diff --git a/l1/TM-Lab1.ipynb b/l1/TM-Lab1.ipynb new file mode 100644 index 0000000000000000000000000000000000000000..887a2f9831bcdb14a5f6b18869e73ce84e79c1c1 --- /dev/null +++ b/l1/TM-Lab1.ipynb @@ -0,0 +1,719 @@ +{ + "cells": [ + { + "cell_type": "markdown", + "id": "8ccd4d3c", + "metadata": {}, + "source": [ + "<div class=\"alert alert-info\">\n", + " \n", + "➡️ Before you start, make sure that you are familiar with the **[study guide](https://liu-nlp.ai/text-mining/logistics/)**, in particular the rules around **cheating and plagiarism** (found in the course memo).\n", + "\n", + "➡️ If you use code from external sources (e.g. StackOverflow, ChatGPT, ...) as part of your solutions, don't forget to add a reference to these source(s) (for example as a comment above your code).\n", + "\n", + "➡️ Make sure you fill in all cells that say **`YOUR CODE HERE`** or **YOUR ANSWER HERE**. You normally shouldn't need to modify any of the other cells.\n", + "\n", + "</div>" + ] + }, + { + "cell_type": "markdown", + "id": "91c4f84c-26c4-4bcb-81d1-8757088f0623", + "metadata": {}, + "source": [ + "# L1: Information Retrieval\n", + "\n", + "In this lab you will apply basic techniques from information retrieval to implement the core of a minimalistic search engine. The data for this lab consists of a collection of app descriptions scraped from the [Google Play Store](https://play.google.com/store/apps?hl=en). From this collection, your search engine should retrieve those apps whose descriptions best match a given query under the vector space model." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "2c92aa93-cf15-4e1c-975e-fea9bbe0b0c4", + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "1cbe3dc2eff09907e453d02296e6f2a3", + "grade": false, + "grade_id": "cell-f766ed4c371f7a04", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + }, + "slideshow": { + "slide_type": "" + }, + "tags": [] + }, + "outputs": [], + "source": [ + "# Define some helper functions that are used in this notebook\n", + "from IPython.display import display, HTML\n", + "\n", + "def success():\n", + " display(HTML('<div class=\"alert alert-success\"><strong>Checks have passed!</strong></div>'))" + ] + }, + { + "cell_type": "markdown", + "id": "d2b5345b-0f8f-4a58-b7d3-bd5baae0c281", + "metadata": {}, + "source": [ + "## Dataset" + ] + }, + { + "cell_type": "markdown", + "id": "68a82b5c-1660-4389-942b-f15420289549", + "metadata": {}, + "source": [ + "The app descriptions come in the form of a compressed [JSON](https://en.wikipedia.org/wiki/JSON) file. Start by loading this file into a [Pandas](https://pandas.pydata.org) [DataFrame](https://pandas.pydata.org/pandas-docs/stable/getting_started/dsintro.html#dataframe)." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "fd4982e3-3df4-4837-97b5-4c300b0d4a20", + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "1f1e59d0ec4fbd656e2335705c753302", + "grade": false, + "grade_id": "cell-c5ac0bec64889197", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + }, + "slideshow": { + "slide_type": "" + }, + "tags": [] + }, + "outputs": [], + "source": [ + "import bz2\n", + "import numpy as np\n", + "import pandas as pd\n", + "pd.set_option('display.max_colwidth', 500)\n", + "\n", + "with bz2.open('app-descriptions.json.bz2', mode='rt', encoding='utf-8') as source:\n", + " df = pd.read_json(source, encoding='utf-8')" + ] + }, + { + "cell_type": "markdown", + "id": "30823068-3102-430d-9989-b4f530756a08", + "metadata": {}, + "source": [ + "In Pandas, a DataFrame is a table with indexed rows and labelled columns of potentially different types. You can access data in a DataFrame in various ways, including by row and column. To give an example, the code in the next cell shows rows 200–204:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "141b8fbb-7a52-4cec-8d9f-921f4694e9c8", + "metadata": {}, + "outputs": [], + "source": [ + "df.loc[200:205]" + ] + }, + { + "cell_type": "markdown", + "id": "27186bc1-de90-4125-837a-7b4e8671d276", + "metadata": {}, + "source": [ + "As you can see, there are two labelled columns: `name` (the name of the app) and `description` (a textual description). The next cell shows how to access only the description field from row 200:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "595bb7af-5ee4-4b8e-8f5e-df5aaae688d9", + "metadata": {}, + "outputs": [], + "source": [ + "df.loc[200, 'description']" + ] + }, + { + "cell_type": "markdown", + "id": "35e9d0cb-a8bb-4e94-9b8c-b6b33651ac8e", + "metadata": {}, + "source": [ + "## Problem 1: What's in a vector?" + ] + }, + { + "cell_type": "markdown", + "id": "97a37f90-e7d8-4542-89e0-bea664601769", + "metadata": {}, + "source": [ + "We start by vectorising the data — more specifically, we map each app description to a tf–idf vector. This is very simple with a library like [scikit-learn](https://scikit-learn.org/stable/), which provides a [TfidfVectorizer](https://scikit-learn.org/stable/modules/generated/sklearn.feature_extraction.text.TfidfVectorizer.html) class for exactly this purpose. If we instantiate this class, and call `fit_transform()` on all of our app descriptions, scikit-learn will preprocess and tokenize each app description, compute tf–idf values for each of them, and return a vectorised representation:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "0ca674d8-c2df-4c8f-bb3d-6d59bdc401fb", + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "0b537a1d38dc3fae5409caa6d374611d", + "grade": false, + "grade_id": "cell-eeff6351582552c5", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "from sklearn.feature_extraction.text import TfidfVectorizer\n", + "\n", + "vectorizer = TfidfVectorizer()\n", + "X = vectorizer.fit_transform(df['description'])\n", + "X" + ] + }, + { + "cell_type": "markdown", + "id": "4d2af7b6-e140-45ec-ba15-3428b089e283", + "metadata": {}, + "source": [ + "Let’s pick the app \"Pancake Tower\", which has a rather short description text, to see how it has been vectorised:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "10d112e7-e564-4e47-a633-38910709947f", + "metadata": {}, + "outputs": [], + "source": [ + "# We can use 'toarray' to convert the sparse matrix object into a \"normal\" array\n", + "vec = X[1032].toarray()[0]\n", + "\n", + "# The app description & its corresponding vector\n", + "df.loc[1032, 'description'], vec" + ] + }, + { + "cell_type": "markdown", + "id": "b778f9cb-20ff-44b2-939b-cbf6b343558d", + "metadata": {}, + "source": [ + "That's not very informative yet. We know that the vector contains tf–idf values, and that each dimension of the vector corresponds to a token in the vectorizer’s vocabulary; let's extract these for this specific example.\n", + "\n", + "Your **first task** is to find out how to access the `vectorizer`’s vocabulary, for example by [checking the documentation of `TfidfVectorizer`](https://scikit-learn.org/stable/modules/generated/sklearn.feature_extraction.text.TfidfVectorizer.html), and print all the tokens that are represented in the vector with a tf–idf value greater than zero (i.e., only the tokens that are actually part of this app’s description) _in descending order of the tf–idf values_. In other words, the token with the highest tf–idf value should be at the top of your output, and the token with the lowest tf–idf value at the bottom. Before you implement this, think about what you would expect the output look like, for example which words you would expect to have the highest/lowest tf–idf values in this example.\n", + "\n", + "Your final output should look something like this:\n", + "\n", + "```\n", + "<token 1>: <tf-idf value 1>\n", + "<token 2>: <tf-idf value 2>\n", + "...\n", + "```" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "2f43ad18-aa4e-4d31-85de-0a7419767c37", + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "ef45e05c7a2274510589bc9317ef0096", + "grade": true, + "grade_id": "cell-95a3350b5c599c39", + "locked": false, + "points": 0, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "\"\"\"Print the tokens and their tf–idf values, in descending order.\"\"\"\n", + "\n", + "# YOUR CODE HERE\n", + "raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "id": "aa657ba6-4845-4569-9df5-0d7f4db26a2d", + "metadata": {}, + "source": [ + "## Problem 2: Finding the nearest vectors" + ] + }, + { + "cell_type": "markdown", + "id": "ceca7f1a-904b-4b1f-8ed2-8e5688603414", + "metadata": {}, + "source": [ + "To build a small search engine, we need to be able to turn _queries_ (for example the string \"pile up pancakes\") into _query vectors_, and then find out which of our app description vectors are closest to the query vector.\n", + "\n", + "For the first part (turning queries into query vectors), we can simply re-use the `vectorizer` that we used for the app descriptions. For the second part, an easy way to find the closest vectors is to use scikit-learn’s [NearestNeighbors](https://scikit-learn.org/stable/modules/generated/sklearn.neighbors.NearestNeighbors.html) class. This class needs to be _fit_ on a set of vectors (the \"training set\"; in our case the app descriptions) and can then be used with any vector to find its _nearest neighbors_ in the vector space.\n", + "\n", + "**First,** instantiate and fit a class that returns the _ten (10)_ nearest neighbors:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "ccf46d50-ea74-42d7-86e2-6520dde6eac6", + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "dfdd47cca90ffba7c29bbd4436e06dde", + "grade": false, + "grade_id": "cell-bcebb6d4a62e7b7f", + "locked": false, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "\"\"\"Instantiate and fit a class that returns the 10 nearest neighboring vectors.\"\"\"\n", + "\n", + "# YOUR CODE HERE\n", + "raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "id": "5c79b405-a236-4caf-a140-dff01e0ee88b", + "metadata": {}, + "source": [ + "**Second,** implement a function that uses the vectorizer and the fitted class to find the nearest neighbours for a given query string:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "d70bfb5a-3648-44ad-aa3a-dfa39838ffc3", + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "7691715bfd90372d8e5a7e05f9f463f5", + "grade": false, + "grade_id": "cell-18bf238a099d709b", + "locked": false, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "def search(query):\n", + " \"\"\"Find the nearest neighbors in `df` for a query string.\n", + "\n", + " Arguments:\n", + " query (str): A query string.\n", + "\n", + " Returns:\n", + " The 10 apps (with name and description) most similar (in terms of\n", + " cosine similarity) to the given query as a Pandas DataFrame.\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "id": "e2cbb9f7-1cf5-49b9-a364-7b23fb6bbd1d", + "metadata": {}, + "source": [ + "### 🤞 Test your code\n", + "\n", + "Test your implementation by running the following cell, which will sanity-check your return value and show the 10 best search results for the query _\"pile up pancakes\"_:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "3d30a52e-bdac-412b-b9c4-8e9cc17436a6", + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "6ee8bcf553647fa7ad499be8f7631289", + "grade": true, + "grade_id": "cell-8506d7fe5961f87b", + "locked": true, + "points": 1, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "\"\"\"Check that searching for \"pile up pancakes\" returns a DataFrame with ten results,\n", + " and that the top result is \"Pancake Tower\".\"\"\"\n", + "\n", + "result = search('pile up pancakes')\n", + "display(result)\n", + "assert isinstance(result, pd.DataFrame), \"search() function should return a Pandas DataFrame\"\n", + "assert len(result) == 10, \"search() function should return 10 search results\"\n", + "assert result.iloc[0][\"name\"] == \"Pancake Tower\", \"Top search result should be 'Pancake Tower'\"\n", + "success()" + ] + }, + { + "cell_type": "markdown", + "id": "27802387-4fe0-4e3f-bb4e-c0ef048ca721", + "metadata": {}, + "source": [ + "Before continuing with the next problem, play around a bit with this simple search functionality by trying out different search queries, and see if the results look like what you would expect:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "485d95fe-cfe3-4225-8c8e-2e9496c6eea2", + "metadata": { + "editable": true, + "slideshow": { + "slide_type": "" + }, + "tags": [] + }, + "outputs": [], + "source": [ + "# Example — try out your own queries!\n", + "search(\"dodge trains\")" + ] + }, + { + "cell_type": "markdown", + "id": "72fb8872-b7bc-4f7e-a01f-6f764c2c6258", + "metadata": {}, + "source": [ + "## Problem 3: Custom preprocessing & tokenization" + ] + }, + { + "cell_type": "markdown", + "id": "93a34a04-425e-4067-bcf3-00d2f3edc727", + "metadata": {}, + "source": [ + "In Problem 1, you should have seen that `TfidfVectorizer` already performs some preprocessing by default and also does its own tokenization of the input data. This is great for getting started, but often we want to have more control over these steps. We can customize some aspects of the preprocessing through arguments when instantiating `TfidfVectorizer`, but for this exercise, we want to do _all_ of our preprocessing & tokenizing outside of scikit-learn.\n", + "\n", + "Concretely, we want to use [spaCy](https://spacy.io), a library that we will make use of in later labs as well. Here is a brief example of how to load and use a spaCy model:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "23dadb46-66b7-4d53-a9db-48849c6cb9d8", + "metadata": {}, + "outputs": [], + "source": [ + "import spacy\n", + "# Load the small English model, disabling some components that we don't need right now\n", + "nlp = spacy.load('en_core_web_sm', disable=['parser', 'ner', 'textcat'])\n", + "\n", + "# Take an example sentence and print every token from it separately\n", + "doc = nlp(\"Apple is looking at buying U.K. startup for $1 billion\")\n", + "for token in doc:\n", + " print(token.text)" + ] + }, + { + "cell_type": "markdown", + "id": "d81a9865-f314-4d80-9fac-e6544413ee3a", + "metadata": {}, + "source": [ + "**Your task** is to write a preprocessing function that uses spaCy to perform the following steps:\n", + "- tokenization\n", + "- lemmatization\n", + "- stop word removal\n", + "- removing tokens containing non-alphabetical characters\n", + "\n", + "We recommend that you go through the [Linguistic annotations](https://spacy.io/usage/spacy-101#annotations) section of the spaCy 101, which demonstrates how you can get the relevant kind of information via the spaCy library.\n", + "\n", + "Implement your preprocessor by completing the following function:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "1a2a6fc6-dee8-4140-bf7a-1a245e60a1b3", + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "a1c51dc3d0c0c8ba1517e852d7d5df1e", + "grade": false, + "grade_id": "cell-2df4eac94cdf6be3", + "locked": false, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "def preprocess(text):\n", + " \"\"\"Preprocess the given text by tokenising it, removing any stop words, \n", + " replacing each remaining token with its lemma (base form), and discarding \n", + " all lemmas that contain non-alphabetical characters.\n", + "\n", + " Arguments:\n", + " text (str): The text to preprocess.\n", + "\n", + " Returns:\n", + " The list of remaining lemmas after preprocessing (represented as strings).\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "id": "8af08b57-8e0c-4526-b7fc-94c8bace1936", + "metadata": {}, + "source": [ + "### 🤞 Test your code\n", + "\n", + "Test your implementation by running the following cell:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "e918affb-f8aa-4cbf-9cbe-b03b9251e941", + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "539b9043be91aac1f9d82fb62dea6112", + "grade": true, + "grade_id": "cell-642185b139f2cef6", + "locked": true, + "points": 1, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "\"\"\"Check that the preprocessing returns the correct output for a number of test cases.\"\"\"\n", + "\n", + "assert (\n", + " preprocess('Apple is looking at buying U.K. startup for $1 billion') ==\n", + " ['Apple', 'look', 'buy', 'startup', 'billion']\n", + ")\n", + "assert (\n", + " preprocess('\"Love Story\" is a country pop song written and sung by Taylor Swift.') ==\n", + " ['Love', 'Story', 'country', 'pop', 'song', 'write', 'sing', 'Taylor', 'Swift']\n", + ")\n", + "success()" + ] + }, + { + "cell_type": "markdown", + "id": "62063fdc-86bc-48cb-b045-04308358f852", + "metadata": {}, + "source": [ + "## Problem 4: The effect of preprocessing\n", + "\n", + "To make use of the new `preprocess` function from Problem 3, we need to make sure that we incorporate it into `TfidfVectorizer` and disable all preprocessing & tokenization that `TfidfVectorizer` performs by default. Afterwards, we also need to re-fit the vectorizer and the nearest-neighbors class. To make this a bit easier to handle, let’s take everything we have done so far and put it in a single class `AppSearcher`." + ] + }, + { + "cell_type": "markdown", + "id": "f0ddb215-dd45-40aa-9c36-d6fb37aa6d28", + "metadata": {}, + "source": [ + "### Task 4.1\n", + "\n", + "**Your first task** is to complete the stub of the `AppSearcher` class given below. Keep in mind:\n", + "- The `fit()` function should fit both the vectorizer (from Problem 1) and the nearest-neighbors class (from Problem 2). Make sure to modify the call to `TfidfVectorizer` to _disable all preprocessing & tokenization_ that it would do by default, and replace it with a call to the `preprocess()` function _defined in `AppSearcher`_.\n", + "- For the `preprocess()` function, you can start by copying your solution from Problem 3.\n", + "- For the `search()` function, you can copy your solution from Problem 2.\n", + "- Make sure to adapt your code to store the everything (data, vectorizer, nearest-neighbors class) within the `AppSearcher` class, so that your solution is independent of the code you wrote above!" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "4f66665d-24da-4506-9f4f-c1427caa039e", + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "344165098a156da25b2adc3e9e70168b", + "grade": true, + "grade_id": "cell-cb53b61e9efe98af", + "locked": false, + "points": 0, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "class AppSearcher:\n", + " def fit(self, df):\n", + " \"\"\"Instantiate and fit all the classes required for the search engine (cf. Problems 1 and 2).\"\"\"\n", + " self.df = df\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()\n", + "\n", + " def preprocess(self, text):\n", + " \"\"\"Preprocess the given text (cf. Problem 3).\"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()\n", + "\n", + " def search(self, query):\n", + " \"\"\"Find the nearest neighbors in `df` for a query string (cf. Problem 2).\"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()\n" + ] + }, + { + "cell_type": "markdown", + "id": "f70ca3f6-c086-4588-8e17-4558cd7ebe99", + "metadata": {}, + "source": [ + "#### 🤞 Test your code\n", + "\n", + "The following cell demonstrates how your class should be used. Note that it can take a bit longer to train it on the data as before, since we’re now calling spaCy for the preprocessing." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "d32d42be-4e31-44c7-b1e4-afe3dc77a506", + "metadata": {}, + "outputs": [], + "source": [ + "apps = AppSearcher()\n", + "apps.fit(df)\n", + "apps.search(\"pile up pancakes\")" + ] + }, + { + "cell_type": "markdown", + "id": "5adce322-80ee-44b9-bd7f-5c910a90330e", + "metadata": {}, + "source": [ + "### Task 4.2\n", + "\n", + "**Your second task** is to experiment with the effect of using (or not using) different preprocessing steps. We always need to _tokenize_ the text, but other preprocessing steps are optional and require a conscious decision whether to use them or not, such as:\n", + "- lemmatization\n", + "- lowercasing all characters\n", + "- removing stop words\n", + "- removing tokens containing non-alphabetical characters\n", + "\n", + "**Modify the definition of the `preprocess()` function** of `AppSearcher` to include/exclude individual preprocessing steps, run some searches, and observe if and how the results change. Which search queries you try out is up to you — you could compare searching for \"pile up pancakes\" with \"pancake piling\", for example; or you could try entirely different search queries aimed at different kinds of apps. (You can modify the class directly by changing the cell above under Task 4.1, or copy the definitions to the cells below, whichever you prefer; there is no separate code to show for this task, but you will use your observations here for the individual reflection.)" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "5a59c86d-2c98-4d1b-a267-89aa13871cf3", + "metadata": {}, + "outputs": [], + "source": [] + }, + { + "cell_type": "markdown", + "id": "de6f8ce3-d22d-47c1-9f8c-5f1b8b7ab027", + "metadata": {}, + "source": [ + "## Individual reflection\n", + "\n", + "<div class=\"alert alert-info\">\n", + " <strong>After you have solved the lab,</strong> write a <em>brief</em> reflection (max. one A4 page) on the question(s) below. Remember:\n", + " <ul>\n", + " <li>You are encouraged to discuss this part with your lab partner, but you should each write up your reflection <strong>individually</strong>.</li>\n", + " <li><strong>Do not put your answers in the notebook</strong>; upload them in the separate submission opportunity for the reflections on Lisam.</li>\n", + " </ul>\n", + "</div>" + ] + }, + { + "cell_type": "markdown", + "id": "b65b377f-64eb-475b-94c9-d8bd27a68039", + "metadata": { + "editable": true, + "slideshow": { + "slide_type": "" + }, + "tags": [] + }, + "source": [ + "1. In Problem 1, which token had the highest tf–idf score, which the lowest? Based on your knowledge of how tf–idf works, how would you explain this result?\n", + "2. Based on your observations in Problem 4, which preprocessing steps do you think are the most appropriate for this \"search engine\" example? Why?" + ] + }, + { + "cell_type": "markdown", + "id": "125ccdbd-4375-4d2f-8b1d-f47097ef2e84", + "metadata": {}, + "source": [ + "**Congratulations on finishing this lab! 👍**\n", + "\n", + "<div class=\"alert alert-info\">\n", + " \n", + "➡️ Before you submit, **make sure the notebook can be run from start to finish** without errors. For this, _restart the kernel_ and _run all cells_ from top to bottom. In Jupyter Notebook version 7 or higher, you can do this via \"Run$\\rightarrow$Restart Kernel and Run All Cells...\" in the menu (or the \"⏩\" button in the toolbar).\n", + "\n", + "</div>" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "f3ad192d-7557-4cd9-9ead-6699b8de9114", + "metadata": {}, + "outputs": [], + "source": [] + } + ], + "metadata": { + "kernelspec": { + "display_name": "Python 3 (ipykernel)", + "language": "python", + "name": "python3" + }, + "language_info": { + "codemirror_mode": { + "name": "ipython", + "version": 3 + }, + "file_extension": ".py", + "mimetype": "text/x-python", + "name": "python", + "nbconvert_exporter": "python", + "pygments_lexer": "ipython3", + "version": "3.12.7" + } + }, + "nbformat": 4, + "nbformat_minor": 5 +} diff --git a/l1/app-descriptions.json.bz2 b/l1/app-descriptions.json.bz2 new file mode 100644 index 0000000000000000000000000000000000000000..2143bf5dcb9b8fbfc03332d11c3b25395689abd6 Binary files /dev/null and b/l1/app-descriptions.json.bz2 differ diff --git a/l2/TM-Lab2.ipynb b/l2/TM-Lab2.ipynb new file mode 100644 index 0000000000000000000000000000000000000000..309b149a4670a7baa178c18043e497b34ecb0a71 --- /dev/null +++ b/l2/TM-Lab2.ipynb @@ -0,0 +1,689 @@ +{ + "cells": [ + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "<div class=\"alert alert-info\">\n", + " \n", + "➡️ Before you start, make sure that you are familiar with the **[study guide](https://liu-nlp.ai/text-mining/logistics/)**, in particular the rules around **cheating and plagiarism** (found in the course memo).\n", + "\n", + "➡️ If you use code from external sources (e.g. StackOverflow, ChatGPT, ...) as part of your solutions, don't forget to add a reference to these source(s) (for example as a comment above your code).\n", + "\n", + "➡️ Make sure you fill in all cells that say **`YOUR CODE HERE`** or **YOUR ANSWER HERE**. You normally shouldn't need to modify any of the other cells.\n", + "\n", + "</div>" + ] + }, + { + "cell_type": "markdown", + "metadata": { + "editable": true, + "slideshow": { + "slide_type": "" + }, + "tags": [] + }, + "source": [ + "# L2: Text Classification" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Text classification is the task of sorting text documents into predefined classes. The concrete problem you will be working on in this lab is the classification of speeches with respect to their political affiliation. The specific texts you are going to classify are speeches held in the [Riksdag](https://www.riksdagen.se/en/), the Swedish national legislature." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "editable": true, + "slideshow": { + "slide_type": "" + }, + "tags": [] + }, + "outputs": [], + "source": [ + "%matplotlib inline" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Dataset" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "The raw data for this lab comes from [The Riksdag’s Open Data](https://data.riksdagen.se/in-english/). We have preprocessed and tokenized the speeches and put them into two compressed [JSON](https://en.wikipedia.org/wiki/JSON) files:\n", + "\n", + "* `speeches-201718.json.bz2` (speeches from the 2017/2018 parliamentary session)\n", + "* `speeches-201819.json.bz2` (ditto, from the 2018/2019 session)\n", + "\n", + "We start by loading these files into two separate data frames." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "cbd62577bd7843909416d134d72e1194", + "grade": false, + "grade_id": "cell-381ec95ffbde9678", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + }, + "slideshow": { + "slide_type": "" + }, + "tags": [] + }, + "outputs": [], + "source": [ + "import pandas as pd\n", + "import bz2\n", + "\n", + "with bz2.open('speeches-201718.json.bz2', mode='rt', encoding='utf-8') as source:\n", + " speeches_201718 = pd.read_json(source, encoding='utf-8')\n", + "\n", + "with bz2.open('speeches-201819.json.bz2', mode='rt', encoding='utf-8') as source:\n", + " speeches_201819 = pd.read_json(source, encoding='utf-8')" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "When you inspect the two data frames, you can see that there are three labelled columns: `id` (the official speech ID), `words` (the space-separated words of the speech), and `party` (the party of the speaker, represented by its customary abbreviation)." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "speeches_201718.head()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Throughout the lab, we will be using the speeches from **2017/2018** as our **training data**, and the speeches from **2018/2019** as our **test data**." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "e79a1e65d8e7b70c0662a5454e1e68a5", + "grade": false, + "grade_id": "cell-d4057991468fe3ef", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "training_data, test_data = speeches_201718, speeches_201819" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "For later reference, we store the sorted list of party abbreviations." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "parties = sorted(training_data['party'].unique())\n", + "print(parties)" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 1: Data visualization" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Let’s start by getting to know the data better by producing a simple visualization. More specifically, we ask you to compare the two data frames with respect to the distribution of the speeches over the different parties.\n", + "\n", + "_(If you are not familiar with the Swedish political system and the parties represented in the Riksdag in particular, then we suggest that you have a look at the Wikipedia article about the [2018 Swedish general election](https://en.wikipedia.org/wiki/2018_Swedish_general_election), but it’s not required for solving this lab. Neither is knowing Swedish!)_\n", + "\n", + "Your task is to **write code to generate two bar plots** that visualize the party distribution, one for the 2017/2018 speeches and one for the 2018/2019 speeches. Inspect the two plots, and compare them\n", + "\n", + "* to each other; and\n", + "* to the results of the 2014 and the 2018 general elections.\n", + "\n", + "To facilitate the comparison, you should plot the parties in descending order of their total number of speeches.\n", + "\n", + "**_Note:_** You can produce the bar plots in any way you like (e.g. with Matplotlib, Seaborn, or directly with Pandas); if you don’t know where to start, one suggestion is to look at [seaborn’s tutorial for “visualizing categorical data”](https://seaborn.pydata.org/tutorial/categorical.html), specifically the parts about making _count_ plots." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "# Importing seaborn style — usually a good choice by default\n", + "import seaborn as sns\n", + "sns.set()" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "b52acc4f999f4811ad112c473dc61b07", + "grade": true, + "grade_id": "cell-435dbe643962a0e1", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "\"\"\"Produce a plot for the 2017/2018 speeches.\"\"\"\n", + "\n", + "# YOUR CODE HERE\n", + "raise NotImplementedError()" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "70818efe11a780503408efbca9e43c89", + "grade": true, + "grade_id": "cell-8b8855796909494a", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "\"\"\"Produce a plot for the 2018/2019 speeches.\"\"\"\n", + "\n", + "# YOUR CODE HERE\n", + "raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": { + "editable": true, + "slideshow": { + "slide_type": "" + }, + "tags": [] + }, + "source": [ + "After you made the plots, **summarize your observations** very briefly in the cell below!" + ] + }, + { + "cell_type": "markdown", + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "markdown", + "checksum": "c6e2646f15ce9856a929ffb804c604e9", + "grade": true, + "grade_id": "cell-f17b6c18a5f3684c", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "source": [ + "YOUR ANSWER HERE" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 2: Naive Bayes classifier" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "You are now ready to train and evaluate a classifier. More specifically, we ask you to train a [Multinomial Naive Bayes](https://scikit-learn.org/stable/modules/naive_bayes.html#multinomial-naive-bayes) classifier. You will have to\n", + "\n", + "1. vectorize the speeches in the training data _(with simple token counts)_\n", + "2. instantiate and fit the Naive Bayes model on the training data\n", + "3. evaluate the model on the test data\n", + "\n", + "You can use any approach you like, but a suggestion is to use scikit-learn’s convenience [Pipeline class](https://scikit-learn.org/stable/modules/generated/sklearn.pipeline.Pipeline.html) that allows you to solve the first two tasks with very compact code. For the evaluation you can use the function [classification_report()](https://scikit-learn.org/stable/modules/generated/sklearn.metrics.classification_report.html), which will report per-class precision, recall and F1, as well as overall accuracy.\n", + "\n", + "**Write code to produce a Multinomial Naive Bayes classifier as described above and report its performance on the test data!**" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "76cea169d2a834695abe2643fce1f538", + "grade": true, + "grade_id": "cell-b311b60eb7e5a413", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "# YOUR CODE HERE\n", + "raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Would you have expected the results that you got? (No need to write anything about this just yet, but make sure you understand what the values in the report mean.)" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 3: Baselines" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Evaluation metrics such as accuracy or F1-score should not be understood as _absolute_ measures of performance, but should be used only to _compare_ different classifiers. When other classifiers are not available, there are some simple baselines we can use that are implemented by scikit-learn’s [DummyClassifier](https://scikit-learn.org/stable/modules/generated/sklearn.dummy.DummyClassifier.html).\n", + "\n", + "One of the simplest baseline is to predict, for every document, that class which appears most often in the training data. This baseline is also called the _most frequent class_ baseline.\n", + "\n", + "**Write code to fit the most-frequent-class baseline on the training data and report its performance on the test data!**" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "e61c3fc37d9f653081e9b0fcff3e4106", + "grade": true, + "grade_id": "cell-d487ca84ccab29cd", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "# YOUR CODE HERE\n", + "raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "A slightly more interesting baseline is a classifier that generates predictions by random sampling, while respecting the training set’s class distribution. This way of random sampling is sometimes called _stratified sampling_.\n", + "\n", + "**Write code to fit the random sampling baseline on the training data and report its performance on the test data!**" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "af93eece5180010d1c22e6a18fd27c58", + "grade": true, + "grade_id": "cell-b24fc752be5cfcea", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "# YOUR CODE HERE\n", + "raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 4: Creating a balanced data set" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "As you saw in Problem 1, the distribution of the speeches over the eight different parties (classes) is imbalanced. One technique used to alleviate this is **undersampling**, in which one randomly removes samples from over-represented classes until all classes are represented with the same number of samples.\n", + "\n", + "Your task here is to **implement undersampling to create a balanced subset of the training data**. Afterwards, **rerun the evaluation** from Problem 2 on the balanced data and compare the results.\n", + "\n", + "**_Hint:_** Your balanced subset should consist of 5,752 speeches." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "12b02ac4a208566cfcba76b45948f97d", + "grade": true, + "grade_id": "cell-745500aace13dd25", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "\"\"\"Implement undersampling with the classifier from Problem 2 and report its performance on the test data.\"\"\"\n", + "\n", + "# YOUR CODE HERE\n", + "raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 5: Confusion matrix" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "A _confusion matrix_ is a type of table that is useful when analysing the performance of a classifier. In this table, both the rows and the columns correspond to classes, and each cell $(i, j)$ states how many times a sample with _gold-standard_ class $i$ was _predicted_ as belonging to class $j$.\n", + "\n", + "In scitkit-learn, a simple way to visualize the confusion matrix as a _heatmap_ is to use [ConfusionMatrixDisplay](https://scikit-learn.org/stable/modules/generated/sklearn.metrics.ConfusionMatrixDisplay.html). The following cell demonstrates how to compute and display a confusion matrix for the classifier in the `model` variable — you may have to adjust this based on the code you have written for your previous solutions:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "from sklearn.metrics import ConfusionMatrixDisplay\n", + "\n", + "with sns.axes_style(\"white\"): # Seaborn’s default style doesn’t play well with ConfusionMatrixDisplay, so we change it temporarily\n", + " ConfusionMatrixDisplay.from_estimator(\n", + " model, # The model that you want to plot the confusion matrix for\n", + " test_data['words'], # The input data for the model\n", + " test_data['party'], # The correct (gold-standard) labels for the input data\n", + " normalize='true',\n", + " values_format='.2f'\n", + " )" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "**Your task** is to use the confusion matrix in order to find, for each given party $p$ in the Riksdag, that other party $p'$ which the classifier that you trained in Problem 4 most often confuses with $p$ when it predicts the party of a speaker. You can read this off of the visualization above, but for the purposes of this exercise, we want to do this programmatically (i.e. with code). For this, you most likely want to use the scikit-learn function [confusion_matrix()](https://scikit-learn.org/stable/modules/generated/sklearn.metrics.confusion_matrix.html), which gives you the confusion matrix of a classifier.\n", + "\n", + "**Write code that, for each party $p$, print the party most often confused with $p$ by the classifier from Problem 4!**" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "9cd82f4488fd2d66933c6bbdfe1179e3", + "grade": true, + "grade_id": "cell-200a41c181d159a3", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "# YOUR CODE HERE\n", + "raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Before you move on, take a minute to reflect on whether your results make sense." + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 6: Grid Search" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Until now, you have been using the count-based vectorizer and the Naive Bayes classifier with their default hyperparameters. When working with real-world applications, you would want to find a combination of input representation, model, and hyperparameters that maximizes the performance for the task at hand.\n", + "\n", + "Manually trying out many combinations of hyperparameters of a vectorizer–classifier pipeline can be cumbersome. However, scikit-learn provides functionality for [performing **grid search**](https://scikit-learn.org/stable/modules/grid_search.html), which is the name for an exhaustive search for the best hyperparameters over a _grid_ of possible values.\n", + "\n", + "When searching for the best hyperparameters, it’s important to _not_ run evaluations on the final test set. Instead, one should either use a separate validation set, or run cross-validation over different folds. Here we will use cross-validation, which scikit-learn provides in the [GridSearchCV](https://scikit-learn.org/stable/modules/generated/sklearn.model_selection.GridSearchCV.html) class. To use grid search, you need to know which parameters can be tuned and what they’re called; you can find this information by calling `get_params()` on your model pipeline:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "# Replace \"nb_pipe\" with the variable that has your model pipeline, if necessary\n", + "nb_pipe.get_params()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Your task is to **find a pipeline that outperforms the model from Problem 4** on _at least one_ of the aggregated evaluation metrics (accuracy, macro avg., or weighted avg. scores) on the test set, by performing **grid search with 5-fold cross-validation** on the training set. Which hyperparameters you tune and what values you choose is up to you, as long as try at least _two different hyperparameters_ with at least _two different values_ each, and your resulting pipelines outperforms the one from Problem 4. However, here are some suggestions:\n", + "\n", + "* In the vectorizer, you could try a _set-of-words_ (binary) model in addition to the default _bag-of-words_ model.\n", + "* In the vectorizer, you could try extracting bigrams and/or trigrams in addition to unigrams.\n", + "* In the Naive Bayes classifier, you could try to using different values for additive smoothing.\n", + "\n", + "**Write code to perform grid search, then report the results of your best model, along with the parameter values that yielded these results.**" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "2fec6c6f6c8f459b01e145223c705f3a", + "grade": true, + "grade_id": "cell-fc4a0a81ba69cbf7", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "# YOUR CODE HERE\n", + "raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Individual reflection\n", + "\n", + "<div class=\"alert alert-info\">\n", + " <strong>After you have solved the lab,</strong> write a <em>brief</em> reflection (max. one A4 page) on the question(s) below. Remember:\n", + " <ul>\n", + " <li>You are encouraged to discuss this part with your lab partner, but you should each write up your reflection <strong>individually</strong>.</li>\n", + " <li><strong>Do not put your answers in the notebook</strong>; upload them in the separate submission opportunity for the reflections on Lisam.</li>\n", + " </ul>\n", + "</div>" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "In this lab, you have produced evaluation reports for a total of five classifiers:\n", + "\n", + "- two baselines (most frequent class & random sampling)\n", + "- Naive Bayes with default values and unbalanced data\n", + "- Naive Bayes with default values and undersampled data\n", + "- the best-performing pipeline from your grid search\n", + "\n", + "How do you interpret these evaluation reports, i.e., what do they mean for the usefulness of each classifier? What conclusion do you draw from these results? Refer to specific evaluation scores that you find particularly relevant for your argument." + ] + }, + { + "cell_type": "markdown", + "id": "125ccdbd-4375-4d2f-8b1d-f47097ef2e84", + "metadata": {}, + "source": [ + "**Congratulations on finishing this lab! 👍**\n", + "\n", + "<div class=\"alert alert-info\">\n", + " \n", + "➡️ Before you submit, **make sure the notebook can be run from start to finish** without errors. For this, _restart the kernel_ and _run all cells_ from top to bottom. In Jupyter Notebook version 7 or higher, you can do this via \"Run$\\rightarrow$Restart Kernel and Run All Cells...\" in the menu (or the \"⏩\" button in the toolbar).\n", + "\n", + "</div>" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "f3ad192d-7557-4cd9-9ead-6699b8de9114", + "metadata": {}, + "outputs": [], + "source": [] + } + ], + "metadata": { + "kernelspec": { + "display_name": "Python 3 (ipykernel)", + "language": "python", + "name": "python3" + }, + "language_info": { + "codemirror_mode": { + "name": "ipython", + "version": 3 + }, + "file_extension": ".py", + "mimetype": "text/x-python", + "name": "python", + "nbconvert_exporter": "python", + "pygments_lexer": "ipython3", + "version": "3.12.7" + } + }, + "nbformat": 4, + "nbformat_minor": 4 +} diff --git a/l2/speeches-201718.json.bz2 b/l2/speeches-201718.json.bz2 new file mode 100644 index 0000000000000000000000000000000000000000..fe4599c7b93944e6a755853dd6b9f78e4a7dd3a3 Binary files /dev/null and b/l2/speeches-201718.json.bz2 differ diff --git a/l2/speeches-201819.json.bz2 b/l2/speeches-201819.json.bz2 new file mode 100644 index 0000000000000000000000000000000000000000..7861b828166a26d93b809de585de08fc71a56f1b Binary files /dev/null and b/l2/speeches-201819.json.bz2 differ diff --git a/l3/TM-Lab3.ipynb b/l3/TM-Lab3.ipynb new file mode 100644 index 0000000000000000000000000000000000000000..2f85bbd6950ea2d87c962cdd753744ec8ebd8269 --- /dev/null +++ b/l3/TM-Lab3.ipynb @@ -0,0 +1,1396 @@ +{ + "cells": [ + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "<div class=\"alert alert-info\">\n", + " \n", + "➡️ Before you start, make sure that you are familiar with the **[study guide](https://liu-nlp.ai/text-mining/logistics/)**, in particular the rules around **cheating and plagiarism** (found in the course memo).\n", + "\n", + "➡️ If you use code from external sources (e.g. StackOverflow, ChatGPT, ...) as part of your solutions, don't forget to add a reference to these source(s) (for example as a comment above your code).\n", + "\n", + "➡️ Make sure you fill in all cells that say **`YOUR CODE HERE`** or **YOUR ANSWER HERE**. You normally shouldn't need to modify any of the other cells.\n", + "\n", + "</div>" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "# L3: Information Extraction" + ] + }, + { + "cell_type": "markdown", + "metadata": { + "editable": true, + "slideshow": { + "slide_type": "" + }, + "tags": [] + }, + "source": [ + "Information extraction (IE) is the task of identifying named entities and semantic relations between these entities in text data. In this lab we will focus on two sub-tasks in IE, **named entity recognition** (identifying mentions of entities) and **entity linking** (matching these mentions to entities in a knowledge base)." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "f7a55df737e6196167cebbab5bef7858", + "grade": false, + "grade_id": "cell-85c6255538d879ed", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + }, + "slideshow": { + "slide_type": "" + }, + "tags": [] + }, + "outputs": [], + "source": [ + "# Define some helper functions that are used in this notebook\n", + "\n", + "from IPython.display import display, HTML\n", + "\n", + "def success():\n", + " display(HTML('<div class=\"alert alert-success\"><strong>Checks have passed!</strong></div>'))" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Dataset" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "The main data set for this lab is a collection of news wire articles in which mentions of **named entities** have been annotated with **page names** from the [English Wikipedia](https://en.wikipedia.org/wiki/). The next code cell loads the training and the development parts of the data into Pandas data frames." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "94caef41dd26fe7e12845fd46debadf3", + "grade": false, + "grade_id": "cell-6f2dc34d737a5d2b", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "import bz2\n", + "import csv\n", + "import pandas as pd\n", + "import numpy as np\n", + "\n", + "with bz2.open('ner-train.tsv.bz2', mode='rt', encoding='utf-8') as source:\n", + " df_train = pd.read_csv(source, encoding='utf-8', sep='\\t', quoting=csv.QUOTE_NONE)\n", + "\n", + "with bz2.open('ner-dev.tsv.bz2', mode='rt', encoding='utf-8') as source:\n", + " df_dev = pd.read_csv(source, encoding='utf-8', sep='\\t', quoting=csv.QUOTE_NONE)" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Each row in these two data frames corresponds to one mention of a named entity and has five columns:\n", + "\n", + "1. a unique identifier for the sentence containing the entity mention\n", + "2. the pre-tokenized sentence, with tokens separated by spaces\n", + "3. the start position of the token span containing the entity mention\n", + "4. the end position of the token span (exclusive, as in Python list indexing)\n", + "5. the entity label; either a Wikipedia page name or the generic label `--NME--`\n", + "\n", + "The following cell prints the first five samples from the training data:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "df_train.head()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "In this sample, we see that the first sentence is annotated with three entity mentions:\n", + "\n", + "* the span 0–1 ‘EU’ is annotated as an entity but only labelled with the generic `--NME--`\n", + "* the span 2–3 ‘German’ is annotated with the page [Germany](http://en.wikipedia.org/wiki/Germany)\n", + "* the span 6–7 ‘British’ is annotated with the page [United_Kingdom](http://en.wikipedia.org/wiki/United_Kingdom)" + ] + }, + { + "cell_type": "markdown", + "metadata": { + "editable": true, + "slideshow": { + "slide_type": "" + }, + "tags": [] + }, + "source": [ + "## Problem 1: Evaluation measures" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "To warm up, we ask you to write code to print the three measures that you will be using for evaluation:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "c23f8706ee19b4bd9ccea03fd3fece87", + "grade": false, + "grade_id": "cell-ca0fe4e7e601cd70", + "locked": false, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "def evaluation_scores(gold, pred):\n", + " \"\"\"Print precision, recall, and F1 score.\n", + " \n", + " Arguments:\n", + " gold: The set with the gold-standard values.\n", + " pred: The set with the predicted values.\n", + " \n", + " Returns:\n", + " A tuple or list containing the precision, recall, and F1 values\n", + " (in that order), computed based on the specified sets.\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Note that for implementing this function, it doesn’t matter what exactly `gold` and `pred` will contain, except that they will be Python `set` objects.\n", + "\n", + "Let's also define a convenience function that prints the scores nicely:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "f330e054f6825eaa88f144a026790706", + "grade": false, + "grade_id": "cell-97ba51a2487dc428", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "def print_evaluation_scores(result):\n", + " p, r, f = result\n", + " print(f\"Precision: {p:.3f}, Recall: {r:.3f}, F1: {f:.3f}\")" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### 🤞 Test your code" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "To test your code, you can run the following cell. This should give you a precision of 50%, a recall of 33.3%, and an F1-value of 0.4." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "d405b49302e9d097a15111a490cfcf91", + "grade": true, + "grade_id": "cell-0de2d4e882169381", + "locked": true, + "points": 1, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "# Some example NER spans, to illustrate how the evaluation function will be used later\n", + "example_gold = {(\"0000-000\", 0, 1), (\"0000-000\", 2, 3), (\"0000-000\", 6, 7)}\n", + "example_pred = {(\"0000-000\", 2, 3), (\"0000-000\", 6, 8)}\n", + "\n", + "# Compute and print the scores\n", + "result = evaluation_scores(example_gold, example_pred)\n", + "print_evaluation_scores(result)\n", + "\n", + "# Check if the scores appear correct\n", + "assert np.isclose(result, (.5, 1. / 3, .4)).all(), \"Should be close to the expected values\"\n", + "success()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 2: Named entity recognition" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "One of the first tasks that an information extraction system has to solve is to locate and classify (mentions of) named entities, such as persons and organizations, a task usually known as **named entity recognition (NER)**. For this lab, we will consider a slightly simplified version of NER, by only looking at the _spans_ of tokens containing an entity mention, without the actual entity label.\n", + "\n", + "The English language models in spaCy feature a full-fledged [named entity recognizer](https://spacy.io/usage/linguistic-features#named-entities) that identifies a variety of entities, and can be updated with new entity types by the user. We therefore start by loading spaCy. _However,_ the data that we will be using has already been tokenized (following the conventions of the [Penn Treebank](ftp://ftp.cis.upenn.edu/pub/treebank/public_html/tokenization.html)), so we need to prevent spaCy from using its own tokenizer on top of this. We therefore override spaCy’s tokenizer with the default one that simply splits on whitespace:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "4221d5aafc8241d7df3773f070e9189a", + "grade": false, + "grade_id": "cell-3aa55cdb0a00a39c", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + }, + "slideshow": { + "slide_type": "" + }, + "tags": [] + }, + "outputs": [], + "source": [ + "import spacy\n", + "from spacy.tokenizer import Tokenizer\n", + "\n", + "nlp = spacy.load('en_core_web_md') # Let’s use the \"medium\" (md) model this time\n", + "nlp.tokenizer = Tokenizer(nlp.vocab) # ...but override the tokenizer" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Your task in this problem is to **evaluate the performance of spaCy’s NER component** when predicting entity spans in the **development data**.\n", + "\n", + "This can be done in the following three steps:\n", + "\n", + "1. Write a function `gold_spans()` that takes a DataFrame and returns a set of triples of the form `(sentence_id, start_position, end_position)`, one for each entity mention _in the dataset_.\n", + "2. Write a function `pred_spans()` that takes a DataFrame, runs spaCy’s NER on each sentence, and returns a set of triples (in the same form as above), one for each entity mention _predicted by spaCy_.\n", + "3. Evaluate the results using your function from Problem 1.\n", + "\n", + "We ask you to implement `gold_spans()` and `pred_spans()` as _generator functions_ that “yield” a single triple at a time, and provide stubs of such functions below that you can use as a starting point. (If you're not familiar with the `yield` keyword in Python, check out [this brief explanation](https://www.nbshare.io/notebook/851988260/Python-Yield/).)" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "90f8b949a72ee24cb524c37e04b70447", + "grade": false, + "grade_id": "cell-96b73b0db9000ea3", + "locked": false, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "def gold_spans(df):\n", + " \"\"\"Yield the gold-standard mention spans in a data frame.\n", + "\n", + " Arguments:\n", + " df: A data frame.\n", + "\n", + " Yields:\n", + " The gold-standard mention spans in the specified data frame as\n", + " triples consisting of the sentence id, start position, and end\n", + " position of each span.\n", + " \"\"\"\n", + " # Hint: The Pandas method .itertuples() is useful for iterating over rows in a DataFrame\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "1c3dad78c16a22383473114f7e040fad", + "grade": false, + "grade_id": "cell-f5b568125d3e20e9", + "locked": false, + "schema_version": 3, + "solution": true, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "def pred_spans(df):\n", + " \"\"\"Run and evaluate spaCy's NER.\n", + "\n", + " Arguments:\n", + " df: A data frame.\n", + "\n", + " Yields:\n", + " The predicted mention spans in the specified data frame as\n", + " triples consisting of the sentence id, start position, and end\n", + " position of each span.\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "#### 🤞 Putting it all together\n", + "\n", + "The following cell shows how you can put it all together and produce the evaluation report, provided you have implemented the functions as generator functions. You should get a precision above 50%, with a recall above 70%, and an F1-score above 60%." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "# Produce the spans\n", + "spans_dev_pred = set(pred_spans(df_dev))\n", + "spans_dev_gold = set(gold_spans(df_dev))\n", + "\n", + "# Compute and print the evaluation scores\n", + "scores = evaluation_scores(spans_dev_gold, spans_dev_pred)\n", + "print_evaluation_scores(scores)" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "03b40ab42455669cdd88ed7bd3e3f2fa", + "grade": true, + "grade_id": "cell-00535781ee29401d", + "locked": true, + "points": 1, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "# Check if the scores appear correct\n", + "assert scores[0] > .50, \"Precision should be above 50%.\"\n", + "assert scores[1] > .70, \"Recall should be above 70%.\"\n", + "success()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 3: Error analysis" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "As you can see in Problem 2, the span accuracy of the named entity recognizer is far from perfect. In particular, only slightly more than half of the predicted spans are correct according to the gold standard. Your next task is to analyse this result in more detail.