History records the power of the ideas that brought us here those 7 years ago-ideas like the individual’s right to reach as far and as high as his or her talents will permit; the free market as an engine of economic progress. And as an ancient Chinese philosopher, Lao-tzu, said: “Govern a great nation as you would cook a small fish; do not overdo it.
Well, these ideas were part of a larger notion, a vision, if you will, of America herself—an America not only rich in opportunity for the individual but an America, too, of strong families and vibrant neighborhoods; an America whose divergent but harmonizing communities were a reflection of a deeper community of values: the value of work, of family, of religion, and of the love of freedom that God places in each of us and whose defense He has entrusted in a special way to this nation.”
And let’s begin by discussing how to maintain economic growth by controlling and eventually eliminating the problem of federal deficits. We have had a balanced budget only eight times in the last 57 years. For the first time in 14 years, the federal government spent less in real terms last year than the year before.
We took $73 billion off last year’s deficit compared to the year before. The deficit itself has moved from 6.3 percent of the Gross National Product to only 3.4 percent. And perhaps the most important sign of progress has been the change in our view of deficits.
You know, a few of us can remember when, not too many years ago, those who created the deficits said they would make us prosperous and not to worry about the debt because “we owe it to ourselves.” Well, at last there is agreement that we can’t spend ourselves rich.
Our recent budget agreement, designed to reduce federal deficits by $76 billion over the next two years, builds on this consensus. But this agreement must be adhered to without slipping into the errors of the past — more broken promises and more unchecked spending.
As I indicated in my first State of the Union, what ails us can be simply put: The federal government is too big and it spends too much money.
This nation has been portrayed for too long of time to the people as being energy poor. When it is energy rich. The coal that the president mentioned, yes, we have it. And yet, 1/8 of our total core resources is not being utilized at all, right now. The mines are close down, there are 22,000 miners out of work. Most of this is due to regulations. Which either interfere with the mining of it or prevent the burning of it. With our modern technology, yes we can burn our coal within the limits of the clean air act. I think as technology improves we will be able to do even better with that.
When he was a candidate in 1976, President Carter, invented a thing he called the Misery Index. He added the rate of unemployment and the rate of inflation. And it came at that point to 12.5%, under President Ford. And he said that no man, with that size Misery Index had a right to seek reelection to the presidency . Today, by his own decision, the Misery Index is in excess of 20%
I would like to ask the President, why is it inflationary to let the people keep more of their money and spend it they way they would like and it isn’t inflationary to let him take that money and spend it the way he wants?