, and I must say to you that the state of the Union is not good: +Millions of Americans are out of work. + +Recession and inflation are eroding the money of millions more. + +Prices are too high, and sales are too slow. + +This year's Federal deficit will be about $30 billion; next year's probably +$45 billion. + +The national debt will rise to over $500 billion. + +Our plant capacity and productivity are not increasing fast enough. + +We depend on others for essential energy. + +Some people question their Government's ability to make hard decisions and +stick with them; they expect Washington politics as usual. + +Yet, what President Truman said on January 5, 1949, is even more true in +1975. We are better able to meet our people's needs. All Americans do have +a fairer chance to pursue happiness. Not only are we still the foremost +nation in the pursuit of peace but today's prospects of attaining it are +infinitely brighter. + +There were 59 million Americans employed at the start of 1949; now there +are more than 85 million Americans who have jobs. In comparable dollars, +the average income of the American family has doubled during the past 26 +years. + +Now, I want to speak very bluntly. I've got bad news, and I don't expect +much, if any, applause. The American people want action, and it will take +both the Congress and the President to give them what they want. Progress +and solutions can be achieved, and they will be achieved. + +My message today is not intended to address all of the complex needs of +America. I will send separate messages making specific recommendations for +domestic legislation, such as the extension of general revenue sharing and +the Voting Rights Act. + +The moment has come to move in a new direction. We can do this by +fashioning a new partnership between the Congress on the one hand, the +White House on the other, and the people we both represent. + +Let us mobilize the most powerful and most creative industrial nation that +ever existed on this Earth to put all our people to work. The emphasis on +our economic efforts must now shift from inflation to jobs. + +To bolster business and industry and to create new jobs, I propose a 1-year +tax reduction of $16 billion. Three-quarters would go to individuals and +one-quarter to promote business investment. + +This cash rebate to individuals amounts to 12 percent of 1974 tax +payments-a total cut of $12 billion, with a maximum of $1,000 per return. + +I call on the Congress to act by April 1. If you do--and I hope you +will--the Treasury can send the first check for half of the rebate in May +and the second by September. + +The other one-fourth of the cut, about $4 billion, will go to business, +including farms, to promote expansion and to create more jobs. The 1-year +reduction for businesses would be in the form of a liberalized investment +tax credit increasing the rate to 12 percent for all businesses. + +This tax cut does not include the more fundamental reforms needed in our +tax system. But it points us in the right direction--allowing taxpayers +rather than the Government to spend their pay. + +Cutting taxes now is essential if we are to turn the economy around. A tax +cut offers the best hope of creating more jobs. Unfortunately, it will +increase the size of the budget deficit. Therefore, it is more important +than ever that we take steps to control the growth of Federal +expenditures. + +Part of our trouble is that we have been self-indulgent. For decades, we +have been voting ever-increasing levels of Government benefits, and now the +bill has come due. We have been adding so many new programs that the size +and the growth of the Federal budget has taken on a life of its own. + +One characteristic of these programs is that their cost increases +automatically every year because the number of people eligible for most of +the benefits increases every year. When these programs are enacted, there +is no dollar amount set. No one knows what they will cost. All we know is +that whatever they cost last year, they will cost more next year. + +It is a question of simple arithmetic. Unless we check the excessive growth +of Federal expenditures or impose on ourselves matching increases in taxes, +we will continue to run huge inflationary deficits in the Federal budget. + +If we project the current built-in momentum of Federal spending through the +next 15 years, State, Federal, and local government expenditures could +easily comprise half of our gross national product. This compares with less +than a third in 1975. + +I have just concluded the process of preparing the budget submissions for +fiscal year 1976. In that budget, I will propose legislation to restrain +the growth of a number of existing programs. I have also concluded that no +new spending programs can be initiated this year, except for energy. +Further, I will not hesitate to veto any new spending programs adopted by +the Congress. + +As an additional step toward putting the Federal Government's house in +order, I recommend a 5-percent limit on Federal pay increases in 1975. In +all Government programs tied to the Consumer Price Index--including social +security, civil service and military retirement pay, and food stamps--I +also propose a 1-year maximum increase of 5 percent. + +None of these recommended ceiling limitations, over which Congress has +final authority, are easy to propose, because in most cases they involve +anticipated payments to many, many deserving people. Nonetheless, it must +be done. I must emphasize that I am not asking to eliminate, to reduce, to +freeze these payments. I am merely recommending that we slow down the rate +at which these payments increase and these programs grow. + +Only a reduction in the growth of spending can keep Federal borrowing down +and reduce the damage to the private sector from high interest rates. Only +a reduction in spending can make it possible for the Federal Reserve System +to avoid an inflationary growth in the money supply and thus restore +balance to our economy. A major reduction in the growth of Federal spending +can help dispel the uncertainty that so many feel about our economy and put +us on the way to curing our economic ills. + +If we don't act to slow down the rate of increase in Federal spending, the +United States Treasury will be legally obligated to spend more than $360 +billion in fiscal year 1976, even if no new programs are enacted. These are +not matters of conjecture or prediction, but again, a matter of simple +arithmetic. The size of these numbers and their implications for our +everyday life and the health of our economic system are shocking. + +I submitted to the last Congress a list of budget deferrals and +rescissions. There will be more cuts recommended in the budget that I will +submit. Even so, the level of outlays for fiscal year 1976 is still much, +much too high. Not only is it too high for this year but the decisions we +make now will inevitably have a major and growing impact on expenditure +levels in future years. I think this is a very fundamental issue that we, +the Congress and I, must jointly solve. + +Economic disruptions we and others are experiencing stem in part from the +fact that the world price of petroleum has quadrupled in the last year. But +in all honesty, we cannot put all of the blame on the oil-exporting +nations. We, the United States, are not blameless. Our growing dependence +upon foreign sources has been adding to our vulnerability for years and +years, and we did nothing to prepare ourselves for such an event as the +embargo of 1973. + +During the 1960's, this country had a surplus capacity of crude oil which +we were able to make available to our trading partners whenever there was a +disruption of supply. This surplus capacity enabled us to influence both +supplies and prices of crude oil throughout the world. Our excess capacity +neutralized any effort at establishing an effective cartel, and thus the +rest of the world was assured of adequate supplies of oil at reasonable +prices. + +By 1970, our surplus capacity had vanished, and as a consequence, the +latent power of the oil cartel could emerge in full force. Europe and +Japan, both heavily dependent on imported oil, now struggle to keep their +economies in balance. Even the United States, our country, which is far +more self-sufficient than most other industrial countries, has been .put +under serious pressure. + +I am proposing a program which will begin to restore our country's surplus +capacity in total energy. In this way, we will be able to assure ourselves +reliable and adequate energy and help foster a new world energy stability +for other major consuming nations. + +But this Nation and, in fact, the world must face the prospect of energy +difficulties between now and 1985. This program will impose burdens on all +of us with the aim of reducing our consumption of energy and increasing our +production. Great attention has been paid to the considerations of +fairness, and I can assure you that the burdens will not fall more harshly +on those less able to bear them. + +I am recommending a plan to make us invulnerable to cutoffs of foreign oil. +It will require sacrifices, but it--and this is most important--it will +work. + +I have set the following national energy goals to assure that our future is +as secure and as productive as our past: + +First, we must reduce oil imports by 1 million barrels per day by the end +of this year and by 2 million barrels per day by the end of 1977. + +Second, we must end vulnerability to economic disruption by foreign +suppliers by 1985. + +Third, we must develop our energy technology and resources so that the +United States has the ability to supply a significant share of the energy +needs of the free world by the end of this century. + +To attain these objectives, we need immediate action to cut imports. +Unfortunately, in the short term there are only a limited number of actions +which can increase domestic supply. I will press for all of them. + +I urge quick action on the necessary legislation to allow commercial +production at the Elk Hills, California, Naval Petroleum Reserve. In order +that we make greater use of domestic coal resources, I am submitting +amendments to the Energy Supply and Environmental Coordination Act which +will greatly increase the number of powerplants that can be promptly +converted to coal. + +Obviously, voluntary conservation continues to be essential, but tougher +programs are needed--and needed now. Therefore, I am using Presidential +powers to raise the fee on all imported crude oil and petroleum products. +The crude oil fee level will be increased $1 per barrel on February 1, by +$2 per barrel on March 1, and by $3 per barrel on April 1. I will take +actions to reduce undue hardships on any geographical region. The foregoing +are interim administrative actions. They will be rescinded when the broader +but necessary legislation is enacted. + +To that end, I am requesting the Congress to act within 90 days on a more +comprehensive energy tax program. It includes: excise taxes and import fees +totaling $2 per barrel on product imports and on all crude oil; +deregulation of new natural gas and enactment of a natural gas excise tax. + +I plan to take Presidential initiative to decontrol the price of domestic +crude oil on April 1. I urge the Congress to enact a windfall profits tax +by that date to ensure that oil producers do not profit unduly. + +The sooner Congress acts, the more effective the oil conservation program +will be and the quicker the Federal revenues can be returned to our +people. + +I am prepared to use Presidential authority to limit imports, as necessary, +to guarantee success. + +I want you to know that before deciding on my energy conservation program, +I considered rationing and higher gasoline taxes as alternatives. In my +judgment, neither would achieve the desired results and both would produce +unacceptable inequities. + +A massive program must be initiated to increase energy supply, to cut +demand, and provide new standby emergency programs to achieve the +independence we want by 1985. The largest part of increased oil production +must come from new frontier areas on the Outer Continental Shelf and from +the Naval Petroleum Reserve No. 4 in Alaska. It is the intent of this +Administration to move ahead with exploration, leasing, and production on +those frontier areas of the Outer Continental Shelf where the environmental +risks are acceptable. + +Use of our most abundant domestic resource--coal--is severely limited. We +must strike a reasonable compromise on environmental concerns with coal. I +am submitting Clean Air [Act] amendments which will allow greater coal use +without sacrificing clean air goals. + +I vetoed the strip mining legislation passed by the last Congress.1 With +appropriate changes, I will sign a revised version when it comes to the +White House. + +1See 1974 volume, Item 326. + +I am proposing a number of actions to energize our nuclear power program. I +will submit legislation to expedite nuclear leasing [licensing] and the +rapid selection of sites. + +In recent months, utilities have cancelled or postponed over 60 percent of +planned nuclear expansion and 30 percent of planned additions to +non-nuclear capacity. Financing problems for that industry are worsening. I +am therefore recommending that the 1-year investment tax credit of 12 +percent be extended an additional 2 years to specifically speed the +construction of powerplants that do not use natural gas or oil. I am also +submitting proposals for selective reform of State utility commission +regulations. + +To provide the critical stability for our domestic energy production in the +face of world price uncertainty, I will request legislation to authorize +and require tariffs, import quotas, or price floors to protect our energy +prices at levels which will achieve energy independence. + +Increasing energy supplies is not enough. We must take additional steps to +cut long-term consumption. I therefore propose to the Congress: legislation +to make thermal efficiency standards mandatory for all new buildings in the +United States; a new tax credit of up to $150 for those homeowners who +install insulation equipment; the establishment of an energy conservation +program to help low-income families purchase insulation supplies; +legislation to modify and defer automotive pollution standards for 5 years, +which will enable us to improve automobile gas mileage by 40 percent by +1980. + +These proposals and actions, cumulatively, can reduce our dependence on +foreign energy supplies from 3 to 5 million barrels per day by 1985. To +make the United States invulnerable to foreign disruption, I propose +standby emergency legislation and a strategic storage program of 1 billion +barrels of oil for domestic needs and 300 million barrels for national +defense purposes. + +I will ask for the funds needed for energy research and development +activities. I have established a goal of 1 million barrels of synthetic +fuels and shale oil production per day by 1985 together with an incentive +program to achieve it. + +I have a very deep belief in America's capabilities. Within the next 10 +years, my program envisions: 200 major nuclear powerplants; 250 major new +coal mines; 150 major coal-fired powerplants; 30 major new [oil] +refineries; 20 major new synthetic fuel plants; the drilling of many +thousands of new oil wells; the insulation of 18 million homes; and the +manufacturing and the sale of millions of new automobiles, trucks, and +buses that use much less fuel. + +I happen to believe that we can do it. In another crisis--the one in 1942 +President Franklin D. Roosevelt said this country would build 60,000 +[50,000] military aircraft. By 1943, production in that program had reached +125,000 aircraft annually. They did it then. We can do it now. + +If the Congress and the American people will work with me to attain these +targets, they will be achieved and will be surpassed. From adversity, let +us seize opportunity. Revenues of some $30 billion from higher energy taxes +designed to encourage conservation must be refunded to the American people +in a manner which corrects distortions in our tax system wrought by +inflation. + +People have been pushed into higher tax brackets by inflation, with +consequent reduction in their actual spending power. Business taxes are +similarly distorted because inflation exaggerates reported profits, +resulting in excessive taxes. + +Accordingly, I propose that future individual income taxes be reduced by +$16.5 billion. This will be done by raising the low-income allowance and +reducing tax rates. This continuing tax cut will primarily benefit lower- +and middle-income taxpayers. + +For example, a typical family of four with a gross income of $5,600 now +pays $185 in Federal income taxes. Under this tax cut plan, they would pay +nothing. A family of four with a gross income of $12,500 now pays $1,260 in +Federal taxes. My proposal reduces that total by $300. Families grossing +$20,000 would receive a reduction of $210. + +Those with the very lowest incomes, who can least afford higher costs, must +also be compensated. I propose a payment of $80 to every person 18 years of +age and older in that very limited category. + +State and local governments will receive $2 billion in additional revenue +sharing to offset their increased energy costs. + +To offset inflationary distortions and to generate more economic activity, +the corporate tax rate will be reduced from 48 percent to 42 percent. + +Now let me turn, if I might, to the international dimension of the present +crisis. At no time in our peacetime history has the state of the Nation +depended more heavily on the state of the world. And seldom, if ever, has +the state of the world depended more heavily on the state of our Nation. + +The economic distress is global. We will not solve it at home unless we +help to remedy the profound economic dislocation abroad. World trade and +monetary structure provides markets, energy, food, and vital raw +materials--for all nations. This international system is now in jeopardy. + +This Nation can be proud of significant achievements in recent years in +solving problems and crises. The Berlin agreement, the SALT agreements, our +new relationship with China, the unprecedented efforts in the Middle East +are immensely encouraging. But the world is not free from crisis. In a +world of 150 nations, where nuclear technology is proliferating and +regional conflicts continue, international security cannot be taken for +granted. + +So, let there be no mistake about it: International cooperation is a vital +factor of our lives today. This is not a moment for the American people to +turn inward. More than ever before, our own well-being depends on America's +determination and America's leadership in the whole wide world. + +We are a great Nation--spiritually, politically, militarily, +diplomatically, and economically. America's commitment to international +security has sustained the safety of allies and friends in many areas--in +the Middle East, in Europe, and in Asia. Our turning away would unleash new +instabilities, new dangers around the globe, which, in turn, would threaten +our own security. + +At the end of World War II, we turned a similar challenge into an historic +opportunity and, I might add, an historic achievement. An old order was in +disarray; political and economic institutions were shattered. In that +period, this Nation and its partners built new institutions, new mechanisms +of mutual support and cooperation. Today, as then, we face an historic +opportunity. If we act imaginatively and boldly, as we acted then, this +period will in retrospect be seen as one of the great creative moments of +our Nation's history. The whole world is watching to see how we respond. + +A resurgent American economy would do more to restore the confidence of the +world in its own future than anything else we can do. The program that this +Congress passes can demonstrate to the world that we have started to put +our own house in order. If we can show that this Nation is able and willing +to help other nations meet the common challenge, it can demonstrate that +the United States will fulfill its responsibilities as a leader among +nations. + +Quite frankly, at stake is the future of industrialized democracies, which +have perceived their destiny in common and sustained it in common for 30 +years. + +The developing nations are also at a turning point. The poorest nations see +their hopes of feeding their hungry and developing their societies +shattered by the economic crisis. The long-term economic future for the +producers of raw materials also depends on cooperative solutions. + +Our relations with the Communist countries are a basic factor of the world +environment. We must seek to build a long-term