\n", + "\n", + "Below is a function that uses spaCy’s span visualizer to visualize sentences containing _at least one mistake_ (i.e., either a false positive, a false negative, or both):" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "146cf853dff0ffc0cba20b42d8929fb8", + "grade": false, + "grade_id": "cell-bcabc31addc819c3", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "from collections import defaultdict\n", + "from spacy import displacy\n", + "from spacy.tokens import Span\n", + "\n", + "def error_report(df, spans_gold, spans_pred):\n", + " \"\"\"Run and evaluate spaCy's NER.\n", + "\n", + " Arguments:\n", + " df: A data frame.\n", + " spans_gold: The set of gold-standard entity spans from the data frame.\n", + " spans_pred: The set of predicted entity spans from the data frame.\n", + "\n", + " Yields:\n", + " The predicted mention spans in the specified data frame as\n", + " triples consisting of the sentence id, start position, and end\n", + " position of each span.\n", + " \"\"\"\n", + " gold_by_sid = defaultdict(set)\n", + " for (sentence_id, span_s, span_e) in spans_gold:\n", + " gold_by_sid[sentence_id].add((span_s, span_e))\n", + " pred_by_sid = defaultdict(set)\n", + " for (sentence_id, span_s, span_e) in spans_pred:\n", + " pred_by_sid[sentence_id].add((span_s, span_e))\n", + "\n", + " for row in df.drop_duplicates('sentence_id').itertuples():\n", + " if gold_by_sid[row.sentence_id] == pred_by_sid[row.sentence_id]:\n", + " continue\n", + " doc = nlp(row.sentence)\n", + " doc.spans[\"sc\"] = [\n", + " Span(doc, span_s, span_e, \"GOLD\") for (span_s, span_e) in gold_by_sid[row.sentence_id]\n", + " ] + [\n", + " Span(doc, span_s, span_e, \"PRED\") for (span_s, span_e) in pred_by_sid[row.sentence_id]\n", + " ]\n", + " yield doc\n" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Let’s use a small sample of the training data to inspect this way. The following cell renders sentences containing mistakes that the automated prediction makes based on the _first 500 rows_ of the training data (you may have to click on “Show more outputs” at the bottom to see all of them):" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "df_inspect = df_train[:500]\n", + "spans_inspect_pred = set(pred_spans(df_inspect))\n", + "for doc in error_report(df_inspect, set(gold_spans(df_inspect)), spans_inspect_pred):\n", + " displacy.render(doc, style=\"span\", options={\"colors\": {\"GOLD\": \"gold\", \"PRED\": \"aqua\"}})" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### Task 3.1\n", + "\n", + "Can you see any patterns in the mistakes from the sample above? **Write a short text** that summarizes your observations!" + ] + }, + { + "cell_type": "markdown", + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "markdown", + "checksum": "4ea76787f3a8d1cb3b18f87935c22412", + "grade": true, + "grade_id": "cell-02ec87d7b68eeed2", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "source": [ + "YOUR ANSWER HERE" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### Task 3.2\n", + "\n", + "Based on your insights from the error analysis, you should be able to improve the automated prediction that you implemented in Problem 2. While the best way to do this would be to [update spaCy’s NER model](https://spacy.io/usage/linguistic-features#updating) using domain-specific training data, for this lab it suffices to **write code to post-process the output** produced by spaCy. To filter out specific labels it is useful to know the named entity label scheme, which can be found in the [model's documentation](https://spacy.io/models/en#en_core_web_sm)." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "a20403014f0241dcde59ade54faf2cac", + "grade": false, + "grade_id": "cell-0dc8ed778c02fc71", + "locked": false, + "schema_version": 3, + "solution": true, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "def pred_spans_improved(df):\n", + " \"\"\"Run and evaluate spaCy's NER, with post-processing to improve the results.\n", + "\n", + " Arguments:\n", + " df: A data frame.\n", + "\n", + " Yields:\n", + " The predicted mention spans in the specified data frame as\n", + " triples consisting of the sentence id, start position, and end\n", + " position of each span.\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "#### 🤞 Test your code\n", + "\n", + "You should be able to obtain an **F1 score of at least 0.80** this way, i.e., a substantial improvement over the scores you got in Problem 2.\n", + "\n", + "The following cells report the evaluation measures and test if you achieve the performance goal:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "scores_improved = evaluation_scores(spans_dev_gold, set(pred_spans_improved(df_dev)))\n", + "print_evaluation_scores(scores_improved)" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "cfdd3f350f64b2426facb2567a3e54f3", + "grade": true, + "grade_id": "cell-d7427c0885b545e3", + "locked": true, + "points": 1, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "assert scores_improved[-1] > .8, \"F1-score should be above 0.8\"\n", + "success()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### Task 3.3\n", + "\n", + "Before moving on, we ask you to **store the outputs of the improved named entity recognizer in a new data frame**. This new frame should have the same layout as the original data frame for the _development data_ that you loaded above, but should contain the *predicted* start and end positions for each token span, rather than the gold positions. As the `label` of each span, you can use the special value `--NME--` for now." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "6fccd0d3a35857ebcbfd0f94adc9b34a", + "grade": false, + "grade_id": "cell-ef6dfcb92ae20097", + "locked": false, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "def df_with_pred_spans(df):\n", + " \"\"\"Make a new DataFrame with *predicted* NER spans.\n", + "\n", + " Arguments:\n", + " df: A data frame.\n", + "\n", + " Returns:\n", + " A *new* data frame with the same layout as `df`, but containing\n", + " the predicted start and end positions for each token span.\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "#### 🤞 Test your code\n", + "\n", + "Run the following cell to run your function and display the first few lines of the new data frame:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "de25f655cb9cf074f79d8c7a4df038d4", + "grade": true, + "grade_id": "cell-45725442562de561", + "locked": true, + "points": 1, + "schema_version": 3, + "solution": false, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "df_dev_pred = df_with_pred_spans(df_dev)\n", + "display(df_dev_pred.head())" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 4: Entity linking" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Now that we have a method for predicting mention spans, we turn to the task of **entity linking**, which amounts to predicting the knowledge base entity that is referenced by a given mention. In our case, for each span, we want to predict the Wikipedia page that this mention references." + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### Task 4.1\n", + "\n", + "Start by **extending the generator function** that you implemented in Problem 2 to **labelled spans**." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "e1d310571a7ea7d1a9cd36bb33a05742", + "grade": false, + "grade_id": "cell-501e0ff440c81adf", + "locked": false, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "def gold_mentions(df):\n", + " \"\"\"Yield the gold-standard mentions in a data frame.\n", + "\n", + " Args:\n", + " df: A data frame.\n", + "\n", + " Yields:\n", + " The gold-standard mention spans in the specified data frame as\n", + " quadruples consisting of the sentence id, start position, end\n", + " position and entity label of each span.\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "#### 🤞 Test your code\n", + "\n", + "To test your code, you can run the following cell, which checks if one of the expected tuples is included in the results:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "7bffb19793f499dbd076695bdb69caeb", + "grade": true, + "grade_id": "cell-2cd2cac3e3b80e0b", + "locked": true, + "points": 1, + "schema_version": 3, + "solution": false, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "dev_gold_mentions = set(gold_mentions(df_dev))\n", + "assert ('1094-020', 0, 1, 'Seattle_Mariners') in dev_gold_mentions, \"An expected tuple is not included in the results\"\n", + "success()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### Task 4.2\n", + "\n", + "A naive baseline for entity linking on our data set is to link each mention span to the Wikipedia page name that we get when we join the tokens in the span by underscores, as is standard in Wikipedia page names. Suppose, for example, that a span contains the two tokens\n", + "\n", + " Jimi Hendrix\n", + "\n", + "The baseline Wikipedia page name for this span would be\n", + "\n", + " Jimi_Hendrix\n", + "\n", + "**Implement this naive baseline and evaluate its performance!**" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "**_Important:_** Here and in the remainder of this lab, you should base your experiments on the _predicted spans_ that you computed in Problem 3." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "5cf0b2e67d61e514d4fecba722dee65e", + "grade": false, + "grade_id": "cell-f24799696158afee", + "locked": false, + "schema_version": 3, + "solution": true, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "def baseline(df):\n", + " \"\"\"A naive baseline for entity linking that \"predicts\" Wikipedia\n", + " page names from the tokens in the mention span.\n", + "\n", + " Arguments:\n", + " df: A data frame.\n", + "\n", + " Yields:\n", + " The predicted mention spans in the specified data frame as\n", + " quadruples consisting of the sentence id, start position, end\n", + " position and the predicted entity label of each span.\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "#### 🤞 Test your code\n", + "\n", + "Again, we can turn to the evaluation measures that we implemented in Problem 1. The expected precision should be around 29%, with an F1-score around 28%." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "9f3ac70cd078b33d3df0e9000221e004", + "grade": true, + "grade_id": "cell-e91c4a73987c75ce", + "locked": true, + "points": 1, + "schema_version": 3, + "solution": false, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "# Compute and print the evaluation scores\n", + "scores = evaluation_scores(dev_gold_mentions, set(baseline(df_dev_pred)))\n", + "print_evaluation_scores(scores)\n", + "\n", + "# Check if scores are as expected\n", + "assert scores[0] > .28, \"Precision should be above 28%\"\n", + "assert scores[-1] > .27, \"F1-score should be above 27%\"\n", + "success()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 5: Extending the training data using the knowledge base" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "State-of-the-art approaches to entity linking exploit information in knowledge bases. In our case, where Wikipedia is the knowledge base, one particularly useful type of information are links to other Wikipedia pages. In particular, we can interpret the anchor texts (the highlighted texts that you click on) as mentions of the entities (pages) that they link to. This allows us to harvest long lists of mention–entity pairings.\n", + "\n", + "The following cell loads a data frame summarizing anchor texts and page references harvested from the first paragraphs of the English Wikipedia. The data frame also contains all entity mentions in the training data (but not the development or the test data)." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "d94a9d6704a04efd335a64af5eff287f", + "grade": false, + "grade_id": "cell-4a475ad2cc36d263", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "with bz2.open('kb.tsv.bz2', 'rt') as source:\n", + " df_kb = pd.read_csv(source, sep='\\t', quoting=csv.QUOTE_NONE)" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "To understand what information is available in this data, the following cell shows the entry for the anchor text `Sweden`." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "df_kb.loc[df_kb.mention == 'Sweden']" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "As you can see, each row of the data frame contains a pair $(m, e)$ of a mention $m$ and an entity $e$, as well as the conditional probability $P(e|m)$ for mention $m$ referring to entity $e$. These probabilities were estimated based on the frequencies of mention–entity pairs in the knowledge base. The example shows that the anchor text ‘Sweden’ is most often used to refer to the entity [Sweden](http://en.wikipedia.org/wiki/Sweden), but in a few cases also to refer to Sweden’s national football and ice hockey teams. Note that references are sorted in decreasing order of probability, so that the most probable pairing come first." + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "**Implement an entity linking method** that resolves each mention to the most probable entity in the data frame. If the mention is not included in the data frame, you can predict the generic label `--NME--`." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "19983681d014c3e1685c0a1b3e44d1a9", + "grade": false, + "grade_id": "cell-7ea53f23be9b715c", + "locked": false, + "schema_version": 3, + "solution": true, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "def most_probable_method(df, df_kb):\n", + " \"\"\"An entity linker that resolves each mention to the most probably entity in a knowledge base.\n", + "\n", + " Arguments:\n", + " df: A data frame containing the mention spans.\n", + " df_kb: A data frame containing the knowledge base.\n", + "\n", + " Yields:\n", + " The predicted mention spans in the specified data frame as\n", + " quadruples consisting of the sentence id, start position, end\n", + " position and the predicted entity label of each span.\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### 🤞 Test your code\n", + "\n", + "We run the same evaluation as before. The expected precision should now be around 65%, with an F1-score just around 59%." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "66dd93c15de672c46bb1dcb43ab5ad24", + "grade": true, + "grade_id": "cell-53f6994f788bb86e", + "locked": true, + "points": 1, + "schema_version": 3, + "solution": false, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "scores = evaluation_scores(dev_gold_mentions, set(most_probable_method(df_dev_pred, df_kb)))\n", + "print_evaluation_scores(scores)\n", + "\n", + "assert scores[0] > .64, \"Precision should be above 64%\"\n", + "assert scores[-1] > .58, \"F1-score should be above 58%\"\n", + "success()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 6: Context-sensitive disambiguation" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Consider the entity mention ‘Lincoln’. The most probable entity for this mention turns out to be [Lincoln, Nebraska](http://en.wikipedia.org/Lincoln,_Nebraska); but in pages about American history, we would be better off to predict [Abraham Lincoln](http://en.wikipedia.org/Abraham_Lincoln). This suggests that we should try to disambiguate between different entity references based on the textual context on the page from which the mention was taken. Your task in this last problem is to implement this idea.\n", + "\n", + "Set up a dictionary that contains, for each mention $m$ that can refer to more than one entity $e$, a separate Naive Bayes classifier that is trained to predict the correct entity $e$, given the textual context of the mention. As the prior probabilities of the classifier, choose the probabilities $P(e|m)$ that you used in Problem 5. To let you estimate the context-specific probabilities, we have compiled a data set with mention contexts:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "6f3ddc8258b269f76f3ce95612ec168f", + "grade": false, + "grade_id": "cell-bc440951a642c773", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "with bz2.open('contexts.tsv.bz2') as source:\n", + " df_contexts = pd.read_csv(source, sep='\\t', quoting=csv.QUOTE_NONE)" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "This data frame contains, for each ambiguous mention $m$ and each knowledge base entity $e$ to which this mention can refer, up to 100 randomly selected contexts in which $m$ is used to refer to $e$. For this data, a **context** is defined as the 5 tokens to the left and the 5 tokens to the right of the mention. Here are a few examples:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "df_contexts.head()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Note that, in each context, the position of the mention is indicated by the `@` symbol.\n", + "\n", + "From this data frame, it is easy to select the data that you need to train the classifiers – the contexts and corresponding entities for all mentions. To illustrate this, the following cell shows how to select all contexts that belong to the mention ‘Lincoln’:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "df_contexts.context[df_contexts.mention == 'Lincoln']" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Implement the context-sensitive disambiguation method and evaluate its performance. Do this in two parts, first implementing a function that builds the classifiers _(refer to the text above for a detailed description)_, then implementing a prediction function that uses these classifiers to perform the entity prediction.\n", + "\n", + "Here are some more **hints** that may help you along the way:\n", + "\n", + "1. The prior probabilities for a Naive Bayes classifier can be specified using the `class_prior` option. You will have to provide the probabilities in the same order as the alphabetically sorted class (entity) names.\n", + "\n", + "2. Not all mentions in the knowledge base are ambiguous, and therefore not all mentions have context data. If a mention has only one possible entity, pick that one. If a mention has no entity at all, predict the `--NME--` label." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "2f1ed748e347ab8c43e2d352ed183728", + "grade": false, + "grade_id": "cell-22e330f1b6937c8d", + "locked": false, + "schema_version": 3, + "solution": true, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "def build_entity_classifiers(df_kb, df_contexts):\n", + " \"\"\"Build Naive Bayes classifiers for entity prediction.\n", + "\n", + " Arguments:\n", + " df_kb: A data frame with the knowledge base.\n", + " df_contexts: A data frame with contexts for each mention.\n", + "\n", + " Returns:\n", + " A dictionary where the keys are mentions and the values are Naive Bayes\n", + " classifiers trained to predict the correct entity, given the textual\n", + " context of the mention (as described in detail above).\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "de0ba0c98997839dd51d4905d52531b5", + "grade": false, + "grade_id": "cell-045c73fff60f8fbf", + "locked": false, + "schema_version": 3, + "solution": true, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "def extended_dictionary_method(df, classifiers, df_kb):\n", + " \"\"\"An entity linker that resolves each mention to the most probably entity in a knowledge base.\n", + "\n", + " Arguments:\n", + " df: A data frame containing the mention spans.\n", + " classifiers: A dictionary of classifiers as produced by the\n", + " `build_entity_classifiers` function.\n", + " df_kb: A data frame with the knowledge base. (Should be used\n", + " to look up a mention if it doesn't have a classifier.)\n", + "\n", + " Yields:\n", + " The predicted mention spans in the specified data frame as\n", + " quadruples consisting of the sentence id, start position, end\n", + " position and the predicted entity label of each span.\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### 🤞 Test your code\n", + "\n", + "The cell below shows how your functions should all come together." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "36f6240bdfeeb14a91652a494d811524", + "grade": true, + "grade_id": "cell-dda4aa4e70cd83fb", + "locked": true, + "points": 1, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "classifiers = build_entity_classifiers(df_kb, df_contexts)\n", + "dev_pred_dict_mentions = set(extended_dictionary_method(df_dev_pred, classifiers, df_kb))" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Finally, the cell below evaluates the results as before. You should expect to see a small (around 1 unit) increase in each of precision, recall, and F1." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "f16a2c8ef0ea5290504ee88039a64087", + "grade": true, + "grade_id": "cell-ddde598c1d1aff97", + "locked": true, + "points": 1, + "schema_version": 3, + "solution": false, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "scores = evaluation_scores(dev_gold_mentions, dev_pred_dict_mentions)\n", + "print_evaluation_scores(scores)" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Individual reflection\n", + "\n", + "<div class=\"alert alert-info\">\n", + " <strong>After you have solved the lab,</strong> write a <em>brief</em> reflection (max. one A4 page) on the question(s) below. Remember:\n", + " <ul>\n", + " <li>You are encouraged to discuss this part with your lab partner, but you should each write up your reflection <strong>individually</strong>.</li>\n", + " <li><strong>Do not put your answers in the notebook</strong>; upload them in the separate submission opportunity for the reflections on Lisam.</li>\n", + " </ul>\n", + "</div>" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "1. In Problem 3, you performed an error analysis and implemented some post-processing to improve the model’s evaluation scores. How could you improve the model’s performance further, and what kind of resources (such as data, compute, etc.) would you need for that? Discuss this based on two or three concrete examples from the error analysis.\n", + "2. How does the “context” data from Problem 6 help to disambiguate between different entities? Can you think of other types of “context” that you could use for disambiguation? Illustrate this with a specific example." + ] + }, + { + "cell_type": "markdown", + "id": "125ccdbd-4375-4d2f-8b1d-f47097ef2e84", + "metadata": {}, + "source": [ + "**Congratulations on finishing this lab! 👍**\n", + "\n", + "<div class=\"alert alert-info\">\n", + " \n", + "➡️ Before you submit, **make sure the notebook can be run from start to finish** without errors. For this, _restart the kernel_ and _run all cells_ from top to bottom. In Jupyter Notebook version 7 or higher, you can do this via \"Run$\\rightarrow$Restart Kernel and Run All Cells...\" in the menu (or the \"⏩\" button in the toolbar).\n", + "\n", + "</div>" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "f3ad192d-7557-4cd9-9ead-6699b8de9114", + "metadata": {}, + "outputs": [], + "source": [] + } + ], + "metadata": { + "kernelspec": { + "display_name": "Python 3 (ipykernel)", + "language": "python", + "name": "python3" + }, + "language_info": { + "codemirror_mode": { + "name": "ipython", + "version": 3 + }, + "file_extension": ".py", + "mimetype": "text/x-python", + "name": "python", + "nbconvert_exporter": "python", + "pygments_lexer": "ipython3", + "version": "3.12.7" + } + }, + "nbformat": 4, + "nbformat_minor": 4 +} diff --git a/l3/contexts.tsv.bz2 b/l3/contexts.tsv.bz2 new file mode 100644 index 0000000000000000000000000000000000000000..a2826fe2578268c4e478c9bae741c17780b95d10 Binary files /dev/null and b/l3/contexts.tsv.bz2 differ diff --git a/l3/kb.tsv.bz2 b/l3/kb.tsv.bz2 new file mode 100644 index 0000000000000000000000000000000000000000..db72bdc6f54a10f8e7ec85e19e55ec34f17b5382 Binary files /dev/null and b/l3/kb.tsv.bz2 differ diff --git a/l3/ner-dev.tsv.bz2 b/l3/ner-dev.tsv.bz2 new file mode 100644 index 0000000000000000000000000000000000000000..2b10d188e3eb68a6a90da0c9b1a8040f88caa6db Binary files /dev/null and b/l3/ner-dev.tsv.bz2 differ diff --git a/l3/ner-train.tsv.bz2 b/l3/ner-train.tsv.bz2 new file mode 100644 index 0000000000000000000000000000000000000000..942f87bb8196ea62d59e951c1fde0136bdff673e Binary files /dev/null and b/l3/ner-train.tsv.bz2 differ diff --git a/l4/TM-Lab4.ipynb b/l4/TM-Lab4.ipynb new file mode 100644 index 0000000000000000000000000000000000000000..48f5d30c21f68fd78b6ef8b9884e43c355562732 --- /dev/null +++ b/l4/TM-Lab4.ipynb @@ -0,0 +1,872 @@ +{ + "cells": [ + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "<div class=\"alert alert-info\">\n", + " \n", + "➡️ Before you start, make sure that you are familiar with the **[study guide](https://liu-nlp.ai/text-mining/logistics/)**, in particular the rules around **cheating and plagiarism** (found in the course memo).\n", + "\n", + "➡️ If you use code from external sources (e.g. StackOverflow, ChatGPT, ...) as part of your solutions, don't forget to add a reference to these source(s) (for example as a comment above your code).\n", + "\n", + "➡️ Make sure you fill in all cells that say **`YOUR CODE HERE`** or **YOUR ANSWER HERE**. You normally shouldn't need to modify any of the other cells.\n", + "\n", + "</div>" + ] + }, + { + "cell_type": "markdown", + "metadata": { + "editable": true, + "slideshow": { + "slide_type": "" + }, + "tags": [] + }, + "source": [ + "# L4: Clustering and Topic Modelling" + ] + }, + { + "cell_type": "markdown", + "metadata": { + "editable": true, + "slideshow": { + "slide_type": "" + }, + "tags": [] + }, + "source": [ + "Text clustering groups documents in such a way that documents within a group are more ‘similar’ to other documents in the cluster than to documents not in the cluster. The exact definition of what ‘similar’ means in this context varies across applications and clustering algorithms.\n", + "\n", + "In this lab you will experiment with both hard and soft clustering techniques. More specifically, in the first part you will be using the $k$-means algorithm, and in the second part you will be using a topic model based on the Latent Dirichlet Allocation (LDA)." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "e0e1945bcb70fbdeb0ecefe1c7930e5b", + "grade": false, + "grade_id": "cell-c4776a1666a48ddd", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "# Define some helper functions that are used in this notebook\n", + "\n", + "%matplotlib inline\n", + "from IPython.display import display, HTML\n", + "\n", + "def success():\n", + " display(HTML('<div class=\"alert alert-success\"><strong>Checks have passed!</strong></div>'))" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Dataset 1: Hard clustering" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "The raw data for the hard clustering part of this lab is a collection of product reviews. We have preprocessed the data by tokenization and lowercasing." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "007298be2cbb2c02ebe809b6a44f0f48", + "grade": false, + "grade_id": "cell-59c1ac1d68e6c524", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "import pandas as pd\n", + "import bz2\n", + "\n", + "with bz2.open('reviews.json.bz2') as source:\n", + " df = pd.read_json(source)" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "When you inspect the data frame, you can see that there are three labelled columns: `category` (the product category), `sentiment` (whether the product review was classified as ‘positive’ or ‘negative’ towards the product), and `text` (the space-separated text of the review)." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "pd.set_option('display.max_colwidth', None)\n", + "df.head()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 1: K-means clustering" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Your first task is to cluster the product review data using a tf–idf vectorizer and $k$-means clustering." + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### Task 1.1\n", + "\n", + "Start by **performing tf–idf vectorization**. In connection with vectorization, you should also **filter out standard English stop words**. While you could use [spaCy](https://spacy.io/) for this task, here it suffices to use the word list implemented in [TfidfVectorizer](https://scikit-learn.org/stable/modules/generated/sklearn.feature_extraction.text.TfidfVectorizer.html).\n", + "\n", + "After running the following cell:\n", + "- `vectorizer` should contain the vectorizer fitted on `df['text']`\n", + "- `reviews` should contain the vectorized `df['text']`" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "8ffc3d7fdf62fda1c147f978818f56e7", + "grade": true, + "grade_id": "cell-66e447662e958a44", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "vectorizer, reviews = ..., ...\n", + "\n", + "# YOUR CODE HERE\n", + "raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### Task 1.2\n", + "\n", + "Next, **write a function to cluster the vectorized data.** For this, you can use scikit-learn’s [KMeans](https://scikit-learn.org/stable/modules/generated/sklearn.cluster.KMeans.html) class, which has several parameters that you can tweak, the most important one being the _number of clusters_. Your function should therefore take the number of clusters as an argument; you can leave all other parameters at their defaults. " + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "f795b44fb710deb8ec6557222fe3186f", + "grade": true, + "grade_id": "cell-17f7b79dee452c3d", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "from sklearn.cluster import KMeans\n", + "\n", + "def fit_kmeans(data, n_clusters):\n", + " \"\"\"Fit a k-means classifier to some data.\n", + "\n", + " Arguments:\n", + " data: The vectorized data to train the classifier on.\n", + " n_clusters (int): The number of clusters.\n", + "\n", + " Returns:\n", + " The trained k-means classifier.\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "To sanity-check your clustering, **create a bar plot** with the number of documents per cluster:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "40b71623600900c4911b5c12c3aa597e", + "grade": true, + "grade_id": "cell-d54820cd63b959ee", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "import matplotlib.pyplot as plt\n", + "\n", + "def plot_cluster_size(kmeans):\n", + " \"\"\"Produce & display a bar plot with the number of documents per cluster.\n", + "\n", + " Arguments:\n", + " kmeans: The trained k-means classifier.\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "#### 🤞 Test your code\n", + "\n", + "The following cell shows how your code should run. The output of the cell should be the bar plot of the cluster sizes. Note that sizes may vary considerably between clusters and among different random seeds, so there is no single “correct” output here! Re-run the cell a couple of times to observe how the plot changes." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "kmeans = fit_kmeans(reviews, 3)\n", + "plot_cluster_size(kmeans)" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 2: Summarising clusters" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Once you have a clustering, you can try to see whether it is meaningful. One useful technique in that context is to **generate a “summary”** for each cluster by extracting the $n$ highest-weighted terms from the centroid of each cluster. Your next task is to implement this approach." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "4e9d2fd56a07bcc81a5add0d4df32561", + "grade": true, + "grade_id": "cell-163a8b35215df9ad", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "import numpy as np\n", + "\n", + "def compute_cluster_summaries(kmeans, vectorizer, top_n):\n", + " \"\"\"Compute the top_n highest-weighted terms from the centroid of each cluster.\n", + "\n", + " Arguments:\n", + " kmeans: The trained k-means classifier.\n", + " vectorizer: The fitted vectorizer; needed to obtain the actual terms\n", + " belonging to the items in the cluster.\n", + " top_n: The number of terms to return for each cluster.\n", + "\n", + " Returns:\n", + " A list of length k, where k is the number of clusters. Each item in the list\n", + " should be a list of length `top_n` with the highest-weighted terms from that\n", + " cluster. Example:\n", + " [[\"first\", \"foo\", ...], [\"second\", \"bar\", ...], [\"third\", \"baz\", ...]]\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": { + "tags": [ + "solution" + ] + }, + "source": [ + "### 🤞 Test your code\n", + "\n", + "The following cell runs your code with `top_n=10` and prints the summaries:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "summaries = compute_cluster_summaries(kmeans, vectorizer, 10)\n", + "\n", + "for idx, terms in enumerate(summaries):\n", + " print(f\"Cluster {idx}: {', '.join(terms)}\")" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Once you have computed the cluster summaries, take a minute to reflect on their quality. Is it clear what the reviews in a given cluster are about? Do the cluster summaries contain any unexpected terms?" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 3: Evaluate clustering performance" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "In some scenarios, you may have gold-standard class labels available for at least a subset of your documents. In our case, we could use the gold-standard categories (from the `category` column) as class labels. This means we’re making the assumption that a “good” clustering should put texts into the same cluster _if and only if_ they belong to the same category.\n", + "\n", + "If we have such class labels, we can compute a variety of performance measures to see how well our $k$-means clustering resembles the given class labels. Here, we will consider three of these measures: the **Rand index (RI)**; the **adjusted Rand index (RI)** which has been corrected for chance; and the **V-measure**. For all of them (and more), we can make use of [implementations by scikit-learn](https://scikit-learn.org/1.5/modules/clustering.html#clustering-performance-evaluation)." + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Your task is to **compare the performance** of different $k$-means clusterings with $k = 1, \\ldots, 10$ clusters. As your evaluation data, use the _first 1000 documents_ from the original data set along with their gold-standard categories (from the `category` column).\n", + "\n", + "**Visualise your results as a line plot**, where\n", + "\n", + "- the $x$-axis corresponds to $k$\n", + "- the $y$-axis corresponds to the score of the evaluation measure\n", + "- each evaluation measure (RI, ARI, V) is shown by a differently-colored and/or -styled line in the plot" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "3f0d38a480ea2a5e4d7a6d4087498b3f", + "grade": true, + "grade_id": "cell-66890753e9a48887", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "from sklearn.metrics import rand_score, adjusted_rand_score, v_measure_score\n", + "import seaborn as sns\n", + "sns.set()\n", + "\n", + "# YOUR CODE HERE\n", + "raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Remember that you may get different clusters each time you run the $k$-means algorithm, so re-run your solution above a few times to see how the results change. Take a moment to think how you would interpret these results; you will need this for the reflection." + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Dataset 2: Topic modelling" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "The data set for the topic modelling part of this lab is the collection of all [State of the Union](https://en.wikipedia.org/wiki/State_of_the_Union) addresses from the years 1975–2000. These speeches come as a single text file with one sentence per line. The following code cell prints the first 5 lines from the data file:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "from itertools import islice\n", + "\n", + "with open('sotu_1975_2000.txt') as source:\n", + " # Print the first 5 lines only\n", + " for line in islice(source, 5):\n", + " print(line.rstrip())" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Take a few minutes to think about what topics you would expect in this data set." + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 4: Train a topic model\n", + "\n", + "In this problem, we will train an LDA model on the State of the Union (SOTU) dataset. For this, we will be using [spaCy](https://spacy.io/) and the [gensim](https://radimrehurek.com/gensim/) topic modelling library.\n" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### Task 4.1: Preparing the data\n", + "\n", + "Start by **preprocessing the data** using spaCy as follows:\n", + "\n", + "- Filter out stop words, non-alphabetic tokens, and tokens less than 3 characters in length.\n", + "- Store the documents as a nested list where the first level of nesting corresponds to the sentences and the second level corresponds to the tokens in each sentence." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "import spacy\n", + "nlp = spacy.load(\"en_core_web_sm\")" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "bbcdf160b7379a45ddf31b764988d12e", + "grade": false, + "grade_id": "cell-201e607b610e47af", + "locked": false, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "def load_and_preprocess_documents(filename=\"sotu_1975_2000.txt\"):\n", + " \"\"\"Load and preprocess all documents in the given file.\n", + "\n", + " The preprocessing must filter out stop words, non-alphabetic tokens,\n", + " and tokens less than 3 characters in length.\n", + "\n", + " Returns:\n", + " A list of length n, where n is the number of documents.\n", + " Each item in the list should be a list of tokens in the given\n", + " document, after preprocessing.\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "#### 🤞 Test your code\n", + "\n", + "Test your preprocessing by running the following cell. It will output the tokens (after preprocessing) for an example document and compare them against the expected output." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "90c9661b2b79a4cf88bdff7e6e6bbfed", + "grade": true, + "grade_id": "cell-4fa26bc22c42b359", + "locked": true, + "points": 1, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "documents = load_and_preprocess_documents()\n", + "\n", + "print(f\"Document 42 after preprocessing: {' '.join(documents[42])}\")\n", + "assert \" \".join(documents[42]) == \"reduce oil imports million barrels day end year million barrels day end\"\n", + "success()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### Task 4.2: Training LDA\n", + "\n", + "Now that we have the list of documents, we can use gensim to train an LDA model on them. Gensim works a bit differently from scikit-learn and has its own interfaces, so you should skim the section [“Pre-process and vectorize the documents”](https://radimrehurek.com/gensim/auto_examples/tutorials/run_lda.html#pre-process-and-vectorize-the-documents) of the documentation to learn how to create the dictionary and the vectorized corpus representation required by gensim.\n", + "\n", + "Based on this, **write code to train an [LdaModel](https://radimrehurek.com/gensim/models/ldamodel.html)** for $k=10$ topics, and using default values for all other parameters." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "91f666ca9c35be5c2b905f6ddf334ff4", + "grade": true, + "grade_id": "cell-8461457012cd240d", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + }, + "tags": [ + "solution" + ] + }, + "outputs": [], + "source": [ + "from gensim.corpora.dictionary import Dictionary\n", + "from gensim.models import LdaModel\n", + "\n", + "def train_lda_model(documents, num_topics, passes=1):\n", + " \"\"\"Create and train an LDA model.\n", + "\n", + " Arguments:\n", + " documents: The preprocessed documents, as produced in Task 4.1.\n", + " num_topics: The number of topics to generate.\n", + " passes: The number of training passes. Defaults to 1; you will need\n", + " this later for Task 5.\n", + "\n", + " Returns:\n", + " The trained LDA model.\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "#### 🤞 Test your code\n", + "\n", + "Run the following cell to test your code and print the topics:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "model = train_lda_model(documents, 10)\n", + "model.print_topics()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Inspect the topics. Can you ‘label’ each topic with a short description of what it is about? Do the topics match your expectations?" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 5: Monitor a topic model for convergence" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "When learning an LDA model, it is important to make sure that the training algorithm has converged to a stable posterior distribution. One way to do so is to plot, after each training epochs (or ‘pass’, in gensim parlance) the log likelihood of the training data under the posterior. Your last task in this lab is to create such a plot and, based on this, to suggest an appropriate number of epochs.\n", + "\n", + "To collect information about the posterior likelihood after each pass, we need to enable the logging facilities of gensim. Once this is done, gensim will add various diagnostics to a log file `gensim.log`." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "import logging\n", + "\n", + "logging.basicConfig(filename='gensim.log', format='%(asctime)s:%(levelname)s:%(message)s', level=logging.INFO)\n", + "\n", + "def clear_logfile():\n", + " # To empty the log file\n", + " with open(\"gensim.log\", \"w\"):\n", + " pass" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "The following function will parse the generated logfile and return the list of log likelihoods." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "import re\n", + "\n", + "def parse_logfile():\n", + " \"\"\"Parse gensim.log to extract the log-likelihood scores.\n", + "\n", + " Returns:\n", + " A list of log-likelihood scores.\n", + " \"\"\"\n", + " matcher = re.compile(r'(-*\\d+\\.\\d+) per-word .* (\\d+\\.\\d+) perplexity')\n", + " likelihoods = []\n", + " with open('gensim.log') as source:\n", + " for line in source:\n", + " match = matcher.search(line)\n", + " if match:\n", + " likelihoods.append(float(match.group(1)))\n", + " return likelihoods" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Here's an example how to run it — note that we call `clear_logfile()` to empty the logfile before training the model. If your code from Problem 4 was correct, the result should be a list with a single log-likehood score, since we are doing a single training pass:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "clear_logfile()\n", + "model = train_lda_model(documents, 10, passes=1)\n", + "likelihoods = parse_logfile()\n", + "print(likelihoods)" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### Task 5.1: Plotting log-likelihoods\n", + "\n", + "Your task now is to **re-train your LDA model for 50 passes**, retrieve the list of log likelihoods, and **create a plot** from this data." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "2ef26d01bc2b34f2fcde5ed7f9de519f", + "grade": true, + "grade_id": "cell-c7b05ddd48f08892", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "# YOUR CODE HERE\n", + "raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### Task 5.2: Interpreting log-likelihoods\n", + "\n", + "How do you interpret the plot you produced in Task 5.1? Based on the plot, what would be a reasonable choice for the number of passes? **Retrain your LDA model with that number** and re-inspect the topics it finds." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "ca1784a4dd4357b0958b6b854d06f209", + "grade": true, + "grade_id": "cell-8435567308839ce2", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "# YOUR CODE HERE\n", + "raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Individual reflection\n", + "\n", + "<div class=\"alert alert-info\">\n", + " <strong>After you have solved the lab,</strong> write a <em>brief</em> reflection (max. one A4 page) on the question(s) below. Remember:\n", + " <ul>\n", + " <li>You are encouraged to discuss this part with your lab partner, but you should each write up your reflection <strong>individually</strong>.</li>\n", + " <li><strong>Do not put your answers in the notebook</strong>; upload them in the separate submission opportunity for the reflections on Lisam.</li>\n", + " </ul>\n", + "</div>" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "1. In Problem 3, you performed an evaluation of $k$-means clustering with different values for $k$. How do you interpret the results? What would you expect to be a “good” number of clusters for this dataset? What do the evaluation measures suggest would be a “good” number of clusters?\n", + "2. How did you choose the number of LDA passes in Task 5.2? Do you consider the topic clusters you got in Task 5.2 to be “better” than the ones from Task 4.2? Base your reasoning on one or more concrete examples from the LDA output." + ] + }, + { + "cell_type": "markdown", + "id": "125ccdbd-4375-4d2f-8b1d-f47097ef2e84", + "metadata": {}, + "source": [ + "**Congratulations on finishing this lab! 👍**\n", + "\n", + "<div class=\"alert alert-info\">\n", + " \n", + "➡️ Before you submit, **make sure the notebook can be run from start to finish** without errors. For this, _restart the kernel_ and _run all cells_ from top to bottom. In Jupyter Notebook version 7 or higher, you can do this via \"Run$\\rightarrow$Restart Kernel and Run All Cells...\" in the menu (or the \"⏩\" button in the toolbar).\n", + "\n", + "</div>" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "f3ad192d-7557-4cd9-9ead-6699b8de9114", + "metadata": {}, + "outputs": [], + "source": [] + } + ], + "metadata": { + "kernelspec": { + "display_name": "Python 3 (ipykernel)", + "language": "python", + "name": "python3" + }, + "language_info": { + "codemirror_mode": { + "name": "ipython", + "version": 3 + }, + "file_extension": ".py", + "mimetype": "text/x-python", + "name": "python", + "nbconvert_exporter": "python", + "pygments_lexer": "ipython3", + "version": "3.12.7" + } + }, + "nbformat": 4, + "nbformat_minor": 4 +} diff --git a/l4/reviews.json.bz2 b/l4/reviews.json.bz2 new file mode 100644 index 0000000000000000000000000000000000000000..8fd3c251c92cffe3c21eaf6ef8c2ddff6a37ee81 Binary files /dev/null and b/l4/reviews.json.bz2 differ diff --git a/l4/sotu_1975_2000.txt b/l4/sotu_1975_2000.txt new file mode 100644 index 0000000000000000000000000000000000000000..57d407d1ac12fbcddba8a385fcfe70f7d810d8fe --- /dev/null +++ b/l4/sotu_1975_2000.txt @@ -0,0 +1,2898 @@ +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 +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 +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 +two years ago today we had the first caucus in iowa and one year ago tomorrow i walked from here to the white house to take up the duties of president of the united states i didn t know it then when i walked but i ve been trying to save energy ever since +i return tonight to fulfill one of those duties of the constitution to give to the congress and to the nation information on the state of the union +militarily politically economically and in spirit the state of our union is sound +we are a great country a strong country a vital and dynamic country and so we will remain +we are a confident people and a hardworking people a decent and a compassionate people and so we will remain +i want to speak to you tonight about where we are and where we must go about what we have done and what we must do and i want to pledge to you my best efforts and ask you to pledge yours +each generation of americans has to face circumstances not of its own choosing but by which its character is measured and its spirit is tested +there are times of emergency when a nation and its leaders must bring their energies to bear on a single urgent task that was the duty abraham lincoln faced when our land was torn apart by conflict in the war between the states that was the duty faced by franklin roosevelt when he led america out of an economic depression and again when he led america to victory in war +there are other times when there is no single overwhelming crisis yet profound national interests are at stake +at such times the risk of inaction can be equally great it becomes the task of leaders to call forth the vast and restless energies of our people to build for the future +that is what harry truman did in the years after the second world war when we helped europe and japan rebuild themselves and secured an international order that has protected freedom from aggression +we live in such times now and we face such duties +we ve come through a long period of turmoil and doubt but we ve once again found our moral course and with a new spirit we are striving to express our best instincts to the rest of the world +there is all across our land a growing sense of peace and a sense of common purpose this sense of unity cannot be expressed in programs or in legislation or in dollars it s an achievement that belongs to every individual american this unity ties together and it towers over all our efforts here in washington and it serves as an inspiring beacon for all of us who are elected to serve +this new atmosphere demands a new spirit a partnership between those of us who lead and those who elect the foundations of this partnership are truth the courage to face hard decisions concern for one another and the common good over special interests and a basic faith and trust in the wisdom and strength and judgment of the american people +for the first time in a generation we are not haunted by a major international crisis or by domestic turmoil and we now have a rare and a priceless opportunity to address persistent problems and burdens which come to us as a nation quietly and steadily getting worse over the years +as president i ve had to ask you the members of congress and you the american people to come to grips with some of the most difficult and hard questions facing our society +we must make a maximum effort because if we do not aim for the best we are very likely to achieve little i see no benefit to the country if we delay because the problems will only get worse +we need patience and good will but we really need to realize that there is a limit to the role and the function of government government cannot solve our problems it can t set our goals it cannot define our vision government cannot eliminate poverty or provide a bountiful economy or reduce inflation or save our cities or cure illiteracy or provide energy and government cannot mandate goodness only a true partnership between government and the people can ever hope to reach these goals +those of us who govern can sometimes inspire and we can identify needs and marshal resources but we simply cannot be the managers of everything and everybody +we here in washington must move away from crisis management and we must establish clear goals for the future immediate and the distant future which will let us work together and not in conflict never again should we neglect a growing crisis like the shortage of energy where further delay will only lead to more harsh and painful solutions +every day we spend more than $120 million for foreign oil this slows our economic growth it lowers the value of the dollar overseas and it aggravates unemployment and inflation here at home +now we know what we must do increase production we must cut down on waste and we must use more of those fuels which are plentiful and more permanent we must be fair to people and we must not disrupt our nation s economy and our budget +now that sounds simple but i recognize the difficulties involved i know that it is not easy for the congress to act but the fact remains that on the energy legislation we have failed the american people almost 5 years after the oil embargo dramatized the problem for us all we still do not have a national energy program not much longer can we tolerate this stalemate it undermines our national interest both at home and abroad we must succeed and i believe we will +our main task at home this year with energy a central element is the nation s economy we must continue the recovery and further cut unemployment and inflation +last year was a good one for the united states we reached all of our major economic goals for 1977 four million new jobs were created an alltime record and the number of unemployed dropped by more than a million unemployment right now is the lowest it has been since 1974 and not since world war ii has such a high percentage of american people been employed +the rate of inflation went down there was a good growth in business profits and investments the source of more jobs for our workers and a higher standard of living for all our people after taxes and inflation there was a healthy increase in workers wages +and this year our country will have the first $2 trillion economy in the history of the world +now we are proud of this progress the first year but we must do even better in the future +we still have serious problems on which all of us must work together our trade deficit is too large inflation is still too high and too many americans still do not have a job +now i didn t have any simple answers for all these problems but we have developed an economic policy that is working because it s simple balanced and fair it s based on four principles first the economy must keep on expanding to produce new jobs and better income which our people need the fruits of growth must be widely shared more jobs must be made available to those who have been bypassed until now and the tax system must be made fairer and simpler +secondly private business and not the government must lead the expansion in the future +third we must lower the rate of inflation and keep it down inflation slows down economic growth and it s the most cruel to the poor and also to the elderly and others who live on fixed incomes +and fourth we must contribute to the strength of the world economy +i will announce detailed proposals for improving our tax system later this week we can make our tax laws fairer we can make them simpler and easier to understand and at the same time we can and we will reduce the tax burden on american citizens by $25 billion +the tax reforms and the tax reductions go together only with the long overdue reforms will the full tax cut be advisable +almost $17 billion in income tax cuts will go to individuals ninety six percent of all american taxpayers will see their taxes go down for a typical family of four this means an annual saving of more than $250 a year or a tax reduction of about 20 percent a further $2 billion cut in excise taxes will give more relief and also contribute directly to lowering the rate of inflation +and we will also provide strong additional incentives for business investment and growth through substantial cuts in the corporate tax rates and improvement in the investment tax credit +now these tax proposals will increase opportunity everywhere in the nation but additional jobs for the disadvantaged deserve special attention +we ve already passed laws to assure equal access to the voting booth and to restaurants and to schools to housing and laws to permit access to jobs but job opportunity the chance to earn a decent living is also a basic human right which we cannot and will not ignore +a major priority for our nation is the final elimination of the barriers that restrict the opportunities available to women and also to black people and hispanics and other minorities we ve come a long way toward that goal but there is still much to do what we inherited from the past must not be permitted to shackle us in the future +i ll be asking you for a substantial increase in funds for public jobs for our young people and i also am recommending that the congress continue the public service employment programs at more than twice the level of a year ago when welfare reform is completed we will have more than a million additional jobs so that