basis for coexistence. We +will stand by our principles. We will stand by our interests. We will act +firmly when challenged. The kind of a world we want depends on a broad +policy of creating mutual incentives for restraint and for cooperation. + +As we move forward to meet our global challenges and opportunities, we must +have the tools to do the job. + +Our military forces are strong and ready. This military strength deters +aggression against our allies, stabilizes our relations with former +adversaries, and protects our homeland. Fully adequate conventional and +strategic forces cost many, many billions, but these dollars are sound +insurance for our safety and for a more peaceful world. + +Military strength alone is not sufficient. Effective diplomacy is also +essential in preventing conflict, in building world understanding. The +Vladivostok negotiations with the Soviet Union represent a major step in +moderating strategic arms competition. My recent discussions with the +leaders of the Atlantic community, Japan, and South Korea have contributed +to meeting the common challenge. + +But we have serious problems before us that require cooperation between the +President and the Congress. By the Constitution and tradition, the +execution of foreign policy is the responsibility of the President. + +In recent years, under the stress of the Vietnam war, legislative +restrictions on the President's ability to execute foreign policy and +military decisions have proliferated. As a Member of the Congress, I +opposed some and I approved others. As President, I welcome the advice and +cooperation of the House and the Senate. + +But if our foreign policy is to be successful, we cannot rigidly restrict +in legislation the ability of the President to act. The conduct of +negotiations is ill-suited to such limitations. Legislative restrictions, +intended for the best motives and purposes, can have the opposite result, +as we have seen most recently in our trade relations with the Soviet +Union. + +For my part, I pledge this Administration will act in the closest +consultation with the Congress as we face delicate situations and troubled +times throughout the globe. + +When I became President only 5 months ago, I promised the last Congress a +policy of communication, conciliation, compromise, and cooperation. I renew +that pledge to the new Members of this Congress. + +Let me sum it up. America needs a new direction, which I have sought to +chart here today--a change of course which will: put the unemployed back to +work; increase real income and production; restrain the growth of Federal +Government spending; achieve energy independence; and advance the cause of +world understanding. + +We have the ability. We have the know-how. In partnership with the American +people, we will achieve these objectives. + +As our 200th anniversary approaches, we owe it to ourselves and to +posterity to rebuild our political and economic strength. Let us make +America once again and for centuries more to come what it has so long +been--a stronghold and a beacon-light of liberty for the whole world. + +Thank you. + +*** + +State of the Union Address +Gerald R. Ford +January 19, 1976 + +Mr. Speaker, Mr. Vice President, Members of the 94th Congress, and +distinguished guests: + +As we begin our Bicentennial, America is still one of the youngest nations +in recorded history. Long before our forefathers came to these shores, men +and women had been struggling on this planet to forge a better life for +themselves and their families. + +In man's long, upward march from savagery and slavery--throughout the +nearly 2,000 years of the Christian calendar, the nearly 6,000 years of +Jewish reckoning--there have been many deep, terrifying valleys, but also +many bright and towering peaks. + +One peak stands highest in the ranges of human history. One example shines +forth of a people uniting to produce abundance and to share the good life +fairly and with freedom. One union holds out the promise of justice and +opportunity for every citizen: That union is the United States of America. + +We have not remade paradise on Earth. We know perfection will not be found +here. But think for a minute how far we have come in 200 years. + +We came from many roots, and we have many branches. Yet all Americans +across the eight generations that separate us from the stirring deeds of +1776, those who know no other homeland and those who just found refuge +among our shores, say in unison: + +I am proud of America, and I am proud to be an American. Life will be a +little better here for my children than for me. I believe this not because +I am told to believe it, but because life has been better for me than it +was for my father and my mother. I know it will be better for my children +because my hands, my brains, my voice, and my vote can help make it +happen. + +It has happened here in America. It has happened to you and to me. +Government exists to create and preserve conditions in which people can +translate their ideas into practical reality. In the best of times, much is +lost in translation. But we try. Sometimes we have tried and failed. Always +we have had the best of intentions. + +But in the recent past, we sometimes forgot the sound principles that +guided us through most of our history. We wanted to accomplish great things +and solve age-old problems. And we became overconfident of our abilities. +We tried to be a policeman abroad and the indulgent parent here at home. + +We thought we could transform the country through massive national +programs, but often the programs did not work. Too often they only made +things worse. In our rush to accomplish great deeds quickly, we trampled on +sound principles of restraint and endangered the rights of individuals. We +unbalanced our economic system by the huge and unprecedented growth of +Federal expenditures and borrowing. And we were not totally honest with +ourselves about how much these programs would cost and how we would pay for +them. Finally, we shifted our emphasis from defense to domestic problems +while our adversaries continued a massive buildup of arms. + +The time has now come for a fundamentally different approach for a new +realism that is true to the great principles upon which this Nation was +founded. + +We must introduce a new balance to our economy--a balance that favors not +only sound, active government but also a much more vigorous, healthy +economy that can create new jobs and hold down prices. + +We must introduce a new balance in the relationship between the individual +and the government--a balance that favors greater individual freedom and +self-reliance. + +We must strike a new balance in our system of federalism--a balance that +favors greater responsibility and freedom for the leaders of our State and +local governments. + +We must introduce a new balance between the spending on domestic programs +and spending on defense--a balance that ensures we will fully meet our +obligation to the needy while also protecting our security in a world that +is still hostile to freedom. + +And in all that we do, we must be more honest with the American people, +promising them no more than we can deliver and delivering all that we +promise. + +The genius of America has been its incredible ability to improve the lives +of its citizens through a unique combination of governmental and free +citizen activity. + +History and experience tells us that moral progress cannot come in +comfortable and in complacent times, but out of trial and out of confusion. +Tom Paine aroused the troubled Americans of 1776 to stand up to the times +that try men's souls because the harder the conflict, the more glorious the +triumph. + +Just a year ago I reported that the state of the Union was not good. +Tonight, I report that the state of our Union is better--in many ways a lot +better--but still not good enough. + +To paraphrase Tom Paine, 1975 was not a year for summer soldiers and sum +shine patriots. It was a year of fears and alarms and of dire +forecasts--most of which never happened and won't happen. + +As you recall, the year 1975 opened with rancor and with bitterness. +Political misdeeds of the past had neither been forgotten nor forgiven. The +longest, most divisive war in our history was winding toward an unhappy +conclusion. Many feared that the end of that foreign war of men and +machines meant the beginning of a domestic war of recrimination and +reprisal. Friends and adversaries abroad were asking whether America had +lost its nerve. Finally, our economy was ravaged by inflation--inflation +that was plunging us into the worse recession in four decades. At the same +time, Americans became increasingly alienated from big institutions. They +were steadily losing confidence, not just in big government but in big +business, big labor, and big education, among others. Ours was a troubled +land. + +And so, 1975 was a year of hard decisions, difficult compromises, and a new +realism that taught us something important about America. It brought back a +needed measure of common sense, steadfastness, and self-discipline. + +Americans did not panic or demand instant but useless cures. In all +sectors, people met their difficult problems with the restraint and with +responsibility worthy of their great heritage. + +Add up the separate pieces of progress in 1975, subtract the setbacks, and +the sum total shows that we are not only headed in a new direction, a +direction which I proposed 12 months ago, but it turned out to be the right +direction. + +It is the right direction because it follows the truly revolutionary +American concept of 1776, which holds that in a free society the making of +public policy and successful problemsolving involves much more than +government. It involves a full partnership among all branches and all +levels of government, private institutions, and individual citizens. + +Common sense tells me to stick to that steady course. + +Take the state of our economy. Last January, most things were rapidly +getting worse. This January, most things are slowly but surely getting +better. + +The worst recession since World War II turned around in April. The best +cost-of-living news of the past year is that double-digit inflation of 12 +percent or higher was cut almost in half. The worst--unemployment remains +far too high. + +Today, nearly 1,700,000 more Americans are working than at the bottom of +the recession. At year's end, people were again being hired much faster +than they Were being laid off. + +Yet, let's be honest. Many Americans have not yet felt these changes in +their daily lives. They still see prices going up far too fast, and they +still know the fear of unemployment. + +We are also a growing nation. We need more and more jobs every year. +Today's economy has produced over 85 million jobs for Americans, but we +need a lot more jobs, especially for the young. + +My first objective is to have sound economic growth without inflation. + +We all know from recent experience what runaway inflation does to ruin +every other worthy purpose. We are slowing it. We must stop it cold. + +For many Americans, the way to a healthy, noninflationary economy has +become increasingly apparent. The Government must stop spending so much and +stop borrowing so much of our money. More money must remain in private +hands where it will do the most good. To hold down the cost of living, we +must hold down the cost of government. + +In the past decade, the Federal budget has been growing at an average rate +of over 10 percent a year. The budget I am submitting Wednesday cuts this +rate of growth in half. I have kept my promise to submit a budget for the +next fiscal year of $395 billion. In fact, it is $394.2 billion. + +By holding down the growth of Federal spending, we can afford additional +tax cuts and return to the people who pay taxes more decisionmaking power +over their own lives. + +Last month I signed legislation to extend the 1975 tax reductions for the +first 6 months of this year. I now propose that effective July 1, 1976, we +give our taxpayers a tax cut of approximately $10 billion more than +Congress agreed to in December. + +My broader tax reduction would mean that for a family of four making +$15,000 a year, there will be $227 more in take-home pay annually. +Hardworking Americans caught in the middle can really use that kind of +extra cash. + +My recommendations for a firm restraint on the growth of Federal spending +and for greater tax reduction are simple and straightforward. For every +dollar saved in cutting the growth in the Federal budget, we can have an +added dollar of Federal tax reduction. + +We can achieve a balanced budget by 1979 if we have the courage and the +wisdom to continue to reduce the growth of Federal spending. + +One test of a healthy economy is a job for every American who wants to +work. Government--our kind of government--cannot create that many jobs. But +the Federal Government can create conditions and incentives for private +business and industry to make more and more jobs. + +Five out of six jobs in this country are in private business and in +industry. Common sense tells us this is the place to look for more jobs and +to find them faster. I mean real, rewarding, permanent jobs. + +To achieve this we must offer the American people greater incentives to +invest in the future. My tax proposals are a major step in that direction. +To supplement these proposals, I ask that Congress enact changes in Federal +tax laws that will speed up plant expansion and the purchase of new +equipment. My recommendations will concentrate this job-creation tax +incentive in areas where the unemployment rate now runs over 7 percent. +Legislation to get this started must be approved at the earliest possible +date. + +Within the strict budget total that I will recommend for the coming year, I +will ask for additional housing assistance for 500,000 families. These +programs will expand housing opportunities, spur construction, and help to +house moderate- and low-income families. + +We had a disappointing year in the housing industry in 1975. But with lower +interest rates and available mortgage money, we can have a healthy recovery +in 1976. + +A necessary condition of a healthy economy is freedom from the petty +tyranny of massive government regulation. We are wasting literally millions +of working hours costing billions of taxpayers' and consumers' dollars +because of bureaucratic redtape. The American farmer, who now feeds 215 +million Americans, but also millions worldwide, has shown how touch more he +can produce without the shackles of government control. + +Now, we badly need reforms in other key areas in our economy: the airlines, +trucking, railroads, and financial institutions. I have submitted concrete +plans in each of these areas, not to help this or that industry, but to +foster competition and to bring prices down for the consumer. + +This administration, in addition, will strictly enforce the Federal +antitrust laws for the very same purposes. + +Taking a longer look at America's future, there can be neither sustained +growth nor more jobs unless we continue to have an assured supply of energy +to run our economy. Domestic production of oil and gas is still declining. +Our dependence on foreign oil at high prices is still too great, draining +jobs and dollars away from our own economy at the rate of $125 per year for +every American. + +Last month, I signed a compromise national energy bill which enacts a part +of my comprehensive energy independence program. This legislation was late, +not the complete answer to energy independence, but still a start in the +right direction. + +I again urge the Congress to move ahead immediately on the remainder of my +energy proposals to make America invulnerable to the foreign oil cartel. + +My proposals, as all of you know, would reduce domestic natural gas +shortages; allow production from Federal petroleum reserves; stimulate +effective conservation, including revitalization of our railroads and the +expansion of our urban transportation systems; develop more and cleaner +energy from our vast coal resources; expedite clean and safe nuclear power +production; create a new national energy independence authority to +stimulate vital energy investment; and accelerate development of technology +to capture energy from the Sun and the Earth for this and future +generations. + +Also, I ask, for the sake of future generations, that we preserve the +family farm and family-owned small business. Both strengthen America and +give stability to our economy. I will propose estate tax changes so that +family businesses and family farms can be handed down from generation to +generation without having to be sold to pay taxes. + +I propose tax changes to encourage people to invest in America's future, +and their own, through a plan that gives moderate-income families income +tax benefits if they make long-term investments in common stock in American +companies. + +The Federal Government must and will respond to clear-cut national +needs-for this and future generations. + +Hospital and medical services in America are among the best in the world, +but the cost of a serious and extended illness can quickly wipe out a +family's lifetime savings. Increasing health costs are of deep concern to +all and a powerful force pushing up the cost of living. The burden of +catastrophic illness can be borne by very few in our society. We must +eliminate this fear from every family. + +I propose catastrophic health insurance for everybody covered by Medicare. +To finance this added protection, fees for short-term care will go up +somewhat, but nobody after reaching age 65 will have to pay more than $500 +a year for covered hospital or nursing home care, nor more than $250 for 1 +year's doctor bills. + +We cannot realistically afford federally dictated national health insurance +providing full coverage for all 215 million Americans. The experience of +other countries raises questions about the quality as well as the cost of +such plans. But I do envision the day when we may use the private health +insurance system to offer more middle-income families high quality health +services at prices they can afford and shield them also from their +catastrophic illnesses. + +Using resources now available, I propose improving the Medicare and other +Federal health programs to help those who really need protection--older +people and the poor. To help States and local governments give better +health care to the poor, I propose that we combine 16 existing Federal +programs, including Medicaid, into a single $10 billion Federal grant. + +Funds would be divided among States under a new formula which provides a +larger share of Federal money to those States that have a larger share of +low-income families. + +I will take further steps to improve the quality of medical and hospital +care for those who have served in our Armed Forces. + +Now let me speak about social security. Our Federal social security system +for people who have worked and contributed to it for all their lives is a +vital part of our economic system. Its value is no longer debatable. In my +budget for fiscal year 1977, I am recommending that the full cost-of-living +increases in the social security benefits be paid during the coming year. + +But I am concerned about the integrity of our Social Security Trust Fund +that enables people--those retired and those still working who will +retire--to count on this source of retirement income. Younger workers watch +their deductions rise and wonder if they will be adequately protected in +the future. We must meet this challenge head on. Simple arithmetic warns +all of us that the Social Security Trust Fund is headed for trouble. Unless +we act soon to make sure the fund takes in as much as it pays out, there +will be no security for old or for young. + +I must, therefore, recommend a three-tenths of 1 percent increase in both +employer and employee social security taxes effective January 1, 1977. This +will cost each covered employee less than 1 extra dollar a week and will +ensure the integrity of the trust fund. + +As we rebuild our economy, we have a continuing responsibility to provide a +temporary cushion to the unemployed. At my request, the Congress enacted +two extensions and two expansions in unemployment insurance which helped +those who were jobless during 1975. These programs will continue in 1976. + +In my fiscal year 1977 budget, I am also requesting funds to continue +proven job training and employment opportunity programs for millions of +other Americans. + +Compassion and a sense of community--two of America's greatest strengths +throughout our history-- tell us we must take care of our neighbors who +cannot take care of themselves. The host of Federal programs in this field +reflect our generosity as a people. + +But everyone