those on welfare who are able to work can work +however again we know that in our free society private business is still the best source of new jobs therefore i will propose a new program to encourage businesses to hire young and disadvantaged americans these young people only need skills and a chance in order to take their place in our economic system let s give them the chance they need a major step in the right direction would be the early passage of a greatly improved humphrey hawkins bill +my budget for 1979 addresses these national needs but it is lean and tight i have cut waste wherever possible +i am proposing an increase of less than 2 percent after adjusting for inflation the smallest increase in the federal budget in 4 years +lately federal spending has taken a steadily increasing portion of what americans produce our new budget reverses that trend and later i hope to bring the government s toll down even further and with your help we ll do that +in time of high employment and a strong economy deficit spending should not be a feature of our budget as the economy continues to gain strength and as our unemployment rates continue to fall revenues will grow with careful planning efficient management and proper restraint on spending we can move rapidly toward a balanced budget and we will +next year the budget deficit will be only slightly less than this year but one third of the deficit is due to the necessary tax cuts that i ve proposed this year the right choice is to reduce the burden on taxpayers and provide more jobs for our people +the third element in our program is a renewed attack on inflation we ve learned the hard way that high unemployment will not prevent or cure inflation government can help us by stimulating private investment and by maintaining a responsible economic policy through a new top level review process we will do a better job of reducing government regulation that drives up costs and drives up prices +but again government alone cannot bring down the rate of inflation when a level of high inflation is expected to continue then companies raise prices to protect their profit margins against prospective increases in wages and other costs while workers demand higher wages as protection against expected price increases it s like an escalation in the arms race and understandably no one wants to disarm alone +now no one firm or a group of workers can halt this process it s an effort that we must all make together i m therefore asking government business labor and other groups to join in a voluntary program to moderate inflation by holding wage and price increases in each sector of the economy during 1978 below the average increases of the last 2 years +i do not believe in wage and price controls a sincere commitment to voluntary constraint provides a way perhaps the only way to fight inflation without government interference +as i came into the capitol tonight i saw the farmers my fellow farmers standing out in the snow i m familiar with their problem and i know from congress action that you are too when i was running carters warehouse we had spread on our own farms 5 10 15 fertilizer for about $40 a ton the last time i was home the price was about $100 a ton the cost of nitrogen has gone up 150 percent and the price of products that farmers sell has either stayed the same or gone down a little +now this past year in 1977 you the congress and i together passed a new agricultural act it went into effect october 1 it ll have its first impact on the 1978 crops it will help a great deal it ll add $6 1 2 billion or more to help the farmers with their price supports and target prices +last year we had the highest level of exports of farm products in the history of our country $24 billion we expect to have more this year we ll be working together but i think it s incumbent on us to monitor very carefully the farm situation and continue to work harmoniously with the farmers of our country what s best for the farmers the farm families in the long run is also best for the consumers of our country +economic success at home is also the key to success in our international economic policy an effective energy program strong investment and productivity and controlled inflation will provide improve our trade balance and balance it and it will help to protect the integrity of the dollar overseas +by working closely with our friends abroad we can promote the economic health of the whole world with fair and balanced agreements lowering the barriers to trade +despite the inevitable pressures that build up when the world economy suffers from high unemployment we must firmly resist the demands for self defeating protectionism but free trade must also be fair trade and i am determined to protect american industry and american workers against foreign trade practices which are unfair or illegal +in a separate written message to congress i ve outlined other domestic initiatives such as welfare reform consumer protection basic education skills urban policy reform of our labor laws and national health care later on this year i will not repeat these tonight but there are several other points that i would like to make directly to you +during these past years americans have seen our government grow far from us +for some citizens the government has almost become like a foreign country so strange and distant that we ve often had to deal with it through trained ambassadors who have sometimes become too powerful and too influential lawyers accountants and lobbyists this cannot go on +we must have what abraham lincoln wanted a government for the people +we ve made progress toward that kind of government you ve given me the authority i requested to reorganize the federal bureaucracy and i am using that authority +we ve already begun a series of reorganization plans which will be completed over a period of 3 years we have also proposed abolishing almost 500 federal advisory and other commissions and boards but i know that the american people are still sick and tired of federal paperwork and redtape bit by bit we are chopping down the thicket of unnecessary federal regulations by which government too often interferes in our personal lives and our personal business we ve cut the public s federal paperwork load by more than 12 percent in less than a year and we are not through cutting +we ve made a good start on turning the gobbledygook of federal regulations into plain english that people can understand but we know that we still have a long way to go +we ve brought together parts of 11 government agencies to create a new department of energy and now it s time to take another major step by creating a separate department of education +but even the best organized government will only be as effective as the people who carry out its policies for this reason i consider civil service reform to be absolutely vital worked out with the civil servants themselves this reorganization plan will restore the merit principle to a system which has grown into a bureaucratic maze it will provide greater management flexibility and better rewards for better performance without compromising job security +then and only then can we have a government that is efficient open and truly worthy of our people s understanding and respect i have promised that we will have such a government and i intend to keep that promise +in our foreign policy the separation of people from government has been in the past a source of weakness and error in a democratic system like ours foreign policy decisions must be able to stand the test of public examination and public debate if we make a mistake in this administration it will be on the side of frankness and openness with the american people +in our modern world when the deaths of literally millions of people can result from a few terrifying seconds of destruction the path of national strength and security is identical to the path of peace +tonight i am happy to report that because we are strong our nation is at peace with the world +we are a confident nation we ve restored a moral basis for our foreign policy the very heart of our identity as a nation is our firm commitment to human rights +we stand for human rights because we believe that government has as a purpose to promote the well being of its citizens this is true in our domestic policy it s also true in our foreign policy the world must know that in support of human rights the united states will stand firm +we expect no quick or easy results but there has been significant movement toward greater freedom and humanity in several parts of the world +thousands of political prisoners have been freed the leaders of the world even our ideological adversaries now see that their attitude toward fundamental human rights affects their standing in the international community and it affects their relations with the united states +to serve the interests of every american our foreign policy has three major goals +the first and prime concern is and will remain the security of our country +security is based on our national will and security is based on the strength of our armed forces we have the will and militarily we are very strong +security also comes through the strength of our alliances we have reconfirmed our commitment to the defense of europe and this year we will demonstrate that commitment by further modernizing and strengthening our military capabilities there +security can also be enhanced by agreements with potential adversaries which reduce the threat of nuclear disaster while maintaining our own relative strategic capability +in areas of peaceful competition with the soviet union we will continue to more than hold our own +at the same time we are negotiating with quiet confidence without haste with careful determination to ease the tensions between us and to ensure greater stability and security +the strategic arms limitation talks have been long and difficult we want a mutual limit on both the quality and the quantity of the giant nuclear arsenals of both nations and then we want actual reductions in strategic arms as a major step toward the ultimate elimination of nuclear weapons from the face of the earth +if these talks result in an agreement this year and i trust they will i pledge to you that the agreement will maintain and enhance the stability of the world s strategic balance and the security of the united states +for 30 years concerted but unsuccessful efforts have been made to ban the testing of atomic explosives both military weapons and peaceful nuclear devices +we are hard at work with great britain and the soviet union on an agreement which will stop testing and will protect our national security and provide for adequate verification of compliance we are now making i believe good progress toward this comprehensive ban on nuclear explosions +we are also working vigorously to halt the proliferation of nuclear weapons among the nations of the world which do not now have them and to reduce the deadly global traffic in conventional arms sales our stand for peace is suspect if we are also the principal arms merchant of the world so we ve decided to cut down our arms transfers abroad on a year by year basis and to work with other major arms exporters to encourage their similar constraint +every american has a stake in our second major goal a world at peace in a nuclear age each of us is threatened when peace is not secured everywhere we are trying to promote harmony in those parts of the world where major differences exist among other nations and threaten international peace +in the middle east we are contributing our good offices to maintain the momentum of the current negotiations and to keep open the lines of communication among the middle eastern leaders the whole world has a great stake in the success of these efforts this is a precious opportunity for a historic settlement of a longstanding conflict an opportunity which may never come again in our lifetime +our role has been difficult and sometimes thankless and controversial but it has been constructive and it has been necessary and it will continue +our third major foreign policy goal is one that touches the life of every american citizen every day world economic growth and stability +this requires strong economic performance by the industrialized democracies like ourselves and progress in resolving the global energy crisis last fall with the help of others we succeeded in our vigorous efforts to maintain the stability of the price of oil but as many foreign leaders have emphasized to me personally and i am sure to you the greatest future contribution that america can make to the world economy would be an effective energy conservation program here at home we will not hesitate to take the actions needed to protect the integrity of the american dollar +we are trying to develop a more just international system and in this spirit we are supporting the struggle for human development in africa in asia and in latin america +finally the world is watching to see how we act on one of our most important and controversial items of business approval of the panama canal treaties the treaties now before the senate are the result of the work of four administrations two democratic two republican +they guarantee that the canal will be open always for unrestricted use by the ships of the world our ships have the right to go to the head of the line for priority of passage in times of emergency or need we retain the permanent right to defend the canal with our own military forces if necessary to guarantee its openness and its neutrality +the treaties are to the clear advantage of ourselves the panamanians and the other users of the canal ratifying the panama canal treaties will demonstrate our good faith to the world discourage the spread of hostile ideologies in this hemisphere and directly contribute to the economic well being and the security of the united states +i have to say that that s very welcome applause +there were two moments on my recent journey which for me confirmed the final aims of our foreign policy and what it always must be +one was in a little village in india where i met a people as passionately attached to their rights and liberties as we are but whose children have a far smaller chance for good health or food or education or human fulfillment than a child born in this country +the other moment was in warsaw capital of a nation twice devastated by war in this century there people have rebuilt the city which war s destruction took from them but what was new only emphasized clearly what was lost +what i saw in those two places crystalized for me the purposes of our own nation s policy to ensure economic justice to advance human rights to resolve conflicts without violence and to proclaim in our great democracy our constant faith in the liberty and dignity of human beings everywhere +we americans have a great deal of work to do together in the end how well we do that work will depend on the spirit in which we approach it we must seek fresh answers unhindered by the stale prescriptions of the past +it has been said that our best years are behind us but i say again that america s best is still ahead we have emerged from bitter experiences chastened but proud confident once again ready to face challenges once again and united once again +we come together tonight at a solemn time last week the senate lost a good and honest man lee metcalf of montana +and today the flag of the united states flew at half mast from this capitol and from american installations and ships all over the world in mourning for senator hubert humphrey +because he exemplified so well the joy and the zest of living his death reminds us not so much of our own mortality but of the possibilities offered to us by life he always looked to the future with a special american kind of confidence of hope and enthusiasm and the best way that we can honor him is by following his example +our task to use the words of senator humphrey is reconciliation rebuilding and rebirth +reconciliation of private needs and interests into a higher purpose +rebuilding the old dreams of justice and liberty and country and community +rebirth of our faith in the common good +each of us here tonight and all who are listening in your homes must rededicate ourselves to serving the common good we are a community a beloved community all of us our individual fates are linked our futures intertwined and if we act in that knowledge and in that spirit together as the bible says we can move mountains +thank you very much +tonight i want to examine in a broad sense the state of our american union how we are building a new foundation for a peaceful and a prosperous world +our children who will be born this year will come of age in the 21st century what kind of society what kind of world are we building for them will we ourselves be at peace will our children enjoy a better quality of life will a strong and united america still be a force for freedom and prosperity around the world +tonight there is every sign that the state of our union is sound +our economy offers greater prosperity for more of our people than ever before real per capita income and real business profits have risen substantially in the last 2 years farm exports are setting an all time record each year and farm income last year net farm income was up more than 25 percent +our liberties are secure our military defenses are strong and growing stronger and more importantly tonight america our beloved country is at peace +our earliest national commitments modified and reshaped by succeeding generations have served us well but the problems that we face today are different from those that confronted earlier generations of americans they are more subtle more complex and more interrelated at home we are recognizing ever more clearly that government alone cannot solve these problems and abroad few of them can be solved by the united states alone but americans as a united people working with our allies and friends have never been afraid to face problems and to solve problems either here or abroad +the challenge to us is to build a new and firmer foundation for the future for a sound economy for a more effective government for more political trust and for a stable peace so that the america our children inherit will be even stronger and even better than it is today +we cannot resort to simplistic or extreme solutions which substitute myths for common sense +in our economy it is a myth that we must choose endlessly between inflation and recession together we build the foundation for a strong economy with lower inflation without contriving either a recession with its high unemployment or unworkable mandatory government controls +in our government it is a myth that we must choose between compassion and competence together we build the foundation for a government that works and works for people +in our relations with our potential adversaries it is a myth that we must choose between confrontation and capitulation together we build the foundation for a stable world of both diversity and peace +together we ve already begun to build the foundation for confidence in our economic system during the last 2 years in bringing our economy out of the deepest recession since the 1930 s we ve created 7 100 000 new jobs the unemployment rate has gone down 25 percent and now we must redouble our fight against the persistent inflation that has wracked our country for more than a decade that s our important domestic issue and we must do it together +we know that inflation is a burden for all americans but it s a disaster for the poor the sick and the old no american family should be forced to choose among food warmth health care or decent housing because the cost of any of these basic necessities has climbed out of reach +three months ago i outlined to the nation a balanced anti inflation program that couples responsible government restraint with responsible wage and price restraint it s based upon my knowledge that there is a more powerful force than government compulsion the force created by the cooperative efforts of millions of americans working toward a common goal +business and labor have been increasingly supportive it s imperative that we in government do our part we must stop excessive government growth and we must control government spending habits +i ve sent to this congress a stringent but a fair budget one that since i ran for president in 1976 will have cut the federal deficit in half and as a percentage of our gross national product the deficit will have dropped by almost 75 percent +this congress had a good record last year and i now ask the 96th congress to continue this partnership in holding the line on excess federal spending it will not be easy but we must be strong and we must be persistent +this budget is a clear message that with the help of you and the american people i am determined as president to bring inflation under control +the 1980 budget provides enough spending restraint to begin unwinding inflation but enough support for our country to keep american workers productive and to encourage the investments that provide new jobs we will continue to mobilize our nation s resources to reduce our trade deficit substantially this year and to maintain the strength of the american dollar +we ve demonstrated in this restrained budget that we can build on the gains of the past 2 years to provide additional support to educate disadvantaged children to care for the elderly to provide nutrition and legal services for the poor and to strengthen the economic base of our urban communities and also our rural areas +this year we will take our first steps to develop a national health plan +we must never accept a permanent group of unemployed americans with no hope and no stake in building our society for those left out of the economy because of discrimination a lack of skills or poverty we must maintain high levels of training and we must continue to provide jobs +a responsible budget is not our only weapon to control inflation we must act now to protect all americans from health care costs that are rising $1 million per hour 24 hours a day doubling every 5 years we must take control of the largest contributor to that inflation skyrocketing hospital costs +there will be no clearer test of the commitment of this congress to the anti inflation fight than the legislation that i will submit again this year to hold down inflation in hospital care +over the next 5 years my proposals will save americans a total of $60 billion of which $25 billion will be savings to the american taxpayer in the federal budget itself the american people have waited long enough this year we must act on hospital cost containment +we must also fight inflation by improvements and better enforcement of our antitrust laws and by reducing government obstacles to competition in the private sector +we must begin to scrutinize the overall effect of regulation in our economy through deregulation of the airline industry we ve increased profits cut prices for all americans and begun for one of the few times in the history of our nation to actually dismantle a major federal bureaucracy this year we must begin the effort to reform our regulatory processes for the railroad bus and the trucking industries +america has the greatest economic system in the world let s reduce government interference and give it a chance to work +i call on congress to take other anti inflation action to expand our exports to protect american jobs threatened by unfair trade to conserve energy to increase production and to speed development of solar power and to reassess our nation s technological superiority american workers who enlist in the fight against inflation deserve not just our gratitude but they deserve the protection of the real wage insurance proposal that i have already made to the congress +to be successful we must change our attitudes as well as our policies we cannot afford to live beyond our means we cannot afford to create programs that we can neither manage nor finance or to waste our natural resources and we cannot tolerate mismanagement and fraud above all we must meet the challenges of inflation as a united people +with the support of the american people government in recent decades has helped to dismantle racial barriers has provided assistance for the jobless and the retired has fed the hungry has protected the safety health and bargaining rights of american workers and has helped to preserve our natural heritage +but it s not enough to have created a lot of government programs now we must make the good programs more effective and improve or weed out those which are wasteful or unnecessary +with the support of the congress we ve begun to reorganize and to get control of the bureaucracy we are reforming the civil service system so that we can recognize and reward those who do a good job and correct or remove those who do not +this year we must extend major reorganization efforts to education to economic development and to the management of our natural resources we need to enact a sunshine sunset law that when government programs have outlived their value they will automatically be terminated +there s no such thing as an effective and a noncontroversial reorganization and reform but we know that honest effective government is essential to restore public faith in our public action +none of us can be satisfied when two thirds of the american citizens chose not to vote last year in a national election too many americans feel powerless against the influence of private lobbying groups and the unbelievable flood of private campaign money which threatens our electoral process +this year we must regain the public s faith by requiring limited financial funds from public funds for congressional election campaigns house bill 1 provides for this public financing of campaigns and i look forward with a great deal of anticipation to signing it at an early date +a strong economy and an effective government will restore confidence in america but the path of the future must be charted in peace we must continue to build a new and a firm foundation for a stable world community +we are building that new foundation from a position of national strength the strength of our own defenses the strength of our friendships with other nations and of our oldest american ideals +america s military power is a major force for security and stability in the world we must maintain our strategic capability and continue the progress of the last 2 years with our nato allies with whom we have increased our readiness modernized our equipment and strengthened our defense forces in europe i urge you to support the strong defense budget which i have proposed to the congress +but our national security in this complicated age requires more than just military might in less than a lifetime world population has more than doubled colonial empires have disappeared and a hundred new nations have been born and migration to the world s cities have all awakened new yearnings for economic justice and human rights among people everywhere +this demand for justice and human rights is a wave of the future in such a world the choice is not which super power will dominate the world none can and none will the choice instead is between a world of anarchy and destruction or a world of cooperation and peace +in such a world we seek not to stifle inevitable change but to influence its course in helpful and constructive ways that enhance our values our national interests and the cause of peace +towering over this volatile changing world like a thundercloud on a summer day looms the awesome power of nuclear weapons +we will continue to help shape the forces of change to anticipate emerging problems of nuclear proliferation and conventional arms sales and to use our great strength parts of the world before they erupt and spread +we have no desire to be the world s policeman but america does want to be the world s peacemaker +we are building the foundation for truly global cooperation not only with western and industrialized nations but with the developing countries as well our ties with japan and our european allies are stronger than ever and so are our friendly relations with the people of latin america africa and the western pacific and asia +we ve won new respect in this hemisphere with the panama canal treaties we ve gained new trust with the developing world through our opposition to racism our commitment to human rights and our support for majority rule in africa +the multilateral trade negotiations are now reaching a successful conclusion and congressional approval is essential to the economic well being of our own country and of the world this will be one of our top priorities in 1979 +we are entering a hopeful era in our relations with one fourth of the world s people who live in china the presence of vice premier deng xiaoping next week will help to inaugurate that new era and with prompt congressional action on authorizing legislation we will continue our commitment to a prosperous peaceful and secure life for the people of taiwan +i m grateful that in the past year as in the year before no american has died in combat anywhere in the world and in iran nicaragua cyprus namibia and rhodesia our country is working for peaceful solutions to dangerous conflicts +in the middle east under the most difficult circumstances we have sought to help ancient enemies lay aside deep seated differences that have produced four bitter wars in our lifetime +our firm commitment to israel s survival and security is rooted in our deepest convictions and in our knowledge of the strategic importance to our own nation of a stable middle east to promote peace and reconciliation in the region we must retain the trust and the confidence both of israel and also of the arab nations that are sincerely searching for peace +i am determined as president to use the full beneficial influence of our country so that the precious opportunity for lasting peace between israel and egypt will not be lost +the new foundation of international cooperation that we seek excludes no nation cooperation with the soviet union serves the cause of peace for in this nuclear age world peace must include peace between the super powers and it must mean the control of nuclear arms +ten years ago the united states and the soviet union made the historic decision to open the strategic arms limitations talks or salt the purpose of salt then as now is not to gain a unilateral advantage for either nation but to protect the security of both nations to reverse the costly and dangerous momentum of the nuclear arms race to preserve a stable balance of nuclear forces and to demonstrate to a concerned world that we are determined to help preserve the peace +the first salt agreement was concluded in 1972 and since then during 6 years of negotiation by both republican and democratic leaders nearly all issues of salt ii have been resolved if the soviet union continues to negotiate in good faith a responsible salt agreement will be reached +it s important that the american people understand the nature of the salt process +salt ii is not based on sentiment it s based on self interest of the united states and of the soviet union both nations share a powerful common interest in reducing the threat of a nuclear war i will sign no agreement which does not enhance our national security +salt ii does not rely on trust it will be verifiable we have very sophisticated proven means including our satellites to determine for ourselves whether or not the soviet union is meeting its treaty obligations i will sign no agreement which cannot be verified +the american nuclear deterrent will remain strong after salt ii for example just one of our relatively invulnerable poseidon submarines comprising less than 2 percent of our total nuclear force of submarines aircraft and land based missiles carries enough warheads to destroy every large and medium sized city in the soviet union our deterrent is overwhelming and i will sign no agreement unless our deterrent force will remain overwhelming +a salt agreement of course cannot substitute for wise diplomacy or a strong defense nor will it end the danger of nuclear war but it will certainly reduce that danger it will strengthen our efforts to ban nuclear tests and to stop the spread of atomic weapons to other nations and it can begin the process of negotiating new agreements which will further limit nuclear arms +the path of arms control backed by a strong defense the path our nation and every president has walked for 30 years can lead to a world of law and of international negotiation and consultation in which all peoples might live in peace in this year 1979 nothing is more important than that the congress and the people of the united states resolve to continue with me on that path of nuclear arms control and world peace this is paramount +i ve outlined some of the changes that have transformed the world and which are continuing as we meet here tonight but we in america need not fear change the values on which our nation was founded individual liberty self determination the potential for human fulfillment in freedom all of these endure we find these democratic principles praised even in books smuggled out of totalitarian nations and on wallposters in lands which we thought were closed to our influence our country has regained its special place of leadership in the worldwide struggle for human rights and that is a commitment that we must keep at home as well as abroad +the civil rights revolution freed all americans black and white but its full promise still remains unrealized i will continue to work with all my strength for equal opportunity for all americans and for affirmative action for those who carry the extra burden of past denial of equal opportunity +we remain committed to improving our labor laws to better protect the rights of american workers and our nation must make it clear that the legal rights of women as citizens are guaranteed under the laws of our land by ratifying the equal rights amendment +as long as i m president at home and around the world america s examples and america s influence will be marshaled to advance the cause of human rights +to establish those values two centuries ago a bold generation of americans risked their property their position and life itself we are their heirs and they are sending us a message across the centuries the words they made so vivid are now growing faintly indistinct because they are not heard often enough they are words like justice equality unity truth sacrifice liberty faith and love +these words remind us that the duty of our generation of americans is to renew our nation s faith not focused just against foreign threats but against the threats of selfishness cynicism and apathy +the new foundation i ve discussed tonight can help us build a nation and a world where every child is nurtured and can look to the future with hope where the resources now wasted on war can be turned towards meeting human needs where all people have enough to eat a decent home and protection against disease +it can help us build a nation and a world where all people are free to seek the truth and to add to human understanding so that all of us may live our lives in peace +tonight i ask you the members of the congress to join me in building that new foundation a better foundation for our beloved country and our world +thank you very much +this last few months has not been an easy time for any of us as we meet tonight it has never been more clear that the state of our union depends on the state of the world and tonight as throughout our own generation freedom and peace in the world depend on the state of our union +the 1980 s have been born in turmoil strife and change this is a time of challenge to our interests and our values and it s a time that tests our wisdom and our skills +at this time in iran 50 americans are still held captive innocent victims of terrorism and anarchy also at this moment massive soviet troops are attempting to subjugate the fiercely independent and deeply religious people of afghanistan these two acts one of international terrorism and one of military aggression present a serious challenge to the united states of america and indeed to all the nations of the world together we will meet these threats to peace +i m determined that the united states will remain the strongest of all nations but our power will never be used to initiate a threat to the security of any nation or to the rights of any human being we seek to be and to remain secure a nation at peace in a stable world but to be secure we must face the world as it is +three basic developments have helped to shape our challenges the steady growth and increased projection of soviet military power beyond its own borders the overwhelming dependence of the western democracies on oil supplies from the middle east and the press of social and religious and economic and political change in the many nations of the developing world exemplified by the revolution in iran +each of these factors is important in its own right each interacts with the others all must be faced together squarely and courageously we will face these challenges and we will meet them with the best that is in us and we will not fail +in response to the abhorrent act in iran our nation has never been aroused and unified so greatly in peacetime our position is clear the united states will not yield to blackmail +we continue to pursue these specific goals first to protect the present and long range interests of the united states secondly to preserve the lives of the american hostages and to secure as quickly as possible their safe release if possible to avoid bloodshed which might further endanger the lives of our fellow citizens to enlist the help of other nations in condemning this act of violence which is shocking and violates the moral and the legal standards of a civilized world and also to convince and to persuade the iranian leaders that the real danger to their nation lies in the north in the soviet union and from the soviet troops now in afghanistan and that the unwarranted iranian quarrel with the united states hampers their response to this far greater danger to them +if the american hostages are harmed a severe price will be paid we will never rest until every one of the american hostages are released +but now we face a broader and more fundamental challenge in this region because of the recent military action of the soviet union +now as during the last 3 1 2 decades the relationship between our country the united states of america and the soviet union is the most critical factor in determining whether the world will live at peace or be engulfed in global conflict +since the end of the second world war america has led other nations in meeting the challenge of mounting soviet power this has not been a simple or a static relationship between us there has been cooperation there has been competition and at times there has been confrontation +in the 1940 s we took the lead in creating the atlantic alliance in response to the soviet union s suppression and then consolidation of its east european empire and the resulting threat of the warsaw pact to western europe +in the 1950 s we helped to contain further soviet challenges in korea and in the middle east and we rearmed to assure the continuation of that containment +in the 1960 s we met the soviet challenges in berlin and we faced the cuban missile crisis and we sought to engage the soviet union in the important task of moving beyond the cold war and away from confrontation +and in the 1970 s three american presidents negotiated with the soviet leaders in attempts to halt the growth of the nuclear arms race we sought to establish rules of behavior that would reduce the risks of conflict and we searched for areas of cooperation that could make our relations reciprocal and productive not only for the sake of our two nations but for the security and peace of the entire world +in all these actions we have maintained two commitments to be ready to meet any challenge by soviet military power and to develop ways to resolve disputes and to keep the peace +preventing nuclear war is the foremost responsibility of the two superpowers that s why we ve negotiated the strategic arms limitation treaties salt i and salt ii especially now in a time of great tension observing the mutual constraints imposed by the terms of these treaties will be in the best interest of both countries and will help to preserve world peace i will consult very closely with the congress on this matter as we strive to control nuclear weapons that effort to control nuclear weapons will not be abandoned +we superpowers also have the responsibility to exercise restraint in the use of our great military force the integrity and the independence of weaker nations must not be threatened they must know that in our presence they are secure +but now the soviet union has taken a radical and an aggressive new step it s using its great military power against a relatively defenseless nation the implications of the soviet invasion of afghanistan could pose the most serious threat to the peace since the second world war +the vast majority of nations on earth have condemned this latest soviet attempt to extend its colonial domination of others and have demanded the immediate withdrawal of soviet troops the moslem world is especially and justifiably outraged by this aggression against an islamic people no action of a world power has ever been so quickly and so overwhelmingly condemned but verbal condemnation is not enough the soviet union must pay a concrete price for their aggression +while this invasion continues we and the other nations of the world cannot conduct business as usual with the soviet union that s why the united states has imposed stiff economic penalties on the soviet union i will not issue any permits for soviet ships to fish in the coastal waters of the united states i ve cut soviet access to high technology equipment and to agricultural products i ve limited other commerce with the soviet union and i ve asked our allies and friends to join with us in restraining their own trade with the soviets and not to replace our own embargoed items and i have notified the olympic committee that with soviet invading forces in afghanistan neither the american people nor i will support sending an olympic team to moscow +the soviet union is going to have to answer some basic questions will it help promote a more stable international environment in which its own legitimate peaceful concerns can be pursued or will it continue to expand its military power far beyond its genuine security needs and use that power for colonial conquest the soviet union must realize that its decision to use military force in afghanistan will be costly to every political and economic relationship it values +the region which is now threatened by soviet troops in afghanistan is of great strategic importance it contains more than two thirds of the world s exportable oil the soviet effort to dominate afghanistan has brought soviet military forces to within 300 miles of the indian ocean and close to the straits of hormuz a waterway through which most of the world s oil must flow the soviet union is now attempting to consolidate a strategic position therefore that poses a grave threat to the free movement of middle east oil +this situation demands careful thought steady nerves and resolute action not only for this year but for many years to come it demands collective efforts to meet this new threat to security in the persian gulf and in southwest asia it demands the participation of all those who rely on oil from the middle east and who are concerned with global peace and stability and it demands consultation and close cooperation with countries in the area which might be threatened +meeting this challenge will take national will diplomatic and political wisdom economic sacrifice and of course military capability we must call on the best that is in us to preserve the security of this crucial region +let our position be absolutely clear an attempt by any outside force to gain control of the persian gulf region will be regarded as an assault on the vital interests of the united states of america and such an assault will be repelled by any means necessary including military force +during the past 3 years you have joined with me to improve our own security and the prospects for peace not only in the vital oil producing area of the persian gulf region but around the world we ve increased annually our real commitment for defense and we will sustain this increase of effort throughout the five year defense program it s imperative that congress approve this strong defense budget for 1981 encompassing a 5 percent real growth in authorizations without any reduction +we are also improving our capability to deploy u s military forces rapidly to distant areas we ve helped to strengthen nato and our other alliances and recently we and other nato members have decided to develop and to deploy modernized intermediate range nuclear forces to meet an unwarranted and increased threat from the nuclear weapons of the soviet union +we are working with our allies to prevent conflict in the middle east the peace treaty between egypt and israel is a notable achievement which represents a strategic asset for america and which also enhances prospects for regional and world peace we are now engaged in further negotiations to provide full autonomy for the people of the west bank and gaza to resolve the palestinian issue in all its aspects and to preserve the peace and security of israel let no one doubt our commitment to the security of israel in a few days we will observe an historic event when israel makes another major withdrawal from the sinai and when ambassadors will be exchanged between israel and egypt +we ve also expanded our own sphere of friendship our deep commitment to human rights and to meeting human needs has improved our relationship with much of the third world our decision to normalize relations with the people s republic of china will help to preserve peace and stability in asia and in the western pacific +we ve increased and strengthened our naval presence in the indian ocean and we are now making arrangements for key naval and air facilities to be used by our forces in the region of northeast africa and the persian gulf +we ve reconfirmed our 1959 agreement to help pakistan preserve its independence and its integrity the united states will take action consistent with our own laws to assist pakistan in resisting any outside aggression and i m asking the congress specifically to reaffirm this agreement i m also working along with the leaders of other nations to provide additional military and economic aid for pakistan that request will come to you in just a few days +finally we are prepared to work with other countries in the region to share a cooperative security framework that respects differing values and political beliefs yet which enhances the independence security and prosperity of all +all these efforts combined emphasize our dedication to defend and preserve the vital interests of the region and of the nation which we represent and those of our allies in europe and the pacific and also in the parts of the world which have such great strategic importance to us stretching especially through the middle east and southwest asia with your help i will pursue these efforts with vigor and with determination you and i will act as necessary to protect and to preserve our nation s security +the men and women of america s armed forces are on duty tonight in many parts of the world i m proud of the job they are doing and i know you share that pride i believe that our volunteer forces are adequate for current defense needs and i hope that it will not become necessary to impose a draft however we must be prepared for that possibility for this reason i have determined that the selective service system must now be revitalized i will send legislation and budget proposals to the congress next month so that we can begin registration and then meet future mobilization needs rapidly if they arise +we also need clear and quick passage of a new charter to define the legal authority and accountability of our intelligence agencies we will guarantee that abuses do not recur but we must tighten our controls on sensitive intelligence information and we need to remove unwarranted restraints on america s ability to collect intelligence +the decade ahead will be a time of rapid change as nations everywhere seek to deal with new problems and age old tensions but america need have no fear we can thrive in a world of change if we remain true to our values and actively engaged in promoting world peace we will continue to work as we have for peace in the middle east and southern africa we will continue to build our ties with developing nations respecting and helping to strengthen their national independence which they have struggled so hard to achieve and we will continue to support the growth of democracy and the protection of human rights +in repressive regimes popular frustrations often have no outlet except through violence but when peoples and their governments can approach their problems together through open democratic methods the basis for stability and peace is far more solid and far more enduring that is why our support for human rights in other countries is in our own national interest as well as part of our own national character +peace a peace that preserves freedom remains america s first goal in the coming years as a mighty nation we will continue to pursue peace but to be strong abroad we must be strong at home and in order to be strong we must continue to face up to the difficult issues that confront us as a nation today +the crises in iran and afghanistan have dramatized a very important lesson our excessive dependence on foreign oil is a clear and present danger to our nation s security the need has never been more urgent at long last we must have a clear comprehensive energy policy for the united states +as you well know i have been working with the congress in a concentrated and persistent way over the past 3 years to meet this need we have made progress together but congress must act promptly now to complete final action on this vital energy legislation our nation will then have a major conservation effort important initiatives to develop solar power realistic pricing based on the true value of oil strong incentives for the production of coal and other fossil fuels in the united states and our nation s most massive peacetime investment in the development of synthetic fuels +the american people are making progress in energy conservation last year we reduced overall petroleum consumption by 8 percent and gasoline consumption by 5 percent below what it was the year before now we must do more +after consultation with the governors we will set gasoline conservation goals for each of the 50 states and i will make them mandatory if these goals are not met +i ve established an import ceiling for 1980 of 8 2 million barrels a day well below the level of foreign oil purchases in 1977 i expect our imports to be much lower than this but the ceiling will be enforced by an oil import fee if necessary i m prepared to lower these imports still further if the other oil consuming countries will join us in a fair and mutual reduction if we have a serious shortage i will not hesitate to impose mandatory gasoline rationing immediately +the single biggest factor in the inflation rate last year the increase in the inflation rate last year was from one cause the skyrocketing prices of opec oil we must take whatever actions are necessary to reduce our dependence on foreign oil and at the same time reduce inflation +as individuals and as families few of us can produce energy by ourselves but all of us can conserve energy every one of us every day of our lives tonight i call on you in fact all the people of america to help our nation conserve energy eliminate waste make 1980 indeed a year of energy conservation +of course we must take other actions to strengthen our nation s economy +first we will continue to reduce the deficit and then to balance the federal budget +second as we continue to work with business to hold down prices we ll build also on the historic national accord with organized labor to restrain pay increases in a fair fight against inflation +third we will continue our successful efforts to cut paperwork and to dismantle unnecessary government regulation +fourth we will continue our progress in providing jobs for america concentrating on a major new program to provide training and work for our young people especially minority youth it has been said that a mind is a terrible thing to waste we will give our young people new hope for jobs and a better life in the 1980 s +and fifth we must use the decade of the 1980 s to attack the basic structural weaknesses and problems in our economy through measures to increase productivity savings and investment +with these energy and economic policies we will make america even stronger at home in this decade just as our foreign and defense policies will make us stronger and safer throughout the world we will never abandon our struggle for a just and a decent society here at home that s the heart of america and it s the source of our ability to inspire other people to defend their own rights abroad +our material resources great as they are are limited our problems are too complex for simple slogans or for quick solutions we cannot solve them without effort and sacrifice walter lippmann once reminded us you took the good things for granted now you must earn them again for every right that you cherish you have a duty which you must fulfill for every good which you wish to preserve you will have to sacrifice your comfort and your ease there is nothing for nothing any longer +our challenges are formidable but there s a new spirit of unity and resolve in our country we move into the 1980 s with confidence and hope and a bright vision of the america we want an america strong and free an america at peace an america with equal rights for all citizens and for women guaranteed in the united states constitution an america with jobs and good health and good education for every citizen an america with a clean and bountiful life in our cities and on our farms an america that helps to feed the world an america secure in filling its own energy needs an america of justice tolerance and compassion for this vision to come true we must sacrifice but this national commitment will be an exciting enterprise that will unify our people +together as one people let us work to build our strength at home and together as one indivisible union let us seek peace and security throughout the world +together let us make of this time of challenge and danger a decade of national resolve and of brave achievement +thank you very much +to the congress of the united states +the state of the union is sound our economy is recovering from a recession a national energy plan is in place and our dependence on foreign oil is decreasing we have been at peace for four uninterrupted years +but our nation has serious problems inflation and unemployment are unacceptably high the world oil market is increasingly tight there are trouble spots throughout the world and 52 american