realizes that when it comes to welfare, government at all +levels is not doing the job well. Too many of our welfare programs are +inequitable and invite abuse. Too many of our welfare programs have +problems from beginning to end. Worse, we are wasting badly needed +resources without reaching many of the truly needy. + +Complex welfare programs cannot be reformed overnight. Surely we cannot +simply dump welfare into the laps of the 50 States, their local taxpayers, +or their private charities, and just walk away from it. Nor is it the right +time for massive and sweeping changes while we are still recovering from +the recession. + +Nevertheless, there are still plenty of improvements that we can make. I +will ask Congress for Presidential authority to tighten up the rules for +eligibility and benefits. + +Last year I twice sought long overdue reform of the scandal-riddled food +stamp program. This year I say again: Let's give food stamps to those most +in need. Let's not give any to those who don't need them. + +Protecting the life and property of the citizen at home is the +responsibility of all public officials, but is primarily the job of local +and State law enforcement authorities. + +Americans have always found the very thought of a Federal police force +repugnant, and so do I. But there are proper ways in which we can help to +insure domestic tranquility as the Constitution charges us. + +My recommendations on how to control violent crime were submitted to the +Congress last June with strong emphasis on protecting the innocent victims +of crime. To keep a convicted criminal from committing more crimes, we must +put him in prison so he cannot harm more law-abiding citizens. To be +effective, this punishment must be swift and it must be certain. + +Too often, criminals are not sent to prison after conviction but are +allowed to return to the streets. Some judges are reluctant to send +convicted criminals to prison because of inadequate facilities. To +alleviate this problem at the Federal level, my new budget proposes the +construction of four new Federal facilities. + +To speed Federal justice, I propose an increase this year in the United +States attorneys prosecuting Federal crimes and the reinforcement of the +number of United States marshals. Additional Federal judges are needed, as +recommended by me and the Judicial Conference. + +Another major threat to every American's person and property is the +criminal carrying a handgun. The way to cut down on the criminal use of +guns is not to take guns away from the law-abiding citizen, but to impose +mandatory sentences for crimes in which a gun is used, make it harder to +obtain cheap guns for criminal purposes, and concentrate gun control +enforcement in highcrime areas. + +My budget recommends 500 additional Federal agents in the 11 largest +metropolitan high-crime areas to help local authorities stop criminals from +selling and using handguns. + +The sale of hard drugs is tragically on the increase again. I have directed +all agencies of the Federal Government to step up law enforcement efforts +against those who deal in drugs. In 1975, I am glad to report, Federal +agents seized substantially more heroin coming into our country than in +1974. + +As President, I have talked personally with the leaders of Mexico, +Colombia, and Turkey to urge greater efforts by their Governments to +control effectively the production and shipment of hard drugs. + +I recommended months ago that the Congress enact mandatory fixed sentences +for persons convicted of Federal crimes involving the sale of hard drugs. +Hard drugs, we all know, degrade the spirit as they destroy the body of +their users. + +It is unrealistic and misleading to hold out the hope that the Federal +Government can move into every neighborhood and clean up crime. Under the +Constitution, the greatest responsibility for curbing crime lies with State +and local authorities. They are the frontline fighters in the war against +crime. + +There are definite ways in which the Federal Government can help them. I +will propose in the new budget that Congress authorize almost $7 billion +over the next 5 years to assist State and local governments to protect the +safety and property of all their citizens. + +As President, I pledge the strict enforcement of Federal laws and--by +example, support, and leadership--to help State and local authorities +enforce their laws. Together, we must protect the victims of crime and +ensure domestic tranquility. + +Last year I strongly recommended a 5-year extension of the existing revenue +sharing legislation, which thus far has provided $23½ billion to help State +and local units of government solve problems at home. This program has been +effective with decisionmaking transferred from the Federal Government to +locally elected officials. Congress must act this year, or State and local +units of government will have to drop programs or raise local taxes. + +Including my health care program reforms, I propose to consolidate some 59 +separate Federal programs and provide flexible Federal dollar grants to +help States, cities, and local agencies in such important areas as +education, child nutrition, and social services. This flexible system will +do the job better and do it closer to home. + +The protection of the lives and property of Americans from foreign enemies +is one of my primary responsibilities as President. + +In a world of instant communications and intercontinental ballistic +missiles, in a world economy that is global and interdependent, our +relations with other nations become more, not less, important to the lives +of Americans. + +America has had a unique role in the world since the day of our +independence 200 years ago. And ever since the end of World War II, we have +borne--successfully--a heavy responsibility for ensuring a stable world +order and hope for human progress. + +Today, the state of our foreign policy is sound and strong. We are at +peace, and I will do all in my power to keep it that way. + +Our military forces are capable and ready. Our military power is without +equal, and I intend to keep it that way. + +Our principal alliances with the industrial democracies of the Atlantic +community and Japan have never been more solid. + +A further agreement to limit the strategic arms race may be achieved. + +We have an improving relationship with China, the world's most populous +nation. + +The key elements for peace among the nations of the Middle East now exist. +Our traditional friendships in Latin America, Africa, and Asia continue. + +We have taken the role of leadership in launching a serious and hopeful +dialog between the industrial world and the developing world. + +We have helped to achieve significant reform of the international monetary +system. + +We should be proud of what America, what our country, has accomplished in +these areas, and I believe the American people are. + +The American people have heard too much about how terrible our mistakes, +how evil our deeds, and how misguided our purposes. The American people +know better. + +The truth is we are the world's greatest democracy. We remain the symbol of +man's aspiration for liberty and well-being. We are the embodiment of hope +for progress. + +I say it is time we quit downgrading ourselves as a nation. Of course, it +is our responsibility to learn the right lesson from past mistakes. It is +our duty to see that they never happen again. But our greater duty is to +look to the future. The world's troubles will not go away. + +The American people want strong and effective international and defense +policies. In our constitutional system, these policies should reflect +consultation and accommodation between the President and the Congress. But +in the final analysis, as the framers of our Constitution knew from hard +experience, the foreign relations of the United States can be conducted +effectively only if there is strong central direction that allows +flexibility of action. That responsibility clearly rests with the +President. + +I pledge to the American people policies which seek a secure, just, and +peaceful world. I pledge to the Congress to work with you to that end. + +We must not face a future in which we can no longer help our friends, such +as Angola, even in limited and carefully controlled ways. We must not lose +all capacity to respond short of military intervention. + +Some hasty actions of the Congress during the past year--most recently in +respect to Angola--were, in my view, very shortsighted. Unfortunately, they +are still very much on the minds of our allies and our adversaries. + +A strong defense posture gives weight to our values and our views in +international negotiations. It assures the vigor of our alliances. And it +sustains our efforts to promote settlements of international conflicts. +Only from a position of strength can we negotiate a balanced agreement to +limit the growth of nuclear arms. Only a balanced agreement will serve our +interests and minimize the threat of nuclear confrontation. + +The defense budget I will submit to the Congress for fiscal year 1977 will +show an essential increase over the current year. It provides for real +growth in purchasing power over this year's defense budget, which includes +the cost of the all-volunteer force. + +We are continuing to make economies to enhance the efficiency of our +military forces. But the budget I will submit represents the necessity of +American strength for the real world in which we live. + +As conflict and rivalry persist in the world, our United States +intelligence capabilities must be the best in the world. + +The crippling of our foreign intelligence services increases the danger of +American involvement in direct armed conflict. Our adversaries are +encouraged to attempt new adventures while our own ability to monitor +events and to influence events short of military action is undermined. +Without effective intelligence capability, the United States stands +blindfolded and hobbled. + +In the near future, I will take actions to reform and strengthen our +intelligence community. I ask for your positive cooperation. It is time to +go beyond sensationalism and ensure an effective, responsible, and +responsive intelligence capability. + +Tonight I have spoken about our problems at home and abroad. I have +recommended policies that will meet the challenge of our third century. I +have no doubt that our Union will endure, better, stronger, and with more +individual freedom. We can see forward only dimly--1 year, 5 years, a +generation perhaps. Like our forefathers, we know that if we meet the +challenges of our own time with a common sense of purpose and conviction, +if we remain true to our Constitution and to our ideals, then we can know +that the future will be better than the past. + +I see America today crossing a threshold, not just because it is our +Bicentennial but because we have been tested in adversity. We have taken a +new look at what we want to be and what we want our Nation to become. + +I see America resurgent, certain once again that life will be better for +our children than it is for us, seeking strength that cannot be counted in +megatons and riches that cannot be eroded by inflation. + +I see these United States of America moving forward as before toward a more +perfect Union where the government serves and the people rule. + +We will not make this happen simply by making speeches, good or bad, yours +or mine, but by hard work and hard decisions made with courage and with +common sense. + +I have heard many inspiring Presidential speeches, but the words I remember +best were spoken by Dwight D. Eisenhower. "America is not good because' it +is great," the President said. "America is great because it is good." + +President Eisenhower was raised in a poor but religious home in the heart +of America. His simple words echoed President Lincoln's eloquent testament +that "right makes might." And Lincoln in turn evoked the silent image of +George Washington kneeling in prayer at Valley Forge. + +So, all these magic memories which link eight generations of Americans are +summed up in the inscription just above me. How many times have we seen it? +"In God We Trust." + +Let us engrave it now in each of our hearts as we begin our Bicentennial. + +*** + +State of the Union Address +Gerald R. Ford +January 12, 1977 + +Mr. Speaker, Mr. Vice President, Members of the 95th Congress, and +distinguished guests: + +In accordance with the Constitution, I come before you once again to report +on the state of the Union. + +This report will be my last--maybe--[ laughter ]--but for the Union it is +only the first of such reports in our third century of independence, the +close of which none of us will ever see. We can be confident, however, that +100 years from now a freely elected President will come before a freely +elected Congress chosen to renew our great Republic's pledge to the +Government of the people, by the people, and for the people. + +For my part I pray the third century we are beginning will bring to all +Americans, our children and their children's children, a greater measure of +individual equality, opportunity, and justice, a greater abundance of +spiritual and material blessings, and a higher quality of life, liberty, +and the pursuit of happiness. + +The state of the Union is a measurement of the many elements of which it is +composed--a political union of diverse States, an economic union of varying +interests, an intellectual union of common convictions, and a moral union +of immutable ideals. + +Taken in sum, I can report that the state of the Union is good. There is +room for improvement, as always, but today we have a more perfect Union +than when my stewardship began. + +As a people we discovered that our Bicentennial was much more than a +celebration of the past; it became a joyous reaffirmation of all that it +means to be Americans, a confirmation before all the world of the vitality +and durability of our free institutions. I am proud to have been privileged +to preside over the affairs of our Federal Government during these eventful +years when we proved, as I said in my first words upon assuming office, +that "our Constitution works; our great Republic is a Government of laws +and not of men. Here the people rule." + +The people have spoken; they have chosen a new President and a new Congress +to work their will. I congratulate you--particularly the new Members--as +sincerely as I did President-elect Carter. In a few days it will be his +duty to outline for you his priorities and legislative recommendations. +Tonight I will not infringe on that responsibility, but rather wish him the +very best in all that is good for our country. + +During the period of my own service in this Capitol and in the White House, +I can recall many orderly transitions of governmental responsibility--of +problems as well as of position, of burdens as well as of power. The genius +of the American system is that we do this so naturally and so normally. +There are no soldiers marching in the street except in the Inaugural +Parade; no public demonstrations except for some of the dancers at the +Inaugural Ball; the opposition party doesn't go underground, but goes on +functioning vigorously in the Congress and in the country; and our vigilant +press goes right on probing and publishing our faults and our follies, +confirming the wisdom of the framers of the first amendment. + +Because of the transfer of authority in our form of government affects the +state of the Union and of the world, I am happy to report to you that the +current transition is proceeding very well. I was determined that it +should; I wanted the new President to get off on an easier start than I +had. + +When I became President on August 9, 1974, our Nation was deeply divided +and tormented. In rapid succession the Vice President and the President had +resigned in disgrace. We were still struggling with the after-effects of a +long, unpopular, and bloody war in Southeast Asia. The economy was unstable +and racing toward the worst recession in 40 years. People were losing jobs. +The cost of living was soaring. The Congress and the Chief Executive were +at loggerheads. The integrity of our constitutional process and other +institutions was being questioned. For more than 15 years domestic spending +had soared as Federal programs multiplied, and the expense escalated +annually. During the same period our national security needs were steadily +shortchanged. In the grave situation which prevailed in August 1974, our +will to maintain our international leadership was in doubt. + +I asked for your prayers and went to work. + +In January 1975 I reported to the Congress that the state of the Union was +not good. I proposed urgent action to improve the economy and to achieve +energy independence in 10 years. I reassured America's allies and sought to +reduce the danger of confrontation with potential adversaries. I pledged a +new direction for America. 1975 was a year of difficult decisions, but +Americans responded with realism, common sense, and self-discipline. + +By January 1976 we were headed in a new direction, which I hold to be the +right direction for a free society. It was guided by the belief that +successful problem-solving requires more than Federal action alone, that it +involves a full partnership among all branches and all levels of government +and public policies which nurture and promote the creative energies of +private enterprises, institutions, and individual citizens. + +A year ago I reported that the state of the Union was better--in many ways +a lot better--but still not good enough. Common sense told me to stick to +the steady course we were on, to continue to restrain the inflationary +growth of government, to reduce taxes as well as spending, to return local +decisions to local officials, to provide for long-range sufficiency in +energy and national security needs. I resisted the immense pressures of an +election year to open the floodgates of Federal money and the temptation to +promise more than I could deliver. I told it as it was to the American +people and demonstrated to the world that in our spirited political +competition, as in this chamber, Americans can disagree without being +disagreeable. + +Now, after 30 months as your President, I can say that while we still have +a way to go, I am proud of the long way we have come together. + +I am proud of the part I have had in rebuilding confidence in the +Presidency, confidence in our free system, and confidence in our future. +Once again, Americans believe in themselves, in their leaders, and in the +promise that tomorrow holds for their children. + +I am proud that today America is at peace. None of our sons are fighting +and dying in battle anywhere in the world. And the chance for peace among +all nations is improved by our determination to honor our vital commitments +in defense of peace and freedom. + +I am proud that the United States has strong defenses, strong alliances, +and a sound and courageous foreign policy. + +Our alliances with major partners, the great industrial democracies of +Western Europe, Japan, and Canada, have never been more solid. +Consultations on mutual security, defense, and East-West relations have +grown closer. Collaboration has branched out into new' fields such as +energy, economic policy, and relations with the Third World. We have used +many avenues for cooperation, including summit meetings held among major +allied countries. The friendship of the democracies is deeper, warmer, and +more effective than at any time in 30 years. + +We are maintaining stability in the strategic nuclear balance and pushing +back the specter of nuclear war. A decisive step forward was taken in the +Vladivostok Accord which I negotiated with General Secretary Brezhnev-joint +recognition that an equal ceiling should be placed on the number of +strategic weapons on each side. With resolve and wisdom on the part of both +nations, a good agreement is well within reach this year. + +The framework for peace in the Middle East has been built. Hopes for future +progress in the Middle East were stirred by the historic agreements we +reached and the trust and confidence that we formed. Thanks to American +leadership, the prospects for peace in the Middle East are brighter than +they have been in three decades. The Arab states and Israel continue to +look to us to lead them from confrontation and war to a new era of +accommodation and peace. We have no alternative but to persevere, and I am +sure we will. The opportunities for a final settlement are great, and the +price of failure is a return to the bloodshed and hatred that for too long +have brought tragedy to all of the peoples of this area and repeatedly +edged the world to the brink of war. + +Our relationship with the People's Republic of China is proving its +importance and its durability. We are finding more and more common ground +between our two countries on basic questions of international affairs. + +In my two trips to Asia as President, we have reaffirmed America's +continuing vital interest in the peace and security of Asia and the Pacific +Basin, established a new partnership with Japan, confirmed our dedication +to the security of Korea, and reinforced our ties with the free nations of +Southeast Asia. + +An historic dialog has begun between industrial nations and developing +nations. Most proposals on the table are the initiatives of the United +States, including those on food, energy, technology, trade, investment, and +commodities. We are well launched on this process of shaping positive and +reliable economic relations between rich nations and poor nations over the +long term. + +We have made progress in trade negotiations and avoided protectionism +during recession. We strengthened the international monetary system. During +the past 2 years the free world's most important economic powers have +already brought about important changes that serve both developed and +developing economies. The momentum already achieved must be nurtured and +strengthened, for the prosperity of the rich and poor depends upon it. + +In Latin America, our relations have taken on a new maturity and a sense of +common enterprise. + +In Africa the quest for peace, racial justice, and economic progress is at +a crucial point. The United States, in close cooperation with the United +Kingdom, is actively engaged in this historic process. Will change come +about by warfare and chaos and foreign intervention? Or will it come about +by negotiated and fair solutions, ensuring majority rule, minority rights, +and economic advance? America is committed to the side of peace and justice +and to the principle that Africa should shape its own future, free of +outside intervention. + +American leadership has helped to stimulate new international efforts to +stem the proliferation of nuclear weapons and to shape a comprehensive +treaty governing the use of oceans. + +I am gratified by these accomplishments. They constitute a record of broad +success for America and for the peace and prosperity of all mankind. This +administration leaves to its successor a world in better condition than we +found. We leave, as well, a solid foundation for progress on a range of +issues that are vital to the well-being of America. + +What has been achieved in the field of foreign affairs and what can be +accomplished by the new administration demonstrate the genius of Americans +working together for the common good. It is this, our remarkable ability to +work together, that has made us a unique nation. It is Congress, the +President, and the people striving for a better world. + +I know all patriotic Americans want this Nation's foreign policy to +succeed. I urge members of my party in this Congress to give the new +President loyal support in this area. I express the hope that this new +Congress will reexamine its constitutional role in international affairs. + +The exclusive right to declare war, the duty to advise and consent on the +part of the Senate, the power of the purse on the part of the House are +ample authority for the legislative branch and should be jealously guarded. +But because we may have been too careless of these powers in the past does +not justify congressional intrusion into, or obstruction of, the proper +exercise of Presidential responsibilities now or in the future. There can +be only one Commander in Chief. In these times crises cannot be managed and +wars cannot be waged by committee, nor can peace be pursued solely by +parliamentary debate. To the ears of the world, the President speaks for +the Nation. While he is, of course, ultimately accountable to the Congress, +the courts, and the people, he and his emissaries must not be handicapped +in advance in their relations with foreign governments as has sometimes +happened in the past. + +At home I am encouraged by the Nation's recovery from the recession and our +steady return to sound economic growth. It is now continuing after the +recent period of uncertainty, which is part of the price we pay for free +elections. + +Our most pressing need today and the future is more jobs--productive, +permanent jobs created by a thriving economy. We must revise our tax system +both to ease the burden of heavy taxation and to encourage the investment +necessary for the creation of productive jobs for all Americans who want to +work. + +Earlier this month I proposed a permanent income tax reduction of $10 +billion below current levels, including raising the personal exemption from +$750 to $1,000. I also recommended a series of measures to stimulate +investment, such as accelerated depreciation for new plants and equipment +in areas of high unemployment, a reduction in the corporate tax rate from +48 to 46 percent, and eliminating the present double taxation of dividends. +I strongly urge the Congress to pass these measures to help create the +productive, permanent jobs in the private economy that are so essential for +our future. + +All the basic trends are good; we are not on the brink of another recession +or economic disaster. If we follow prudent policies that encourage +productive investment and discourage destructive inflation, we will come +out on top, and I am sure we will. + +We have successfully cut inflation by more than half. When I took office, +the Consumer Price Index was rising at 12.2 percent a year. During 1976 the +rate of inflation was 5 percent. + +We have created more jobs--over 4 million more jobs today than in the +spring of 1975. Throughout this Nation today we have over 88 million people +in useful, productive jobs--more than at any other time in our Nation's +history. But there are still too many Americans unemployed. This is the +greatest regret that I have as I leave office. + +We brought about with the Congress, after much delay, the renewal of the +general revenue sharing. We expanded community development and Federal +manpower programs. We began a significant urban mass transit program. +Federal programs today provide more funds for our States and local +governments than ever before--$70 billion for the current fiscal year. +Through these programs and others that provide aid directly to individuals, +we have kept faith with our tradition of compassionate help for those who +need it. As we begin our third century we can be proud of the progress that +we have made in meeting human needs for all of our citizens. + +We have cut the growth of crime by nearly 90 percent. Two years ago crime +was increasing at the rate of 18 percent annually. In the first three +quarters of 1976, that growth rate had been cut to 2 percent. But crime, +and the fear of crime, remains one of the most serious problems facing our +citizens. + +We have had some successes, and there have been some disappointments. +Bluntly, I must remind you that we have not made satisfactory progress +toward achieving energy independence. Energy is absolutely vital to the +defense of our country, to the strength of our economy, and to the quality +of our lives. + +Two years ago I proposed to the Congress the first comprehensive national +energy program--a specific and coordinated set of measures that would end +our vulnerability to embargo, blockade, or arbitrary price increases and +would mobilize U.S. technology and resources to supply a significant share +of the free world's energy after 1985. Of the major energy proposals I +submitted 2 years ago, only half, belatedly, became law. In 1973 we were +dependent upon foreign oil imports for 36 percent of our needs. Today, we +are 40-percent dependent, and we'll pay out $34 billion for foreign oil +this year. Such vulnerability at present or in the future is intolerable +and must be ended. + +The answer to where we stand on our national energy effort today reminds me +of the old argument about whether the tank is half full or half empty. The +pessimist will say we have half failed to achieve our 10-year energy goals; +the optimist will say that we have half succeeded. I am always an optimist, +but we must make up for lost time. + +We have laid a solid foundation for completing the enormous task which +confronts us. I have signed into law five major energy bills which contain +significant measures for conservation, resource development, stockpiling, +and standby authorities. We have moved forward to develop the naval +petroleum reserves; to build a 500-million barrel strategic petroleum +stockpile; to phase out unnecessary Government allocation and price +controls; to develop a lasting relationship with other oil consuming +nations; to improve the efficiency of energy use through conservation in +automobiles, buildings, and industry; and to expand research on new +technology and renewable resources such as wind power, geothermal and solar +energy. All these actions, significant as they are for the long term, are +only the beginning. + +I recently submitted to the Congress my proposals to reorganize the Federal +energy structure and the hard choices which remain if we are serious about +reducing our dependence upon foreign energy. These include programs to +reverse our declining production of natural gas and increase incentives for +domestic crude oil production. I proposed to minimize environmental +uncertainties affecting coal development, expand nuclear power generation, +and create an energy independence authority to provide government financial +assistance for vital energy programs where private capital is not +available. + +We must explore every reasonable prospect for meeting our energy needs when +our current domestic reserves of oil and natural gas begin to dwindle in +the next decade. I urgently ask Congress and the new administration to move +quickly on these issues. This Nation has the resources and the capability +to achieve our energy goals if its Government has the will to proceed, and +I think We do. + +I have been disappointed by inability to complete many of the meaningful +organizational reforms which I contemplated for the Federal Government, +although a start has been made. For example, the Federal judicial system +has long served as a modal for other courts. But today it is threatened by +a shortage of qualified Federal judges and an explosion of litigation +claiming Federal jurisdiction. I commend to the new administration and the +Congress the recent report and recommendations of the Department of +Justice, undertaken at my request, on "the needs of the Federal Courts." I +especially endorse its proposals for a new commission on the judicial +appointment process. + +While the judicial branch of our Government may require reinforcement, the +budgets and payrolls of the other branches remain staggering. I cannot help +but observe that while the White House staff and the Executive Office of +the President have been reduced and the total number of civilians in the +executive branch contained during the 1970's, the legislative branch has +increased substantially although the membership of the Congress remains at +535. Congress now costs the taxpayers more than a million dollars per +Member; the whole legislative budget has passed the billion dollar mark. + +We have made some progress in cutting back the expansion of government and +its intrusion into individual lives, but believe me, there is much more to +be done--and you and I know it. It can only be done by tough and +temporarily painful surgery by a Congress as prepared as the President to +face up to this very real political problem. Again, I wish my successor, +working with a substantial majority of his own party, the best of success +in reforming the costly and cumbersome machinery of the Federal +Government. + +The task of self-government is never finished. The problems are great; the +opportunities are greater. + +America's first goal is and always will be peace with honor. America must +remain first in keeping peace in the world. We can remain first in peace +only if we are never second in defense. + +In presenting the state of the Union to the Congress and to the American +people, I have a special obligation as Commander in Chief to report on our +national defense. Our survival as a free and independent people requires, +above all, strong military forces that are well equipped and highly trained +to perform their assigned mission. + +I am particularly gratified to report that over the past 2½ years, we have +been able to reverse the dangerous decline of the previous decade in real +resources this country was devoting to national defense. This was an +immediate problem I faced in 1974. The evidence was unmistakable that the +Soviet Union had been steadily increasing the resources it applied to +building its military strength. During this same period the United States +real defense spending declined. In my three budgets we not only arrested +that dangerous decline, but we have established the positive trend which is +essential to our ability to contribute to peace and stability in the +world. + +The Vietnam war, both materially and psychologically, affected our overall +defense posture. The dangerous anti-military sentiment discouraged defense +spending and unfairly disparaged the men and women who serve in our Armed +Forces. + +The challenge that now confronts this country is whether we have the +national will and determination to continue this essential defense effort +over the long term, as it must be continued. We can no longer afford to +oscillate from year to year in so vital a matter; indeed, we have a duty to +look beyond the immediate question of budgets and to examine the nature of +the problem we will face over the next generation. + +I am the first recent President able to address long-term, basic issues +without the burden of Vietnam. The war in Indochina consumed enormous +resources at the very time that the overwhelming strategic superiority we +once enjoyed was disappearing. In past years, as a result of decisions by +the United States, our strategic forces leveled off, yet the Soviet Union +continued a steady, constant buildup of its own forces, committing a high +percentage of its national economic effort to defense. + +The United States can never tolerate a shift in strategic balance against +us or even a situation where the American people or our allies believe the +balance is shifting against us. The United States would risk the most +serious political consequences if the world came to believe that our +adversaries have a decisive margin of superiority. + +To maintain a strategic balance we must look ahead to the 1980's and +beyond. The sophistication of modern weapons requires that we make +decisions now if we are to ensure our security 10 years from now. +Therefore, I have consistently advocated and strongly urged that we pursue +three critical strategic programs: the Trident missile launching submarine; +the B-1 bomber, with its superior capability to penetrate modern air +defenses; and a more advanced intercontinental ballistic missile that will +be better able to survive nuclear attack and deliver a devastating +retaliatory strike. + +In an era where the strategic nuclear forces are in rough equilibrium, the +risks of conflict below the nuclear threshold may grow more perilous. A +major, long-term objective, therefore, is to maintain capabilities to deal +with, and thereby deter, conventional challenges and crises, particularly +in Europe. + +We cannot rely solely on strategic forces to guarantee our security or to +deter all types of aggression. We must have superior naval and marine +forces to maintain freedom of the seas, strong multipurpose tactical air +forces, and mobile, modern ground forces. Accordingly, I have directed a +long-term effort to improve our worldwide capabilities to deal with +regional crises. + +I have submitted a 5-year naval building program indispensable to the +Nation's maritime strategy. Because the security of Europe and the +integrity of NATO remain the cornerstone of American defense policy, I have +initiated a special, long-term program to ensure the capacity of the +Alliance to deter or defeat aggression in Europe. + +As I leave office I can report that our national defense is effectively +deterring conflict today. Our Armed Forces are capable of carrying out the +variety of missions assigned to them. Programs are underway which will +assure we can deter war in the years ahead. But I also must warn that it +will require a sustained effort over a period of years to maintain these +capabilities. We must have the wisdom, the stamina, and the courage to +prepare today for the perils of tomorrow, and I believe we will. + +As I look to the future--and I assure you I intend to go on doing that for +a good many years--I can say with confidence that the state of the Union is +good, but we must go on making it better and better. + +This gathering symbolizes the constitutional foundation which makes +continued progress possible, synchronizing the skills of three independent +branches of Government, reserving fundamental sovereignty to the people of +this great land. It is only as the temporary representatives and servants +of the people that we meet here, we bring no hereditary status or gift of +infallibility, and none follows us from this place. + +Like President Washington, like the more fortunate of his successors, I +look forward to the status of private citizen with gladness and gratitude. +To me, being a citizen of the United States of America is the greatest +honor and privilege in this world. + +From the opportunities which fate and my fellow citizens have given me, as +a Member of the House, as Vice President and President of the Senate, and +as President of all the people, I have come to understand and place the +highest value on the checks and balances which our founders imposed on +government through the separation of powers among co-equal legislative, +executive, and judicial branches. This often results in difficulty and +delay, as I well know, but it also places supreme authority under God, +beyond any one person, any one branch, any majority great or small, or any +one party. The Constitution is the bedrock of all our freedoms. Guard and +cherish it, keep honor and order in your own house, and the Republic will +endure. + +It is not easy to end these remarks. In this Chamber, along with some of +you, I have experienced many, many of the highlights of my life. It was +here that I stood 28 years ago with my freshman colleagues, as Speaker Sam +Rayburn administered the oath. I see some of you now--Charlie Bennett, Dick +Bolling, Carl Perkins, Pete Rodino, Harley Staggers, Tom Steed, Sid Yates, +Clem Zablocki-and I remember those who have gone to their rest. It was here +we waged many, many a lively battle--won some, lost some, but always +remaining friends. It was here, surrounded by such friends, that the +distinguished Chief Justice swore me in as Vice President on December 6, +1973. It was here I returned 8 months later as your President to ask not +for a honeymoon, but for a good marriage. + +I will always treasure those memories and your many, many kindnesses. I +thank you for them all. + +My fellow Americans, I once asked you for your prayers, and now I give you +mine: May God guide this wonderful country, its people, and those they have +chosen to lead them. May our third century be illuminated by liberty and +blessed with brotherhood, so that we and all who come after us may be the +humble servants of thy peace. Amen. + +Good night. God bless you. + + + +*** END OF THE PROJECT GUTENBERG EBOOK OF ADDRESSES BY GERALD R. 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Please do not remove it. Do not change or edit the +header without written permission. + +Please read the "legal small print," and other information about the +eBook and Project Gutenberg at the bottom of this file. Included is +important information about your specific rights and restrictions in +how the file may be used. You can also find out about how to make a +donation to Project Gutenberg, and how to get involved. + + +**Welcome To The World of Free Plain Vanilla Electronic Texts** + +**eBooks Readable By Both Humans and By Computers, Since 1971** + +*****These eBooks Were Prepared By Thousands of Volunteers!