hostages are being held in iran against international law and against every precept of human affairs +however i firmly believe that as a result of the progress made in so many domestic and international areas over the past four years our nation is stronger wealthier more compassionate and freer than it was four years ago i am proud of that fact and i believe the congress should be proud as well for so much of what has been accomplished over the past four years has been due to the hard work insights and cooperation of congress i applaud the congress for its efforts and its achievements +in this state of the union message i want to recount the achievements and progress of the last four years and to offer recommendations to the congress for this year while my term as president will end before the 97th congress begins its work in earnest i hope that my recommendations will serve as a guide for the direction this country should take so we build on the record of the past four years +record of progress +when i took office our nation faced a number of serious domestic and international problems +no national energy policy existed and our dependence on foreign oil was rapidly increasing +public trust in the integrity and openness of the government was low +the federal government was operating inefficiently in administering essential programs and policies +major social problems were being ignored or poorly addressed by the federal government +our defense posture was declining as a result of a defense budget which was continuously shrinking in real terms +the strength of the nato alliance needed to be bolstered +tensions between israel and egypt threatened another middle east war and +america s resolve to oppose human rights violations was under serious question +over the past 48 months clear progress has been made in solving the challenges we found in january of 1977 +almost all of our comprehensive energy program have been enacted and the department of energy has been established to administer the program confidence in the government s integrity has been restored and respect for the government s openness and fairness has been renewed +the government has been made more effective and efficient the civil service system was completely reformed for the first time this century +14 reorganization initiatives have been proposed to the congress approved and implemented +two new cabinet departments have been created to consolidate and streamline the government s handling of energy and education problems +inspectors general have been placed in each cabinet department to combat fraud waste and other abuses +the regulatory process has been reformed through creation of the regulatory council implementation of executive order 12044 and its requirement for cost impact analyses elimination of unnecessary regulation and passage of the regulatory flexibility act +procedures have been established to assure citizen participation in government +and the airline trucking rail and communications industries are being deregulated +critical social problems many long ignored by the federal government have been addressed directly +an urban policy was developed and implemented to reverse the decline in our urban areas +the social security system was refinanced to put it on a sound financial basis +the humphrey hawkins full employment act was enacted +federal assistance for education was expanded by more than 75 percent +the minimum wage was increased to levels needed to ease the effects of inflation +affirmative action has been pursued aggressively more blacks hispanics and women have been appointed to senior government positions and to judgeships than at any other time in our history +the era ratification deadline was extended to aid the ratification effort +and minority business procurement by the federal government has more than doubled +the nation s first sectoral policies were put in place for the auto and steel industries with my administration demonstrating the value of cooperation between the government business and labor +reversing previous trends real defense spending has increased every year since 1977 +the real increase in fy 1980 defense spending is well above 3 percent and i expect fy 1981 defense spending to be even higher +looking ahead the defense program i am proposing is premised on a real increase in defense spending over the next five years of 20 percent or more +the nato alliance has proven its unity in responding to the situations in eastern europe and southwest asia and in agreeing on the issues to be addressed in the review of the helsinki final act currently underway in madrid +the peace process in the middle east established at camp david and by the peace treaty between egypt and israel is being buttressed on two fronts steady progress in the normalization of egyptian israeli relations in many fields and the commitment of both egypt and israel with united states assistance to see through to successful conclusion the autonomy negotiations for the west bank and gaza +the panama canal treaties have been put into effect which has helped to improve relations with latin america +we have continued this nation s strong commitment to the pursuit of human rights throughout the world evenhandedly and objectively +our commitment to a worldwide human rights policy has remained firm +and many other countries have given high priority to it +our resolve to oppose aggression such as the illegal invasion of the soviet union into afghanistan has been supported by tough action +i ensuring economic strength economy +during the last decade our nation has withstood a series of economic shocks unprecedented in peacetime the most dramatic of these has been the explosive increases of opec oil prices but we have also faced world commodity shortages natural disasters agricultural shortages and major challenges to world peace and security our ability to deal with these shocks has been impaired because of a decrease in the growth of productivity and the persistence of underlying inflationary forces built up over the past 15 years +nevertheless the economy has proved to be remarkably resilient real output has grown at an average rate of 3 percent per year since i took office and employment has grown by 10 percent we have added about 8 million productive private sector jobs to the economy however unacceptably high inflation the most difficult economic problem i have faced persists +this inflation which threatens the growth productivity and stability of our economy requires that we restrain the growth of the budget to the maximum extent consistent with national security and human compassion i have done so in my earlier budgets and in my fy 82 budget however while restraint is essential to any appropriate economic policy high inflation cannot be attributed solely to government spending the growth in budget outlays has been more the result of economic factors than the cause of them +we are now in the early stages of economic recovery following a short recession typically a post recessionary period has been marked by vigorous economic growth aided by anti recessionary policy measures such as large tax cuts or big stimulation spending programs i have declined to recommend such actions to stimulate economic activity because the persistent inflationary pressures that beset our economy today dictate a restrained fiscal policy +accordingly i am asking the congress to postpone until january 1 1982 the personal tax reductions i had earlier proposed to take effect on january 1 of this year +however my 1982 budget proposes significant tax changes to increase the sources of financing for business investment while emphasizing the need for continued fiscal restraint this budget takes the first major step in a long term tax reduction program designed to increase capital formation the failure of our nation s capital stock to grow at a rate that keeps pace with its labor force has clearly been one cause of our productivity slowdown higher investment rates are also critically needed to meet our nation s energy needs and to replace energy inefficient plants and equipment with new energy saving physical plants the level of investment that is called for will not occur in the absence of policies to encourage it +therefore my budget proposes a major liberalization of tax allowances for depreciation as well as simplified depreciation accounting increasing the allowable rates by about 40 percent i am also proposing improvements in the investment tax credit making it refundable to meet the investment needs of firms with no current earnings +these two proposals along with carefully phased tax reductions for individuals will improve both economic efficiency and tax equity i urge the congress to enact legislation along the lines and timetable i have proposed +the 1982 budget +the fy 1982 budget i have sent to the congress continues our four year policy of prudence and restraint while the budget deficits during my term are higher than i would have liked their size is determined for the most part by economic conditions and in spite of these conditions the relative size of the deficit continues to decline in 1976 before i took office the budget deficit equalled 4 percent of gross national product it had been cut to 2 3 percent in the 1980 fiscal year just ended my 1982 budget contains a deficit estimated to be less than 1 percent of our gross national product +the rate of growth in federal spending has been held to a minimum nevertheless outlays are still rising more rapidly than many had anticipated the result of many powerful forces in our society +we face a threat to our security as events in afghanistan the middle east and eastern europe make clear we have a steadily aging population and as a result the biggest single increase in the federal budget is the rising cost of retirement programs particularly social security we face other important domestic needs to continue responsibility for the disadvantaged to provide the capital needed by our cities and our transportation systems to protect our environment to revitalize american industry and to increase the export of american goods and services so essential to the creation of jobs and a trade surplus +yet the federal government itself may not always be the proper source of such assistance for example it must not usurp functions if they can be more appropriately decided upon managed and financed by the private sector or by state and local governments my administration has always sought to consider the proper focus of responsibility for the most efficient resolution of problems +we have also recognized the need to simplify the system of grants to state and local governments i have again proposed several grant consolidations in the 1982 budget including a new proposal that would consolidate several highway programs +the pressures for growth in federal use of national resources are great my administration has initiated many new approaches to cope with these pressures we started a multi year budget system and we began a system for controlling federal credit programs yet in spite of increasing needs to limit spending growth we have consistently adhered to these strong budget principles +our nation s armed forces must always stand sufficiently strong to deter aggression and to assure our security an effective national energy plan is essential to increase domestic production of oil and gas to encourage conservation of our scarce energy resources to stimulate conversion to more abundant fuels and to reduce our trade deficit the essential human needs for our citizens must be given the highest priority the federal government must lead the way in investment in the nation s technological future the federal government has an obligation to nurture and protect our environment the common resource birthright and sustenance of the american people +my 1982 budget continues to support these principles it also proposes responsible tax reductions to encourage a more productive economy and adequate funding of our highest priority programs within an overall policy of constraint +fiscal restraint must be continued in the years ahead budgets must be tight enough to convince those who set wages and prices that the federal government is serious about fighting inflation but not so tight as to choke off all growth +careful budget policy should be supplemented by other measures designed to reduce inflation at lower cost in lost output and employment these other steps include measures to increase investment such as the tax proposals included in my 1982 budget and measures to increase competition and productivity in our economy voluntary incomes policies can also directly influence wages and prices in the direction of moderation and thereby bring inflation down faster and at lower cost to the economy through a tax based incomes policy tip we could provide tax incentives for firms and workers to moderate their wage and price increases in the coming years control of federal expenditures can make possible periodic tax reductions the congress should therefore begin now to evaluate the potentialities of a tip program so that when the next round of tax reductions is appropriate a tip program will be seriously considered +employment +during the last four years we have given top priority to meeting the needs of workers and providing additional job opportunities to those who seek work since the end of 1976 +almost 9 million new jobs have been added to the nation s economy total employment has reached 97 million more jobs than ever before are held by women minorities and young people employment over the past four years has increased by 17 for adult women 11 for blacks and 30 for hispanics employment of black teenagers increased by more than 5 reversing the decline that occurred in the previous eight years +major initiatives launched by this administration helped bring about these accomplishments and have provided a solid foundation for employment and training policy in the 1980 s in 1977 as part of the comprehensive economic stimulus program +425 000 public service jobs were created a $1 billion youth employment initiative funded 200 000 jobs the doubling of the job corps to 44 000 slots began and 1 million summer youth jobs were approved a 25 percent increase +in 1978 +the humphrey hawkins full employment act became law the $400 million private sector initiatives program was begun a targeted jobs tax credit for disadvantaged youth and others with special employment barriers was enacted the comprehensive employment and training act was reauthorized for four years +in 1979 +a $6 billion welfare reform proposal was introduced with funding for 400 000 public service jobs welfare reform demonstration projects were launched in communities around the country the vice president initiated a nationwide review of youth unemployment in this country +in 1980 +the findings of the vice president s task force revealed the major education and employment deficits that exist for poor and minority youngsters as a result a $2 billion youth education and jobs initiative was introduced to provide unemployed youth with the basic education and work experience they need to compete in the labor market of the 1980 s as part of the economic revitalization program several steps were proposed to aid workers in high unemployment communities +an additional 13 weeks of unemployment benefits for the long term unemployed $600 million to train the disadvantaged and unemployed for new private sector jobs positive adjustment demonstrations to aid workers in declining industries the important title vii private sector initiatives program was reauthorized for an additional two years +in addition to making significant progress in helping the disadvantaged and unemployed important gains were realized for all workers +an historic national accord with organized labor made it possible for the views of working men and women to be heard as the nation s economic and domestic policies were formulated the mine safety and health act brought about improved working conditions for the nation s 500 000 miners substantial reforms of occupational safety and health administration were accomplished to help reduce unnecessary burdens on business and to focus on major health and safety problems the minimum wage was increased over a four year period from $2 30 to $3 35 an hour the black lung benefit reform act was signed into law attempts to weaken davis bacon act were defeated +while substantial gains have been made in the last four years continued efforts are required to ensure that this progress is continued +government must continue to make labor a full partner in the policy decisions that affect the interests of working men and women a broad bipartisan effort to combat youth unemployment must be sustained compassionate reform of the nation s welfare system should be continued with employment opportunities provided for those able to work workers in declining industries should be provided new skills and help in finding employment +trade +over the past year the u s trade picture improved as a result of solid export gains in both manufactured and agricultural products agricultural exports reached a new record of over $40 billion while manufactured exports have grown by 24 percent to a record $144 billion in these areas the united states recorded significant surpluses of $24 billion and $19 billion respectively while our oil imports remained a major drain on our foreign exchange earnings that drain was somewhat moderated by a 19 percent decline in the volume of oil imports +u s trade negotiators made significant progress over the past year in assuring effective implementation of the agreements negotiated during the tokyo round of multilateral trade negotiations agreements reached with the japanese government for example will assure that the united states will be able to expand its exports to the japanese market in such key areas as telecommunications equipment tobacco and lumber efforts by u s trade negotiators also helped to persuade a number of key developing countries to accept many of the non tariff codes negotiated during the multilateral trade negotiations this will assure that these countries will increasingly assume obligations under the international trading system +a difficult world economic environment posed a challenge for the management of trade relations u s trade negotiators were called upon to manage serious sectoral problems in such areas as steel and helped to assure that u s chemical exports will have continued access to the european market +close consultations with the private sector in the united states have enabled u s trade negotiators to pinpoint obstacles to u s trade in services and to build a basis for future negotiations services have been an increasingly important source of export earnings for the united states and the united states must assure continued and increased access to foreign markets +the trade position of the united states has improved but vigorous efforts are needed in a number of areas to assure continued market access for u s exports particularly agricultural and high technology products in which the united states continues to have a strong competitive edge continued efforts are also needed to remove many domestic disincentives which now hamper u s export growth and we must ensure that countries do not manipulate investment or impose investment performance requirements which distort trade and cost us jobs in this country +in short we must continue to seek free but fair trade that is the policy my administration has pursued from the beginning even in areas where foreign competition has clearly affected our domestic industry in the steel industry for instance we have put trigger price mechanism into place to help prevent the dumping of steel that action has strengthened the domestic steel industry in the automobile industry we have worked without resort to import quotas to strengthen the industry s ability to modernize and compete effectively +small business +i have often said that there is nothing small about small business in america these firms account for nearly one half our gross national product over half of new technology and much more than half of the jobs created by industry +because this sector of the economy is the very lifeblood of our national economy we have done much together to improve the competitive climate for smaller firms these concerted efforts have been an integral part of my program to revitalize the economy +they include my campaign to shrink substantially the cash and time consuming red tape burden imposed on business they include my personally directed policy of ambitiously increasing the federal contracting dollars going to small firms especially those owned by women and minorities and they include my proposals to reinvigorate existing small businesses and assist the creation of new ones through tax reform financing assistance market expansion and support of product innovation +many of my initiatives to facilitate the creation and growth of small businesses were made in response to the white house conference on small business which i convened my administration began the implementation of most of the ideas produced last year by that citizen s advisory body others need to be addressed i have proposed the reconvening of the conference next year to review progress reassess priorities and set new goals in the interim i hope that the incoming administration and the new congress will work with the committee i have established to keep these business development ideas alive and help implement conference recommendations +minority business +one of the most successful developments of my administration has been the growth and strengthening of minority business this is the first administration to put the issue on the policy agenda as a matter of major importance to implement the results of our early efforts in this field i submitted legislation to congress designed to further the development of minority business +we have reorganized the office of minority business into the minority business development administration in the department of commerce mbda has already proven to be a major factor in assisting minority businesses to achieve equitable competitive positions in the marketplace +the federal government s procurement from minority owned firms has nearly tripled since i took office federal deposits in minority owned banks have more than doubled and minority ownership of radio and television stations has nearly doubled the sba administered 8 a pilot program for procurement with the army proved to be successful and i recently expanded the number of agencies involved to include nasa and the departments of energy and transportation +i firmly believe the critical path to full freedom and equality for america s minorities rests with the ability of minority communities to participate competitively in the free enterprise system i believe the government has a fundamental responsibility to assist in the development of minority business and i hope the progress made in the last four years will continue +ii creating energy security +since i took office my highest legislative priorities have involved the reorientation and redirection of u s energy activities and for the first time to establish a coordinated national energy policy the struggle to achieve that policy has been long and difficult but the accomplishments of the past four years make clear that our country is finally serious about the problems caused by our overdependence on foreign oil our progress should not be lost we must rely on and encourage multiple forms of energy production coal crude oil natural gas solar nuclear synthetics and energy conservation the framework put in place over the last four years will enable us to do this +national energy policy +as a result of actions my administration and the congress have taken over the past four years our country finally has a national energy policy +under my program of phased decontrol domestic crude oil price controls will end september 30 1981 as a result exploratory drilling activities have reached an all time high prices for new natural gas are being decontrolled under the natural gas policy act and natural gas production is now at an all time high the supply shortages of several years ago have been eliminated the windfall profits tax on crude oil has been enacted providing $227 billion over ten years for assistance to low income households increased mass transit funding and a massive investment in the production and development of alternative energy sources the synthetic fuels corporation has been established to help private companies build the facilities to produce energy from synthetic fuels solar energy funding has been quadrupled solar energy tax credits enacted and a solar energy and energy conservation bank has been established a route has been chosen to bring natural gas from the north slope of alaska to the lower 48 states coal production and consumption incentives have been increased and coal production is now at its highest level in history a gasoline rationing plan has been approved by congress for possible use in the event of a severe energy supply shortage or interruption gasohol production has been dramatically increased with a program being put in place to produce 500 million gallons of alcohol fuel by the end of this year an amount that could enable gasohol to meet the demand for 10 percent of all unleaded gasoline new energy conservation incentives have been provided for individuals businesses and communities and conservation has increased dramatically the u s has reduced oil imports by 25 percent or 2 million barrels per day over the past four years +increased development of domestic energy sources +although it is essential that the nation reduce its dependence on imported fossil fuels and complete the transition to reliance on domestic renewable sources of energy it is also important that this transition be accomplished in an orderly economic and environmentally sound manner to this end the administration has launched several initiatives +leasing of oil and natural gas on federal lands particularly the outer continental shelf has been accelerated at the same time as the administration has reformed leasing procedures through the 1978 amendments to the outer continental shelf lands act in 1979 the interior department held six ocs lease sales the greatest number ever which resulted in federal receipts of $6 5 billion another record the five year ocs leasing schedule was completed requiring 36 sales over the next five years +since 1971 no general federal coal lease sales were suspended over the past four years the administration has completely revised the federal coal leasing program to bring it into compliance with the requirements of 1976 federal land planning and management act and other statutory provisions the program is designed to balance the competing interests that affect resource development on public lands and to ensure that adequate supplies of coal will be available to meet national needs as a result the first general competitive federal coal lease sale in ten years will be held this month +in july 1980 i signed into law the energy security act of 1980 which established the synthetic fuels corporation the corporation is designed to spur the development of commercial technologies for production of synthetic fuels such as liquid and gaseous fuels from coal and the production of oil from oil shale the act provides the corporation with an initial $22 billion to accomplish these objectives the principal purpose of the legislation is to ensure that the nation will have available in the late 1980 s the option to undertake commercial development of synthetic fuels if that becomes necessary the energy security act also provides significant incentives for the development of gasohol and biomass fuels thereby enhancing the nation s supply of alternative energy sources +commitment to a sustainable energy future +the administration s 1977 national energy plan marked an historic departure from the policies of previous administrations the plan stressed the importance of both energy production and conservation to achieving our ultimate national goal of relying primarily on secure sources of energy the national energy plan made energy conservation a cornerstone of our national energy policy +in 1978 i initiated the administration s solar domestic policy review this represented the first step towards widespread introduction of renewable energy sources into the nation s economy as a result of the review i issued the 1979 solar message to congress the first such message in the nation s history the message outlined the administration s solar program and established an ambitious national goal for the year 2000 of obtaining 20 percent of this nation s energy from solar and renewable sources the thrust of the federal solar program is to help industry develop solar energy sources by emphasizing basic research and development of solar technologies which are not currently economic such as photovoltaics which generate energy directly from the sun at the same time through tax incentives education and the solar energy and energy conservation bank the solar program seeks to encourage state and local governments industry and our citizens to expand their use of solar and renewable resource technologies currently available +as a result of these policies and programs the energy efficiency of the american economy has improved markedly and investments in renewable energy sources have grown significantly it now takes 3 1 2 percent less energy to produce a constant dollar of gnp than it did in january 1977 this increase in efficiency represents a savings of over 1 3 million barrels per day of oil equivalent about the level of total oil production now occurring in alaska over the same period federal support for conservation and solar energy has increased by more than 3000 percent to $3 3 billion in fy 1981 including the tax credits for solar energy and energy conservation investments these credits are expected to amount to $1 2 billion in fy 1981 and $1 5 billion in fy 1982 +commitment to nuclear safety and security +since january 1977 significant progress has been achieved in resolving three critical problems resulting from the use of nuclear energy radioactive waste management nuclear safety and weapons proliferation +in 1977 the administration announced its nuclear nonproliferation policy and initiated the international fuel cycle evaluation in 1978 congress passed the nuclear nonproliferation act an historic piece of legislation +in february 1980 the administration transmitted its nuclear waste management policy to the congress this policy was a major advance over all previous efforts the principal aspects of that policy are acknowledging the seriousness of the problem and the numerous technical and institutional issues adopting a technically and environmentally conservative approach to the first permanent repository and providing the states with significant involvement in nuclear waste disposal decisions by creating the state planning council while much of the plan can be and is being implemented administratively some new authorities are needed the congress should give early priority to enacting provisions for away from reactor storage and the state planning council +the accident at three mile island made the nation acutely aware of the safety risks posed by nuclear power plants in response the president established the kemeny commission to review the accident and make recommendations virtually all of the commission s substantive recommendations were adopted by the administration and are now being implemented by the nuclear regulatory commission the congress adopted the president s proposed plan for the nuclear regulatory commission and the nuclear safety oversight committee was established to ensure that the administration s decisions were implemented +nuclear safety will remain a vital concern in the years ahead we must continue to press ahead for the safe secure disposal of radioactive wastes and prevention of nuclear proliferation +while significant growth in foreign demand for u s steam coal is foreseen congestion must be removed at major u s coal exporting ports such as hampton roads virginia and baltimore maryland my administration has worked through the interagency coal task force study to promote cooperation and coordination of resources between shippers railroads vessel broker operators and port operators and to determine the most appropriate federal role in expanding and modernizing coal export facilities including dredging deeper channels at selected ports as a result of the task force s efforts administrative steps have been taken by the corps of engineers to reduce significantly the amount of time required for planning and economic review of port dredging proposals the administration has also recommended that the congress enact legislation to give the president generic authority to recommend appropriations for channel dredging activities private industry will of course play the major role in developing the united states coal export facilities but the government must continue to work to facilitate transportation to foreign markets +iii enhancing basic human and social needs +for too long prior to my administration many of our nation s basic human and social needs were being ignored or handled insensitively by the federal government over the last four years we have significantly increased funding for many of the vital programs in these areas developed new programs where needs were unaddressed targeted federal support to those individuals and areas most in need of our assistance and removed barriers that have unnecessarily kept many disadvantaged citizens from obtaining aid for their most basic needs +our record has produced clear progress in the effort to solve some of the country s fundamental human and social problems my administration and the congress working together have demonstrated that government must and can meet our citizens basic human and social needs in a responsible and compassionate way +but there is an unfinished agenda still before the congress if we are to meet our obligations to help all americans realize the dreams of sound health care decent housing effective social services a good education and a meaningful job important legislation still must be enacted national health insurance welfare reform child health assessment program are before the congress and i urge their passage +health national health plan +during my administration i proposed to congress a national health plan which will enable the country to reach the goal of comprehensive universal health care coverage the legislation i submitted lays the foundation for this comprehensive plan and addresses the most serious problems of health financing and delivery it is realistic and enactable it does not overpromise or overspend and as a result can be the solution to the thirty years of congressional battles on national health insurance my plan includes the following key features +nearly 15 million additional poor would receive fully subsidized comprehensive coverage pre natal and delivery services are provided for all pregnant women and coverage is provided for all acute care for infants in their first year of life the elderly and disabled would have a limit of $1 250 placed on annual out of pocket medical expenses and would no longer face limits on hospital coverage all full time employees and their families would receive insurance against at least major medical expenses under mandated employer coverage medicare and medicaid would be combined and expanded into an umbrella federal program healthcare for increased program efficiency accountability and uniformity and strong cost controls and health system reforms would be implemented including greater incentives for health maintenance organizations +i urge the new congress to compare my plan with the alternatives programs which either do too little to improve the health care needs of americans most in need or programs which would impose substantial financial burdens on the american taxpayers i hope the congress will see the need for and the benefits of my plan and work toward prompt enactment we cannot afford further delay in this vital area +health care cost control +inflation in health care costs remains unacceptably high throughout my administration legislation to reduce health care cost inflation was one of my highest priorities but was not passed by the congress therefore my fy 1982 budget proposes sharing the responsibility for health care cost control with the private sector through voluntary hospital cost guidelines and intensified monitoring in the longer term the health care reimbursement system must be reformed we must move away from inflationary cost based reimbursement and fee for service and toward a system of prospective reimbursement under which health care providers would operate within predetermined budgets this reimbursement reform is essential to ultimately control inflation in health care costs and will be a significant challenge to the new congress +health promotion and disease prevention +during my administration the surgeon general released healthy people a landmark report on health promotion and disease prevention the report signals the growing consensus that the nation s health strategy must be refocused in the 1980 s to emphasize the prevention of disease specifically the report lays out measurable and achieveable goals in the reduction of mortality which can be reached by 1990 +i urge the new congress to endorse the principles of healthy people and to adopt the recommendations to achieve its goals this will necessitate adoption of a broader concept of health care to include such areas as environmental health workplace health and safety commercial product safety traffic safety and health education promotion and information +maternal and child health +ensuring a healthy start in life for children remains not only a high priority of my administration but also one of the most cost effective forms of health care +when i took office immunization levels for preventable childhood diseases had fallen to 70 as a result of a concerted nationwide effort during my administration i am pleased to report that now at least 90 of children under 15 and virtually all school age children are immunized in addition reported cases of measles and mumps are at their lowest levels ever +under the national health plan i have proposed there would be no cost sharing for prenatal and delivery services for all pregnant women and for acute care provided to infants in their first year of life these preventive services have extremely high returns in terms of improved newborn and long term child health +under the child health assurance program chap legislation which i submitted to the congress and which passed the house an additional two million low income children under 18 would become eligible for medicaid benefits which would include special health assessments chap would also improve the continuity of care for the nearly 14 million children now eligible for medicaid an additional 100 000 low income pregnant women would become eligible for prenatal care under the proposal i strongly urge the new congress to enact chap and thereby provide millions of needy children with essential health services the legislation has had strong bipartisan support which should continue as the details of the bill are completed +i also urge the new congress to provide strong support for two highly successful ongoing programs the special supplemental food program for women infants and children wic and family planning the food supplements under wic have been shown to effectively prevent ill health and thereby reduce later medical costs the family planning program has been effective at reducing unwanted pregnancies among low income women and adolescents +expansion of services to the poor and underserved +during my administration health services to the poor and underserved have been dramatically increased the number of national health service corps nhsc assignees providing services in medically underserved communities has grown from 500 in 1977 to nearly 3 000 in 1981 the population served by the nhsc has more than tripled since 1977 the number of community health centers providing services in high priority underserved areas has doubled during my administration and will serve an estimated six million people in 1981 i strongly urge the new congress to support these highly successful programs +mental health +one of the most significant health achievements during my administration was the recent passage of the mental health systems act which grew out of recommendations of my commission on mental health i join many others in my gratitude to the first lady for her tireless and effective contribution to the passage of this important legislation +the act is designed to inaugurate a new era of federal and state partnership in the planning and provision of mental health services in addition the act specifically provides for prevention and support services to the chronically mentally ill to prevent unnecessary institutionalization and for the development of community based mental health services i urge the new congress to provide adequate support for the full and timely implementation of this act +health protection +with my active support the congress recently passed medigap legislation which provides for voluntary certification of health insurance policies supplemental to medicare to curb widespread abuses in this area +in the area of toxic agent control legislation which i submitted to the congress recently passed this will provide for a super fund to cover hazardous waste cleanup costs +in the area of accidental injury control we have established automobile safety standards and increased enforcement activities with respect to the 55 mph speed limit by the end of the decade these actions are expected to save over 13 000 lives and 100 000 serious injuries each year +i urge the new congress to continue strong support for all these activities +food and nutrition +building on the comprehensive reform of the food stamp program that i proposed and congress passed in 1977 my administration and the congress worked together in 1979 and 1980 to enact several other important changes in the program these changes will further simplify administration and reduce fraud and error will make the program more responsive to the needs of the elderly and disabled and will increase the cap on allowable program expenditures the food stamp act will expire at the end of fiscal 1981 it is essential that the new administration and the congress continue this program to ensure complete eradication of the debilitating malnutrition witnessed and documented among thousands of children in the 1960 s +drug abuse prevention +at the beginning of my administration there were over a half million heroin addicts in the united states our continued emphasis on reducing the supply of heroin as well as providing treatment and rehabilitation to its victims has reduced the heroin addict population reduced the number of heroin overdose deaths by 80 and reduced the number of heroin related injuries by 50 we have also seen and encouraged a national movement of parents and citizens committed to reversing the very serious and disturbing trends of adolescent drug abuse +drug abuse in many forms will continue to detract however from the quality of life of many americans to prevent that i see four great challenges in the years ahead first we must deal aggressively with the supplies of illegal drugs at their source through joint crop destruction programs with foreign nations and increased law enforcement and border interdiction second we must look to citizens and parents across the country to help educate the increasing numbers of american youth who are experimenting with drugs to the dangers of drug abuse education is a key factor in reducing drug abuse third we must focus our efforts on drug and alcohol abuse in the workplace for not only does this abuse contribute to low productivity but it also destroys the satisfaction and sense of purpose all americans can gain from the work experience fourth we need a change in attitude from an attitude which condones the casual use of drugs to one that recognizes the appropriate use of drugs for medical purposes and condemns the inappropriate and harmful abuse of drugs i hope the congress and the new administration will take action to meet each of these challenges +education +the american people have always recognized that education is one of the soundest investments they can make the dividends are reflected in every dimension of our national life from the strength of our economy and national security to the vitality of our music art and literature among the accomplishments that have given me the most satisfaction over the last four years are the contributions that my administration has been able to make to the well being of students and educators throughout the country +this administration has collaborated successfully with the congress on landmark education legislation working with the congressional leadership my administration spotlighted the importance of education by creating a new department of education the department has given education a stronger voice at the federal level while at the same time reserving the actual control and operation of education to states localities and private institutions the department has successfully combined nearly 150 federal education programs into a cohesive streamlined organization that is more responsive to the needs of educators and students the department has made strides to cut red tape and paperwork and thereby to make the flow of federal dollars to school districts and institutions of higher education more efficient it is crucial that the department be kept intact and strengthened +our collaboration with the congress has resulted in numerous other important legislative accomplishments for education a little over two years ago i signed into law on the same day two major bills one benefiting elementary and secondary education and the other postsecondary education the education amendments of 1978 embodied nearly all of my administration s proposals for improvements in the elementary and secondary education act including important new programs to improve students achievement in the basic skills and to aid school districts with exceptionally high concentrations of children from low income families the middle income student assistance act legislation jointly sponsored by this administration and the congressional leadership expanded eligibility for need based basic educational opportunity grants to approximately one third of the students enrolled in post secondary education and made many more students eligible for the first time for other types of grants work study and loans +just three and a half months ago my administration and the congress successfully concluded over two years of work on a major reauthorization bill that further expands benefits to postsecondary education reflected in the education amendments of 1980 are major administration recommendations for improvements in the higher education act including proposals for better loan access for students a new parent loan program simplified application procedures for student financial aid a strengthened federal commitment to developing colleges particularly the historically black institutions a new authorization for equipment and facilities modernization funding for the nation s major research universities and revitalized international education programs +supplementing these legislative accomplishments have been important administrative actions aimed at reducing paperwork and simplifying regulations associated with federal education programs we also launched major initiatives to reduce the backlog of defaulted student loans and otherwise to curb fraud abuse and waste in education programs +to insure that the education enterprise is ready to meet the scientific and technological changes of the future we undertook a major study of the status of science and engineering education throughout the nation i hope that the findings from this report will serve as a springboard for needed reforms at all levels of education +i am proud that this administration has been able to provide the financial means to realize many of our legislative and administrative goals compared to the previous administration s last budget i have requested the largest overall increase in federal funding for education in our nation s history my budget requests have been particularly sensitive to the needs of special populations like minorities women the educationally and economically disadvantaged the handicapped and students with limited english speaking ability at the same time i have requested significant increases for many programs designed to enhance the quality of american education including programs relating to important areas as diverse as international education research libraries museums and teacher centers +last year i proposed to the congress a major legislative initiative that would direct $2 billion into education and job training programs designed to alleviate youth unemployment through improved linkages between the schools and the work place this legislation generated bipartisan support but unfortunately action on it was not completed in the final rushed days of the 96th congress i urge the new congress as it undertakes broad efforts to strengthen the economy as well as more specific tasks like reauthorizing the vocational education act to make the needs of our nation s unemployed youth a top priority for action only by combining a basic skills education program together with work training and employment incentives can we make substantial progress in eliminating one of the most severe social problems in our nation youth unemployment particularly among minorities i am proud of the progress already made through passage of the youth employment and demonstration project act of 1977 and the substantial increase in our investment in youth employment programs the new legislation would cap these efforts +income security social security +one of the highest priorities of my administration has been to continue the tradition of effectiveness and efficiency widely associated with the social security program and to assure present and future beneficiaries that they will receive their benefits as expected the earned benefits that are paid monthly to retired and disabled american workers and their families provide a significant measure of economic protection to millions of people who might otherwise face retirement or possible disability with fear i have enacted changes to improve the benefits of many social security beneficiaries during my years as president +the last four years have presented a special set of concerns over the financial stability of the social security system shortly after taking office i proposed and congress enacted legislation to protect the stability of the old age and survivors trust fund and prevent the imminent exhaustion of the disability insurance trust fund and to correct a flaw in the benefit formula that was threatening the long run health of the entire social security system the actions taken by the congress at my request helped stabilize the system that legislation was later complemented by the disability insurance amendments of 1980 which further bolstered the disability insurance program and reduced certain inequities among beneficiaries +my commitment to the essential retirement and disability protection provided to 35 million people each month has been demonstrated by the fact that without interruption those beneficiaries have continued to receive their social security benefits including annual cost of living increases changing and unpredictable economic circumstances require that we continue to monitor the financial stability of the social security system to correct anticipated short term strains on the system i proposed last year that the three funds be allowed to borrow from one another and i urge the congress again this year to adopt such interfund borrowing to further strengthen the social security system and provide a greater degree of assurance to beneficiaries given projected future economic uncertainties additional action should be taken among the additional financing options available are borrowing from the general fund financing half of the hospital insurance fund with general revenues and increasing the payroll tax rate the latter option is particularly unpalatable given the significant increase in the tax rate already mandated in law +this administration continues to oppose cuts in basic social security benefits and taxing social security benefits the administration continues to support annual indexing of social security benefits +welfare reform +in 1979 i proposed a welfare reform package which offers solutions to some of the most urgent problems in our welfare system this proposal is embodied in two bills the work and training opportunities act and the social welfare reform amendments act the house passed the second of these two proposals within the framework of our present welfare system my reform proposals offer achievable means to increase self sufficiency through work rather than welfare more adequate assistance to people unable to work the removal of inequities in coverage under current programs and fiscal relief needed by states and localities +our current welfare system is long overdue for serious reform the system is wasteful and not fully effective the legislation i have proposed will help eliminate inequities by establishing a national minimum benefit and by directly relating benefit levels to the poverty threshold it will reduce program complexity which leads to inefficiency and waste by simplifying and coordinating administration among different programs +i urge the congress to take action in this area along the lines i have recommended +child welfare +my administration has worked closely with the congress on legislation which is designed to improve greatly the child welfare services and foster care programs and to create a federal system of adoption assistance these improvements will be achieved with the recent enactment of h r 3434 the adoption assistance and child welfare act of 1980 the well being of children in need of homes and their permanent placement have been a primary concern of my administration this legislation will ensure that children are not lost in the foster care system but instead will be returned to their families where possible or placed in permanent adoptive homes +low income energy assistance +in 1979 i proposed a program to provide an annual total of $1 6 billion to low income households which are hardest hit by rising energy bills with the cooperation of congress we were able to move quickly to provide assistance to eligible households in time to meet their winter heating bills +in response to the extreme heat conditions affecting many parts of the country during 1980 i directed the community services administration to make available over $27 million to assist low income individuals especially the elderly facing life threatening circumstances due to extreme heat +congress amended and reauthorized the low income energy assistance program for fiscal year 1981 and provided $1 85 billion to meet anticipated increasing need the need for a program to help low income households with rising energy expenses will not abate in the near future the low income energy assistance program should be reauthorized to meet those needs +housing +for the past 14 months high interest rates have had a severe impact on the nation s housing market yet the current pressures and uncertainties should not obscure the achievements of the past four years +working with the congress the regulatory agencies and the financial community my administration has brought about an expanded and steadier flow of funds into home mortgages deregulation of the interest rates payable by depository institutions the evolution of variable and renegotiated rate mortgages development of high yielding savings certificates and expansion of the secondary mortgage market have all increased housing s ability to attract capital and have assured that mortgage money would not be cut off when interest rates rose these actions will diminish the cyclicality of the housing industry further we have secured legislation updating the federal government s emergency authority to provide support for the housing industry through the brooke cranston program and creating a new section 235 housing stimulus program these tools will enable the federal government to deal quickly and effectively with serious distress in this critical industry +we have also worked to expand homeownership opportunities for americans by using innovative financing mechanisms such as the graduated payment mortgage we have increased the access of middle income families to housing credit by revitalizing the section 235 program we have enabled nearly 100 000 moderate income households to purchase new homes by reducing paperwork and regulation in federal programs and by working with state and local governments to ease the regulatory burden we have helped to hold down housing costs and produce affordable housing +as a result of these governmentwide efforts 5 1 2 million more american families bought homes in the past four years than in any equivalent period in history and more than 7 million homes have begun construction during my administration 1 million more than in the previous four years +we have devoted particular effort to meeting the housing needs of low and moderate income families in the past four years more than 1 million subsidized units have been made available for occupancy by lower income americans and more than 600 000 assisted units have gone into construction in addition we have undertaken a series of measures to revitalize and preserve the nation s 2 million units of public and assisted housing +for fiscal year 1982 i am proposing to continue our commitment to lower income housing i am requesting funds to support 260 000 units of section 8 and public housing maintaining these programs at the level provided by congress in fiscal 1981 +while we have made progress in the past four years in the future there are reasons for concern home price inflation and high interest rates threaten to put homeownership out of reach for first time homebuyers lower income households the elderly and those dependent upon rental housing face rising rents low levels of rental housing construction by historic standards and the threat of displacement due to conversion to condominiums and other factors housing will face strong competition for investment capital from the industrial sector generally and the energy industries in particular +to address these issues i appointed a presidential task force and advisory group last october while this effort will not proceed due to the election result i hope the incoming administration will proceed with a similar venture +the most important action government can take to meet america s housing needs is to restore stability to the economy and bring down the rate of inflation inflation has driven up home prices operating costs and interest rates market uncertainty about inflation has contributed to the instability in interest rates which has been an added burden to homebuilders and homebuyers alike by making a long term commitment to provide a framework for greater investment sustained economic growth and price stability my administration has begun the work of creating a healthy environment for housing +transportation +with the passage of the airline deregulation act of 1978 the motor carrier act of 1980 and the harley o staggers rail act of 1980 my administration working with the congress has initiated a new era of reduced regulation of transportation industries deregulation will lead to increased productivity and operating efficiencies in the industries involved and stimulate price and service competition to the benefit of consumers generally i urge the new administration to continue our efforts on behalf of deregulation legislation for the intercity passenger bus industry as well +in the coming decade the most significant challenge facing the nation in transportation services will be to improve a deteriorating physical infrastructure of roadways railroads waterways and mass transit systems in order to conserve costly energy supplies while promoting effective transportation services +highways +our vast network of highways which account for 90 percent of travel and 80 percent by value of freight traffic goods movement is deteriorating if current trends continue a major proportion of the interstate pavement will have deteriorated by the end of the 1980 s +arresting the deterioration of the nation s system of highways is a high priority objective for the 1980 s we must reorient the federal mission from major new construction projects to the stewardship of the existing interstate highway system interstate gaps should be judged on the connections they make and on their compatibility with community needs +during this decade highway investments will be needed to increase productivity particularly in the elimination of bottlenecks provide more efficient connections to ports and seek low cost solutions to traffic demand +my administration has therefore recommended redefining completion of the interstate system consolidating over 27 categorical assistance programs into nine and initiating a major repair and rehabilitation program for segments of the interstate system this effort should help maintain the condition and performance of the nation s highways particularly the interstate and primary system provide a realistic means to complete the interstate system by 1990 ensure better program delivery through consolidation and assist urban revitalization in addition the congress must address the urgent funding problems of the highway trust fund and the need to generate greater revenues +mass transit +in the past decade the nation s public transit systems ridership increased at an annual average of 1 1 each year in the 1970 s 6 9 in 1979 continued increases in the cost of fuel are expected to make transit a growing part of the nation s transportation system +as a result my administration projected a ten year $43 billion program to increase mass transit capacity by 50 percent and promote more energy efficient vehicle uses in the next decade the first part of this proposal was the five year $24 7 billion urban mass transportation administration reauthorization legislation i sent to the congress in march 1980 i urge the 97th congress to quickly enact this or similar legislation in 1981 +my administration was also the first to have proposed and signed into law a non urban formula grant program to assist rural areas and small communities with public transportation programs to end their dependence on the automobile promote energy conservation and efficiency and provide transportation services to impoverished rural communities +a principal need of the 1980 s will be maintaining mobility for all segments of the population in the face of severely increasing transportation costs and uncertainty of fuel supplies we must improve the flexibility of our transportation system and offer greater choice and diversity in transportation services while the private automobile will continue to be the principal means of transportation for many americans public transportation can become an increasingly attractive alternative we therefore want to explore a variety of paratransit modes various types of buses modern rapid transit regional rail systems and light rail systems +highway planning and transit planning must be integrated and related to state regional district and neighborhood planning efforts now in place or emerging low density development and land use threaten the fiscal capacity of many communities to support needed services and infrastructure +elderly and handicapped transportation +transportation policies in the 1980 s must pay increasing attention to the needs of the elderly and handicapped by 1990 the number of people over 65 will have grown from today s 19 million to 27 million during the same period the number of handicapped people who have difficulty using transit as well as autos including the elderly is expected to increase from 9 to 11 million making up 4 5 percent of the population +we must not retreat from a policy that affords a significant and growing portion of our population accessible public transportation while recognizing that the handicapped are a diverse group and will need flexible door to door service where regular public transportation will not do the job +railroads +in addition the federal government must reassess the appropriate federal role of support for passenger and freight rail services such as amtrak and conrail our goal through federal assistance should be to maintain and enhance adequate rail service where it is not otherwise available to needy communities but federal subsidies must be closely scrutinized to be sure they are a stimulus to and not a replacement for private investment and initiative federal assistance cannot mean permanent subsidies for unprofitable operations +waterways and rural transportation +there is a growing need in rural and small communities for improved transportation services rail freight service to many communities has declined as railroads abandon unproductive branch lines at the same time rural roads are often inadequate to handle large heavily loaded trucks the increased demand for harvest to harbor service has also placed an increased burden on rural transportation systems while bottlenecks along the mississippi river delay grain shipments to the gulf of mexico +we have made some progress +to further develop the nation s waterways my administration began construction of a new 1 200 foot lock at the site of lock and dam 26 on the mississippi river when opened in 1987 the new lock will have a capacity of 86 million tons per year an 18 percent increase over the present system the u s army corps of engineers has also undertaken studies to assess the feasibility of expanding the bonneville locks rehabilitation of john day lock was begun in 1980 and should be completed in 1982 my administration also supports the completion of the upper mississippi river master plan to determine the feasibility of constructing a second lock at alton illinois these efforts will help alleviate delays in transporting corn soybeans and other goods along the mississippi river to the gulf of mexico +the department of transportation s new small community and rural transportation policy will target federal assistance for passenger transportation roads and highways truck service and railroad freight service to rural areas this policy implements and expands upon the earlier white house initiative improving transportation in rural america announced in june 1979 and the president s small community and rural development policy announced in december 1979 the congress should seek ways to balance rail branch line abandonment with the service needs of rural and farm communities provide financial assistance to rail branch line rehabilitation where appropriate assist shippers to adjust to rail branch line abandonment where it takes place and help make it possible for trucking firms to serve light density markets with dependable and efficient trucking services +maritime policy +during my administration i have sought to ensure that the u s maritime industry will not have to function at an unfair competitive disadvantage in the international market as i indicated in my maritime policy statement to the congress in july 1979 the american merchant marine is vital to our nation s welfare and federal actions should promote rather than harm it in pursuit of this objective i signed into law the controlled carrier act of 1978 authorizing the federal maritime commission to regulate certain rate cutting practices of some state controlled carriers and recently signed a bilateral maritime agreement with the people s republic of china that will expand the access of american ships to 20 specified chinese ports and set aside for american flag ships a substantial share at least one third of the cargo between our countries this agreement should officially foster expanded u s and chinese shipping services linking the two countries and will provide further momentum to the growth of sino american trade +there is also a need to modernize and expand the dry bulk segment of our fleet our heavy dependence on foreign carriage of u s bulk cargoes deprives the u s economy of seafaring and shipbuilding jobs adds to the balance of payments deficit deprives the government of substantial tax revenues and leaves the united states dependent on foreign flag shipping for a continued supply of raw materials to support the civil economy and war production in time of war +i therefore sent to the congress proposed legislation to strengthen this woefully weak segment of the u s flag fleet by removing certain disincentives to u s construction of dry bulkers and their operation under u s registry enactment of this proposed legislation would establish the basis for accelerating the rebuilding of the u s flag dry bulk fleet toward a level commensurate with the position of the united states as the world s leading bulk trading country +during the past year the administration has stated its support for legislation that would provide specific federal assistance for the installation of fuel efficient engines in existing american ships and would strengthen this country s shipbuilding mobilization base strengthening the fleet is important but we must also maintain our shipbuilding base for future ship construction +provisions in existing laws calling for substantial or exclusive use of american flag vessels to carry cargoes generated by the government must be vigorously pursued +i have therefore supported requirements that 50 percent of oil purchased for the strategic petroleum reserve be transported in u s flag vessels that the cargo preference act be applied to materials furnished for the u s assisted construction of air bases in israel and to cargoes transported pursuant to the chrysler corporation loan guarantee act in addition the deep seabed hard mineral resources act requires that at least one ore carrier per mine site be a u s flag vessel +much has been done and much remains to be done the fy 1982 budget includes a $107 million authorization for construction differential subsidy cds funds which added to the unobligated cds balance of $100 million from 1980 and the recently enacted $135 million 1981 authorization will provide an average of $171 million in cds funds in 1981 and 1982 +coal export policy +while significant growth in foreign demand for u s steam coal is foreseen congestion at major u s coal exporting ports such as hampton roads virginia and baltimore maryland could delay and impede exports +my administration has worked through the interagency coal task force study which i created to promote cooperation and coordination of resources between shippers railroads vessel broker operators and port operators and to determine the most appropriate federal role in expanding and modernizing coal export facilities including dredging deeper channels at selected ports +some progress has already been made in addition to action taken by transshippers to reduce the number of coal classifications used whenever possible by the norfolk and western railroad to upgrade its computer capability to quickly inventory its coal cars in its yards and by the chessie railroad which is reactivating pier 15 in newport news and has established a berth near its curtis bay pier in baltimore to decrease delays in vessel berthing public activities will include +a $26 5 million plan developed by the state of pennsylvania and conrail to increase conrail s coal handling capacity at philadelphia +a proposal by the state of virginia to construct a steam coal port on the craney island disposal area in portsmouth harbor +plans by mobile alabama which operates the only publicly owned coal terminal in the u s to enlarge its capacity at mcduffie island to 10 million tons ground storage and 100 car unit train unloading capability +development at new orleans of steam coal facilities that are expected to add over 20 million tons of annual capacity by 1983 and +the corps of engineers working with other interested federal agencies will determine which ports should be dredged to what depth and on what schedule in order to accommodate larger coal carrying vessels +private industry will of course play a major role in developing the united states coal export facilities the new administration should continue to work to eliminate transportation bottlenecks that impede our access to foreign markets +special needs +women +the past four years have been years of rapid advancement for women our focus has been two fold to provide american women with a full range of opportunities and to make them a part of the mainstream of every aspect of our national life and leadership +i have appointed a record number of women to judgeships and to top government posts fully 22 percent of all my appointees are women and i nominated 41 of the 46 women who sit on the federal bench today for the first time in our history women occupy policymaking positions at the highest level of every federal agency and department and have demonstrated their ability to serve our citizens well +we have strengthened the rights of employed women by consolidating and strengthening enforcement of sex discrimination laws under the eeoc by expanding employment rights of pregnant women through the pregnancy disability bill and by increasing federal employment opportunities for women through civil service reform and flexi time and part time employment +by executive order i created the first national program to provide women businessowners with technical assistance grants loans and improved access to federal contracts +we have been sensitive to the needs of women who are homemakers i established an office of families within hhs and sponsored the white house conference on families we initiated a program targeting ceta funds to help displaced homemakers the social security system was amended to eliminate the widow s penalty and a comprehensive study of discriminatory provisions and possible changes was presented to congress legislation was passed to give divorced spouses of foreign service officers rights to share in pension benefits +we created an office on domestic violence within hhs to coordinate the 12 agencies that now have domestic violence relief programs and to distribute information on the problem and the services available to victims +despite a stringent budget for fy 1981 the administration consistently supported the women s educational equity act and family planning activities as well as other programs that affect women such as food stamps wic and social security +we have been concerned not only about the american woman s opportunities but ensuring equality for women around the world in november 1980 i sent to the senate the convention on the elimination of all forms of discrimination against women this united nations document is the most comprehensive and detailed international agreement which seeks the advancement of women +on women s issues i have sought the counsel of men and women in and out of government and from all regions of our country i established two panels the president s advisory committee for women and the interdepartmental task force on women to advise me on these issues the mandate for both groups expired on december 31 but they have left behind a comprehensive review of the status of women in our society today that review provides excellent guidance for the work remaining in our battle against sex discrimination +even though we have made progress much remains on the agenda for women i remain committed to the equal rights amendment and will continue to work for its passage it is essential to the goal of bringing america s women fully into the mainstream of american life that the era be ratified +the efforts begun for women in employment business and education should be continued and strengthened money should be available to states to establish programs to help the victims of domestic violence congress should pass a national health care plan and a welfare reform program and these measures should reflect the needs of women +the talents of women should continue to be used to the fullest inside and outside of government and efforts should continue to see that they have the widest range of opportunities and options +handicapped +i hope that my administration will be remembered in this area for leading the way toward full civil rights for handicapped americans when i took office no federal agency had yet issued 504 regulations as i leave office this first step by every major agency and department in the federal government is almost complete but it is only a first step the years ahead will require steadfast dedication by the president to protect and promote these precious rights in the classroom in the workplace and in all public facilities so that handicapped individuals may join the american mainstream and contribute to the fullest their resources and talents to our economic and social life +just as we supported in an unprecedented way the civil rights of disabled persons in schools and in the workplace other initiatives in health prevention such as our immunization and nutrition programs for young children and new intense efforts to reverse spinal cord injury must continue so that the incidence of disability continues to decline +this year is the u n declared international year of disabled persons we are organizing activities to celebrate and promote this important commemorative year within the government as well as in cooperation with private sector efforts in this country and around the world the international year will give our country the opportunity to recognize the talents and capabilities of our fellow citizens with disabilities we can also share our rehabilitation and treatment skills with other countries and learn from them as well i am proud that the united states leads the world in mainstreaming and treating disabled people however we have a long way to go before all psychological and physical barriers to disabled people are torn down and they can be full participants in our american way of life we must pledge our full commitment to this goal during the international year +families +because of my concern for american families my administration convened last year the first white house conference on families which involved seven national hearings over 506 state and local events three white house conferences and the direct participation of more than 125 000 citizens the conference reaffirmed the centrality of families in our lives and nation but documented problems american families face as well we also established the office of families within the department of health and human services to review government policies and programs that affect families +i expect the departments and agencies within the executive branch of the federal government as well as members of congress corporate and business leaders and state and local officials across the country to study closely the recommendations of the white house conference and implement them appropriately as public policy is developed and implemented by the federal government cognizance of the work of the conference should be taken as a pragmatic and essential step +the conference has done a good job of establishing an agenda for action to assure that the policies of the federal government are more sensitive in their impact on families i hope the congress will review and seriously consider the conference s recommendations +older americans +my administration has taken great strides toward solving the difficult problems faced by older americans early in my term we worked successfully with the congress to assure adequate revenues for the social security trust funds and last year the strength of the social security system was strengthened by legislation i proposed to permit borrowing among the separate trust funds i have also signed into law legislation prohibiting employers from requiring retirement prior to age 70 and removing mandatory retirement for most federal employees in addition my administration worked very closely with congress to amend the older americans act in a way that has already improved administration of its housing social services food delivery and employment programs +this year i will be submitting to congress a budget which again demonstrates my commitment to programs for the elderly it will include as my previous budgets have increased funding for nutrition senior centers and home health care and will focus added resources on the needs of older americans +with the 1981 white house conference on aging approaching i hope the new administration will make every effort to assure an effective and useful conference this conference should enable older americans to voice their concerns and give us guidance in our continued efforts to ensure the quality of life so richly deserved by our senior citizens +refugees +we cannot hope to build a just and humane society at home if we ignore the humanitarian claims of refugees their lives at stake who have nowhere else to turn our country can be proud that hundreds of thousands of people around the world would risk everything they have including their own lives to come to our country +this administration initiated and implemented the first comprehensive reform of our refugee and immigration policies in over 25 years we also established the first refugee coordination office in the department of state under the leadership of a special ambassador and coordinator for refugee affairs and programs the new legislation and the coordinator s office will bring common sense and consolidation to our nation s previously fragmented inconsistent and in many ways outdated refugee and immigration policies +with the unexpected arrival of thousands of cubans and haitians who sought refuge in our country last year outside of our regular immigration and refugee admissions process our country and its government were tested in being compassionate and responsive to a major human emergency because we had taken steps to reorganize our refugee programs we met that test successfully i am proud that the american people responded to this crisis with their traditional good will and hospitality also we would never have been able to handle this unprecedented emergency without the efforts of the private resettlement agencies who have always been there to help refugees in crises +immigrants to this country always contribute more toward making our country stronger than they ever take from the system i am confident that the newest arrivals to our country will carry on this tradition +while we must remain committed to aiding and assisting those who come to our shores at the same time we must uphold our immigration and refugee policies and provide adequate enforcement resources as a result of our enforcement policy the illegal flow from cuba has been halted and an orderly process has been initiated to make certain that our refugee and immigration laws are honored +this year the select commission on immigration and refugee policy will complete its work and forward its advice and recommendations i hope that the recommendations will be carefully considered by the new administration and the congress for it is clear that we must take additional action to keep our immigration policy responsive to emergencies and ever changing times +veterans +this country and its leadership has a continuing and unique obligation to the men and women who served their nation in the armed forces and help maintain or restore peace in the world +my commitment to veterans as evidenced by my record is characterized by a conscientious and consistent emphasis in these general areas +first we have worked to honor the vietnam veteran during my administration and under the leadership of va administrator max cleland i was proud to lead our country in an overdue acknowledgement of our nation s gratitude to the men and women who served their country during the bitter war in southeast asia their homecoming was deferred and seemed doomed to be ignored our country has matured in the last four years and at long last we were able to separate the war from the warrior and honor these veterans but with our acknowledgement of their service goes an understanding that some vietnam veterans have unique needs and problems +my administration was able to launch a long sought after psychological readjustment and outreach program unprecedented in its popularity sensitivity and success this program must be continued the administration has also grappled with the difficult questions posed by some veterans who served in southeast asia and were exposed to potentially harmful substances including the herbicide known as agent orange we have launched scientific inquiries that should answer many veterans questions about their health and should provide the basis for establishing sound compensation policy we cannot rest until their concerns are dealt with in a sensitive expeditious and compassionate fashion +second we have focused the va health care system in the needs of the service connected disabled veteran we initiated and are implementing the first reform of the va vocational rehabilitation system since its inception in 1943 also my administration was the first to seek a cost of living increase for the recipients of va compensation every year my last budget also makes such a request the administration also launched the disabled veterans outreach program in the department of labor which has successfully placed disabled veterans in jobs services provided by the va health care system will be further targeted to the special needs of disabled veterans during the coming year +third the va health care system the largest in the free world has maintained its independence and high quality during my administration we have made the system more efficient and have therefore treated more veterans than ever before by concentrating on out patient care and through modern management improvements as the median age of the american veteran population increases we must concentrate on further changes within the va system to keep it independent and to serve as a model to the nation and to the world as a center for research treatment and rehabilitation +government assistance +general aid to state and local governments +since taking office i have been strongly committed to strengthening the fiscal and economic condition of our nation s state and local governments i have accomplished this goal by encouraging economic development of local communities and by supporting the general revenue sharing and other essential grant in aid programs +grants in aid to states and localities +during my administration total grants in aid to state and local governments have increased by more than 40 percent from $68 billion in fiscal year 1977 to $96 billion in fiscal year 1981 this significant increase in aid has allowed states and localities to maintain services that are essential to their citizens without imposing onerous tax burdens it also has allowed us to establish an unprecedented partnership between the leaders of the federal government and state and local government elected officials +general revenue sharing +last year congress enacted legislation that extends the general revenue sharing program for three more years this program is the cornerstone of our efforts to maintain the fiscal health of our nation s local government it will provide $4 6 billion in each of the next three years to cities counties and towns this program is essential to the continued ability of our local governments to provide essential police fire and sanitation services +this legislation renewing grs will be the cornerstone of federal state local government relations in the 1980 s this policy will emphasize the need for all levels of government to cooperate in order to meet the needs of the most fiscally strained cities and counties and also will emphasize the important role that grs can play in forging this partnership i am grateful that congress moved quickly to assure that our nation s localities can begin the 1980 s in sound fiscal condition +counter cyclical assistance +last year i proposed that congress enact a $1 billion counter cyclical fiscal assistance program to protect states and localities from unexpected changes in the national economy this program unfortunately was not enacted by the full congress i therefore have not included funding for counter cyclical aid in my fiscal year 1982 budget nevertheless i urge congress to enact a permanent stand by counter cyclical program so that states and cities can be protected during the next economic downturn +urban policy +three years ago i proposed the nation s first comprehensive urban policy that policy involved more than one hundred improvements in existing federal programs four new executive orders and nineteen pieces of urban oriented legislation with congress cooperation sixteen of these bills have now been signed into law +economic development +one of the principal goals of my domestic policy has been to strengthen the private sector economic base of our nation s economically troubled urban and rural areas with congress cooperation we have substantially expanded the federal government s economic development programs and provided new tax incentives for private investment in urban and rural communities these programs have helped many communities to attract new private sector jobs and investments and to retain the jobs and investments that already are in place +when i took office the federal government was spending less than $300 million annually on economic development programs and only $60 million of those funds in our nation s urban areas since that time we have created the urban development action grant udag program and substantially expanded the economic development programs in the commerce department my fy 1982 budget requests more than $1 5 billion for economic development grants loans and interest subsidies and almost $1 5 billion for loan guarantees approximately 60 percent of these funds will be spent in our nation s urban areas in addition we have extended the 10 percent investment credit to include rehabilitation of existing industrial facilities as well as new construction +i continue to believe that the development of private sector investment and jobs is the key to revitalizing our nation s economically depressed urban and rural areas to ensure that the necessary economic development goes forward the congress must continue to provide strong support for the udag program and the programs for the economic development administration those programs provide a foundation for the economic development of our nation in the 1980 s +community development +the partnership among federal state and local governments to revitalize our nation s communities has been a high priority of my administration when i took office i proposed a substantial expansion of the community development block grant cdbg program and the enactment of a new $400 million urban development action grant udag program both of these programs have provided essential community and economic development assistance to our nation s cities and counties +last year congress reauthorized both the cdbg and udag programs the cdbg program was reauthorized for three more years with annual funding increases of $150 million and the udag program was extended for three years at the current funding level of $675 million annually my 1982 budget requests full funding for both of these programs these actions should help our nation s cities and counties to continue the progress they have made in the last three years +neighborhoods +during my administration we have taken numerous positive steps to achieve a full partnership of neighborhood organizations and government at all levels we have successfully fought against red lining and housing discrimination we created innovative self help funding and technical resource transfer mechanisms we have created unique methods of access for neighborhood organizations to have a participating role in federal and state government decision making neighborhood based organizations are the threshold of the american community +the federal government will need to develop more innovative and practical ways for neighborhood based organizations to successfully participate in the identification and solution of local and neighborhood concerns full partnership will only be achieved with the knowing participation of leaders of government business education and unions neither state nor federal solutions imposed from on high will suffice neighborhoods are the fabric and soul of this great land neighborhoods define the weave that has been used to create a permanent fabric the federal government must take every opportunity to provide access and influence to the individuals and organizations affected at the neighborhood level +rural policy +since the beginning of my administration i have been committed to improving the effectiveness with which the federal government deals with the problems and needs of a rapidly changing rural america the rapid growth of some rural areas has placed a heavy strain on communities and their resources there are also persistent problems of poverty and economic stagnation in other parts of rural america some rural areas continue to lose population as they have for the past several decades +in december 1979 i announced the small community and rural development policy it was the culmination of several years work and was designed to address the varying needs of our rural population in 1980 my administration worked with the congress to pass the rural development policy act of 1980 which when fully implemented will allow us to meet the needs of rural people and their communities more effectively and more efficiently +as a result of the policy and the accompanying legislation we have +created the position of under secretary of agriculture for small community and rural development to provide overall leadership +established a white house working group to assist in the implementation of the policy +worked with more than 40 governors to form state rural development councils to work in partnership with the white house working group and the federal agencies to better deliver state and federal programs to rural areas +directed the white house working group to annually review existing and proposed policies programs and budget levels to determine their adequacy in meeting rural needs and the fulfilling of the policy s objectives and principles +this effort on the part of my administration and the congress has resulted in a landmark policy for the first time rural affairs has received the prominence it has always deserved it is a policy that can truly help alleviate the diverse and differing problems rural america will face in the 1980 s +with the help and dedication of a great many people around the country who are concerned with rural affairs we have constructed a mechanism for dealing effectively with rural problems there is now a great opportunity to successfully combine federal efforts with the efforts of rural community leaders and residents it is my hope this spirit of cooperation and record of accomplishment will be continued in the coming years +consumers +in september 1979 i signed an executive order designed to strengthen and coordinate federal consumer programs and to establish procedures to improve and facilitate consumer participation in government decision making forty federal agencies have adopted programs to comply with the requirements of the order these programs will improve complaint handling provide better information to consumers enhance opportunities for public participation in government proceedings and assure that the consumer point of view is considered in all programs policies and regulations +while substantial progress has been made in assuring a consumer presence in federal agencies work must continue to meet fully the goals of the executive order close monitoring of agency compliance with the requirements of the order is necessary continued evaluation to assure that the programs are effective and making maximum use of available resources is also essential as a complement to these initiatives efforts to provide financial assistance in regulatory proceedings to citizen groups small businesses and others whose participation is limited by their economic circumstances must continue to be pursued +it is essential that consumer representatives in government pay particular attention to the needs and interests of low income consumers and minorities the office of consumer affairs publication people power what communities are doing to counter inflation catalogues some of the ways that government and the private sector can assist the less powerful in our society to help themselves new ways should be found to help foster this new people s movement which is founded on the principle of self reliance +science and technology +science and technology contribute immeasurably to the lives of all americans our high standard of living is largely the product of the technology that surrounds us in the home or factory our good health is due in large part to our ever increasing scientific understanding our national security is assured by the application pate science and technology will bring +the federal government has a special role to play in science and technology although the fruits of scientific achievements surround us it is often difficult to predict the benefits that will arise from a given scientific venture and these benefits even if predictable do not usually lead to ownership rights accordingly the government has a special obligation to support science as an investment in our future +my administration has sought to reverse a decade long decline in funding despite the need for fiscal restraint real support of basic research has grown nearly 11 during my term in office and my administration has sought to increase the support of long term research in the variety of mission agencies in this way we can harness the american genius for innovation to meet the economic energy health and security challenges that confront our nation +international relations and national security science and technology are becoming increasingly important elements of our national security and foreign policies this is especially so in the current age of sophisticated defense systems and of growing dependence among all countries on modern technology for all aspects of their economic strength for these reasons scientific and technological considerations have been integral elements of the administration s decision making on such national security and foreign policy issues as the modernization of our strategic weaponry arms control technology transfer the growing bilateral relationship with china and our relations with the developing world +four themes have shaped u s policy in international scientific and technological cooperation pursuit of new international initiatives to advance our own research and development objectives development and strengthening of scientific exchange to bridge politically ideological and cultural divisions between this country and other countries formulation of programs and institutional relations to help developing countries use science and technology beneficially and cooperation with other nations to manage technologies with local impact at my direction my science and technology adviser has actively pursued international programs in support of these four themes we have given special attention to scientific and technical relations with china to new forms of scientific and technical cooperation with japan to cooperation with mexico other latin american and caribbean countries and several states in black america and to the proposed institute for scientific and technological cooperation +in particular our cooperation with developing countries reflects the importance that each of them has placed on the relationship between economic growth and scientific and technological capability it also reflects their view that the great strength of the u s in science and technology makes close relations with the u s technical community an especially productive means of enhancing this capability scientific and technological assistance is a key linkage between the u s and the developing world a linkage that has been under utilized in the past and one which we must continue to work to strengthen +space policy the administration has established a framework for a strong and evolving space program for the 1980 s +the administration s space policy reaffirmed the separation of military space systems and the open civil space program and at the same time provided new guidance on technology transfer between the civil and military programs the civil space program centers on three basic tenets first our space policy will reflect a balanced strategy of applications science and technology development second activities will be pursued when they can be uniquely or more efficiently accomplished in space third a premature commitment to a high challenge space engineering initiative of the complexity of apollo is inappropriate as the shuttle development phases down however there will be added flexibility to consider new space applications space science and new space exploration activities +technology development the shuttle dominates our technology development effort and correctly so it represents one of the most sophisticated technological challenges ever undertaken and as a result has encountered technical problems nonetheless the first manned orbital flight is now scheduled for march 1981 i have been pleased to support strongly the necessary funds for the shuttle throughout my administration +space applications since 1972 the u s has conducted experimental civil remote sensing through landsat satellites thereby realizing many successful applications recognizing this fact i directed the implementation of an operational civil land satellite remote sensing system with the operational management responsibility in commerce s national oceanic and atmospheric administration in addition because ocean observations from space can meet common civil and military data requirements a national oceanic satellite system has been proposed as a major fy 1981 new start +space science exploration the goals of this administration s policy in space science have been to 1 continue a vigorous program of planetary exploration to understand the origin and evolution of the solar system 2 utilize the space telescope and free flying satellites to usher in a new era of astronomy 3 develop a better understanding of the sun and its interaction with the terrestrial environment and 4 utilize the shuttle and spacelab to conduct basic research that complements earth based life science investigations +district of columbia +washington d c is home to both the federal government and to more than half a million american citizens i have worked to improve the relationship between the federal establishment and the government of the district of columbia in order to further the goals and spirit of home rule the city controls more of its own destiny than was the case four years ago yet despite the close cooperation between my administration and that of mayor barry we have not yet seen the necessary number of states ratify the constitutional amendment granting full voting representation in the congress to the citizens of this city it is my hope that this inequity will be rectified the country and the people who inhabit washington deserve no less +the arts +the arts are a precious national resource +federal support for the arts has been enhanced during my administration by expanding government funding and services to arts institutions individual artists scholars and teachers through the national endowment for the arts we have broadened its scope and reach to a more diverse population we have also reactivated the federal council on the arts and humanities +it is my hope that during the coming years the new administration and the congress will +continue support of institutions promoting development and understanding of the arts +encourage business participants in a comprehensive effort to achieve a truly mixed economy of support for the arts +explore a variety of mechanisms to nurture the creative talent of our citizens and build audiences for their work +support strong active national endowments for the arts +seek greater recognition for the rich cultural tradition of the nation s minorities +provide grants for the arts in low income neighborhoods +the humanities +in recently reauthorizing federal appropriations for the national endowment for the humanities the congress has once again reaffirmed that the encouragement and support of national progress and scholarship in the humanities while primarily a matter for private and local initiative is also an appropriate matter of concern to the federal government and that a high civilization must not limit its efforts to science and technology alone but must give full value and support to the other great branches of man s scholarly and cultural activity in order to achieve a better understanding of the past a better analysis of the present and a better view of the future +i believe we are in agreement that the humanities illuminate the values underlying important personal social and national questions raised in our society by its multiple links to and increasing dependence on technology and by the diverse heritage of our many regions and ethnic groups the humanities cast light on the broad issue of the role in a society of men and women of imagination and energy those individuals who through their own example define the spirit of the age and in so doing move nations our government s support for the humanities within the framework laid down by the congress is a recognition of their essential nourishment of the life of the mind and vital enrichment of our national life +i will be proposing an increase in funding this year sufficient to enable the endowment to maintain the same level of support offered our citizens in fiscal year 1981 +in the allocation of this funding special emphasis will be given to +humanities education in the nation s schools in response to the great needs that have arisen in this area +scholarly research designed to increase our understanding of the cultures traditions and historical forces at work in other nations and in our own +drawing attention to the physical disintegration of the raw material of our cultural heritage books manuscripts periodicals and other documents and to the development of techniques to prevent the destruction and to preserve those materials and +the dissemination of quality programming in the humanities to increasingly large american audiences through the use of radio and television +the dominant effort in the endowment s expenditures will be a commitment to strengthen and promulgate scholarly excellence and achievement in work in the humanities in our schools colleges universities libraries museums and other cultural institutions as well as in the work of individual scholars or collaborative groups engaged in advanced research in the humanities +in making its grants the endowment will increase its emphasis on techniques which stimulate support for the humanities from non federal sources in order to reinforce our tradition of private philanthropy in this field and to insure and expand the financial viability of our cultural institutions and life +insular areas +i have been firmly committed to self determination for puerto rico the virgin islands guam american samoa and the northern mariana islands and have vigorously supported the realization of whatever political status aspirations are democratically chosen by their peoples this principle was the keystone of the comprehensive territorial policy i sent the congress last year i am pleased that most of the legislative elements of that policy were endorsed by the 96th congress +the unique cultures fragile economies and locations of our caribbean and pacific islands are distinct assets to the united states which require the sensitive application of policy the united states government should pursue initiatives begun by my administration and the congress to stimulate insular economic development enhance treatment under federal programs eliminating current inequities provide vitally needed special assistance and coordinate and rationalize policies these measures will result in greater self sufficiency and balanced growth in particular i hope that the new congress will support funding for fiscal management comprehensive planning and other technical assistance for the territories as well as create the commission i have proposed to review the applicability of all federal laws to the insular areas and make recommendations for appropriate modification +iv removing governmental waste and inefficiency +one of my major commitments has been to restore public faith in our federal government by cutting out waste and inefficiency in the past four years we have made dramatic advances toward this goal many of them previously considered impossible to achieve where government rules and operations were unnecessary they have been eliminated as with airline rail trucking and financial deregulation where government functions are needed they have been streamlined through such landmark measures as the civil service reform act of 1978 i hope that the new administration and the congress will keep up the momentum we have established for effective and responsible change in this area of crucial public concern +civil service reform +in march 1978 i submitted the civil service reform act to congress i called it the centerpiece of my efforts to reform and reorganize the government with bipartisan support from congress the bill passed and i am pleased to say that implementation is running well ahead of the statutory schedule throughout the service we are putting into place the means to assure that reward and retention are based on performance and not simply on length of time on the job in the first real test of the reform act 98 percent of the eligible top level managers joined the senior executive service choosing to relinquish job protections for the challenge and potential reward of this new corps of top executives though the act does not require several of its key elements to be in operation for another year some federal agencies already have established merit pay systems for gs 13 15 managers and most agencies are well on their way to establishing