***** + + +Title: State of the Union Addresses of Gerald R. Ford + +Author: Gerald R. Ford + +Release Date: February, 2004 [EBook #5044] +[Yes, we are more than one year ahead of schedule] +[This file was first posted on April 11, 2002] +[Date last updated: December 16, 2004] + +Edition: 11 + +Language: English + +Character set encoding: ASCII + +*** START OF THE PROJECT GUTENBERG EBOOK OF ADDRESSES BY GERALD R. FORD *** + + + + +This eBook was produced by James Linden. + +The addresses are separated by three asterisks: *** + +Dates of addresses by Gerald R. Ford in this eBook: + January 15, 1975 + January 19, 1976 + January 12, 1977 + + + +*** + +State of the Union Address +Gerald R. Ford +January 15, 1975 + +Mr. Speaker, Mr. Vice President, Members of the 94th Congress, and +distinguished guests: + +Twenty-six years ago, a freshman Congressman, a young fellow with lots of +idealism who was out to change the world, stood before Sam Rayburn in the +well of the House and solemnly swore to the same oath that all of you took +yesterday--an unforgettable experience, and I congratulate you all. + +Two days later, that same freshman stood at the back of this great +Chamber--over there someplace--as President Truman, all charged up by his +single-handed election victory, reported as the Constitution requires on +the state of the Union. + +When the bipartisan applause stopped, President Truman said, "I am happy to +report to this 81st Congress that the state of the Union is good. Our +Nation is better able than ever before to meet the needs of the American +people, and to give them their fair chance in the pursuit of happiness. +[It] is foremost among the nations of the world in the search for peace." + +Today, that freshman Member from Michigan stands where Mr. Truman +stood, and I must say to you that the state of the Union is not good: + +Millions of Americans are out of work. + +Recession and inflation are eroding the money of millions more. + +Prices are too high, and sales are too slow. + +This year's Federal deficit will be about $30 billion; next year's probably +$45 billion. + +The national debt will rise to over $500 billion. + +Our plant capacity and productivity are not increasing fast enough. + +We depend on others for essential energy. + +Some people question their Government's ability to make hard decisions and +stick with them; they expect Washington politics as usual. + +Yet, what President Truman said on January 5, 1949, is even more true in +1975. We are better able to meet our people's needs. All Americans do have +a fairer chance to pursue happiness. Not only are we still the foremost +nation in the pursuit of peace but today's prospects of attaining it are +infinitely brighter. + +There were 59 million Americans employed at the start of 1949; now there +are more than 85 million Americans who have jobs. In comparable dollars, +the average income of the American family has doubled during the past 26 +years. + +Now, I want to speak very bluntly. I've got bad news, and I don't expect +much, if any, applause. The American people want action, and it will take +both the Congress and the President to give them what they want. Progress +and solutions can be achieved, and they will be achieved. + +My message today is not intended to address all of the complex needs of +America. I will send separate messages making specific recommendations for +domestic legislation, such as the extension of general revenue sharing and +the Voting Rights Act. + +The moment has come to move in a new direction. We can do this by +fashioning a new partnership between the Congress on the one hand, the +White House on the other, and the people we both represent. + +Let us mobilize the most powerful and most creative industrial nation that +ever existed on this Earth to put all our people to work. The emphasis on +our economic efforts must now shift from inflation to jobs. + +To bolster business and industry and to create new jobs, I propose a 1-year +tax reduction of $16 billion. Three-quarters would go to individuals and +one-quarter to promote business investment. + +This cash rebate to individuals amounts to 12 percent of 1974 tax +payments--a total cut of $12 billion, with a maximum of $1,000 per return. + +I call on the Congress to act by April 1. If you do--and I hope you +will--the Treasury can send the first check for half of the rebate in May +and the second by September. + +The other one-fourth of the cut, about $4 billion, will go to business, +including farms, to promote expansion and to create more jobs. The 1-year +reduction for businesses would be in the form of a liberalized investment +tax credit increasing the rate to 12 percent for all businesses. + +This tax cut does not include the more fundamental reforms needed in our +tax system. But it points us in the right direction--allowing taxpayers +rather than the Government to spend their pay. + +Cutting taxes now is essential if we are to turn the economy around. A tax +cut offers the best hope of creating more jobs. Unfortunately, it will +increase the size of the budget deficit. Therefore, it is more important +than ever that we take steps to control the growth of Federal +expenditures. + +Part of our trouble is that we have been self-indulgent. For decades, we +have been voting ever-increasing levels of Government benefits, and now the +bill has come due. We have been adding so many new programs that the size +and the growth of the Federal budget has taken on a life of its own. + +One characteristic of these programs is that their cost increases +automatically every year because the number of people eligible for most of +the benefits increases every year. When these programs are enacted, there +is no dollar amount set. No one knows what they will cost. All we know is +that whatever they cost last year, they will cost more next year. + +It is a question of simple arithmetic. Unless we check the excessive growth +of Federal expenditures or impose on ourselves matching increases in taxes, +we will continue to run huge inflationary deficits in the Federal budget. + +If we project the current built-in momentum of Federal spending through the +next 15 years, State, Federal, and local government expenditures could +easily comprise half of our gross national product. This compares with less +than a third in 1975. + +I have just concluded the process of preparing the budget submissions for +fiscal year 1976. In that budget, I will propose legislation to restrain +the growth of a number of existing programs. I have also concluded that no +new spending programs can be initiated this year, except for energy. +Further, I will not hesitate to veto any new spending programs adopted by +the Congress. + +As an additional step toward putting the Federal Government's house in +order, I recommend a 5-percent limit on Federal pay increases in 1975. In +all Government programs tied to the Consumer Price Index--including social +security, civil service and military retirement pay, and food stamps--I +also propose a 1-year maximum increase of 5 percent. + +None of these recommended ceiling limitations, over which Congress has +final authority, are easy to propose, because in most cases they involve +anticipated payments to many, many deserving people. Nonetheless, it must +be done. I must emphasize that I am not asking to eliminate, to reduce, to +freeze these payments. I am merely recommending that we slow down the rate +at which these payments increase and these programs grow. + +Only a reduction in the growth of spending can keep Federal borrowing down +and reduce the damage to the private sector from high interest rates. Only +a reduction in spending can make it possible for the Federal Reserve System +to avoid an inflationary growth in the money supply and thus restore +balance to our economy. A major reduction in the growth of Federal spending +can help dispel the uncertainty that so many feel about our economy and put +us on the way to curing our economic ills. + +If we don't act to slow down the rate of increase in Federal spending, the +United States Treasury will be legally obligated to spend more than $360 +billion in fiscal year 1976, even if no new programs are enacted. These are +not matters of conjecture or prediction, but again, a matter of simple +arithmetic. The size of these numbers and their implications for our +everyday life and the health of our economic system are shocking. + +I submitted to the last Congress a list of budget deferrals and +rescissions. There will be more cuts recommended in the budget that I will +submit. Even so, the level of outlays for fiscal year 1976 is still much, +much too high. Not only is it too high for this year but the decisions we +make now will inevitably have a major and growing impact on expenditure +levels in future years. I think this is a very fundamental issue that we, +the Congress and I, must jointly solve. + +Economic disruptions we and others are experiencing stem in part from the +fact that the world price of petroleum has quadrupled in the last year. But +in all honesty, we cannot put all of the blame on the oil-exporting +nations. We, the United States, are not blameless. Our growing dependence +upon foreign sources has been adding to our vulnerability for years and +years, and we did nothing to prepare ourselves for such an event as the +embargo of 1973. + +During the 1960's, this country had a surplus capacity of crude oil which +we were able to make available to our trading partners whenever there was a +disruption of supply. This surplus capacity enabled us to influence both +supplies and prices of crude oil throughout the world. Our excess capacity +neutralized any effort at establishing an effective cartel, and thus the +rest of the world was assured of adequate supplies of oil at reasonable +prices. + +By 1970, our surplus capacity had vanished, and as a consequence, the +latent power of the oil cartel could emerge in full force. Europe and +Japan, both heavily dependent on imported oil, now struggle to keep their +economies in balance. Even the United States, our country, which is far +more self-sufficient than most other industrial countries, has been .put +under serious pressure. + +I am proposing a program which will begin to restore our country's surplus +capacity in total energy. In this way, we will be able to assure ourselves +reliable and adequate energy and help foster a new world energy stability +for other major consuming nations. + +But this Nation and, in fact, the world must face the prospect of energy +difficulties between now and 1985. This program will impose burdens on all +of us with the aim of reducing our consumption of energy and increasing our +production. Great attention has been paid to the considerations of +fairness, and I can assure you that the burdens will not fall more harshly +on those less able to bear them. + +I am recommending a plan to make us invulnerable to cutoffs of foreign oil. +It will require sacrifices, but it--and this is most important--it will +work. + +I have set the following national energy goals to assure that our future is +as secure and as productive as our past: + +First, we must reduce oil imports by 1 million barrels per day by the end +of this year and by 2 million barrels per day by the end of 1977. + +Second, we must end vulnerability to economic disruption by foreign +suppliers by 1985. + +Third, we must develop our energy technology and resources so that the +United States has the ability to supply a significant share of the energy +needs of the free world by the end of this century. + +To attain these objectives, we need immediate action to cut imports. +Unfortunately, in the short term there are only a limited number of actions +which can increase domestic supply. I will press for all of them. + +I urge quick action on the necessary legislation to allow commercial +production at the Elk Hills, California, Naval Petroleum Reserve. In order +that we make greater use of domestic coal resources, I am submitting +amendments to the Energy Supply and Environmental Coordination Act which +will greatly increase the number of powerplants that can be promptly +converted to coal. + +Obviously, voluntary conservation continues to be essential, but tougher +programs are needed--and needed now. Therefore, I am using Presidential +powers to raise the fee on all imported crude oil and petroleum products. +The crude oil fee level will be increased $1 per barrel on February 1, by +$2 per barrel on March 1, and by $3 per barrel on April 1. I will take +actions to reduce undue hardships on any geographical region. The foregoing +are interim administrative actions. They will be rescinded when the broader +but necessary legislation is enacted. + +To that end, I am requesting the Congress to act within 90 days on a more +comprehensive energy tax program. It includes: excise taxes and import fees +totaling $2 per barrel on product imports and on all crude oil; +deregulation of new natural gas and enactment of a natural gas excise tax. + +I plan to take Presidential initiative to decontrol the price of domestic +crude oil on April 1. I urge the Congress to enact a windfall profits tax +by that date to ensure that oil producers do not profit unduly. + +The sooner Congress acts, the more effective the oil conservation program +will be and the quicker the Federal revenues can be returned to our +people. + +I am prepared to use Presidential authority to limit imports, as necessary, +to guarantee success. + +I want you to know that before deciding on my energy conservation program, +I considered rationing and higher gasoline taxes as alternatives. In my +judgment, neither would achieve the desired results and both would produce +unacceptable inequities. + +A massive program must be initiated to increase energy supply, to cut +demand, and provide new standby emergency programs to achieve the +independence we want by 1985. The largest part of increased oil production +must come from new frontier areas on the Outer Continental Shelf and from +the Naval Petroleum Reserve No. 4 in Alaska. It is the intent of this +Administration to move ahead with exploration, leasing, and production on +those frontier areas of the Outer Continental Shelf where the environmental +risks are acceptable. + +Use of our most abundant domestic resource--coal--is severely limited. We +must strike a reasonable compromise on environmental concerns with coal. I +am submitting Clean Air amendments which will allow greater coal use +without sacrificing clean air goals. + +I vetoed the strip mining legislation passed by the last Congress. With +appropriate changes, I will sign a revised version when it comes to the +White House. + +I am proposing a number of actions to energize our nuclear power program. I +will submit legislation to expedite nuclear leasing and the +rapid selection of sites. + +In recent months, utilities have cancelled or postponed over 60 percent of +planned nuclear expansion and 30 percent of planned additions to +non-nuclear capacity. Financing problems for that industry are worsening. I +am therefore recommending that the 1-year investment tax credit of 12 +percent be extended an additional 2 years to specifically speed the +construction of powerplants that do not use natural gas or oil. I am also +submitting proposals for selective reform of State utility commission +regulations. + +To provide the critical stability for our domestic energy production in the +face of world price uncertainty, I will request legislation to authorize +and require tariffs, import quotas, or price floors to protect our energy +prices at levels which will achieve energy independence. + +Increasing energy supplies is not enough. We must take additional steps to +cut long-term consumption. I therefore propose to the Congress: legislation +to make thermal efficiency standards mandatory for all new buildings in the +United States; a new tax credit of up to $150 for those homeowners who +install insulation equipment; the establishment of an energy conservation +program to help low-income families purchase insulation supplies; +legislation to modify and defer automotive pollution standards for 5 years, +which will enable us to improve automobile gas mileage by 40 percent by +1980. + +These proposals and actions, cumulatively, can reduce our dependence on +foreign energy supplies from 3 to 5 million barrels per day by 1985. To +make the United States invulnerable to foreign disruption, I propose +standby emergency legislation and a strategic storage program of 1 billion +barrels of oil for domestic needs and 300 million barrels for national +defense purposes. + +I will ask for the funds needed for energy research and development +activities. I have established a goal of 1 million barrels of synthetic +fuels and shale oil production per day by 1985 together with an incentive +program to achieve it. + +I have a very deep belief in America's capabilities. Within the next 10 +years, my program envisions: 200 major nuclear powerplants; 250 major new +coal mines; 150 major coal-fired powerplants; 30 major new refineries; 20 +major new synthetic fuel plants; the drilling of many thousands of new +oil wells; the insulation of 18 million homes; and the manufacturing +and the sale of millions of new automobiles, trucks, and buses that +use much less fuel. + +I happen to believe that we can do it. In another crisis--the one in 1942 +President Franklin D. Roosevelt said this country would build 60,000 +military aircraft. By 1943, production in that program had reached +125,000 aircraft annually. They did it then. We can do it now. + +If the Congress and the American people will work with me to attain these +targets, they will be achieved and will be surpassed. From adversity, let +us seize opportunity. Revenues of some $30 billion from higher energy taxes +designed to encourage conservation must be refunded to the American people +in a manner which corrects distortions in our tax system wrought by +inflation. + +People have been pushed into higher tax brackets by inflation, with +consequent reduction in their actual spending power. Business taxes are +similarly distorted because inflation exaggerates reported profits, +resulting in excessive taxes. + +Accordingly, I propose that future individual income taxes be reduced by +$16.5 billion. This will be done by raising the low-income allowance and +reducing tax rates. This continuing tax cut will primarily benefit lower- +and middle-income taxpayers. + +For example, a typical family of four with a gross income of $5,600 now +pays $185 in Federal income taxes. Under this tax cut plan, they would pay +nothing. A family of four with a gross income of $12,500 now pays $1,260 in +Federal taxes. My proposal reduces that total by $300. Families grossing +$20,000 would receive a reduction of $210. + +Those with the very lowest incomes, who can least afford higher costs, must +also be compensated. I propose a payment of $80 to every person 18 years of +age and older in that very limited category. + +State and local governments will receive $2 billion in additional revenue +sharing to offset their increased energy costs. + +To offset inflationary distortions and to generate more economic activity, +the corporate tax rate will be reduced from 48 percent to 42 percent. + +Now let me turn, if I might, to the international dimension of the present +crisis. At no time in our peacetime history has the state of the Nation +depended more heavily on the state of the world. And seldom, if ever, has +the state of the world depended more heavily on the state of our Nation. + +The economic distress is global. We will not solve it at home unless we +help to remedy the profound economic dislocation abroad. World trade and +monetary structure provides markets, energy, food, and vital raw +materials--for all nations. This international system is now in jeopardy. + +This Nation can be proud of significant achievements in recent years in +solving problems and crises. The Berlin agreement, the SALT agreements, our +new relationship with China, the unprecedented efforts in the Middle East +are immensely encouraging. But the world is not free from crisis. In a +world of 150 nations, where nuclear technology is proliferating and +regional conflicts continue, international security cannot be taken for +granted. + +So, let there be no mistake about it: International cooperation is a vital +factor of our lives today. This is not a moment for the American people to +turn inward. More than ever before, our own well-being depends on America's +determination and America's leadership in the whole wide world. + +We are a great Nation--spiritually, politically, militarily, +diplomatically, and economically. America's commitment to international +security has sustained the safety of allies and friends in many areas--in +the Middle East, in Europe, and in Asia. Our turning away would unleash new +instabilities, new dangers around the globe, which, in turn, would threaten +our own security. + +At the end of World War II, we turned a similar challenge into an historic +opportunity and, I might add, an historic achievement. An old order was in +disarray; political and economic institutions were shattered. In that +period, this Nation and its partners built new institutions, new mechanisms +of mutual support and cooperation. Today, as then, we face an historic +opportunity. If we act imaginatively and boldly, as we acted then, this +period