new performance standards for all their employees all have paid out or are now in the process of paying out performance bonuses earned by outstanding members of the senior executive service dismissals have increased by 10 percent and dismissals specifically for inadequate job performance have risen 1500 percent since the act was adopted finally we have established a fully independent merit systems protection board and special counsel to protect the rights of whistle blowers and other federal employees faced with threats to their rights +in 1981 civil service reform faces critical challenges all agencies must have fully functioning performance appraisal systems for all employees and merit pay systems for compensating the government s 130 000 gs 13 15 managers performance bonuses for members of the senior executive service will surely receive scrutiny if this attention is balanced and constructive it can only enhance the chances for ultimate success of our bipartisan commitment to the revolutionary and crucial pay for performance concept +regulatory reform +during the past four years we have made tremendous progress in regulatory reform we have discarded old economic regulations that prevented competition and raised consumer costs and we have imposed strong management principles on the regulatory programs the country needs cutting paperwork and other wasteful burdens the challenge for the future is to continue the progress in both areas without crippling vital health and safety programs +our economic deregulation program has achieved major successes in five areas +airlines the airline deregulation act is generating healthy competition saving billions in fares and making the airlines more efficient the act provides that in 1985 the cab itself will go out of existence +trucking the trucking deregulation bill opens the industry to competition and allows truckers wide latitude on the routes they drive and the goods they haul the bill also phases out most of the old law s immunity for setting rates the congressional budget office estimates these reforms will save as much as $8 billion per year and cut as much as half a percentage point from the inflation rate +railroads overregulation has stifled railroad management initiative service and competitive pricing the new legislation gives the railroads the freedom they need to rebuild a strong efficient railroad industry +financial institutions with the help of the congress over the past four years we have achieved two major pieces of financial reform legislation legislation which has provided the basis for the most far reaching changes in the financial services industry since the 1930 s the international banking act of 1978 was designed to reduce the advantages that foreign banks operating in the united states possessed in comparison to domestic banks the depository institutions deregulation and monetary control act adopted last march provides for the phased elimination of a variety of anti competitive barriers to financial institutions and freedom to offer services to and attract the savings of consumers especially small savers +recently i submitted to the congress my administration s recommendations for the phased liberalization of restrictions on geographic expansion by commercial banks last year the administration and financial regulatory agencies proposed legislation to permit the interstate acquisition of failing depository institutions in view of the difficult outlook for some depository institutions i strongly urge the congress to take prompt favorable action on the failing bank legislation +telecommunications while congress did not pass legislation in this area the federal communications commission has taken dramatic action to open all aspects of communications to competition and to eliminate regulations in the areas where competition made them obsolete the public is benefitting from an explosion of competition and new services +while these initiatives represent dramatic progress in economic deregulation continued work is needed i urge congress to act on communications legislation and to consider other proposed deregulation measures such as legislation on the bus industry in addition the regulatory commissions must maintain their commitment to competition as the best regulator of all +the other part of my reform program covers the regulations that are needed to protect the health safety and welfare of our citizens for these regulations my administration has created a management program to cut costs without sacrificing goals under my executive order 12044 we required agencies to analyze the costs of their major new rules and consider alternative approaches such as performance standards and voluntary codes that may make rules less costly and more flexible we created the regulatory analysis review group in the white house to analyze the most costly proposed new rules and find ways to improve them the regulatory council was established to provide the first government wide listing of upcoming rules and eliminate overlapping and conflicting regulations agencies have launched sunset programs to weed out outmoded old regulations we have acted to encourage public participation in regulatory decision making +these steps have already saved billions of dollars in regulatory costs and slashed thousands of outmoded regulations we are moving steadily toward a regulatory system that provides needed protections fairly predictably and at minimum cost +i urge congress to continue on this steady path and resist the simplistic solutions that have been proposed as alternatives proposals like legislative veto and increased judicial review will add another layer to the regulatory process making it more cumbersome and inefficient the right approach to reform is to improve the individual statutes where they need change and to ensure that the regulatory agencies implement those statutes sensibly +paperwork reduction +the federal government imposes a huge paperwork burden on business local government and the private sector many of these forms are needed for vital government functions but others are duplicative overly complex or obsolete +during my administration we cut the paperwork burden by 15 percent and we created procedures to continue this progress the new paperwork reduction act centralizes in omb oversight of all agencies information requirements and strengthens omb s authority to eliminate needless forms the paperwork budget process which i established by executive order applies the discipline of the budget process to the hours of reporting time imposed on the public forcing agencies to scrutinize all their forms each year with effective implementation these steps should allow further substantial paperwork cuts in the years ahead +tightening standards for governmental efficiency and integrity +to develop a foundation to carry out energy policy we consolidated scattered energy programs and launched the synthetic fuels corporation to give education the priority it deserves and at the same time reduce hhs to more manageable size i gave education a seat at the cabinet table to create a stronger system for attacking waste and fraud i reorganized audit and investigative functions by putting an inspector general in major agencies since i took office we have submitted 14 reorganization initiatives and had them all approved by congress we have saved hundreds of millions of dollars through the adoption of businesslike cash management principles and set strict standards for personal financial disclosure and conflict of interest avoidance by high federal officials +to streamline the structure of the government we have secured approval of 14 reorganization initiatives improving the efficiency of the most important sectors of the government including energy education and civil rights enforcement we have eliminated more than 300 advisory committees as well as other agencies boards and commissions which were obsolete or ineffective independent inspectors general have been appointed in major agencies to attack fraud and waste more than a billion dollars of questionable transactions have been identified through their audit activities +the adoption of business like cash management and debt collection initiatives will save over $1 billion by streamlining the processing of receipts by controlling disbursements more carefully and by reducing idle cash balances finally this administration has set strict standards for personal financial disclosure and conflict of interest avoidance by high federal officials to elevate the level of public trust in the government +v protecting basic rights and liberties +i am extremely proud of the advances we have made in ensuring equality and protecting the basic freedoms of all americans +the equal employment opportunity commission eeoc and the office of federal contract compliance ofccp have been reorganized and strengthened and a permanent civil rights unit has been established in omb +to avoid fragmented inconsistent and duplicative enforcement of civil rights laws three agencies have been given coordinative and standard setting responsibilities in discrete areas eeoc for all employment related activities hud for all those relating to housing and the department of justice for all other areas +with the enactment of the right to financial privacy act and a bill limiting police search of newsrooms we have begun to establish a sound comprehensive privacy program +ratification of the equal rights amendment must be aggressively pursued only one year remains in which to obtain ratification by three additional states +the congress must give early attention to a number of important bills which remain these bills would +strengthen the laws against discrimination in housing until it is enacted the 1968 civil rights act s promise of equal access to housing will remain unfulfilled +establish a charter for the fbi and the intelligence agencies the failure to define in law the duties and responsibilities of these agencies has made possible some of the abuses which have occurred in recent years +establish privacy safeguards for medical research bank insurance and credit records and provide special protection for election fund transfer systems +equal rights amendment +i remain committed as strongly as possible to the ratification of the equal rights amendment +as a result of our efforts in 1978 the equal rights amendment s deadline for ratification was extended for three years we have now one year and three states left we cannot afford any delay in marshalling our resources and efforts to obtain the ratification of those three additional states +although the congress has no official role in the ratification process at this point you do have the ability to affect public opinion and the support of state legislators for the amendment i urge members from states which have not yet ratified the equal rights amendment to use their influence to secure ratification i will continue my own efforts to help ensure ratification of the equal rights amendment +martin luther king jr +dr martin luther king jr led this nation s effort to provide all its citizens with civil rights and equal opportunities his commitment to human rights peace and non violence stands as a monument to his humanity and courage as one of our nation s most outstanding leaders it is appropriate that his birthday be commemorated as a national holiday i hope the congress will enact legislation this year that will achieve this goal +fair housing +the fair housing act amendments of 1980 passed the house of representatives by an overwhelming bipartisan majority only to die in the senate at the close of the 96th congress the leaders of both parties have pledged to make the enactment of fair housing legislation a top priority of the incoming congress the need is pressing and a strengthened federal enforcement effort must be the primary method of resolution +criminal code +the federal criminal laws are often archaic frequently contradictory and imprecise and clearly in need of revision and codification the new administration should continue the work which has been begun to develop a federal criminal code which simplifies and clarifies our criminal laws while maintaining our basic civil liberties and protections +privacy +as our public and private institutions collect more and more information and as communications and computer technologies advance we must act to protect the personal privacy of our citizens +in the past four years we acted on the report of the privacy commission and established a national privacy policy we worked with congress to pass legislation restricting wiretaps and law enforcement access to bank records and to reporters files we reduced the number of personal files held by the government and restricted the transfer of personal information among federal agencies we also worked with the organization for economic cooperation and development to establish international guidelines to protect the privacy of personal information that is transferred across borders +vi protecting and developing our natural resources +two of our nation s most precious natural resources are our environment and our vast agricultural capacity from the beginning of my administration i have worked with the congress to enhance and protect as well as develop our natural resources in the environmental areas i have been especially concerned about the importance of balancing the need for resource development with preserving a clean environment and have taken numerous actions to foster this goal in the agricultural area i have taken the steps needed to improve farm incomes and to increase our agricultural production to record levels that progress must be continued in the 1980 s +environment +preserving the quality of our environment has been among the most important objectives of my administration and of the congress as a result of these shared commitments and the dedicated efforts of many members of the congress and my administration we have achieved several historic accomplishments +protection of alaska lands +passage of the alaska national interest lands conservation act was one of the most important conservation actions of this century at stake was the fate of millions of acres of beautiful land outstanding and unique wildlife populations native cultures and the opportunity to ensure that future generations of americans would be able to enjoy the benefits of these nationally significant resources as a result of the leadership commitment and persistence of my administration and the congressional leadership the alaska lands bill was signed into law last december +the act adds 97 million acres of new parks and refuges more than doubling the size of our national park and national wildlife refuge systems the bill triples the size of our national wilderness system increasing its size by 56 million acres and by adding 25 free flowing river segments to the wild and scenic river system the bill almost doubles the river mileage in that system the alaska lands act reaffirms our commitment to the environment and strikes a balance between protecting areas of great beauty and allowing development of alaska s oil gas mineral and timber resources +protection of natural resources +in addition to the alaska lands act over the past four years we have been able to expand significantly the national wilderness and parks systems in 1978 the congress passed the historical omnibus parks act which made 12 additions to the national park system the act also established the first two national trails since the national trails system act was passed in 1968 then in 1980 as a result of my 1979 environmental message the federal land management agencies have established almost 300 new national recreational trails with the completion of the rare ii process which eliminated the uncertainty surrounding the status of millions of acres of land we called for over 15 million acres of new wilderness in the nation s national forest in 1980 the congress established about 4 5 million acres of wilderness in the lower 48 states in addition the administration recommended legislation to protect lake tahoe and through an executive order has already established a mechanism to help ensure the lake s protection finally in 1980 the administration established the channel islands marine sanctuary +administration actions over the past four years stressed the importance of providing federal support only for water resource projects that are economically and environmentally sound this policy should have a major and lasting influence on the federal government s role in water resource development and management the administration s actions to recommend to the congress only economically and environmentally sound water resource projects for funding resulted not only in our opposing uneconomic projects but also in 1979 in the first administration proposal of new project starts in 4 years +one of the most significant water policy actions of the past four years was the administration s june 6 1978 water policy reform message to the congress this message established a new national water resources policy with the following objectives +to give priority emphasis to water conservation +to consider environmental requirements and values more fully and along with economic factors in the planning and management of water projects and programs +to enhance cooperation between state and federal agencies in water resources planning and management +in addition the executive office of the president established 11 policy decision criteria to evaluate the proposed federal water projects the water resources council developed and adopted a new set of principles and standards for water projects which is binding on all federal construction agencies and improved regulations were developed to implement the national historic preservation act and the fish and wildlife coordination act as a result water resource projects must be determined to be economically sound before the administration will recommend authorization or appropriation over the years ahead this policy will help to reduce wasteful federal spending by targeting federal funds to the highest priority water resource projects +in the pursuit of this policy however we cannot lose projects in the part that sound water resource projects play in providing irrigation power and flood control we must also recognize the special needs of particular regions of the country in evaluating the need for additional projects +addressing global resource and environmental problems +the global 2000 report to the president prepared in response to my 1977 environment message is the first of its kind never before has our government or any government taken such a comprehensive long range look at the interrelated global issues of resources population and environment +the report s conclusions are important they point to a rapid increase in population and human needs through the year 2000 while at the same time a decline in the earth s capacity to meet those needs unless nations of the world act decisively to alter current trends +the united states has contributed actively to a series of u n conferences on the environment population and resources and is preparing for the 1981 conference on new and renewable sources of energy following my 1977 environmental message the administration development assistance programs have added emphasis to natural resource management and environmental protection my 1979 environmental message called attention to the alarming loss of world forests particularly in the tropics an interagency task force on tropical forests has developed a u s government program to encourage conservation and wise management of tropical forests the administration is encouraging action by other nations and world organizations to the same purpose the united states is a world leader in wildlife conservation and the assessment of environmental effects of government actions the january 5 1979 executive order directing u s government agencies to consider the effects of their major actions abroad is another example of this leadership +commitment to control of pollution and hazardous chemicals +over the past four years there has been steady progress towards cleaner air and water sustained by the commitment of congress and the administration to these important national objectives in addition the administration has developed several new pollution compliance approaches such as alternative and innovative waste water treatment projects the bubble concept the offset policy and permit consolidation all of which are designed to reduce regulatory burdens on the private sector +one of the most pressing problems to come to light in the past four years has been improper hazardous waste disposal the administration has moved on three fronts first we proposed the oil hazardous substances and hazardous waste response liability and compensation act the superfund bill to provide comprehensive authority and $1 6 billion in funds to clean up abandoned hazardous waste disposal sites in november 1980 the congress passed a superfund bill which i signed into law +second the administration established a hazardous waste enforcement strike force to ensure that when available responsible parties are required to clean up sites posing dangers to public health and to the environment to date 50 lawsuits have been brought by the strike force +third regulations implementing subtitle c of the resource conservation and recovery act were issued the regulations establish comprehensive controls for hazardous waste and together with vigorous enforcement will help to ensure that love canal will not be repeated +the future +for the future we cannot and we must not forget that we are charged with the stewardship of an irreplaceable environment and natural heritage our children and our children s children are dependent upon our maintaining our commitment to preserving and enhancing the quality of our environment it is my hope that when our descendants look back on the 1980 s they will be able to affirm +that we kept our commitment to the restoration of environmental quality +that we protected the public health from the continuing dangers of toxic chemicals from pollution from hazardous and radioactive waste and that we made our communities safer healthier and better places to live +that we preserved america s wilderness areas and particularly its last great frontier alaska for the benefit of all americans in perpetuity +that we put this nation on a path to a sustainable energy future one based increasingly on renewable resources and on energy conservation +that we moved to protect america s countryside and coastland from mismanagement and irresponsibility +that we redirected the management of the nation s water resources toward water conservation sound development and environmental protection +that we faced squarely such worldwide problems as the destruction of forests acid rain carbon dioxide build up and nuclear proliferation and +that we protected the habitat and the existence of our own species on this earth +agriculture the farm economy +the farm economy is sound and its future is bright agriculture remains a major bulwark of the nation s economy and an even more important factor in the world food system the demand for america s agricultural abundance here and abroad continues to grow in the near term the strength of this demand is expected to press hard against supplies resulting in continued price strength +the health and vitality of current day agriculture represents a significant departure from the situation that existed when i came to office four years ago in january 1977 the farm economy was in serious trouble farm prices and farm income were falling rapidly grain prices were at their lowest levels in years and steadily falling livestock producers in their fourth straight year of record losses were liquidating breeding herds at an unparalleled rate dairy farmers were losing money on every hundredweight of milk they produced sugar prices were in a nosedive +through a combination of improvements in old established programs and the adoption of new approaches where innovation and change were needed my administration turned this situation around commodity prices have steadily risen farm income turned upward u s farm exports set new records each year increasing over 80 percent for the four year period livestock producers began rebuilding their herds dairy farmers began to earn a profit again +recent policy initiatives +several major agricultural policy initiatives have been undertaken over the past year some are the culmination of policy proposals made earlier in this administration others are measures taken to help farmers offset the impact of rapid inflation in production costs in combination they represent a significant strengthening of our nation s food and agricultural policy these initiatives include +food security reserve +the congress authorized formation of a 4 million ton food grain reserve for use in international food assistance this reserve makes it possible for the united states to stand behind its food aid commitment to food deficit nations even during periods of short supplies and high prices this corrects a serious fault in our past food assistance policy +comprehensive crop insurance +the congress also authorized a significant new crop insurance program during 1980 this measure provides farmers with an important new program tool for sharing the economic risks that are inherent to agriculture when fully operational it will replace a hodgepodge of disaster programs that suffered from numerous shortcomings +special loan rates +another legislative measure passed late in the 2nd session of the 96th congress authorizes the secretary of agriculture to provide higher loan rates to farmers who enter their grain in the farmer owned grain reserve this additional incentive to participate will further strengthen the reserve +increased loan prices +in july 1980 i administratively raised loan prices for wheat feedgrains and soybeans to help offset the effects of a serious cost price squeeze at the same time the release and call prices for the grain reserve were adjusted upward +higher target prices +the agricultural adjustment act of 1980 raised the target prices for 1980 crop wheat and feed grain crops this change corrected for shortcomings in the adjustment formula contained in the food and agriculture act of 1977 +future agenda +the food and agricultural policies adopted by this administration over the past four years including those described above will provide a firm foundation for future governmental actions in this field expiration of the food and agriculture act of 1977 later this year will require early attention by the congress with relatively minor changes most of the authorities contained in the 1977 act should be extended in their present form the farmer owned grain reserve has proven to be a particularly effective means of stabilizing grain markets and should be preserved in essentially its present form +beyond this it will be important for the congress to keep a close eye on price cost developments in the farm sector as noted above some of the actions i took last year were for the purpose of providing relief from the cost price squeeze facing farmers should these pressures continue further actions might be required +my administration has devoted particular attention to the issues of world hunger agricultural land use and the future structure of american agriculture i encourage the congress and the next administration to review the results of these landmark enquiries and where deemed appropriate to act on their recommendations +following a careful review of the situation i recently extended the suspension of grain sales to the soviet union i am satisfied that this action has served its purpose effectively and fairly however as long as this suspension must remain in effect it will be important for the next administration and the congress to take whatever actions are necessary to ensure that the burden does not fall unfairly on our nation s farmers this has been a key feature of my administration s policy and it should be maintained +vii foreign policy +from the time i assumed office four years ago this month i have stressed the need for this country to assert a leading role in a world undergoing the most extensive and intensive change in human history +my policies have been directed in particular at three areas of change +the steady growth and increased projection abroad of soviet military power power that has grown faster than our own over the past two decades +the overwhelming dependence of western nations which now increasingly includes the united states on vital oil supplies from the middle east +the pressures of change in many nations of the developing world in iran and uncertainty about the future stability of many developing countries +as a result of those fundamental facts we face some of the most serious challenges in the history of this nation the soviet invasion of afghanistan is a threat to global peace to east west relations and to regional stable flow of oil as the unprecedented relations an and overwhelming vote in the general assembly demonstrated countries across the world and particularly the nonaligned regard the soviet invasion as a threat to their independence and security turmoil within the region adjacent to the persian gulf poses risks for the security and prosperity of every oil importing nation and thus for the entire global economy the continuing holding of american hostages in iran is both an affront to civilized people everywhere and a serious impediment to meeting the self evident threat to widely shared common interests including those of iran +but as we focus our most urgent efforts on pressing problems we will continue to pursue the benefits that only change can bring for it always has been the essence of america that we want to move on we understand that prosperity progress and most of all peace cannot be had by standing still a world of nations striving to preserve their independence and of peoples aspiring for economic development and political freedom is not a world hostile to the ideals and interests of the united states we face powerful adversaries but we have strong friends and dependable allies we have common interests with the vast majority of the world s nations and peoples +there have been encouraging developments in recent years as well as matters requiring continued vigilance and concern +our alliances with the world s most advanced and democratic states from western europe through japan are stronger than ever +we have helped to bring about a dramatic improvement in relations between egypt and israel and an historic step towards a comprehensive arab israeli settlement +our relations with china are growing closer providing a major new dimension in our policy in asia and the world +across southern africa from rhodesia to namibia we are helping with the peaceful transition to majority rule in a context of respect for minority as well as majority rights +we have worked domestically and with our allies to respond to an uncertain energy situation by conservation and diversification of energy supplies based on internationally agreed targets +we have unambiguously demonstrated our commitment to defend western interests in southwest asia and we have significantly increased our ability to do so +and over the past four years the u s has developed an energy program which is comprehensive and ambitious new institutions have been established such as the synthetic fuels corporation and solar bank price decontrol for oil and gas is proceeding american consumers have risen to the challenge and we have experienced real improvements in consumption patterns +the central challenge for us today is to our steadfastedness of purpose we are no longer tempted by isolationism but we must also learn to deal effectively with the contradictions of the world the need to cooperate with potential adversaries without euphoria without undermining our determination to compete with such adversaries and if necessary confront the threats they may pose to our security +we face a broad range of threats and opportunities we have and should continue to pursue a broad range of defense diplomatic and economic capabilities and objectives +i see six basic goals for america in the world over the 1980 s +first we will continue as we have over the past four years to build america s military strength and that of our allies and friends neither the soviet union nor any other nation will have reason to question our will to sustain the strongest and most flexible defense forces +second we will pursue an active diplomacy in the world working together with our friends and allies to resolve disputes through peaceful means and to make any aggressor pay a heavy price +third we will strive to resolve pressing international economic problems particularly energy and inflation and continue to pursue our still larger objective of global economic growth through expanded trade and development assistance and through the preservation of an open multilateral trading system +fourth we will continue vigorously to support the process of building democratic institutions and improving human rights protection around the world we are deeply convinced that the future lies not with dictatorship but democracy +fifth we remain deeply committed to the process of mutual and verifiable arms control particularly to the effort to prevent the spread and further development of nuclear weapons our decision to defer but not abandon our efforts to secure ratification of the salt ii treaty reflects our firm conviction that the united states has a profound national security interest in the constraints on soviet nuclear forces which only that treaty can provide +sixth we must continue to look ahead in order to evaluate and respond to resource environment and population challenges through the end of this century +one very immediate and pressing objective that is uppermost on our minds and those of the american people is the release of our hostages in iran +we have no basic quarrel with the nation the revolution or the people of iran the threat to them comes not from american policy but from soviet actions in the region we are prepared to work with the government of iran to develop a new and mutually beneficial relationship +but that will not be possible so long as iran continues to hold americans hostages in defiance of the world community and civilized behavior they must be released unharmed we have thus far pursued a measured program of peaceful diplomatic and economic steps in an attempt to resolve this issue without resorting to other remedies available to us under international law this reflects the deep respect of our nation for the rule of law and for the safety of our people being held and our belief that a great power bears a responsibility to use its strength in a measured and judicious manner but our patience is not unlimited and our concern for the well being of our fellow citizens grows each day +enhancing national security american military strength +the maintenance of national security is my first concern as it has been for every president before me +we must have both the military power and the political will to deter our adversaries and to support our friends and allies +we must pay whatever price is required to remain the strongest nation in the world that price has increased as the military power of our major adversary has grown and its readiness to use that power been made all too evident in afghanistan the real increases in defense spending therefore probably will be higher than previously projected protecting our security may require a larger share of our national wealth in the future +the u s soviet relationship +we are demonstrating to the soviet union across a broad front that it will pay a heavy price for its aggression in terms of our relationship throughout the last decades u s soviet relations have been a mixture of cooperation and competition the soviet invasion of afghanistan and the imposition of a puppet government have highlighted in the starkest terms the darker side of their policies going well beyond competition and the legitimate pursuit of national interest and violating all norms of international law and practice +this attempt to subjugate an independent non aligned islamic people is a callous violation of international law and the united nations charter two fundamentals of international order hence it is also a dangerous threat to world peace for the first time since the communization of eastern europe after world war ii the soviets have sent combat forces into an area that was not previously under their control into a non aligned and sovereign state +the destruction of the independence of the afghanistan government and the occupation by the soviet union have altered the strategic situation in that part of the world in a very ominous fashion it has significantly shortened the striking distance to the indian ocean and the persian gulf for the soviet union +it has also eliminated a buffer between the soviet union and pakistan and presented a new threat to iran these two countries are now far more vulnerable to soviet political intimidation if that intimidation were to prove effective the soviet union could control an area of vital strategic and economic significance to the survival of western europe the far east and ultimately the united states +it has now been over a year since the soviet invasion of afghanistan dealt a major blow to u s soviet relations and the entire international system the u s response has proven to be serious and far reaching it has been increasingly effective imposing real and sustained costs on the u s s r s economy and international image +meanwhile we have encouraged and supported efforts to reach a political settlement in afghanistan which would lead to a withdrawal of soviet forces from that country and meet the interests of all concerned it is soviet intransigence that has kept those efforts from bearing fruit +meanwhile an overwhelming november resolution of the united nations general assembly on afghanistan has again made clear that the world has not and will not forget afghanistan and our response continues to make it clear that soviet use of force in pursuit of its international objectives is incompatible with the notion of business as usual +bilateral communication +u s soviet relations remain strained by the continued soviet presence in afghanistan by growing soviet military capabilities and by the soviets apparent willingness to use those capabilities without respect for the most basic norms of international behavior +but the u s soviet relationship remains the single most important element in determining whether there will be war or peace and so despite serious strains in our relations we have maintained a dialogue with the soviet union over the past year through this dialogue we have ensured against bilateral misunderstandings and miscalculations which might escalate out of control and have managed to avoid the injection of superpower rivalries into areas of tension like the iran iraq conflict +poland +now as was the case a year ago the prospect of soviet use of force threatens the international order the soviet union has completed preparations for a possible military intervention against poland although the situation in poland has shown signs of stabilizing recently soviet forces remain in a high state of readiness and they could move into poland on short notice we continue to believe that the polish people should be allowed to work out their internal problems themselves without outside interference and we have made clear to the soviet leadership that any intervention in poland would have severe and prolonged consequences for east west detente and u s soviet relations in particular +defense budget +for many years the soviets have steadily increased their real defense spending expanded their strategic forces strengthened their forces in europe and asia and enhanced their capability for projecting military force around the world directly or through the use of proxies afghanistan dramatizes the vastly increased military power of the soviet union +the soviet union has built a war machine far beyond any reasonable requirements for their own defense and security in contrast our own defense spending declined in real terms every year from 1968 through 1976 +we have reversed this decline in our own effort every year since 1976 there has been a real increase in our defense spending and our lead has encouraged increases by our allies with the support of the congress we must and will make an even greater effort in the years ahead +the fiscal year 1982 budget would increase funding authority for defense to more than $196 billion this amount together with a supplemental request for fy 1981 of about $6 billion will more than meet my administration s pledge for a sustained growth of 3 percent in real expenditures and provides for 5 percent in program growth in fy 1982 and beyond +the trends we mean to correct cannot be remedied overnight we must be willing to see this program through to ensure that we do so i am setting a growth rate for defense that we can sustain over the long haul +the defense program i have proposed for the next five years will require some sacrifice but sacrifice we can well afford +the defense program emphasizes four areas +1 it ensures that our strategic nuclear forces will be equivalent to those of the soviet union and that deterrence against nuclear war will be maintained 2 it upgrades our forces so that the military balance between nato and the warsaw pact will continue to deter the outbreak of war conventional or nuclear in europe 3 it provides us the ability to come quickly to the aid of friends and allies around the globe 4 and it ensures that our navy will continue to be the most powerful on the seas +strategic forces +we are strengthening each of the three legs of our strategic forces the cruise missile production which will begin next year will modernize our strategic air deterrent b 52 capabilities will also be improved these steps will maintain and enhance the b 52 fleet by improving its ability to deliver weapons against increasingly heavily defended targets +we are also modernizing our strategic submarine force four more poseidon submarines backfitted with new 4 000 mile trident i missiles began deployments in 1980 nine trident submarines have been authorized through 1981 and we propose one more each year +the new m x missile program to enhance our land based intercontinental ballistic missile force continues to make progress technical refinements in the basing design over the last year will result in operational benefits lower costs and reduced environmental impact the m x program continues to be an essential ingredient in our strategic posture providing survivability endurance secure command and control and the capability to threaten targets the soviets hold dear +our new systems will enable u s strategic forces to maintain equivalence in the face of the mounting soviet challenge we would however need an even greater investment in strategic systems to meet the likely soviet buildup without salt +strategic doctrine +this administration s systematic contributions to the necessary evolution of strategic doctrine began in 1977 when i commissioned a comprehensive net assessment from that base a number of thorough investigations of specific topics continued i should emphasize that the need for an evolutionary doctrine is driven not by any change in our basic objective which remains peace and freedom for all mankind rather the need for change is driven by the inexorable buildup of soviet military power and the increasing propensity of soviet leaders to use this power in coercion and outright aggression to impose their will on others +i have codified our evolving strategic doctrine in a number of interrelated and mutually supporting presidential directives their overarching theme is to provide a doctrinal basis and the specific program to implement it that tells the world that no potential adversary of the united states could ever conclude that the fruits of his aggression would be significant or worth the enormous costs of our retaliation +the presidential directives include +pd 18 an overview of our strategic objectives pd 37 basic space policy pd 41 civil defense pd 53 survivability and endurance for telecommunications pd 57 mobilization planning pd 58 continuity of government pd 59 countervailing strategy for general war +these policies have been devised to deter first and foremost soviet aggression as such they confront not only soviet military forces but also soviet military doctrine by definition deterrence requires that we shape soviet assessments about the risks of war assessments they will make using their doctrine not ours +but at the same time we in no way seek to emulate their doctrine in particular nothing in our policy contemplates that nuclear warfare could ever be a deliberate instrument for achieving our own goals of peace and freedom moreover our policies are carefully devised to provide the greatest possible incentives and opportunities for future progress in arms control +finally our doctrinal evolution has been undertaken with appropriate consultation with our nato allies and others we are fully consistent with nato s strategy of flexible response +forces for nato +we are greatly accelerating our ability to reinforce western europe with massive ground and air forces in a crisis we are undertaking a major modernization program for the army s weapons and equipment adding armor firepower and tactical mobility +we are prepositioning more heavy equipment in europe to help us cope with attacks with little warning and greatly strengthening our airlift and sealift capabilities +we are also improving our tactical air forces buying about 1700 new fighter and attack aircraft over the next five years and increasing the number of air force fighter wings by over 10 percent +we are working closely with our european allies to secure the host nation support necessary to enable us to deploy more quickly a greater ratio of combat forces to the european theater at a lower cost to the united states +security assistance +as we move to enhance u s defense capabilities we must not lose sight of the need to assist others in maintaining their own security and independence events since world war ii most recently in southwest asia have amply demonstrated that u s security cannot exist in a vacuum and that our own prospects for peace are closely tied to those of our friends the security assistance programs which i am proposing for the coming fiscal year thus directly promote vital u s foreign policy and national security aims and are integral parts of our efforts to improve and upgrade our own military forces +more specifically these programs which are part of our overall foreign aid request promote u s security in two principal ways first they assist friendly and allied nations to develop the capability to defend themselves and maintain their own independence an example during this past year was the timely support provided thailand to help bolster that country s defenses against the large numbers of soviet backed vietnamese troops ranged along its eastern frontier in addition over the years these programs have been important to the continued independence of other friends and allies such as israel greece turkey and korea second security assistance constitutes an essential element in the broad cooperative relationships we have established with many nations which permit either u s bases on their territory or access by u s forces to their facilities these programs have been particularly important with regard to the recently concluded access agreements with various countries in the persian gulf and indian ocean regions and have been crucial to the protection of our interests throughout southwest asia +rapid deployment forces +we are systematically enhancing our ability to respond rapidly to non nato contingencies wherever required by our commitments or when our vital interests are threatened +the rapid deployment forces we are assembling will be extraordinarily flexible they could range in size from a few ships or air squadrons to formations as large as 100 000 men together with their support our forces will be prepared for rapid deployment to any region of strategic significance +among the specific initiatives we are taking to help us respond to crises outside of europe are +the development of a new fleet of large cargo aircraft with intercontinental range the design and procurement of a force of maritime prepositioning ships that will carry heavy equipment and supplies for three marine corps brigades the procurement of fast sealift ships to move large quantities of men and material quickly from the u s to overseas areas of deployment increasing training and exercise activities to ensure that our forces will be well prepared to deploy and operate in distant areas +in addition our european allies have agreed on the importance of providing support to u s deployments to southwest asia +naval forces +seapower is indispensable to our global position in peace and also in war our shipbuilding program will sustain a 550 ship navy in the 1990 s and we will continue to build the most capable ships afloat +the program i have proposed will assure the ability of our navy to operate in high threat areas to maintain control of the seas and protect vital lines of communication both military and economic and to provide the strong maritime component of our rapid deployment forces this is essential for operations in remote areas of the world where we cannot predict far in advance the precise location of trouble or preposition equipment on land +military personnel +no matter how capable or advanced our weapons systems our military security depends on the abilities the training and the dedication of the people who serve in our armed forces i am determined to recruit and to retain under any foreseeable circumstances an ample level of such skilled and experienced military personnel this administration has supported for fy 1981 the largest peacetime increase ever in military pay and allowances +we have enhanced our readiness and combat endurance by improving the reserve components all reservists are assigned to units structured to complement and provide needed depth to our active forces some reserve personnel have also now been equipped with new equipment +mobilization planning +we have completed our first phase of mobilization planning the first such presidentially directed effort since world war ii the government wide exercise of our mobilization plans at the end of 1980 showed first that planning pays off and second that much more needs to be done +our intelligence posture +our national interests are critically dependent on a strong and effective intelligence capability we will maintain and strengthen the intelligence capabilities needed to assure our national security maintenance of and continued improvements in our multi faceted intelligence effort are essential if we are to cope successfully with the turbulence and uncertainties of today s world +the intelligence budget i have submitted to the congress responds to our needs in a responsible way providing for significant growth over the fiscal year 1981 budget this growth will enable us to develop new technical means of intelligence collection while also assuring that the more traditional methods of intelligence work are also given proper stress we must continue to integrate both modes of collection in our analyses +regional policies +every president for over three decades has recognized that america s interests are global and that we must pursue a global foreign policy +two world wars have made clear our stake in western europe and the north atlantic area we are also inextricably linked with the far east politically economically and militarily in both of these the united states has a permanent presence and security commitments which would be automatically triggered we have become increasingly conscious of our growing interests in a third area the middle east and the persian gulf area +we have vital stakes in other major regions of the world as well we have long recognized that in an era of interdependence our own security and prosperity depend upon a larger common effort with friends and allies throughout the world +the atlantic alliance +in recognition of the threat which the soviet invasion of afghanistan posed to western interests in both europe and southwest asia nato foreign and defense ministers have expressed full support for u s efforts to develop a capability to respond to a contingency in southwest asia and have approved an extensive program to help fill the gap which could be created by the diversion of u s forces to that region +the u s has not been alone in seeking to maintain stability in the southwest asia area and insure access to the needed resources there the european nations with the capability to do so are improving their own forces in the region and providing greater economic and political support to the residents of the area in the face of the potential danger posed by the iran iraq conflict we have developed coordination among the western forces in the area of the persian gulf in order to be able to safeguard passage in that essential waterway +concerning developments in and around poland the allies have achieved the highest level of cohesion and unity of purpose in making clear the effects on future east west relations of a precipitous soviet act there +the alliance has continued to build on the progress of the past three years in improving its conventional forces through the long term defense program though economic conditions throughout europe today are making its achievement difficult the yearly real increase of 3 percent in defense spending remains a goal actively sought by the alliance +the nato alliance also has moved forward during the past year with the implementation of its historic december 1979 decision to modernize its theater nuclear force capabilities through deployment of improved pershing ballistic missiles and ground launched cruise missiles in europe our allies continue to cooperate actively with us in this important joint endeavor whose purpose is to demonstrate convincingly to the soviet union the potential costs of a nuclear conflict in europe at the same time we offered convincing evidence of our commitment to arms control in europe by initiating preliminary consultations with the soviet union in geneva on the subject of negotiated limits on long range theater nuclear forces also during 1980 we initiated and carried out a withdrawal from our nuclear weapons stockpile in europe of 1 000 nuclear warheads this successful drawdown in our nuclear stockpile was a further tangible demonstration of our commitment to the updating of our existing theater nuclear forces in europe +in the nato area we continued to work closely with other countries in providing resources to help turkey regain economic health we regretted that massive political and internal security problems led the turkish military to take over the government on september 12 the new turkish authorities are making some progress in resolving those problems and they have pledged an early return to civilian government the tradition of the turkish military gives us cause to take that pledge seriously we welcomed the reestablishment of greece s links to the integrated military command structure of the atlantic alliance a move which we had strongly encouraged as a major step toward strengthening nato s vital southern flank at a time of international crisis and tension in adjacent areas greek reintegration exemplifies the importance which the allies place on cooperating in the common defense and shows that the allies can make the difficult decisions necessary to insure their continued security we also welcomed the resumption of the intercommunal talks on cyprus +the u s and the pacific nations +the united states is a pacific nation as much as it is an atlantic nation our interests in asia are as important to us as our interests in europe our trade with asia is as great as our trade with europe during the past four years we have regained a strong dynamic and flexible posture for the united states in this vital region +our major alliances with japan australia and new zealand are now stronger than they ever have been and together with the nations of western europe we have begun to form the basic political structure for dealing with international crises that affect us all japan australia and new zealand have given us strong support in developing a strategy for responding to instability in the persian gulf +normalization of u s relations with china has facilitated china s full entry into the international community and encouraged a constructive chinese role in the asia pacific region our relations with china have been rapidly consolidated over the past year through the conclusion of a series of bilateral agreements we have established a pattern of frequent and frank consultations between our two governments exemplified by a series of high level visits and by regular exchanges at the working level through which we have been able to identify increasingly broad areas of common interest on which we can cooperate +united states relations with the association of southeast asian nations asean have also expanded dramatically in the past four years asean is now the focus for u s policy in southeast asia and its cohesion and strength are essential to stability in this critical area and beyond +soviet supported vietnamese aggression in indo china has posed a major challenge to regional stability in response we have reiterated our security commitment to thailand and have provided emergency security assistance for thai forces facing a vietnamese military threat along the thai cambodian border we have worked closely with asean and the u n to press for withdrawal of vietnamese forces from cambodia and to encourage a political settlement in cambodia which permits that nation to be governed by leaders of its own choice we still look forward to the day when cambodia peacefully can begin the process of rebuilding its social economic and political institutions after years of devastation and occupation and on humanitarian grounds and in support of our friends in the region we have worked vigorously with international organizations to arrange relief and resettlement for the exodus of indo chinese refugees which threatened to overwhelm these nations +we have maintained our alliance with korea and helped assure korea s security during a difficult period of political transition +we have amended our military base agreement with the philippines ensuring stable access to these bases through 1991 the importance of our philippine bases to the strategic flexibility of u s forces and our access to the indian ocean is self evident +finally we are in the process of concluding a long negotiation establishing micronesia s status as a freely associated state +we enter the 1980 s with a firm strategic footing in east asia and the pacific based on stable and productive u s relations with the majority of countries of the region we have established a stable level of u s involvement in the region appropriate to our own interests and to the interests of our friends and allies there +the middle east and southwest asia +the continuing soviet occupation of afghanistan and the dislocations caused by the iraq iran war serve as constant reminders of the critical importance for us and our allies of a third strategic zone stretching across the middle east the persian gulf and much of the indian subcontinent this southwest asian region has served as a key strategic and commercial link between east and west over the centuries today it produces two thirds of the world s oil exports providing most of the energy needs of our european allies and japan it has experienced almost continuous conflict between nations internal instabilities in many countries and regional rivalries combined with very rapid economic and social change and now the soviet union remains in occupation of one of these nations ignoring world opinion which has called on it to get out +we have taken several measures to meet these challenges +middle east +in the middle east our determination to consolidate what has already been achieved in the peace process and to buttress that accomplishment with further progress toward a comprehensive peace settlement must remain a central goal of our foreign policy pursuant to their peace treaty egypt and israel have made steady progress in the normalization of their relations in a variety of fields bringing the benefits of peace directly to their people the new relationship between egypt and israel stands as an example of peaceful cooperation in an increasingly fragmented and turbulent region +both president sadat and prime minister begin remain committed to the current negotiations to provide full autonomy to the inhabitants of the west bank and gaza these negotiations have been complex and difficult but they have already made significant progress and it is vital that the two sides with our assistance see the process through to a successful conclusion we also recognize the need to broaden the peace process to include other parties to the conflict and believe that a successful autonomy agreement is an essential first step toward this objective +we have also taken a number of steps to strengthen our bilateral relations with both israel and egypt we share important strategic interests with both of these countries +we remain committed to israel s security and are prepared to take concrete steps to support israel whenever that security is threatened +persian gulf +the persian gulf has been a vital crossroads for trade between europe and asia at many key moments in history it has become essential in recent years for its supply of oil to the united states our allies and our friends we have taken effective measures to control our own consumption of imported fuel working in cooperation with the other key industrial nations of the world however there is little doubt that the healthy growth of our american and world economies will depend for many years on continued safe access to the persian gulf s oil production the denial of these oil supplies would threaten not only our own but world security +the potent new threat from an advancing soviet union against the background of regional instability of which it can take advantage requires that we reinforce our ability to defend our regional friends and to protect the flow of oil we are continuing to build on the strong political economic social and humanitarian ties which bind this government and the american people to friendly governments and peoples of the persian gulf +we have also embarked on a course to reinforce the trust and confidence our regional friends have in our ability to come to their assistance rapidly with american military force if needed we have increased our naval presence in the indian ocean we have created a rapid deployment force which can move quickly to the gulf or indeed any other area of the world where outside aggression threatens we have concluded several agreements with countries which are prepared to let us use their airports and naval facilities in an emergency we have met requests for reasonable amounts of american weaponry from regional countries which are anxious to defend themselves and we are discussing with a number of our area friends further ways we can help to improve their security and ours both for the short and the longer term +south asia +we seek a south asia comprising sovereign and stable states free of outside interference which can strengthen their political institutions according to their own national genius and can develop their economies for the betterment of their people +the soviet invasion of afghanistan has posed a new challenge to this region and particularly to neighboring pakistan we are engaged in a continuing dialogue with the pakistan government concerning its development and security requirements and the economic burden imposed by afghan refugees who have fled to pakistan we are participating with other aid consortium members in debt rescheduling and will continue to cooperate through the unhcr in providing refugee assistance we remain committed to pakistan s territorial integrity and independence +developments in the broad south southwest asian region have also lent a new importance to our relations with india the largest and strongest power in the area we share india s interest in a more constructive relationship indian policies and perceptions at times differ from our own and we have established a candid dialogue with this sister democracy which seeks to avoid the misunderstandings which have sometimes complicated our ties +we attach major importance to strong economic assistance programs to the countries in the area which include a majority of the poor of the non communist world we believe that these programs will help achieve stability in the area an objective we share with the countries in the region great progress has been achieved by these countries in increasing food production international cooperation in harnessing the great river resources of south asia would contribute further to this goal and help to increase energy production +we continue to give high priority to our non proliferation goals in the area in the context of our broad global and regional priorities the decision to continue supply of nuclear fuel to the indian tarapur reactors was sensitive to this effort +africa +the united states has achieved a new level of trust and cooperation with africa our efforts together with our allies to achieve peace in southern africa our increased efforts to help the poorest countries in africa to combat poverty and our expanded efforts to promote trade and investment have led to growing respect for the u s and to cooperation in areas of vital interest to the united states +africa is a continent of poor nations for the most part it also contains many of the mineral resources vital for our economy we have worked with africa in a spirit of mutual cooperation to help the african nations solve their problems of poverty and to develop stronger ties between our private sector and african economies our assistance to africa has more than doubled in the last four years equally important we set in motion new mechanisms for private investment and trade +nigeria is the largest country in black africa and the second largest oil supplier to the united states during this administration we have greatly expanded and improved our relationship with nigeria and other west african states whose aspirations for a constitutional democratic order we share and support this interest was manifested both symbolically and practically by the visit of vice president mondale to west africa in july 1980 and the successful visit to washington of the president of nigeria in october +during vice president mondale s visit a joint agricultural consultative committee was established with the u s represented entirely by the private sector this could herald a new role for the american private sector in helping solve the world s serious food shortages i am pleased to say that our relations with nigeria are at an all time high providing the foundation for an even stronger relationship in the years ahead +another tenet of this administration s approach to african problems has been encouragement and support for regional solutions to africa s problems we have supported initiatives by the organization of african unity to solve the protracted conflict in the western sahara chad and the horn in chad the world is watching with dismay as a country torn by a devastating civil war has become a fertile field for libya s exploitation thus demonstrating that threats to peace can come from forces within as well as without africa +in southern africa the united states continues to pursue a policy of encouraging peaceful development toward majority rule in 1980 southern rhodesia became independent as zimbabwe a multiracial nation under a system of majority rule zimbabwean independence last april was the culmination of a long struggle within the country and diplomatic efforts involving great britain african states neighboring zimbabwe and the united states +the focus of our efforts in pursuit of majority rule in southern africa has now turned to namibia negotiations are proceeding among concerned parties under the leadership of u n secretary general waldheim this should lead to implementation of the u n plan for self determination and independence for namibia during 1981 if these negotiations are successfully concluded sixty five years of uncertainty over the status of the territory including a seven year long war will be ended +in response to our active concern with issues of importance to africans african states have cooperated with us on issues of importance to our national interests african states voted overwhelmingly in favor of the u n resolution calling for release of the hostages and for the u n resolution condemning the soviet invasion of afghanistan two countries of africa have signed access agreements with the u s allowing us use of naval and air facilities in the indian ocean +africans have become increasingly vocal on human rights african leaders have spoken out on the issue of political prisoners and the oau is drafting its own charter on human rights three countries in africa nigeria ghana and uganda have returned to civilian rule during the past year +u s cooperation with africa on all these matters represents a strong base on which we can build in future years +liberia is a country of long standing ties with the u s and the site of considerable u s investment and facilities this past april a coup replaced the government and a period of political and economic uncertainty ensued the u s acted swiftly to meet this situation we together with african leaders urged the release of political prisoners and many have been released we provided emergency economic assistance to help avoid economic collapse and helped to involve the imf and the banking community to bring about economic stability and we have worked closely with the new leaders to maintain liberia s strong ties with the west and to protect america s vital interests +north africa +in early 1979 following a libyan inspired commando attack on a tunisian provincial city the u s responded promptly to tunisia s urgent request for assistance both by airlifting needed military equipment and by making clear our longstanding interest in the security and integrity of this friendly country the u s remains determined to oppose other irresponsible libyan aspirations despairing of a productive dialogue with the libyan authorities the u s closed down its embassy in libya and later expelled six libyan diplomats in washington in order to deter an intimidation campaign against libyan citizens in the u s +u s relations with algeria have improved and algeria has played an indispensable and effective role as intermediary between iran and the u s over the hostage issue +the strengthening of our arms supply relationship with morocco has helped to deal with attacks inside its internationally recognized frontiers and to strengthen its confidence in seeking a political settlement of the western sahara conflict while not assuming a mediatory role the u s encouraged all interested parties to turn their energies to a peaceful and sensible compromise resolution of the war in the sahara and supported efforts by the organization of african unity toward that end as the year drew to a close the u s was encouraged by evolution in the attitudes of all sides and is hopeful that their differences will be peacefully resolved in the year ahead so that the vast economic potential of north africa can be developed for the well being of the people living there +latin america and the caribbean +the principles of our policies in this hemisphere have been clear and constant over the last four years we support democracy and respect for human rights we have struggled with many to help free the region of both repression and terrorism we have respected ideological diversity and opposed outside intervention in purely internal affairs we will act though in response to a request for assistance by a country threatened by external aggression we support social and economic development within a democratic framework we support the peaceful settlement of disputes we strongly encourage regional cooperation and shared responsibilities within the hemisphere to all these ends and we have eagerly and regularly sought the advice of the leaders of the region on a wide range of issues +last november i spoke to the general assembly of the organization of american states of a cause that has been closest to my heart human rights it is an issue that has found its time in the hemisphere the cause is not mine alone but an historic movement that will endure +at riobamba ecuador last september four andean pact countries costa rica and panama broke new ground by adopting a code of conduct that joint action in defense of human rights does not violate the principles of nonintervention in the internal affairs of states in this hemisphere the organization of american states has twice condemned the coup that overturned the democratic process in bolivia and the widespread abuse of human rights by the regime which seized power the inter american commission on human rights has gained world acclaim for its dispassionate reports it completed two major country studies this year in addition to its annual report in a resolution adopted without opposition the oas general assembly in november strongly supported the work of the commission the american convention on human rights is in force and an inter american court has been created to judge human rights violations this convention has been pending before the senate for two years i hope the united states this year will join the other nations of the hemisphere in ratifying a convention which embodies principles that are our tradition +the trend in favor of democracy has continued during this past year peru inaugurated a democratically elected government brazil continues its process of liberalization in central america hondurans voted in record numbers in their first national elections in over eight years in the caribbean seven elections have returned governments firmly committed to the democratic traditions of the commonwealth +another major contribution to peace in the hemisphere is latin america s own treaty for the prohibition of nuclear weapons on behalf of the united states i signed protocol i of this treaty in may of 1977 and sent it to the senate for ratification i urge that it be acted upon promptly by the senate in order that it be brought into the widest possible effect in the latin american region +regional cooperation for development is gaining from central america to the andes and throughout the caribbean the caribbean group for cooperation in economic development which we established with 29 other nations in 1977 has helped channel $750 million in external support for growth in the caribbean the recent meeting of the chiefs of state of the eastern caribbean set a new precedent for cooperation in that region mexico and venezuela jointly and trinidad and tobago separately have established oil facilities that will provide substantial assistance to their oil importing neighbors the peace treaty between el salvador and honduras will hopefully stimulate central america to move forward again toward economic integration formation of caribbean central american action a private sector organization has given a major impetus to improving people to people bonds and strengthening the role of private enterprise in the development of democratic societies +the panama treaties have been in force for over a year a new partnership has been created with panama it is a model for large and small nations a longstanding issue that divided us from our neighbors has been resolved the security of the canal has been enhanced the canal is operating as well as ever with traffic through it reaching record levels this year canal employees american and panamanian alike have remained on the job and have found their living and working conditions virtually unchanged +in 1980 relations with mexico continued to improve due in large measure to the effectiveness of the coordinator for mexican affairs and the expanded use of the u s mexico consultative mechanism by holding periodic meetings of its various working groups we have been able to prevent mutual concerns from becoming political issues the secretary of state visited mexico city in november and along with the mexican secretary of foreign relations reviewed the performance of the consultative mechanism the office of the coordinator has ensured the implementation of my directive to all agencies to accord high priority to mexican concerns trade with mexico rose by almost 60 percent to nearly $30 billion making that country our third largest trading partner +these are all encouraging developments other problems remain however +the impact of large scale migration is affecting many countries in the hemisphere the most serious manifestation was the massive illegal exodus from cuba last summer the cuban government unilaterally encouraged the disorderly and even deadly migration of 125 000 of its citizens in complete disregard for international law or the immigration laws of its neighbors migrations of this nature clearly require concerted action and we have asked the oas to explore means of dealing with similar situations which may occur in the future +we have a long standing treaty with colombia on quita sueno roncador and serrano which remains to be ratified by the senate +in central america the future of nicaragua is unclear recent tensions the restrictions on the press and political activity an inordinate cuban presence in the country and the tragic killing by the security forces of a businessman well known for his democratic orientation cause us considerable concern these are not encouraging developments but those who seek a free society remain in the contest for their nation s destiny they have asked us to help rebuild their country and by our assistance to demonstrate that the democratic nations do not intend to abandon nicaragua to the cubans as long as those who intend to pursue their pluralistic goals play important roles in nicaragua it deserves our continuing support +in el salvador we have supported the efforts of the junta to change the fundamental basis of an inequitable system and to give a stake in a new nation to those millions of people who for so long lived without hope or dignity as the government struggles against those who would restore an old tyranny or impose a new one the united states will continue to stand behind them +we have increased our aid to the caribbean an area vital to our national security and we should continue to build close relations based on mutual respect and understanding and common interests +as the nations of this hemisphere prepare to move further into the 1980 s i am struck by the depth of underlying commitment that there is to our common principles non intervention peaceful settlement of disputes cooperation for development democracy and defense of basic human rights i leave office satisfied that the political economic social and organizational basis for further progress with respect to all these principles have been substantially strengthened in the past four years i am particularly reassured by the leadership by other nations of the hemisphere in advancing these principles the success of our common task of improving the circumstances of all peoples and nations in the hemisphere can only be assured by the sharing of responsibility i look forward to a hemisphere that at the end of this decade has proven itself anew as a leader in the promotion of both national and human dignity +the international economy +a growing defense effort and a vigorous foreign policy rest upon a strong economy here in the united states and the strength of our own economy depends upon our ability to lead and compete in the international marketplace +energy +last year the war between iraq and iran led to the loss of nearly 4 million barrels of oil to world markets the third major oil market disruption in the past seven years this crisis has vividly demonstrated once again both the value of lessened dependence on oil imports and the continuing instability of the persian gulf area +under the leadership of the united states the 21 members of the international energy agency took collective action to ensure that the oil shortfall stemming from the iran iraq war would not be aggravated by competition for scarce spot market supplies we are also working together to see that those nations most seriously affected by the oil disruption including our key nato allies turkey and portugal can get the oil they need at the most recent iea ministerial meeting we joined the other members in pledging to take those policy measures necessary to slice our joint oil imports in the first quarter of 1981 by 2 2 million barrels +our international cooperation efforts in the energy field are not limited to crisis management at the economic summit meetings in tokyo and venice the heads of government of the seven major industrial democracies agreed to a series of tough energy conservation and production goals we are working together with all our allies and friends in this effort +construction has begun on a commercial scale coal liquefaction plant in west virginia co financed by the united states japan and west germany an interagency task force has just reported to me on a series of measures we need to take to increase coal production and exports this report builds on the work of the international energy agency s coal industry advisory board with the assurances of a reliable united states steam coal supply at reasonable prices many of the electric power plants to be built in the 1980 s and 1990 s can be coal fired rather than oil burning +we are working cooperatively with other nations to increase energy security in other areas as well joint research and development with our allies is underway in solar energy nuclear power industrial conservation and other areas in addition we are assisting rapidly industrializing nations to carefully assess their basic energy policy choices and our development assistance program helps the developing countries to increase indigenous energy production to meet the energy needs of their poorest citizens we support the proposal for a new world bank energy affiliate to these same ends whose fulfillment will contribute to a better global balance between energy supply and demand +international monetary policy +despite the rapid increase in oil costs the policy measures we have taken to improve domestic economic performance have had a continued powerful effect on our external accounts and on the strength of the dollar a strong dollar helps in the fight against inflation +there has also been considerable forward movement in efforts to improve the functioning of the international monetary system the stability of the international system of payments and trade is important to the stability and good health of our own economy we have given strong support to the innovative steps being taken by the international monetary fund and world bank to help promote early adjustment to the difficult international economic problems recent agreement to increase quotas by fifty percent will ensure the imf has sufficient resources to perform its central role in promoting adjustment and financing payments imbalances the world bank s new structural adjustment lending program will also make an important contribution to international efforts to help countries achieve a sustainable level of growth and development +sugar +in 1980 congress passed u s implementing legislation for the international sugar agreement thus fulfilling a major commitment of this administration the agreement is an important element in our international commodity policy with far reaching implications for our relations with developing countries particularly sugar producers in latin america producers and consumers alike will benefit from a more stable market for this essential commodity +coffee +at year s end congress approved implementing legislation permitting the u s to carry out fully its commitments under international coffee agreement specifically the legislation enables us to meet our part of an understanding negotiated last fall among members of the agreement which defends by use of export quotas a price range well below coffee prices of previous years and which commits major coffee producers to eliminate cartel arrangements that manipulated future markets to raise prices the way is now open to a fully functioning international coffee agreement which can help to stabilize this major world commodity market the results will be positive for both consumers who will be less likely to suffer from sharp increases in coffee prices and producers who can undertake future investment with assurance of greater protection against disruptive price fluctuations in their exports +natural rubber +in 1980 the international natural rubber agreement entered into force provisionally u s membership in this new body was approved overwhelmingly by the senate last year the natural rubber agreement is a model of its kind and should make a substantial contribution to a stable world market in this key industrial commodity it is thus an excellent example of constructive steps to improve the operation of the world economy in ways which can benefit the developing and industrialized countries alike in particular the agreement has improved important u s relationships with the major natural rubber producing countries of southeast asia +common fund +the united states joined members of the united nations conference on trade and development both developed and developing nations in concluding articles of agreement in 1980 for a common fund to help international commodity agreements stabilize the prices of raw materials +economic cooperation with developing nations +our relations with the developing nations are of major importance to the united states the fabric of our relations with these countries has strong economic and political dimensions they constitute the most rapidly growing markets for our exports and are important sources of fuel and raw materials their political views are increasingly important as demonstrated in their overwhelming condemnation of the soviet invasion of afghanistan our ability to work together with developing nations toward goals we have in common their political independence the resolution of regional tensions and our growing ties of trade for example require us to maintain the policy of active involvement with the developing world that we have pursued over the past four years +the actions we have taken in such areas as energy trade commodities and international financial institutions are all important to the welfare of the developing countries another important way the united states can directly assist these countries and demonstrate our concern for their future is through our multilateral and bilateral foreign assistance program the legislation which i will be submitting to you for fy 82 provides the authority and the funds to carry on this activity prompt congressional action on this legislation is essential in order to attack such high priority global problems as food and energy meet our treaty and base rights agreements continue our peace efforts in the middle east provide economic and development support to countries in need promote progress on north south issues protect western interests and counter soviet influence +our proposed fy 1982 bilateral development aid program is directly responsive to the agreement reached at the 1980 venice economic summit that the major industrial nations should increase their aid for food and energy production and for family planning we understand that other summit countries plan similar responses it is also important to honor our international agreements for multilateral assistance by authorizing and appropriating funds for the international financial institutions these multilateral programs enhance the efficiency of u s contributions by combining them with those of many other donor countries to promote development the proposed new world bank affiliate to increase energy output in developing countries offers particular promise all these types of aid benefit our long run economic and political interests +progress was made on a number of economic issues in negotiations throughout the u n system however in spite of lengthy efforts in the united nations agreement has not been reached on how to launch a process of global negotiations in which nations might collectively work to solve such important issues as energy food protectionism and population pressures the united states continues to believe that progress can best be made when nations focus on such specific problems rather than on procedural and institutional questions it will continue to work to move the north south dialogue into a more constructive phase +food the war on hunger +the war on hunger must be a continuous urgent priority major portions of the world s population continue to be threatened by the specter of hunger and malnutrition during the past year some 150 million people in 36 african countries were faced with near disaster as the result of serious drought induced food shortages our government working in concert with the u n s food and agricultural organization fao helped to respond to that need but the problems of hunger cannot be solved by short term measures we must continue to support those activities bilateral and multilateral which aim at improving food production especially in developing countries and assuring global food security these measures are necessary to the maintenance of a stable and healthy world economy +i am pleased that negotiation of a new food aid convention which guarantees a minimum annual level of food assistance was successfully concluded in march the establishment of the international emergency wheat reserve will enable the u s to meet its commitment under the new convention to feed hungry people even in times of short supply +of immediate concern is the prospect of millions of africans threatened by famine because of drought and civil disturbances the u s plea for increased food aid resulted in the organization of an international pledging conference and we are hopeful that widespread starvation will be avoided +good progress has been made since the venice economic summit called for increased effort on this front we and other donor countries have begun to assist poor countries develop long term strategies to improve their food production the world bank will invest up to $4 billion in the next few years in improving the grain storage and food handling capacity of countries prone to food shortages +good progress has been made since the tokyo economic summit called for increased effort on this front the world bank is giving this problem top priority as are some other donor countries the resources of the consultative group on international agricultural research will be doubled over a five year period the work of our own institute of scientific and technological cooperation will further strengthen the search for relevant new agricultural technologies +the goal of freeing the world from hunger by the year 2000 should command the full support of all countries +the human dimension of foreign policy +human rights +the human rights policy of the united states has been an integral part of our overall foreign policy for the past several years this policy serves the national interest of the united states in several important ways by encouraging respect by governments for the basic rights of human beings it promotes peaceful constructive change reduces the likelihood of internal pressures for violent change and for the exploitation of these by our adversaries and thus directly serves our long term interest in peace and stability by matching espousal of fundamental american principles of freedom with specific foreign policy actions we stand out in vivid contrast to our ideological adversaries by our efforts to expand freedom elsewhere we render our own freedom and our own nation more secure countries that respect human rights make stronger allies and better friends +rather than attempt to dictate what system of government or institutions other countries should have the u s supports throughout the world the internationally recognized human rights which all members of the united nations have pledged themselves to respect there is more than one model that can satisfy the continuing human reach for freedom and justice +1980 has been a year of some disappointments but has also seen some positive developments in the ongoing struggle for fulfillment of human rights throughout the world in the year we have seen +free elections were held and democratic governments installed in peru dominica and jamaica honduras held a free election for installation of a constituent assembly an interim government was subsequently named pointing toward national presidential elections in 1981 brazil continues on its course of political liberalization +the charter of conduct signed in riobamba ecuador by ecuador colombia venezuela peru costa rica panama and spain affirms the importance of democracy and human rights for the andean countries +the organization of american states in its annual general assembly approved a resolution in support of the inter american human rights commission s work the resolution took note of the commission s annual report which described the status of human rights in chile el salvador paraguay and uruguay and the special reports on argentina and haiti which described human rights conditions as investigated during on site inspections to these countries +the awarding of the nobel prize for peace to adolfo perez esquivel of argentina for his non violent advocacy of human rights +the united states was able to rejoin the international labor organization after an absence of two years as that u n body reformed its procedures to return to its original purpose of strengthening employer employee government relations to insure human rights for the working people of the world +the united states of course cannot take credit for all these various developments but we can take satisfaction in knowing that our policies encourage and perhaps influence them +those who see a contradiction between our security and our humanitarian interests forget that the basis for a secure and stable society is the bond of trust between a government and its people i profoundly believe that the future of our world is not to be found in authoritarianism that wears the mask of order or totalitarianism that wears the mask of justice instead let us find our future in the human face of democracy the human voice of individual liberty the human hand of economic development +humanitarian aid +the united states has continued to play its traditional role of safehaven for those who flee or are forced to flee their homes because of persecution or war during 1980 the united states provided resettlement opportunities for 216 000 refugees from countries around the globe in addition the united states joined with other nations to provide relief to refugees in country of first asylum in africa the middle east and asia +the great majority of refugee admissions continued to be from indo china during 1980 168 000 indo chinese were resettled in the united states although refugee populations persist in camps in southeast asia and refugees continue to flee vietnam laos and kampuchea the flow is not as great as in the past one factor in reducing the flow from vietnam has been the successful negotiation and commencement of an orderly departure program which permits us to process vietnamese for resettlement in the united states with direct departure from ho chi minh ville in an orderly fashion the first group of 250 departed vietnam for the united states in december 1980 +in addition to the refugees admitted last year the united states accepted for entry into the united states 125 000 cubans who were expelled by fidel castro federal and state authorities as well as private voluntary agencies responded with unprecedented vigor to coping with the unexpected influx of cubans +major relief efforts to aid refugees in countries of first asylum continued in several areas of the world in december 1980 thirty two nations meeting in new york city agreed to contribute $65 million to the continuing famine relief program in kampuchea due in great part to the generosity of the american people and the leadership exercised in the international arena by the united states we have played the pivotal role in ameliorating massive suffering in kampuchea +the united states has taken the lead among a group of donor countries who are providing relief to some two million refugees in the horn of africa who have been displaced by fighting in ethiopia u s assistance primarily to somalia consists of $35 million worth of food and $18 million in cash and kind here again united states efforts can in large part be credited with keeping hundreds of thousands of people alive +another major international relief effort has been mounted in pakistan the united states is one of 25 countries plus the european economic community who have been helping the government of pakistan to cope with the problem of feeding and sheltering the more than one million refugees that have been generated by the soviet invasion of afghanistan +in april 1980 the congress passed the refugee act of 1980 which brought together for the first time in one piece of legislation the various threads of u s policy towards refugees the law laid down a new broader definition of the term refugee established mechanisms for arriving at a level of refugee admissions through consultation with congress and established the office of the united states coordinator for refugees +it cannot be ignored that the destructive and aggressive policies of the soviet union have added immeasurably to the suffering in these three tragic situations +the control of nuclear weapons +together with our friends and allies we are striving to build a world in which peoples with diverse interests can live freely and prosper but all that humankind has achieved to date all that we are seeking to accomplish and human existence itself can be undone in an instant in the catastrophe of a nuclear war +thus one of the central objectives of my administration has been to control the proliferation of nuclear weapons to those nations which do not have them and their further development by the existing nuclear powers notably the soviet union and the united states +non proliferation +my administration has been committed to stemming the spread of nuclear weapons nuclear proliferation would raise the spectre of the use of nuclear explosives in crucial unstable regions of the world endangering not only our security and that of our allies but that of the whole world non proliferation is not and can not be a unilateral u s policy nor should it be an issue of contention between the industrialized and developing states the international non proliferation effort requires the support of suppliers as well as importers of nuclear technology and materials +we have been proceeding on a number of fronts +first we have been seeking to encourage nations to accede to the non proliferation treaty the u s is also actively encouraging other nations to accept full scope safeguards on all of their nuclear activities and is asking other nuclear suppliers to adopt a full scope safeguards requirement as a condition for future supply +second the international nuclear fuel cycle evaluation infce which was completed in 1980 demonstrated that suppliers and recipients can work together on these technically complex and sensitive issues while differences remain the infce effort provides a broader international basis for national decisions which must balance energy needs with non proliferation concerns +finally we are working to encourage regional cooperation and restraint protocol i of the treaty of tlatelolco which will contribute to the lessening of nuclear dangers for our latin american neighbors ought now to be ratified by the united states senate +limitations on strategic arms +i remain convinced that the salt ii treaty is in our nation s security interest and that it would add significantly to the control of nuclear weapons i strongly support continuation of the salt process and the negotiation of more far reaching mutual restraints on nuclear weaponry +conclusion +we have new support in the world for our purposes of national independence and individual human dignity we have a new will at home to do what is required to keep us the strongest nation on earth +we must move together into this decade with the strength which comes from realization of the dangers before us and from the confidence that together we can overcome them the white house january 16 1981 +mr speaker mr president distinguished members of the congress honored guests and fellow citizens +today marks my first state of the union address to you a constitutional duty as old as our republic itself +president washington began this tradition in 1790 after reminding the nation that the destiny of self government and the preservation of the sacred fire of liberty is finally staked on the experiment entrusted to the hands of the american people for our friends in the press who place a high premium on accuracy let me say i did not actually hear george washington say that but it is a matter of historic record +but from this podium winston churchill asked the free world to stand together against the onslaught of aggression franklin delano roosevelt spoke of a day of infamy and summoned a nation to arms douglas macarthur made an unforgettable farewell to a country he loved and served so well dwight eisenhower reminded us that peace was purchased only at the price of strength and john f kennedy spoke of the burden and glory that is freedom +when i visited this chamber last year as a newcomer to washington critical of past policies which i believed had failed i proposed a new spirit of partnership between this congress and this administration and between washington and our state and local governments in forging this new partnership for america we could achieve the oldest hopes of our republic prosperity for our nation peace for the world and the blessings of individual liberty for our children and someday for all of humanity +it s my duty to report to you tonight on the progress that we have made in our relations with other nations on the foundation we ve carefully laid for our economic recovery and finally on a bold and spirited initiative that i believe can change the face of american government and make it again the servant of the people +seldom have the stakes been higher for america what we do and say here will make all the difference to autoworkers in detroit lumberjacks in the northwest steelworkers in steubenville who are in the unemployment lines to black teenagers in newark and chicago to hard pressed farmers and small businessmen and to millions of everyday americans who harbor the simple wish of a safe and financially secure future for their children to understand the state of the union we must look not only at where we are and where we re going but where we ve been the situation at this time last year was truly ominous +the last decade has seen a series of recessions there was a recession in 1970 in 1974 and again in the spring of 1980 each time unemployment increased and inflation soon turned up again we coined the word stagflation to describe this +government s response to these recessions was to pump up the money supply and increase spending in the last 6 months of 1980 as an example the money supply increased at the fastest rate in postwar history 13 percent inflation remained in double digits and government spending increased at an annual rate of 17 percent interest rates reached a staggering 21 5 percent there were 8 million unemployed +late in 1981 we sank into the present recession largely because continued high interest rates hurt the auto industry and construction and there was a drop in productivity and the already high unemployment increased +this time however things are different we have an economic program in place completely different from the artificial quick fixes of the past it calls for a reduction of the rate of increase in government spending and already that rate has been cut nearly in half but reduced spending the first and smallest phase of a 3 year tax rate reduction designed to stimulate the economy and create jobs already interest rates are down to 15 3 4 percent but they must still go lower inflation is down from 12 4 percent to 8 9 and for the month of december it was running at an annualized rate of 5 2 percent if we had not acted as we did things would be far worse for all americans than they are today inflation taxes and interest rates would all be higher +a year ago americans faith in their governmental process was steadily declining six out of 10 americans were saying they were pessimistic about their future a new kind of defeatism was heard some said our domestic problems were uncontrollable that we had to learn to live with this seemingly endless cycle of high inflation and high unemployment +there were also pessimistic predictions about the relationship between our administration and this congress it was said we could never work together well those predictions were wrong the record is clear and i believe that history will remember this as an era of american renewal remember this administration as an administration of change and remember this congress as a congress of destiny +together we not only cut the increase in government spending nearly in half we brought about the largest tax reductions and the most sweeping changes in our tax structure since the beginning of this century and because we indexed future taxes to the rate of inflation we took away government s built in profit on inflation and its hidden incentive to grow larger at the expense of american workers +together after 50 years of taking power away from the hands of the people in their states and local communities we have started returning power and resources to them +together we have cut the growth of new federal regulations nearly in half in 1981 there were 23 000 fewer pages in the federal register which lists new regulations than there were in 1980 by deregulating oil we ve come closer to achieving energy independence and helped bring down the cost of gasoline and heating fuel +together we have created an effective federal strike force to combat waste and fraud in government in just 6 months it has saved the taxpayers more than $2 billion and it s only getting started +together we ve begun to mobilize the private sector not to duplicate wasteful and discredited government programs but to bring thousands of americans into a volunteer effort to help solve many of america s social problems +together we ve begun to restore that margin of military safety that ensures peace our country s uniform is being worn once again with pride +together we have made a new beginning but we have only begun +no one pretends that the way ahead will be easy in my inaugural address last year i warned that the ills we suffer have come upon us over several decades they will not go away in days weeks or months but they will go away because we as americans have the capacity now as we ve had it in the past to do whatever needs to be done to preserve this last and greatest bastion of freedom +the economy will face difficult moments in the months ahead but the program for economic recovery that is in place will pull the economy out of its slump and put us on the road to prosperity and stable growth by the latter half of this year and that is why i can report to you tonight that in the near future the state of the union and the economy will be better much better if we summon the strength to continue on the course that we ve charted +and so the question if the fundamentals are in place what now well two things first we must understand what s happening at the moment to the economy our current problems are not the product of the recovery program that s only just now getting underway as some would have you believe they are the inheritance of decades of tax and tax and spend and spend +second because our economic problems are deeply rooted and will not respond to quick political fixes we must stick to our carefully integrated plan for recovery that plan is based on four commonsense fundamentals continued reduction of the growth in federal spending preserving the individual and business tax reductions that will stimulate saving and investment removing unnecessary federal regulations to spark productivity and maintaining a healthy dollar and a stable monetary policy the latter a responsibility of the federal reserve system +the only alternative being offered to this economic program is a return to the policies that gave us a trillion dollar debt runaway inflation runaway interest rates and unemployment the doubters would have us turn back the clock with tax increases that would offset the personal tax rate reductions already passed by this congress raise present taxes to cut future deficits they tell us well i don t believe we should buy that argument +there are too many imponderables for anyone to predict deficits or surpluses several years ahead with any degree of accuracy the budget in place when i took office had been projected as balanced it turned out to have one of the biggest deficits in history another example of the imponderables that can make deficit projections highly questionable a change of only one percentage point in unemployment can alter a deficit up or down by some $25 billion +as it now stands our forecast which we re required by law to make will show major deficits starting at less than a hundred billion dollars and declining but still too high more important we re making progress with the three keys to reducing deficits economic growth lower interest rates and spending control the policies we have in place will reduce the deficit steadily surely and in time completely +higher taxes would not mean lower deficits if they did how would we explain that tax revenues more than doubled just since 1976 yet in that same 6 year period we ran the largest series of deficits in our history in 1980 tax revenues increased by $54 billion and in 1980 we had one of our all time biggest deficits raising taxes won t balance the budget it will encourage more government spending and less private investment raising taxes will