will in retrospect be seen as one of the great creative moments of +our Nation's history. The whole world is watching to see how we respond. + +A resurgent American economy would do more to restore the confidence of the +world in its own future than anything else we can do. The program that this +Congress passes can demonstrate to the world that we have started to put +our own house in order. If we can show that this Nation is able and willing +to help other nations meet the common challenge, it can demonstrate that +the United States will fulfill its responsibilities as a leader among +nations. + +Quite frankly, at stake is the future of industrialized democracies, which +have perceived their destiny in common and sustained it in common for 30 +years. + +The developing nations are also at a turning point. The poorest nations see +their hopes of feeding their hungry and developing their societies +shattered by the economic crisis. The long-term economic future for the +producers of raw materials also depends on cooperative solutions. + +Our relations with the Communist countries are a basic factor of the world +environment. We must seek to build a long-term basis for coexistence. We +will stand by our principles. We will stand by our interests. We will act +firmly when challenged. The kind of a world we want depends on a broad +policy of creating mutual incentives for restraint and for cooperation. + +As we move forward to meet our global challenges and opportunities, we must +have the tools to do the job. + +Our military forces are strong and ready. This military strength deters +aggression against our allies, stabilizes our relations with former +adversaries, and protects our homeland. Fully adequate conventional and +strategic forces cost many, many billions, but these dollars are sound +insurance for our safety and for a more peaceful world. + +Military strength alone is not sufficient. Effective diplomacy is also +essential in preventing conflict, in building world understanding. The +Vladivostok negotiations with the Soviet Union represent a major step in +moderating strategic arms competition. My recent discussions with the +leaders of the Atlantic community, Japan, and South Korea have contributed +to meeting the common challenge. + +But we have serious problems before us that require cooperation between the +President and the Congress. By the Constitution and tradition, the +execution of foreign policy is the responsibility of the President. + +In recent years, under the stress of the Vietnam war, legislative +restrictions on the President's ability to execute foreign policy and +military decisions have proliferated. As a Member of the Congress, I +opposed some and I approved others. As President, I welcome the advice and +cooperation of the House and the Senate. + +But if our foreign policy is to be successful, we cannot rigidly restrict +in legislation the ability of the President to act. The conduct of +negotiations is ill-suited to such limitations. Legislative restrictions, +intended for the best motives and purposes, can have the opposite result, +as we have seen most recently in our trade relations with the Soviet +Union. + +For my part, I pledge this Administration will act in the closest +consultation with the Congress as we face delicate situations and troubled +times throughout the globe. + +When I became President only 5 months ago, I promised the last Congress a +policy of communication, conciliation, compromise, and cooperation. I renew +that pledge to the new Members of this Congress. + +Let me sum it up. America needs a new direction, which I have sought to +chart here today--a change of course which will: put the unemployed back to +work; increase real income and production; restrain the growth of Federal +Government spending; achieve energy independence; and advance the cause of +world understanding. + +We have the ability. We have the know-how. In partnership with the American +people, we will achieve these objectives. + +As our 200th anniversary approaches, we owe it to ourselves and to +posterity to rebuild our political and economic strength. Let us make +America once again and for centuries more to come what it has so long +been--a stronghold and a beacon-light of liberty for the whole world. + +Thank you. + +*** + +State of the Union Address +Gerald R. Ford +January 19, 1976 + +Mr. Speaker, Mr. Vice President, Members of the 94th Congress, and +distinguished guests: + +As we begin our Bicentennial, America is still one of the youngest nations +in recorded history. Long before our forefathers came to these shores, men +and women had been struggling on this planet to forge a better life for +themselves and their families. + +In man's long, upward march from savagery and slavery--throughout the +nearly 2,000 years of the Christian calendar, the nearly 6,000 years of +Jewish reckoning--there have been many deep, terrifying valleys, but also +many bright and towering peaks. + +One peak stands highest in the ranges of human history. One example shines +forth of a people uniting to produce abundance and to share the good life +fairly and with freedom. One union holds out the promise of justice and +opportunity for every citizen: That union is the United States of America. + +We have not remade paradise on Earth. We know perfection will not be found +here. But think for a minute how far we have come in 200 years. + +We came from many roots, and we have many branches. Yet all Americans +across the eight generations that separate us from the stirring deeds of +1776, those who know no other homeland and those who just found refuge +among our shores, say in unison: + +I am proud of America, and I am proud to be an American. Life will be a +little better here for my children than for me. I believe this not because +I am told to believe it, but because life has been better for me than it +was for my father and my mother. I know it will be better for my children +because my hands, my brains, my voice, and my vote can help make it +happen. + +It has happened here in America. It has happened to you and to me. +Government exists to create and preserve conditions in which people can +translate their ideas into practical reality. In the best of times, much is +lost in translation. But we try. Sometimes we have tried and failed. Always +we have had the best of intentions. + +But in the recent past, we sometimes forgot the sound principles that +guided us through most of our history. We wanted to accomplish great things +and solve age-old problems. And we became overconfident of our abilities. +We tried to be a policeman abroad and the indulgent parent here at home. + +We thought we could transform the country through massive national +programs, but often the programs did not work. Too often they only made +things worse. In our rush to accomplish great deeds quickly, we trampled on +sound principles of restraint and endangered the rights of individuals. We +unbalanced our economic system by the huge and unprecedented growth of +Federal expenditures and borrowing. And we were not totally honest with +ourselves about how much these programs would cost and how we would pay for +them. Finally, we shifted our emphasis from defense to domestic problems +while our adversaries continued a massive buildup of arms. + +The time has now come for a fundamentally different approach for a new +realism that is true to the great principles upon which this Nation was +founded. + +We must introduce a new balance to our economy--a balance that favors not +only sound, active government but also a much more vigorous, healthy +economy that can create new jobs and hold down prices. + +We must introduce a new balance in the relationship between the individual +and the government--a balance that favors greater individual freedom and +self-reliance. + +We must strike a new balance in our system of federalism--a balance that +favors greater responsibility and freedom for the leaders of our State and +local governments. + +We must introduce a new balance between the spending on domestic programs +and spending on defense--a balance that ensures we will fully meet our +obligation to the needy while also protecting our security in a world that +is still hostile to freedom. + +And in all that we do, we must be more honest with the American people, +promising them no more than we can deliver and delivering all that we +promise. + +The genius of America has been its incredible ability to improve the lives +of its citizens through a unique combination of governmental and free +citizen activity. + +History and experience tells us that moral progress cannot come in +comfortable and in complacent times, but out of trial and out of confusion. +Tom Paine aroused the troubled Americans of 1776 to stand up to the times +that try men's souls because the harder the conflict, the more glorious the +triumph. + +Just a year ago I reported that the state of the Union was not good. +Tonight, I report that the state of our Union is better--in many ways a lot +better--but still not good enough. + +To paraphrase Tom Paine, 1975 was not a year for summer soldiers and +sunshine patriots. It was a year of fears and alarms and of dire +forecasts--most of which never happened and won't happen. + +As you recall, the year 1975 opened with rancor and with bitterness. +Political misdeeds of the past had neither been forgotten nor forgiven. The +longest, most divisive war in our history was winding toward an unhappy +conclusion. Many feared that the end of that foreign war of men and +machines meant the beginning of a domestic war of recrimination and +reprisal. Friends and adversaries abroad were asking whether America had +lost its nerve. Finally, our economy was ravaged by inflation--inflation +that was plunging us into the worst recession in four decades. At the same +time, Americans became increasingly alienated from big institutions. They +were steadily losing confidence, not just in big government but in big +business, big labor, and big education, among others. Ours was a troubled +land. + +And so, 1975 was a year of hard decisions, difficult compromises, and a new +realism that taught us something important about America. It brought back a +needed measure of common sense, steadfastness, and self-discipline. + +Americans did not panic or demand instant but useless cures. In all +sectors, people met their difficult problems with the restraint and with +responsibility worthy of their great heritage. + +Add up the separate pieces of progress in 1975, subtract the setbacks, and +the sum total shows that we are not only headed in a new direction, a +direction which I proposed 12 months ago, but it turned out to be the right +direction. + +It is the right direction because it follows the truly revolutionary +American concept of 1776, which holds that in a free society the making of +public policy and successful problem-solving involves much more than +government. It involves a full partnership among all branches and all +levels of government, private institutions, and individual citizens. + +Common sense tells me to stick to that steady course. + +Take the state of our economy. Last January, most things were rapidly +getting worse. This January, most things are slowly but surely getting +better. + +The worst recession since World War II turned around in April. The best +cost-of-living news of the past year is that double-digit inflation of 12 +percent or higher was cut almost in half. The worst--unemployment remains +far too high. + +Today, nearly 1,700,000 more Americans are working than at the bottom of +the recession. At year's end, people were again being hired much faster +than they were being laid off. + +Yet, let's be honest. Many Americans have not yet felt these changes in +their daily lives. They still see prices going up far too fast, and they +still know the fear of unemployment. + +We are also a growing nation. We need more and more jobs every year. +Today's economy has produced over 85 million jobs for Americans, but we +need a lot more jobs, especially for the young. + +My first objective is to have sound economic growth without inflation. + +We all know from recent experience what runaway inflation does to ruin +every other worthy purpose. We are slowing it. We must stop it cold. + +For many Americans, the way to a healthy, noninflationary economy has +become increasingly apparent. The Government must stop spending so much and +stop borrowing so much of our money. More money must remain in private +hands where it will do the most good. To hold down the cost of living, we +must hold down the cost of government. + +In the past decade, the Federal budget has been growing at an average rate +of over 10 percent a year. The budget I am submitting Wednesday cuts this +rate of growth in half. I have kept my promise to submit a budget for the +next fiscal year of $395 billion. In fact, it is $394.2 billion. + +By holding down the growth of Federal spending, we can afford additional +tax cuts and return to the people who pay taxes more decisionmaking power +over their own lives. + +Last month I signed legislation to extend the 1975 tax reductions for the +first 6 months of this year. I now propose that effective July 1, 1976, we +give our taxpayers a tax cut of approximately $10 billion more than +Congress agreed to in December. + +My broader tax reduction would mean that for a family of four making +$15,000 a year, there will be $227 more in take-home pay annually. +Hardworking Americans caught in the middle can really use that kind of +extra cash. + +My recommendations for a firm restraint on the growth of Federal spending +and for greater tax reduction are simple and straightforward. For every +dollar saved in cutting the growth in the Federal budget, we can have an +added dollar of Federal tax reduction. + +We can achieve a balanced budget by 1979 if we have the courage and the +wisdom to continue to reduce the growth of Federal spending. + +One test of a healthy economy is a job for every American who wants to +work. Government--our kind of government--cannot create that many jobs. But +the Federal Government can create conditions and incentives for private +business and industry to make more and more jobs. + +Five out of six jobs in this country are in private business and in +industry. Common sense tells us this is the place to look for more jobs and +to find them faster. I mean real, rewarding, permanent jobs. + +To achieve this we must offer the American people greater incentives to +invest in the future. My tax proposals are a major step in that direction. +To supplement these proposals, I ask that Congress enact changes in Federal +tax laws that will speed up plant expansion and the purchase of new +equipment. My recommendations will concentrate this job-creation tax +incentive in areas where the unemployment rate now runs over 7 percent. +Legislation to get this started must be approved at the earliest possible +date. + +Within the strict budget total that I will recommend for the coming year, I +will ask for additional housing assistance for 500,000 families. These +programs will expand housing opportunities, spur construction, and help to +house moderate- and low-income families. + +We had a disappointing year in the housing industry in 1975. But with lower +interest rates and available mortgage money, we can have a healthy recovery +in 1976. + +A necessary condition of a healthy economy is freedom from the petty +tyranny of massive government regulation. We are wasting literally millions +of working hours costing billions of taxpayers' and consumers' dollars +because of bureaucratic redtape. The American farmer, who now feeds 215 +million Americans, but also millions worldwide, has shown how much more he +can produce without the shackles of government control. + +Now, we badly need reforms in other key areas in our economy: the airlines, +trucking, railroads, and financial institutions. I have submitted concrete +plans in each of these areas, not to help this or that industry, but to +foster competition and to bring prices down for the consumer. + +This administration, in addition, will strictly enforce the Federal +antitrust laws for the very same purposes. + +Taking a longer look at America's future, there can be neither sustained +growth nor more jobs unless we continue to have an assured supply of energy +to run our economy. Domestic production of oil and gas is still declining. +Our dependence on foreign oil at high prices is still too great, draining +jobs and dollars away from our own economy at the rate of $125 per year for +every American. + +Last month, I signed a compromise national energy bill which enacts a part +of my comprehensive energy independence program. This legislation was late, +not the complete answer to energy independence, but still a start in the +right direction. + +I again urge the Congress to move ahead immediately on the remainder of my +energy proposals to make America invulnerable to the foreign oil cartel. + +My proposals, as all of you know, would reduce domestic natural gas +shortages; allow production from Federal petroleum reserves; stimulate +effective conservation, including revitalization of our railroads and the +expansion of our urban transportation systems; develop more and cleaner +energy from our vast coal resources; expedite clean and safe nuclear power +production; create a new national energy independence authority to +stimulate vital energy investment; and accelerate development of technology +to capture energy from the Sun and the Earth for this and future +generations. + +Also, I ask, for the sake of future generations, that we preserve the +family farm and family-owned small business. Both strengthen America and +give stability to our economy. I will propose estate tax changes so that +family businesses and family farms can be handed down from generation to +generation without having to be sold to pay taxes. + +I propose tax changes to encourage people to invest in America's future, +and their own, through a plan that gives moderate-income families income +tax benefits if they make long-term investments in common stock in American +companies. + +The Federal Government must and will respond to clear-cut national +needs--for this and future generations. + +Hospital and medical services in America are among the best in the world, +but the cost of a serious and extended illness can quickly wipe out a +family's lifetime savings. Increasing health costs are of deep concern to +all and a powerful force pushing up the cost of living. The burden of +catastrophic illness can be borne by very few in our society. We must +eliminate this fear from every family. + +I propose catastrophic health insurance for everybody covered by Medicare. +To finance this added protection, fees for short-term care will go up +somewhat, but nobody after reaching age 65 will have to pay more than $500 +a year for covered hospital or nursing home care, nor more than $250 for 1 +year's doctor bills. + +We cannot realistically afford federally dictated national health insurance +providing full coverage for all 215 million Americans. The experience of +other countries raises questions about the quality as well as the cost of +such plans. But I do envision the day when we may use the private health +insurance system to offer more middle-income families high quality health +services at prices they can afford and shield them also from their +catastrophic illnesses. + +Using resources now available, I propose improving the Medicare and other +Federal health programs to help those who really need protection--older +people and the poor. To help States and local governments give better +health care to the poor, I propose that we combine 16 existing Federal +programs, including Medicaid, into a single $10 billion Federal grant. + +Funds would be divided among States under a new formula which provides a +larger share of Federal money to those States that have a larger share of +low-income families. + +I will take further steps to improve the quality of medical and hospital +care for those who have served in our Armed Forces. + +Now let me speak about social security. Our Federal social security system +for people who have worked and contributed to it for all their lives is a +vital part of our economic system. Its value is no longer debatable. In my +budget for fiscal year 1977, I am recommending that the full cost-of-living +increases in the social security benefits be paid during the coming year. + +But I am concerned about the integrity of our Social Security Trust Fund +that enables people--those retired and those still working who will +retire--to count on this source of retirement income. Younger workers watch +their deductions rise and wonder if they will be adequately protected in +the future. We must meet this challenge head on. Simple arithmetic warns +all of us that the Social Security Trust Fund is headed for trouble. Unless +we act soon to make sure the fund takes in as much as it pays out, there +will be no security for old or for young. + +I must, therefore, recommend a three-tenths of 1 percent increase in both +employer and employee social security taxes effective January 1, 1977. This +will cost each covered employee less than 1 extra dollar a week and will +ensure the integrity of the trust fund. + +As we rebuild our economy, we have a continuing responsibility to provide a +temporary cushion to the unemployed. At my request, the Congress enacted +two extensions and two expansions in unemployment insurance which helped +those who were jobless during 1975. These programs will continue in 1976. + +In my fiscal year 1977 budget, I am also requesting funds to continue +proven job training and employment opportunity programs for millions of +other Americans. + +Compassion and a sense of community--two of America's greatest strengths +throughout our history--tell us we must take care of our neighbors who +cannot take care of themselves. The host of Federal programs in this field +reflect our generosity as a people. + +But everyone realizes that when it comes to welfare, government at all +levels is not doing the job well. Too many of our welfare programs are +inequitable and invite abuse. Too many of our welfare programs have +problems from beginning to end. Worse, we are wasting badly needed +resources without reaching many of the truly needy. + +Complex welfare programs cannot be reformed overnight. Surely we cannot +simply dump welfare into the laps of the 50 States, their local taxpayers, +or their private charities, and just walk away from it. Nor is it the right +time for massive and sweeping changes while we are still recovering from +the recession. + +Nevertheless, there are still plenty of improvements that we can make. I +will ask Congress for Presidential authority to tighten up the rules for +eligibility and benefits. + +Last year I twice sought long overdue reform of the scandal-riddled food +stamp program. This year I say again: Let's give food stamps to those most +in need. Let's not give any to those who don't need them. + +Protecting the life and property of the citizen at home is the +responsibility of all public officials, but is primarily the job of local +and State law enforcement authorities. + +Americans have always found the very thought of a Federal police force +repugnant, and so do I. But there are proper ways in which we can help to +insure domestic tranquility as the Constitution charges us. + +My recommendations on how to control violent crime were submitted to the +Congress last June with strong emphasis on protecting the innocent victims +of crime. To keep a convicted criminal from committing more crimes, we must +put him in prison so he cannot harm more law-abiding citizens. To be +effective, this punishment must be swift and it must be certain. + +Too often, criminals are not sent to prison after conviction but are +allowed to return to the streets. Some judges are reluctant to send +convicted criminals to prison because of inadequate facilities. To +alleviate this problem at the Federal level, my new budget proposes the +construction of four new Federal facilities. + +To speed Federal justice, I propose an increase this year in the United +States attorneys prosecuting Federal crimes and the reinforcement of the +number of United States marshals. Additional Federal judges are needed, as +recommended by me and the Judicial Conference. + +Another major threat to every American's person and property is the +criminal carrying a handgun. The way to cut down on the criminal use of +guns is not to take guns away from the law-abiding citizen, but to impose +mandatory sentences for crimes in which a gun is used, make it harder to +obtain cheap guns for criminal purposes, and concentrate gun control +enforcement in highcrime areas. + +My budget recommends 500 additional Federal agents in the 11 largest +metropolitan high-crime areas to help local authorities stop criminals from +selling and using handguns. + +The sale of hard drugs is tragically on the increase again. I have directed +all agencies of the Federal Government to step up law enforcement efforts +against those who deal in drugs. In 1975, I am glad to report, Federal +agents seized substantially more heroin coming into our country than in +1974. + +As President, I have talked personally with the leaders of Mexico, +Colombia, and Turkey to urge greater efforts by their Governments to +control effectively the production and shipment of hard drugs. + +I recommended months ago that the Congress enact mandatory fixed sentences +for persons convicted of Federal crimes involving the sale of hard drugs. +Hard drugs, we all know, degrade the spirit as they destroy the body of +their users. + +It is unrealistic and misleading to hold out the hope that the Federal +Government can move into every neighborhood and clean up crime. Under the +Constitution, the greatest responsibility for curbing crime lies with State +and local authorities. They are the frontline fighters in the war against +crime. + +There are definite ways in which the Federal Government can help them. I +will propose in the new budget that Congress authorize almost $7 billion +over the next 5 years to assist State and local governments to protect the +safety and property of all their citizens. + +As President, I pledge the strict enforcement of Federal laws and--by +example, support, and leadership--to help State and local authorities +enforce their laws. Together, we must protect the victims of crime and +ensure domestic tranquility. + +Last year I strongly recommended a 5-year extension of the existing revenue +sharing legislation, which thus far has provided $23 1/2 billion to help +State and local units of government solve problems at home. This program +has been effective with decisionmaking transferred from the Federal +Government to locally elected officials. Congress must act this year, or +State and local units of government will have to drop programs or raise +local taxes. + +Including my health care program reforms, I propose to consolidate some 59 +separate Federal programs and provide flexible Federal dollar grants to +help States, cities, and local agencies in such important areas as +education, child nutrition, and social services. This flexible system will +do the job better and do it closer to home. + +The protection of the lives and property of Americans from foreign enemies +is one of my primary responsibilities as President. + +In a world of instant communications and intercontinental ballistic +missiles, in a world economy that is global and interdependent, our +relations with other nations become more, not less, important to the lives +of Americans. + +America has had a unique role in the world since the day of our +independence 200 years ago. And ever since the end of World War II, we have +borne--successfully--a heavy responsibility for ensuring a stable world +order and hope for human progress. + +Today, the state of our foreign policy is sound and strong. We are at +peace, and I will do all in my power to keep it that way. + +Our military forces are capable and ready. Our military power is without +equal, and I intend to keep it that way. + +Our principal alliances with the industrial democracies of the Atlantic +community and Japan have never been more solid. + +A further agreement to limit the strategic arms race may be achieved. + +We have an improving relationship with China, the world's most populous +nation. + +The key elements for peace among the nations of the Middle East now exist. +Our traditional friendships in Latin America, Africa, and Asia continue. + +We have taken the role of leadership in launching a serious and hopeful +dialog between the industrial world and the developing world. + +We have helped to achieve significant reform of the international monetary +system. + +We should be proud of what America, what our country, has accomplished in +these areas, and I believe the American people are. + +The American people have heard too much about how terrible our mistakes, +how evil our deeds, and how misguided our purposes. The American people +know better. + +The truth is we are the world's greatest democracy. We remain the symbol of +man's aspiration for liberty and well-being. We are the embodiment of hope +for progress. + +I say it is time we quit downgrading ourselves as a nation. Of course, it +is our responsibility to learn the right lesson from past mistakes. It is +our duty to see that they never happen again. But our greater duty is to +look to the future. The world's troubles will not go away. + +The American people want strong and effective international and defense +policies. In our constitutional system, these policies should reflect +consultation and accommodation between the President and the Congress. But +in the final analysis, as the framers of our Constitution knew from hard +experience, the foreign relations of the United States can be conducted +effectively only if there is strong central direction that allows +flexibility of action. That responsibility clearly rests with the +President. + +I pledge to the American people policies which seek a secure, just, and +peaceful world. I pledge to the Congress to work with you to that end. + +We must not face a future in which we can no longer help our friends, such +as Angola, even in limited and carefully controlled ways. We must not lose +all capacity to respond short of military intervention. + +Some hasty actions of the Congress during the past year--most recently in +respect to Angola--were, in my view, very shortsighted. Unfortunately, they +are still very much on the minds of our allies and our adversaries. + +A strong defense posture gives weight to our values and our views in +international negotiations. It assures the vigor of our alliances. And it +sustains our efforts to promote settlements of international conflicts. +Only from a position of strength can we negotiate a balanced agreement to +limit the growth of nuclear arms. Only a balanced agreement will serve our +interests and minimize the threat of nuclear confrontation. + +The defense budget I will submit to the Congress for fiscal year 1977 will +show an essential increase over the current year. It provides for real +growth in purchasing power over this year's defense budget, which includes +the cost of the all-volunteer force. + +We are continuing to make economies to enhance the efficiency of our +military forces. But the budget I will submit represents the necessity of +American strength for the real world in which we live. + +As conflict and rivalry persist in the world, our United States +intelligence capabilities must be the best in the world. + +The crippling of our foreign intelligence services increases the danger of +American involvement in direct armed conflict. Our adversaries are +encouraged to attempt new adventures while our own ability to monitor +events and to influence events short of military action is undermined. +Without effective intelligence capability, the United States stands +blindfolded and hobbled. + +In the near future, I will take actions to reform and strengthen our +intelligence community. I ask for your positive cooperation. It is time to +go beyond sensationalism and ensure an effective, responsible, and +responsive intelligence capability. + +Tonight I have spoken about our problems at home and abroad. I have +recommended policies that will meet the challenge of our third century. I +have no doubt that our Union will endure, better, stronger, and with more +individual freedom. We can see forward only dimly--1 year, 5 years, a +generation perhaps. Like our forefathers, we know that if we meet the +challenges of our own time with a common sense of purpose and conviction, +if we remain true to our Constitution and to our ideals, then we can know +that the future will be better than the past. + +I see America today crossing a threshold, not just because it is our +Bicentennial but because we have been tested in adversity. We have taken a +new look at what we want to be and what we want our Nation to become. + +I see America resurgent, certain once again that life will be better for +our children than it is for us, seeking strength that cannot be counted in +megatons and riches that cannot be eroded by inflation. + +I see these United States of America moving forward as before toward a more +perfect Union where the government serves and the people rule. + +We will not make this happen simply by making speeches, good or bad, yours +or mine, but by hard work and hard decisions made with courage and with +common sense. + +I have heard many inspiring Presidential speeches, but the words I remember +best were spoken by Dwight D. Eisenhower. "America is not good because it +is great," the President said. "America is great because it is good." + +President Eisenhower was raised in a poor but religious home in the heart +of America. His simple words echoed President Lincoln's eloquent testament +that "right makes might." And Lincoln in turn evoked the silent image of +George Washington kneeling in prayer at Valley Forge. + +So, all these magic memories which link eight generations of Americans are +summed up in the inscription just above me. How many times have we seen it? +"In God We Trust." + +Let us engrave it now in each of our hearts as we begin our Bicentennial. + +*** + +State of the Union Address +Gerald R. Ford +January 12, 1977 + +Mr. Speaker, Mr. Vice President, Members of the 95th Congress, and +distinguished guests: + +In accordance with the Constitution, I come before you once again to report +on the state of the Union. + +This report will be my last--maybe--[laughter]--but for the Union it is +only the first of such reports in our third century of independence, the +close of which none of us will ever see. We can be confident, however, that +100 years from now a freely elected President will come before a freely +elected Congress chosen to renew our great Republic's pledge to the +Government of the people, by the people, and for the people. + +For my part I pray the third century we are beginning will bring to all +Americans, our children and their children's children, a greater measure of +individual equality, opportunity, and justice, a greater abundance of +spiritual and material blessings, and a higher quality of life, liberty, +and the pursuit of happiness. + +The state of the Union is a measurement of the many elements of which it is +composed--a political union of diverse States, an economic union of varying +interests, an intellectual union of common convictions, and a moral union +of immutable ideals. + +Taken in sum, I can report that the state of the Union is good. There is +room for improvement, as always, but today we have a more perfect Union +than when my stewardship began. + +As a people we discovered that our Bicentennial was much more than a +celebration of the past; it became a joyous reaffirmation of all that it +means to be Americans, a confirmation before all the world of the vitality +and durability of our free institutions. I am proud to have been privileged +to preside over the affairs of our Federal Government during these eventful +years when we proved, as I said in my first words upon assuming office, +that "our Constitution works; our great Republic is a Government of laws +and not of men. Here the people rule." + +The people have spoken; they have chosen a new President and a new Congress +to work their will. I congratulate you--particularly the new Members--as +sincerely as I did President-elect Carter. In a few days it will be his +duty to outline for you his priorities and legislative recommendations. +Tonight I will not infringe on that responsibility, but rather wish him the +very best in all that is good for our country. + +During the period of my own service in this Capitol and in the White House, +I can recall many orderly transitions of governmental responsibility--of +problems as well as of position, of burdens as well as of power. The genius +of the American system is that we do this so naturally and so normally. +There are no soldiers marching in the street except in the Inaugural +Parade; no public demonstrations except for some of the dancers at the +Inaugural Ball; the opposition party doesn't go underground, but goes on +functioning vigorously in the Congress and in the country; and our vigilant +press goes right on probing and publishing our faults and our follies, +confirming the wisdom of the framers of the first amendment. + +Because of the transfer of authority in our form of government affects the +state of the Union and of the world, I am happy to report to you that the +current transition is proceeding very well. I was determined that it +should; I wanted the new President to get off on an easier start than I +had. + +When I became President on August 9, 1974, our Nation was deeply divided +and tormented. In rapid succession the Vice President and the President had +resigned in disgrace. We were still struggling with the after-effects of a +long, unpopular, and bloody war in Southeast Asia. The economy was unstable +and racing toward the worst recession in 40 years. People were losing jobs. +The cost of living was soaring. The Congress and the Chief Executive were +at loggerheads. The integrity of our constitutional process and other +institutions was being questioned. For more than 15 years domestic spending +had soared as Federal programs multiplied, and the expense escalated +annually. During the same period our national security needs were steadily +shortchanged. In the grave situation which prevailed in August 1974, our +will to maintain our international leadership was in doubt. + +I asked for your prayers and went to work. + +In January 1975 I reported to the Congress that the state of the Union was +not good. I proposed urgent action to improve the economy and to achieve +energy independence in 10 years. I reassured America's allies and sought to +reduce the danger of confrontation with potential adversaries. I pledged a +new direction for America. 1975 was a year of difficult decisions, but +Americans responded with realism, common sense, and self-discipline. + +By January 1976 we were headed in a new direction, which I hold to be the +right direction for a free society. It was guided by the belief that +successful problem-solving requires more than Federal action alone, that it +involves a full partnership among all branches and all levels of government +and public policies which nurture and promote the creative energies of +private enterprises, institutions, and individual citizens. + +A year ago I reported that the state of the Union was better--in many ways +a lot better--but still not good enough. Common sense told me to stick to +the steady course we were on, to continue to restrain the inflationary +growth of government, to reduce taxes as well as spending, to return local +decisions to local officials, to provide for long-range sufficiency in +energy and national security needs. I resisted the immense pressures of an +election year to open the floodgates of Federal money and the temptation to +promise more than I could deliver. I told it as it was to the American +people and demonstrated to the world that in our spirited political +competition, as in this chamber, Americans can disagree without being +disagreeable. + +Now, after 30 months as your President, I can say that while we still have +a way to go, I am proud of the long way we have come together. + +I am proud of the part I have had in rebuilding confidence in the +Presidency, confidence in our free system, and confidence in our future. +Once again, Americans believe in themselves, in their leaders, and in the +promise that tomorrow holds for their children. + +I am proud that today America is at peace. None of our sons are fighting +and dying in battle anywhere in the world. And the chance for peace among +all nations is improved by our determination to honor our vital commitments +in defense of peace and freedom. + +I am proud that the United States has strong defenses, strong alliances, +and a sound and courageous foreign policy. + +Our alliances with major partners, the great industrial democracies of +Western Europe, Japan, and Canada, have never been more solid. +Consultations on mutual security, defense, and East-West relations have +grown closer. Collaboration has branched out into new fields such as +energy, economic policy, and relations with the Third World. We have used +many avenues for cooperation, including summit meetings held among major +allied countries. The friendship of the democracies is deeper, warmer, and +more effective than at any time in 30 years. + +We are maintaining stability in the strategic nuclear balance and pushing +back the specter of nuclear war. A decisive step forward was taken +in the Vladivostok Accord which I negotiated with General Secretary +Brezhnev--joint recognition that an equal ceiling should be placed +on the number of strategic weapons on each side. With resolve and wisdom +on the part of both nations, a good agreement is well within reach +this year. + +The framework for peace in the Middle East has been built. Hopes for future +progress in the Middle East were stirred by the historic agreements we +reached and the trust and confidence that we formed. Thanks to American +leadership, the prospects for peace in the Middle East are brighter than +they have been in three decades. The Arab states and Israel continue to +look to us to lead them from confrontation and war to a new era of +accommodation and peace. We have no alternative but to persevere, and I am +sure we will. The opportunities for a final settlement are great, and the +price of failure is a return to the bloodshed and hatred that for too long +have brought tragedy to all of the peoples of this area and repeatedly +edged the world to the brink of war. + +Our relationship with the People's Republic of China is proving its +importance and its durability. We are finding more and more common ground +between our two countries on basic questions of international affairs. + +In my two trips to Asia as President, we have reaffirmed America's +continuing vital interest in the peace and security of Asia and the Pacific +Basin, established a new partnership with Japan, confirmed our dedication +to the security of Korea, and reinforced our ties with the free nations of +Southeast Asia. + +An historic dialog has begun between industrial nations and developing +nations. Most proposals on the table are the initiatives of the United +States, including those on food, energy, technology, trade, investment, and +commodities. We are well launched on this process of shaping positive and +reliable economic relations between rich nations and poor nations over the +long term. + +We have made progress in trade negotiations and avoided protectionism +during recession. We strengthened the international monetary system. During +the past 2 years the free world's most important economic powers have +already brought about important changes that serve both developed and +developing economies. The momentum already achieved must be nurtured and +strengthened, for the prosperity of the rich and poor depends upon it. + +In Latin America, our relations have taken on a new maturity and a sense of +common enterprise. + +In Africa the quest for peace, racial justice, and economic progress is at +a crucial point. The United States, in close cooperation with the United +Kingdom, is actively engaged in this historic process. Will change come +about by warfare and chaos and foreign intervention? Or will it come about +by negotiated and fair solutions, ensuring majority rule, minority rights, +and economic advance? America is committed to the side of peace and justice +and to the principle that Africa should shape its own future, free of +outside intervention. + +American leadership has helped to stimulate new international efforts to +stem the proliferation of nuclear weapons and to shape a comprehensive +treaty governing the use of oceans. + +I am gratified by these accomplishments. They constitute a record of broad +success for America and for the peace and prosperity of all mankind. This +administration leaves to its successor a world in better condition than we +found. We leave, as well, a solid foundation for progress on a range of +issues that are vital to the well-being of America. + +What has been achieved in the field of foreign affairs and what can be +accomplished by the new administration demonstrate the genius of Americans +working together for the common good. It is this, our remarkable ability to +work together, that has made us a unique nation. It is Congress, the +President, and the people striving for a better world. + +I know all patriotic Americans want this Nation's foreign policy to +succeed. I urge members of my party in this Congress to give the new +President loyal support in this area. I express the hope that this new +Congress will reexamine its constitutional role in international affairs. + +The exclusive right to declare war, the duty to advise and consent on the +part of the Senate, the power of the purse on the part of the House are +ample authority for the legislative branch and should be jealously guarded. +But because we may have been too careless of these powers in the past does +not justify congressional intrusion into, or obstruction of, the proper +exercise of Presidential responsibilities now or in the future. There can +be only one Commander in Chief. In these times crises cannot be managed and +wars cannot be waged by committee, nor can peace be pursued solely by +parliamentary debate. To the ears of the world, the President speaks for +the Nation. While he is, of course, ultimately accountable to the Congress, +the courts, and the people, he and his emissaries must not be handicapped +in advance in their relations with foreign governments as has sometimes +happened in the past. + +At home I am encouraged by the Nation's recovery from the recession and our +steady return to sound economic growth. It is now continuing after the +recent period of uncertainty, which is part of the price we pay for free +elections. + +Our most pressing need today and the future is more jobs--productive, +permanent jobs created by a thriving economy. We must revise our tax system +both to ease the burden of heavy taxation and to encourage the investment +necessary for the creation of productive jobs for all Americans who want to +work. + +Earlier this month I proposed a permanent income tax reduction of $10 +billion below current levels, including raising the personal exemption from +$750 to $1,000. I also recommended a series of measures to stimulate +investment, such as accelerated depreciation for new plants and equipment +in areas of high unemployment, a reduction in the corporate tax rate from +48 to 46 percent, and eliminating the present double taxation of dividends. +I strongly urge the Congress to pass these measures to help create the +productive, permanent jobs in the private economy that are so essential for +our future. + +All the basic trends are good; we are not on the brink of another recession +or economic disaster. If we follow prudent policies that encourage +productive investment and discourage destructive inflation, we will come +out on top, and I am sure we will. + +We have successfully cut inflation by more than half. When I took office, +the Consumer Price Index was rising at 12.2 percent a year. During 1976 the +rate of inflation was 5 percent. + +We have created more jobs--over 4 million more jobs today than in the +spring of 1975. Throughout this Nation today we have over 88 million people +in useful, productive jobs--more than at any other time in our Nation's +history. But there are still too many Americans unemployed. This is the +greatest regret that I have as I leave office. + +We brought about with the Congress, after much delay, the renewal of the +general revenue sharing. We expanded community development and Federal +manpower programs. We began a significant urban mass transit program. +Federal programs today provide more funds for our States and local +governments than ever before--$70 billion for the current fiscal year. +Through these programs and others that provide aid directly to individuals, +we have kept faith with our tradition of compassionate help for those who +need it. As we begin our third century we can be proud of the progress that +we have made in meeting human needs for all of our citizens. + +We have cut the growth of crime by nearly 90 percent. Two years ago crime +was increasing at the rate of 18 percent annually. In the first three +quarters of 1976, that growth rate had been cut to 2 percent. But crime, +and the fear of crime, remains one of the most serious problems facing our +citizens. + +We have had some successes, and there have been some disappointments. +Bluntly, I must remind you that we have not made satisfactory progress +toward achieving energy independence. Energy is absolutely vital to the +defense of our country, to the strength of our economy, and to the quality +of our lives. + +Two years ago I proposed to the Congress the first comprehensive national +energy program--a specific and coordinated set of measures that would end +our vulnerability to embargo, blockade, or arbitrary price increases and +would mobilize U.S. technology and resources to supply a significant share +of the free world's energy after 1985. Of the major energy proposals I +submitted 2 years ago, only half, belatedly, became law. In 1973 we were +dependent upon foreign oil imports for 36 percent of our needs. Today, we +are 40-percent dependent, and we'll pay out $34 billion for foreign oil +this year. Such vulnerability at present or in the future is intolerable +and must be ended. + +The answer to where we stand on our national energy effort today reminds me +of the old argument about whether the tank is half full or half empty. The +pessimist will say we have half failed to achieve our 10-year energy goals; +the optimist will say that we have half succeeded. I am always an optimist, +but we must make up for lost time. + +We have laid a solid foundation for completing the enormous task which +confronts us. I have signed into law five major energy bills which contain +significant measures for conservation, resource development, stockpiling, +and standby authorities. We have moved forward to develop the naval +petroleum reserves; to build a 500-million barrel strategic petroleum +stockpile; to phase out unnecessary Government allocation and price +controls; to develop a lasting relationship with other oil consuming +nations; to improve the efficiency of energy use through conservation in +automobiles, buildings, and industry; and to expand research on new +technology and renewable resources such as wind power, geothermal and solar +energy. All these actions, significant as they are for the long term, are +only the beginning. + +I recently submitted to the Congress my proposals to reorganize the Federal +energy structure and the hard choices which remain if we are serious about +reducing our dependence upon foreign energy. These include programs to +reverse our declining production of natural gas and increase incentives for +domestic crude oil production. I proposed to minimize environmental +uncertainties affecting coal development, expand nuclear power generation, +and create an energy independence authority to provide government financial +assistance for vital energy programs where private capital is not +available. + +We must explore every reasonable prospect for meeting our energy needs when +our current domestic reserves of oil and natural gas begin to dwindle in +the next decade. I urgently ask Congress and the new administration to move +quickly on these issues. This Nation has the resources and the capability +to achieve our energy goals if its Government has the will to proceed, and +I think we do. + +I have been disappointed by inability to complete many of the meaningful +organizational reforms which I contemplated for the Federal Government, +although a start has been made. For example, the Federal judicial system +has long served as a model for other courts. But today it is threatened by +a shortage of qualified Federal judges and an explosion of litigation +claiming Federal jurisdiction. I commend to the new administration and the +Congress the recent report and recommendations of the Department of +Justice, undertaken at my request, on "the needs of the Federal Courts." I +especially endorse its proposals for a new commission on the judicial +appointment process. + +While the judicial branch of our Government may require reinforcement, the +budgets and payrolls of the other branches remain staggering. I cannot help +but observe that while the White House staff and the Executive Office of +the President have been reduced and the total number of civilians in the +executive branch contained during the 1970's, the legislative branch has +increased substantially although the membership of the Congress remains at +535. Congress now costs the taxpayers more than a million dollars per +Member; the whole legislative budget has passed the billion dollar mark. + +We have made some progress in cutting back the expansion of government and +its intrusion into individual lives, but believe me, there is much more to +be done--and you and I know it. It can only be done by tough and +temporarily painful surgery by a Congress as prepared as the President to +face up to this very real political problem. Again, I wish my successor, +working with a substantial majority of his own party, the best of success +in reforming the costly and cumbersome machinery of the Federal +Government. + +The task of self-government is never finished. The problems are great; the +opportunities are greater. + +America's first goal is and always will be peace with honor. America must +remain first in keeping peace in the world. We can remain first in peace +only if we are never second in defense. + +In presenting the state of the Union to the Congress and to the American +people, I have a special obligation as Commander in Chief to report on our +national defense. Our survival as a free and independent people requires, +above all, strong military forces that are well equipped and highly trained +to perform their assigned mission. + +I am particularly gratified to report that over the past 2 1/2 years, we +have been able to reverse the dangerous decline of the previous decade in +real resources this country was devoting to national defense. This was an +immediate problem I faced in 1974. The evidence was unmistakable that the +Soviet Union had been steadily increasing the resources it applied to +building its military strength. During this same period the United States +real defense spending declined. In my three budgets we not only arrested +that dangerous decline, but we have established the positive trend which is +essential to our ability to contribute to peace and stability in the +world. + +The Vietnam war, both materially and psychologically, affected our overall +defense posture. The dangerous anti-military sentiment discouraged defense +spending and unfairly disparaged the men and women who serve in our Armed +Forces. + +The challenge that now confronts this country is whether we have the +national will and determination to continue this essential defense effort +over the long term, as it must be continued. We can no longer afford to +oscillate from year to year in so vital a matter; indeed, we have a duty to +look beyond the immediate question of budgets and to examine the nature of +the problem we will face over the next generation. + +I am the first recent President able to address long-term, basic issues +without the burden of Vietnam. The war in Indochina consumed enormous +resources at the very time that the overwhelming strategic superiority we +once enjoyed was disappearing. In past years, as a result of decisions by +the United States, our strategic forces leveled off, yet the Soviet Union +continued a steady, constant buildup of its own forces, committing a high +percentage of its national economic effort to defense. + +The United States can never tolerate a shift in strategic balance against +us or even a situation where the American people or our allies believe the +balance is shifting against us. The United States would risk the most +serious political consequences if the world came to believe that our +adversaries have a decisive margin of superiority. + +To maintain a strategic balance we must look ahead to the 1980's and +beyond. The sophistication of modern weapons requires that we make +decisions now if we are to ensure our security 10 years from now. +Therefore, I have consistently advocated and strongly urged that we pursue +three critical strategic programs: the Trident missile launching submarine; +the B-1 bomber, with its superior capability to penetrate modern air +defenses; and a more advanced intercontinental ballistic missile that will +be better able to survive nuclear attack and deliver a devastating +retaliatory strike. + +In an era where the strategic nuclear forces are in rough equilibrium, the +risks of conflict below the nuclear threshold may grow more perilous. A +major, long-term objective, therefore, is to maintain capabilities to deal +with, and thereby deter, conventional challenges and crises, particularly +in Europe. + +We cannot rely solely on strategic forces to guarantee our security or to +deter all types of aggression. We must have superior naval and marine +forces to maintain freedom of the seas, strong multipurpose tactical air +forces, and mobile, modern ground forces. Accordingly, I have directed a +long-term effort to improve our worldwide capabilities to deal with +regional crises. + +I have submitted a 5-year naval building program indispensable to the +Nation's maritime strategy. Because the security of Europe and the +integrity of NATO remain the cornerstone of American defense policy, I have +initiated a special, long-term program to ensure the capacity of the +Alliance to deter or defeat aggression in Europe. + +As I leave office I can report that our national defense is effectively +deterring conflict today. Our Armed Forces are capable of carrying out the +variety of missions assigned to them. Programs are underway which will +assure we can deter war in the years ahead. But I also must warn that it +will require a sustained effort over a period of years to maintain these +capabilities. We must have the wisdom, the stamina, and the courage to +prepare today for the perils of tomorrow, and I believe we will. + +As I look to the future--and I assure you I intend to go on doing that for +a good many years--I can say with confidence that the state of the Union is +good, but we must go on making it better and better. + +This gathering symbolizes the constitutional foundation which makes +continued progress possible, synchronizing the skills of three independent +branches of Government, reserving fundamental sovereignty to the people of +this great land. It is only as the temporary representatives and servants +of the people that we meet here, we bring no hereditary status or gift of +infallibility, and none follows us from this place. + +Like President Washington, like the more fortunate of his successors, I +look forward to the status of private citizen with gladness and gratitude. +To me, being a citizen of the United States of America is the greatest +honor and privilege in this world. + +From the opportunities which fate and my fellow citizens have given me, as +a Member of the House, as Vice President and President of the Senate, and +as President of all the people, I have come to understand and place the +highest value on the checks and balances which our founders imposed on +government through the separation of powers among co-equal legislative, +executive, and judicial branches. This often results in difficulty and +delay, as I well know, but it also places supreme authority under God, +beyond any one person, any one branch, any majority great or small, or any +one party. The Constitution is the bedrock of all our freedoms. Guard and +cherish it, keep honor and order in your own house, and the Republic will +endure. + +It is not easy to end these remarks. In this Chamber, along with some of +you, I have experienced many, many of the highlights of my life. It was +here that I stood 28 years ago with my freshman colleagues, as Speaker Sam +Rayburn administered the oath. I see some of you now--Charlie Bennett, Dick +Bolling, Carl Perkins, Pete Rodino, Harley Staggers, Tom Steed, Sid Yates, +Clem Zablocki-and I remember those who have gone to their rest. It was here +we waged many, many a lively battle--won some, lost some, but always +remaining friends. It was here, surrounded by such friends, that the +distinguished Chief Justice swore me in as Vice President on December 6, +1973. It was here I returned 8 months later as your President to ask not +for a honeymoon, but for a good marriage. + +I will always treasure those memories and your many, many kindnesses. I +thank you for them all. + +My fellow Americans, I once asked you for your prayers, and now I give you +mine: May God guide this wonderful country, its people, and those they have +chosen to lead them. May our third century be illuminated by liberty and +blessed with brotherhood, so that we and all who come after us may be the +humble servants of thy peace. Amen. + +Good night. God bless you. + + + +*** END OF THE PROJECT GUTENBERG EBOOK OF ADDRESSES BY GERALD R. 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