slow economic growth reduce production and destroy future jobs making it more difficult for those without jobs to find them and more likely that those who now have jobs could lose them so i will not ask you to try to balance the budget on the backs of the american taxpayers +i will seek no tax increases this year and i have no intention of retreating from our basic program of tax relief i promise to bring the american people to bring their tax rates down and to keep them down to provide them incentives to rebuild our economy to save to invest in america s future i will stand by my word tonight i m urging the american people seize these new opportunities to produce to save to invest and together we ll make this economy a mighty engine of freedom hope and prosperity again +now the budget deficit this year will exceed our earlier expectations the recession did that it lowered revenues and increased costs to some extent we re also victims of our own success we ve brought inflation down faster than we thought we could and in doing this we ve deprived government of those hidden revenues that occur when inflation pushes people into higher income tax brackets and the continued high interest rates last year cost the government about $5 billion more than anticipated +we must cut out more nonessential government spending and rout out more waste and we will continue our efforts to reduce the number of employees in the federal work force by 75 000 +the budget plan i submit to you on february 8th will realize major savings by dismantling the departments of energy and education and by eliminating ineffective subsidies for business we ll continue to redirect our resources to our two highest budget priorities a strong national defense to keep america free and at peace and a reliable safety net of social programs for those who have contributed and those who are in need +contrary to some of the wild charges you may have heard this administration has not and will not turn its back on america s elderly or america s poor under the new budget funding for social insurance programs will be more than double the amount spent only 6 years ago but it would be foolish to pretend that these or any programs cannot be made more efficient and economical +the entitlement programs that make up our safety net for the truly needy have worthy goals and many deserving recipients we will protect them but there s only one way to see to it that these programs really help those whom they were designed to help and that is to bring their spiraling costs under control +today we face the absurd situation of a federal budget with three quarters of its expenditures routinely referred to as uncontrollable and a large part of this goes to entitlement programs +committee after committee of this congress has heard witness after witness describe many of these programs as poorly administered and rife with waste and fraud virtually every american who shops in a local supermarket is aware of the daily abuses that take place in the food stamp program which has grown by 16 000 percent in the last 15 years another example is medicare and medicaid programs with worthy goals but whose costs have increased from 11 2 billion to almost 60 billion more than 5 times as much in just 10 years +waste and fraud are serious problems back in 1980 federal investigators testified before one of your committees that corruption has permeated virtually every area of the medicare and medicaid health care industry one official said many of the people who are cheating the system were very confident that nothing was going to happen to them well something is going to happen not only the taxpayers are defrauded the people with real dependency on these programs are deprived of what they need because available resources are going not to the needy but to the greedy +the time has come to control the uncontrollable in august we made a start i signed a bill to reduce the growth of these programs by $44 billion over the next 3 years while at the same time preserving essential services for the truly needy shortly you will receive from me a message on further reforms we intend to install some new but others long recommended by your own congressional committees i ask you to help make these savings for the american taxpayer +the savings we propose in entitlement programs will total some $63 billion over 4 years and will without affecting social t security go a long way toward bringing federal spending under control +but don t be fooled by those who proclaim that spending cuts will deprive the elderly the needy and the helpless the federal government will still subsidize 95 million meals every day that s one out of seven of all the meals served in america head start senior nutrition programs and child welfare programs will not be cut from the levels we proposed last year more than one half billion dollars has been proposed for minority business assistance and research at the national institute of health will be increased by over $100 million while meeting all these needs we intend to plug unwarranted tax loopholes and strengthen the law which requires all large corporations to pay a minimum tax +i am confident the economic program we ve put into operation will protect the needy while it triggers a recovery that will benefit all americans it will stimulate the economy result in increased savings and provide capital for expansion mortgages for homebuilding and jobs for the unemployed +now that the essentials of that program are in place our next major undertaking must be a program just as bold just as innovative to make government again accountable to the people to make our system of federalism work again +our citizens feel they ve lost control of even the most basic decisions made about the essential services of government such as schools welfare roads and even garbage collection and they re right a maze of interlocking jurisdictions and levels of government confronts average citizens in trying to solve even the simplest of problems they don t know where to turn for answers who to hold accountable who to praise who to blame who to vote for or against the main reason for this is the overpowering growth of federal grants in aid programs during the past few decades +in 1960 the federal government had 132 categorical grant programs costing $7 billion when i took office there were approximately 500 costing nearly a hundred billion dollars 13 programs for energy 36 for pollution control 66 for social services 90 for education and here in the congress it takes at least 166 committees just to try to keep track of them +you know and i know that neither the president nor the congress can properly oversee this jungle of grants in aid indeed the growth of these grants has led to the distortion in the vital functions of government as one democratic governor put it recently the national government should be worrying about arms control not potholes +the growth in these federal programs has in the words of one intergovernmental commission made the federal government more pervasive more intrusive more unmanageable more ineffective and costly and above all more un accountable let s solve this problem with a single bold stroke the return of some $47 billion in federal programs to state and local government together with the means to finance them and a transition period of nearly 10 years to avoid unnecessary disruption +i will shortly send this congress a message describing this program i want to emphasize however that its full details will have been worked out only after close consultation with congressional state and local officials +starting in fiscal 1984 the federal government will assume full responsibility for the cost of the rapidly growing medicaid program to go along with its existing responsibility for medicare as part of a financially equal swap the states will simultaneously take full responsibility for aid to families with dependent children and food stamps this will make welfare less costly and more responsive to genuine need because it ll be designed and administered closer to the grass roots and the people it serves +in 1984 the federal government will apply the full proceeds from certain excise taxes to a grass roots trust fund that will belong in fair shares to the 50 states the total amount flowing into this fund will be $28 billion a year over the next 4 years the states can use this money in either of two ways if they want to continue receiving federal grants in such areas as transportation education and social services they can use their trust fund money to pay for the grants or to the extent they choose to forgo the federal grant programs they can use their trust fund money on their own for those or other purposes there will be a mandatory pass through of part of these funds to local governments +by 1988 the states will be in complete control of over 40 federal grant programs the trust fund will start to phase out eventually to disappear and the excise taxes will be turned over to the states they can then preserve lower or raise taxes on their own and fund and manage these programs as they see fit +in a single stroke we will be accomplishing a realignment that will end cumbersome administration and spiraling costs at the federal level while we ensure these programs will be more responsive to both the people they re meant to help and the people who pay for them +hand in hand with this program to strengthen the discretion and flexibility of state and local governments we re proposing legislation for an experimental effort to improve and develop our depressed urban areas in the 1980 s and 90 s this legislation will permit states and localities to apply to the federal government for designation as urban enterprise zones a broad range of special economic incentives in the zones will help attract new business new jobs new opportunity to america s inner cities and rural towns some will say our mission is to save free enterprise well i say we must free enterprise so that together we can save america +some will also say our states and local communities are not up to the challenge of a new and creative partnership well that might have been true 20 years ago before reforms like reapportionment and the voting rights act the 10 year extension of which i strongly support it s no longer true today this administration has faith in state and local governments and the constitutional balance envisioned by the founding fathers we also believe in the integrity decency and sound good sense of grass roots americans +our faith in the american people is reflected in another major endeavor our private sector initiatives task force is seeking out successful community models of school church business union foundation and civic programs that help community needs such groups are almost invariably far more efficient than government in running social programs +we re not asking them to replace discarded and often discredited government programs dollar for dollar service for service we just want to help them perform the good works they choose and help others to profit by their example three hundred and eighty five thousand corporations and private organizations are already working on social programs ranging from drug rehabilitation to job training and thousands more americans have written us asking how they can help the volunteer spirit is still alive and well in america +our nation s long journey towards civil rights for all our citizens once a source of discord now a source of pride must continue with no backsliding or slowing down we must and shall see that those basic laws that guarantee equal rights are preserved and when necessary strengthened +our concern for equal rights for women is firm and unshakable we launched a new task force on legal equity for women and a fifty states project that will examine state laws for discriminatory language and for the first time in our history a woman sits on the highest court in the land +so too the problem of crime one as real and deadly serious as any in america today it demands that we seek transformation of our legal system which overly protects the rights of criminals while it leaves society and the innocent victims of crime without justice +we look forward to the enactment of a responsible clean air act to increase jobs while continuing to improve the quality of our air we re encouraged by the bipartisan initiative of the house and are hopeful of further progress as the senate continues its deliberations +so far i ve concentrated largely now on domestic matters to view the state of the union in perspective we must not ignore the rest of the world there isn t time tonight for a lengthy treatment of social or foreign policy i should say a subject i intend to address in detail in the near future a few words however are in order on the progress we ve made over the past year reestablishing respect for our nation around the globe and some of the challenges and goals that we will approach in the year ahead +at ottawa and cancun i met with leaders of the major industrial powers and developing nations now some of those i met with were a little surprised that i didn t apologize for america s wealth instead i spoke of the strength of the free marketplace system and how that system could help them realize their aspirations for economic development and political freedom i believe lasting friendships were made and the foundation was laid for future cooperation +in the vital region of the caribbean basin we re developing a program of aid trade and investment incentives to promote self sustaining growth and a better more secure life for our neighbors to the south toward those who would export terrorism and subversion in the caribbean and elsewhere especially cuba and libya we will act with firmness +our foreign policy is a policy of strength fairness and balance by restoring america s military credibility by pursuing peace at the negotiating table wherever both sides are willing to sit down in good faith and by regaining the respect of america s allies and adversaries alike we have strengthened our country s position as a force for peace and progress in the world +when action is called for we re taking it our sanctions against the military dictatorship that has attempted to crush human rights in poland and against the soviet regime behind that military dictatorship clearly demonstrated to the world that america will not conduct business as usual with the forces of oppression if the events in poland continue to deteriorate further measures will follow +now let me also note that private american groups have taken the lead in making january 30th a day of solidarity with the people of poland so too the european parliament has called for march 21st to be an international day of support for afghanistan well i urge all peace loving peoples to join together on those days to raise their voices to speak and pray for freedom +meanwhile we re working for reduction of arms and military activities as i announced in my address to the nation last november 18th we have proposed to the soviet union a far reaching agenda for mutual reduction of military forces and have already initiated negotiations with them in geneva on intermediate range nuclear forces in those talks it is essential that we negotiate from a position of strength there must be a real incentive for the soviets to take these talks seriously this requires that we rebuild our defenses +in the last decade while we sought the moderation of soviet power through a process of restraint and accommodation the soviets engaged in an unrelenting buildup of their military forces the protection of our national security has required that we undertake a substantial program to enhance our military forces +we have not neglected to strengthen our traditional alliances in europe and asia or to develop key relationships with our partners in the middle east and other countries building a more peaceful world requires a sound strategy and the national resolve to back it up when radical forces threaten our friends when economic misfortune creates conditions of instability when strategically vital parts of the world fall under the shadow of soviet power our response can make the difference between peaceful change or disorder and violence that s why we ve laid such stress not only on our own defense but on our vital foreign assistance program your recent passage of the foreign assistance act sent a signal to the world that america will not shrink from making the investments necessary for both peace and security our foreign policy must be rooted in realism not naivete or self delusion +a recognition of what the soviet empire is about is the starting point winston churchill in negotiating with the soviets observed that they respect only strength and resolve in their dealings with other nations that s why we ve moved to reconstruct our national defenses we intend to keep the peace we will also keep our freedom +we have made pledges of a new frankness in our public statements and worldwide broadcasts in the face of a climate of falsehood and misinformation we ve promised the world a season of truth the truth of our great civilized ideas individual liberty representative government the rule of law under god we ve never needed walls or minefields or barbed wire to keep our people in nor do we declare martial law to keep our people from voting for the kind of government they want +yes we have our problems yes we re in a time of recession and it s true there s no quick fix as i said to instantly end the tragic pain of unemployment but we will end it the process has already begun and we ll see its effect as the year goes on +we speak with pride and admiration of that little band of americans who overcame insuperable odds to set this nation on course 200 years ago but our glory didn t end with them americans ever since have emulated their deeds +we don t have to turn to our history books for heroes they re all around us one who sits among you here tonight epitomized that heroism at the end of the longest imprisonment ever inflicted on men of our armed forces who will ever forget that night when we waited for television to bring us the scene of that first plane landing at clark field in the philippines bringing our pow s home the plane door opened and jeremiah denton came slowly down the ramp he caught sight of our flag saluted it said god bless america and then thanked us for bringing him home +just 2 weeks ago in the midst of a terrible tragedy on the potomac we saw again the spirit of american heroism at its finest the heroism of dedicated rescue workers saving crash victims from icy waters and we saw the heroism of one of our young government employees lenny skutnik who when he saw a woman lose her grip on the helicopter line dived into the water and dragged her to safety +and then there are countless quiet everyday heroes of american who sacrifice long and hard so their children will know a better life than they ve known church and civic volunteers who help to feed clothe nurse and teach the needy millions who ve made our nation and our nation s destiny so very special unsung heroes who may not have realized their own dreams themselves but then who reinvest those dreams in their children don t let anyone tell you that america s best days are behind her that the american spirit has been vanquished we ve seen it triumph too often in our lives to stop believing in it now +a hundred and twenty years ago the greatest of all our presidents delivered his second state of the union message in this chamber we cannot escape history abraham lincoln warned we of this congress and this administration will be remembered in spite of ourselves the trial through which we pass will light us down in honor or dishonor to the latest last generation +well that president and that congress did not fail the american people together they weathered the storm and preserved the union let it be said of us that we too did not fail that we too worked together to bring america through difficult times let us so conduct ourselves that two centuries from now another congress and another president meeting in this chamber as we are meeting will speak of us with pride saying that we met the test and preserved for them in their day the sacred flame of liberty this last best hope of man on earth +god bless you and thank you +note the president spoke at 9 p m in the house chamber at the capitol he was introduced by thomas p o neill jr speaker of the house of representatives the address was broadcast live on nationwide radio and television +mr speaker mr president distinguished members of the congress honored guests and fellow citizens +this solemn occasion marks the 196th time that a president of the united states has reported on the state of the union since george washington first did so in 1790 that s a lot of reports but there s no shortage of new things to say about the state of the union the very key to our success has been our ability foremost among nations to preserve our lasting values by making change work for us rather than against us +i would like to talk with you this evening about what we can do together not as republicans and democrats but as americans to make tomorrow s america happy and prosperous at home strong and respected abroad and at peace in the world +as we gather here tonight the state of our union is strong but our economy is troubled for too many of our fellow citizens farmers steel and auto workers lumbermen black teenagers working mothers this is a painful period we must all do everything in our power to bring their ordeal to an end it has fallen to us in our time to undo damage that was a long time in the making and to begin the hard but necessary task of building a better future for ourselves and our children +we have a long way to go but thanks to the courage patience and strength of our people america is on the mend +but let me give you just one important reason why i believe this it involves many members of this body +just 10 days ago after months of debate and deadlock the bipartisan commission on social security accomplished the seemingly impossible social security as some of us had warned for so long faced disaster i myself have been talking about this problem for almost 30 years as 1983 began the system stood on the brink of bankruptcy a double victim of our economic ills first a decade of rampant inflation drained its reserves as we tried to protect beneficiaries from the spiraling cost of living then the recession and the sudden end of inflation withered the expanding wage base and increasing revenues the system needs to support the 36 million americans who depend on it +when the speaker of the house the senate majority leader and i performed the bipartisan or formed the bipartisan commission on social security pundits and experts predicted that party divisions and conflicting interests would prevent the commission from agreeing on a plan to save social security well sometimes even here in washington the cynics are wrong through compromise and cooperation the members of the commission overcame their differences and achieved a fair workable plan they proved that when it comes to the national welfare americans can still pull together for the common good +tonight i m especially pleased to join with the speaker and the senate majority leader in urging the congress to enact this plan by easter +there are elements in it of course that none of us prefers but taken together it performs a package that all of us can support it asks for some sacrifice by all the self employed beneficiaries workers government employees and the better off among the retired but it imposes an undue burden on none and in supporting it we keep an important pledge to the american people the integrity of the social security system will be preserved and no one s payments will be reduced +the commission s plan will do the job indeed it must do the job we owe it to today s older americans and today s younger workers so before we go any further i ask you to join with me in saluting the members of the commission who are here tonight and senate majority leader howard baker and speaker tip o neill for a job well done i hope and pray the bipartisan spirit that guided you in this endeavor will inspire all of us as we face the challenges of the year ahead +nearly half a century ago in this chamber another american president franklin delano roosevelt in his second state of the union message urged america to look to the future to meet the challenge of change and the need for leadership that looks forward not backward +throughout the world he said change is the order of the day in every nation economic problems long in the making have brought crises to of many kinds for which the masters of old practice and theory were unprepared he also reminded us that the future lies with those wise political leaders who realize that the great public is interested more in government than in politics +so let us in these next 2 years men and women of both parties every political shade concentrate on the long range bipartisan responsibilities of government not the short range or short term temptations of partisan politics +the problems we inherited were far worse than most inside and out of government had expected the recession was deeper than most inside and out of government had predicted curing those problems has taken more time and a higher toll than any of us wanted unemployment is far too high projected federal spending if government refuses to tighten its own belt will also be far too high and could weaken and shorten the economic recovery now underway +this recovery will bring with it a revival of economic confidence and spending for consumer items and capital goods the stimulus we need to restart our stalled economic engines the american people have already stepped up their rate of saving assuring that the funds needed to modernize our factories and improve our technology will once again flow to business and industry +the inflationary expectations that led to a 21 1 2 percent interest prime rate and soaring mortgage rates 2 years ago are now reduced by almost half leaders have started to realize that double digit inflation is no longer a way of life i misspoke there i should have said lenders +so interest rates have tumbled paving the way for recovery in vital industries like housing and autos +the early evidence of that recovery has started coming in housing starts for the fourth quarter of 1982 were up 45 percent from a year ago and housing permits a sure indicator of future growth were up a whopping 60 percent +we re witnessing an upsurge of productivity and impressive evidence that american industry will once again become competitive in markets at home and abroad ensuring more jobs and better incomes for the nation s work force but our confidence must also be tempered by realism and patience quick fixes and artificial stimulants repeatedly applied over decades are what brought us the inflationary disorders that we ve now paid such a heavy price to cure +the permanent recovery in employment production and investment we seek won t come in a sharp short spurt it ll build carefully and steadily in the months and years ahead in the meantime the challenge of government is to identify the things that we can do now to ease the massive economic transition for the american people +the federal budget is both a symptom and a cause of our economic problems unless we reduce the dangerous growth rate in government spending we could face the prospect of sluggish economic growth into the indefinite future failure to cope with this problem now could mean as much as a trillion dollars more in national debt in the next 4 years alone that would average $4 300 in additional debt for every man woman child and baby in our nation +to assure a sustained recovery we must continue getting runaway spending under control to bring those deficits down if we don t the recovery will be too short unemployment will remain too high and we will leave an unconscionable burden of national debt for our children that we must not do +let s be clear about where the deficit problem comes from contrary to the drumbeat we ve been hearing for the last few months the deficits we face are not rooted in defense spending taken as a percentage of the gross national product our defense spending happens to be only about four fifths of what it was in 1970 nor is the deficit as some would have it rooted in tax cuts even with our tax cuts taxes as a fraction of gross national product remain about the same as they were in 1970 the fact is our deficits come from the uncontrolled growth of the budget for domestic spending +during the 1970 s the share of our national income devoted to this domestic spending increased by more than 60 percent from 10 cents out of every dollar produced by the american people to 16 cents in spite of all our economies and efficiencies and without adding any new programs basic necessary domestic spending provided for in this year s budget will grow to almost a trillion dollars over the next 5 years +the deficit problem is a clear and present danger to the basic health of our republic we need a plan to overcome this danger a plan based on these principles it must be bipartisan conquering the deficits and putting the government s house in order will require the best effort of all of us it must be fair just as all will share in the benefits that will come from recovery all would share fairly in the burden of transition it must be prudent the strength of our national defense must be restored so that we can pursue prosperity and peace and freedom while maintaining our commitment to the truly needy and finally it must be realistic we can t rely on hope alone +with these guiding principles in mind let me outline a four part plan to increase economic growth and reduce deficits +first in my budget message i will recommend a federal spending freeze i know this is strong medicine but so far we have only cut the rate of increase in federal spending the government has continued to spend more money each year though not as much more as it did in the past taken as a whole the budget i m proposing for the fiscal year will increase no more than the rate of inflation in other words the federal government will hold the line on real spending now that s far less than many american families have had to do in these difficult times +i will request that the proposed 6 month freeze in cost of living adjustments recommended by the bipartisan social security commission be applied to other government related retirement programs i will also propose a 1 year freeze on a broad range of domestic spending programs and for federal civilian and military pay and pension programs and let me say right here i m sorry with regard to the military in asking that of them because for so many years they have been so far behind and so low in reward for what the men and women in uniform are doing but i m sure they will understand that this must be across the board and fair +second i will ask the congress to adopt specific measures to control the growth of the so called uncontrollable spending programs these are the automatic spending programs such as food stamps that cannot be simply frozen and that have grown by over 400 percent since 1970 they are the largest single cause of the built in or structural deficit problem our standard here will be fairness ensuring that the taxpayers hard earned dollars go only to the truly needy that none of them are turned away but that fraud and waste are stamped out and i m sorry to say there s a lot of it out there in the food stamp program alone last year we identified almost $1 1 billion in overpayments the taxpayers aren t the only victims of this kind of abuse the truly needy suffer as funds intended for them are taken not by the needy but by the greedy for everyone s sake we must put an end to such waste and corruption +third i will adjust our program to restore america s defenses by proposing $55 billion in defense savings over the next 5 years these are savings recommended to me by the secretary of defense who has assured me they can be safely achieved and will not diminish our ability to negotiate arms reductions or endanger america s security we will not gamble with our national survival +and fourth because we must ensure reduction and eventual elimination of deficits over the next several years i will propose a standby tax limited to no more than 1 percent of the gross national product to start in fiscal 1986 it would last no more than 3 years and it would start only if the congress has first approved our spending freeze and budget control program and there are several other conditions also that must be met all of them in order for this program to be triggered +now you could say that this is an insurance policy for the future a remedy that will be at hand if needed but only resorted to if absolutely necessary in the meantime we ll continue to study ways to simplify the tax code and make it more fair for all americans this is a goal that every american who s ever struggled with a tax form can understand +at the same time however i will oppose any efforts to undo the basic tax reforms that we ve already enacted including the 10 percent tax break coming to taxpayers this july and the tax indexing which will protect all americans from inflationary bracket creep in the years ahead +now i realize that this four part plan is easier to describe than it will be to enact but the looming deficits that hang over us and over america s future must be reduced the path i ve outlined is fair balanced and realistic if enacted it will ensure a steady decline in deficits aiming toward a balanced budget by the end of the decade it s the only path that will lead to a strong sustained recovery let us follow that path together +no domestic challenge is more crucial than providing stable permanent jobs for all americans who want to work the recovery program will provide jobs for most but others will need special help and training for new skills shortly i will submit to the congress the employment act of 1983 designed to get at the special problems of the long term unemployed as well as young people trying to enter the job market i ll propose extending unemployment benefits including special incentives to employers who hire the long term unemployed providing programs for displaced workers and helping federally funded and state administered unemployment insurance programs provide workers with training and relocation assistance finally our proposal will include new incentives for summer youth employment to help young people get a start in the job market +we must offer both short term help and long term hope for our unemployed i hope we can work together on this i hope we can work together as we did last year in enacting the landmark job training partnership act regulatory reform legislation a responsible clean air act and passage of enterprise zone legislation will also create new incentives for jobs and opportunity +one of out of every five jobs in our country depends on trade so i will propose a broader strategy in the field of international trade one that increases the openness of our trading system and is fairer to america s farmers and workers in the world marketplace we must have adequate export financing to sell american products overseas i will ask for new negotiating authority to remove barriers and to get more of our products into foreign markets we must strengthen the organization of our trade agencies and make changes in our domestic laws and international trade policy to promote free trade and the increased flow of american goods services and investments +our trade position can also be improved by making our port system more efficient better more active harbors translate into stable jobs in our coalfields railroads trucking industry and ports after 2 years of debate it s time for us to get together and enact a port modernization bill +education training and retraining are fundamental to our success as are research and development and productivity labor management and government at all levels can and must participate in improving these tools of growth tax policy regulatory practices and government programs all need constant reevaluation in terms of our competitiveness every american has a role and a stake in international trade +we americans are still the technological leaders in most fields we must keep that edge and to do so we need to begin renewing the basics starting with our educational system while we grew complacent others have acted japan with a population only about half the size of ours graduates from its universities more engineers than we do if a child doesn t receive adequate math and science teaching by the age of 16 he or she has lost the chance to be a scientist or an engineer we must join together parents teachers grass roots groups organized labor and the business community to revitalize american education by setting a standard of excellence +in 1983 we seek four major education goals a quality education initiative to encourage a substantial upgrading of math and science instruction through block grants to the states establishment of education savings accounts that will give middle and lower income families an incentive to save for their children s college education and at the same time encourage a real increase in savings for economic growth passage of tuition tax credits for parents who want to send their children to private or religiously affiliated schools a constitutional amendment to permit voluntary school prayer god should never have been expelled from america s classrooms in the first place +our commitment to fairness means that we must assure legal and economic equity for women and eliminate once and for all all traces of unjust discrimination against women from the united states code we will not tolerate wage discrimination based on sex and we intend to strengthen enforcement of child support laws to ensure that single parents most of whom are women do not suffer unfair financial hardship we will also take action to remedy inequities in pensions these initiatives will be joined by others to continue our efforts to promote equity for women +also in the area of fairness and equity we will ask for extension of the civil rights commission which is due to expire this year the commission is an important part of the ongoing struggle for justice in america and we strongly support its reauthorization effective enforcement of our nation s fair housing laws is also essential to ensuring equal opportunity in the year ahead we ll work to strengthen enforcement of fair housing laws for all americans +the time has also come for major reform of our criminal justice statutes and acceleration of the drive against organized crime and drug trafficking it s high time that we make our cities safe again this administration hereby declares an all out war on big time organized crime and the drug racketeers who are poisoning our young people we will also implement recommendations of our task force on victims of crime which will report to me this week +american agriculture the envy of the world has become the victim of its own successes with one farmer now producing enough food to feed himself and 77 other people america is confronted with record surplus crops and commodity prices below the cost of production we must strive through innovations like the payment in kind crop swap approach and an aggressive export policy to restore health and vitality to rural america meanwhile i have instructed the department of agriculture to work individually with farmers with debt problems to help them through these tough times +over the past year our task force on private sector initiatives has successfully forged a working partnership involving leaders of business labor education and government to address the training needs of american workers thanks to the task force private sector initiatives are now underway in all 50 states of the union and thousands of working people have been helped in making the shift from dead end jobs and low demand skills to the growth areas of high technology and the service economy additionally a major effort will be focused on encouraging the expansion of private community child care the new advisory council on private sector initiatives will carry on and extend this vital work of encouraging private initiative in 1983 +in the coming year we will also act to improve the quality of life for americans by curbing the skyrocketing cost of health care that is becoming an unbearable financial burden for so many and we will submit legislation to provide catastrophic illness insurance coverage for older americans +i will also shortly submit a comprehensive federalism proposal that will continue our efforts to restore to states and local governments their roles as dynamic laboratories of change in a creative society +during the next several weeks i will send to the congress a series of detailed proposals on these and other topics and look forward to working with you on the development of these initiatives +so far now i ve concentrated mainly on the problems posed by the future but in almost every home and workplace in america we re already witnessing reason for great hope the first flowering of the manmade miracles of high technology a field pioneered and still led by our country +to many of us now computers silicon chips data processing cybernetics and all the other innovations of the dawning high technology age are as mystifying as the workings of the combustion engine must have been when that first model t rattled down main street u s a but as surely as america s pioneer spirit made us the industrial giant of the 20th century the same pioneer spirit today is opening up on another vast front of opportunity the frontier of high technology +in conquering the frontier we cannot write off our traditional industries but we must develop the skills and industries that will make us a pioneer of tomorrow this administration is committed to keeping america the technological leader of the world now and into the 21st century +but let us turn briefly to the international arena america s leadership in the world came to us because of our own strength and because of the values which guide us as a society free elections a free press freedom of religious choice free trade unions and above all freedom for the individual and rejection of the arbitrary power of the state these values are the bedrock of our strength they unite us in a stewardship of peace and freedom with our allies and friends in nato in asia in latin america and elsewhere they are also the values which in the recent past some among us had begun to doubt and view with a cynical eye +fortunately we and our allies have rediscovered the strength of our common democratic values and we re applying them as a cornerstone of a comprehensive strategy for peace with freedom in london last year i announced the commitment of the united states to developing the infrastructure of democracy throughout the world we intend to pursue this democratic initiative vigorously the future belongs not to governments and ideologies which oppress their peoples but to democratic systems of self government which encourage individual initiative and guarantee personal freedom +but our strategy for peace with freedom must also be based on strength economic strength and military strength a strong american economy is essential to the well being and security of our friends and allies the restoration of a strong healthy american economy has been and remains one of the central pillars of our foreign policy the progress i ve been able to report to you tonight will i know be as warmly welcomed by the rest of the world as it is by the american people +we must also recognize that our own economic well being is inextricably linked to the world economy we export over 20 percent of our industrial production and 40 percent of our farmland produces for export we will continue to work closely with the industrialized democracies of europe and japan and with the international monetary fund to ensure it has adequate resources to help bring the world economy back to strong noninflationary growth +as the leader of the west and as a country that has become great and rich because of economic freedom america must be an unrelenting advocate of free trade as some nations are tempted to turn to protectionism our strategy cannot be to follow them but to lead the way toward freer trade to this end in may of this year america will host an economic summit meeting in williamsburg virginia +as we begin our third year we have put in place a defense program that redeems the neglect of the past decade we have developed a realistic military strategy to deter threats to peace and to protect freedom if deterrence fails our armed forces are finally properly paid after years of neglect are well trained and becoming better equipped and supplied and the american uniform is once again worn with pride most of the major systems needed for modernizing our defenses are already underway and we will be addressing one key system the mx missile in consultation with the congress in a few months +america s foreign policy is once again based on bipartisanship on realism strength full partnership in consultation with our allies and constructive negotiation with potential adversaries from the middle east to southern africa to geneva american diplomats are taking the initiative to make peace and lower arms levels we should be proud of our role as peacemakers +in the middle east last year the united states played the major role in ending the tragic fighting in lebanon and negotiated the withdrawal of the plo from beirut +last september i outlined principles to carry on the peace process begun so promisingly at camp david all the people of the middle east should know that in the year ahead we will not flag in our efforts to build on that foundation to bring them the blessings of peace +in central america and the caribbean basin we are likewise engaged in a partnership for peace prosperity and democracy final passage of the remaining portions of our caribbean basin initiative which passed the house last year is one of this administration s top legislative priorities for 1983 +the security and economic assistance policies of this administration in latin america and elsewhere are based on realism and represent a critical investment in the future of the human race this undertaking is a joint responsibility of the executive and legislative branches and i m counting on the cooperation and statesmanship of the congress to help us meet this essential foreign policy goal +at the heart of our strategy for peace is our relationship with the soviet union the past year saw a change in soviet leadership we re prepared for a positive change in soviet american relations but the soviet union must show by deeds as well as words a sincere commitment to respect the rights and sovereignty of the family of nations responsible members of the world community do not threaten or invade their neighbors and they restrain their allies from aggression +for our part we re vigorously pursuing arms reduction negotiations with the soviet union supported by our allies we ve put forward draft agreements proposing significant weapon reductions to equal and verifiable lower levels we insist on an equal balance of forces and given the overwhelming evidence of soviet violations of international treaties concerning chemical and biological weapons we also insist that any agreement we sign can and will be verifiable +in the case of intermediate range nuclear forces we have proposed the complete elimination of the entire class of land based missiles we re also prepared to carefully explore serious soviet proposals at the same time let me emphasize that allied steadfastness remains a key to achieving arms reductions +with firmness and dedication we ll continue to negotiate deep down the soviets must know it s in their interest as well as ours to prevent a wasteful arms race and once they recognize our unshakable resolve to maintain adequate deterrence they will have every reason to join us in the search for greater security and major arms reductions when that moment comes and i m confident that it will we will have taken an important step toward a more peaceful future for all the world s people +a very wise man bernard baruch once said that america has never forgotten the nobler things that brought her into being and that light her path our country is a special place because we americans have always been sustained through good times and bad by a noble vision a vision not only of what the world around us is today but what we as a free people can make it be tomorrow +we re realists we solve our problems instead of ignoring them no matter how loud the chorus of despair around us but we re also idealists for it was an ideal that brought our ancestors to these shores from every corner of the world +right now we need both realism and idealism millions of our neighbors are without work it is up to us to see they aren t without hope this is a task for all of us and may i say americans have rallied to this cause proving once again that we are the most generous people on earth +we who are in government must take the lead in restoring the economy and here all that time i thought you were reading the paper +the single thing the single thing that can start the wheels of industry turning again is further reduction of interest rates just another 1 or 2 points can mean tens of thousands of jobs +right now with inflation as low as it is 3 9 percent there is room for interest rates to come down only fear prevents their reduction a lender as we know must charge an interest rate that recovers the depreciated value of the dollars loaned and that depreciation is of course the amount of inflation today interest rates are based on fear fear that government will resort to measures as it has in the past that will send inflation zooming again +we who serve here in this capital must erase that fear by making it absolutely clear that we will not stop fighting inflation that together we will do only those things that will lead to lasting economic growth +yes the problems confronting us are large and forbidding and certainly no one can or should minimize the plight of millions of our friends and neighbors who are living in the bleak emptiness of unemployment but we must and can give them good reason to be hopeful +back over the years citizens like ourselves have gathered within these walls when our nation was threatened sometimes when its very existence was at stake always with courage and common sense they met the crises of their time and lived to see a stronger better and more prosperous country the present situation is no worse and in fact is not as bad as some of those they faced time and again they proved that there is nothing we americans cannot achieve as free men and women +yes we still have problems plenty of them but it s just plain wrong unjust to our country and unjust to our people to let those problems stand in the way of the most important truth of all america is on the mend +we owe it to the unfortunate to be aware of their plight and to help them in every way we can no one can quarrel with that we must and do have compassion for all the victims of this economic crisis but the big story about america today is the way that millions of confident caring people those extraordinary ordinary americans who never make the headlines and will never be interviewed are laying the foundation not just for recovery from our present problems but for a better tomorrow for all our people +from coast to coast on the job and in classrooms and laboratories at new construction sites and in churches and community groups neighbors are helping neighbors and they ve already begun the building the research the work and the giving that will make our country great again +i believe this because i believe in them in the strength of their hearts and minds in the commitment that each one of them brings to their daily lives be they high or humble the challenge for us in government is to be worthy of them to make government a help not a hindrance to our people in the challenging but promising days ahead +if we do that if we care what our children and our children s children will say of us if we want them one day to be thankful for what we did here in these temples of freedom we will work together to make america better for our having been here not just in this year or this decade but in the next century and beyond +thank you and god bless you +note the president spoke at 9 03 p m in the house chamber of the capitol he was introduced by thomas p o neill jr speaker of the house of representatives the address was broadcast live on nationwide radio and television +mr speaker mr president distinguished members of the congress honored guests and fellow citizens +once again in keeping with time honored tradition i have come to report to you on the state of the union and i m pleased to report that america is much improved and there s good reason to believe that improvement will continue through the days to come +you and i have had some honest and open differences in the year past but they didn t keep us from joining hands in bipartisan cooperation to stop a long decline that had drained this nation s spirit and eroded its health there is renewed energy and optimism throughout the land america is back standing tall looking to the eighties with courage confidence and hope +the problems we re overcoming are not the heritage of one person party or even one generation it s just the tendency of government to grow for practices and programs to become the nearest thing to eternal life we ll ever see on this earth and there s always that well intentioned chorus of voices saying with a little more power and a little more money we could do so much for the people for a time we forgot the american dream isn t one of making government bigger it s keeping faith with the mighty spirit of free people under god +as we came to the decade of the eighties we faced the worst crisis in our postwar history in the seventies were years of rising problems and falling confidence there was a feeling government had grown beyond the consent of the governed families felt helpless in the face of mounting inflation and the indignity of taxes that reduced reward for hard work thrift and risktaking all this was overlaid by an evergrowing web of rules and regulations +on the international scene we had an uncomfortable feeling that we d lost the respect of friend and foe some questioned whether we had the will to defend peace and freedom but america is too great for small dreams there was a hunger in the land for a spiritual revival if you will a crusade for renewal the american people said let us look to the future with confidence both at home and abroad let us give freedom a chance +americans were ready to make a new beginning and together we have done it we re confronting our problems one by one hope is alive tonight for millions of young families and senior citizens set free from unfair tax increases and crushing inflation inflation has been beaten down from 12 4 to 3 2 percent and that s a great victory for all the people the prime rate has been cut almost in half and we must work together to bring it down even more +together we passed the first across the board tax reduction for everyone since the kennedy tax cuts next year tax rates will be indexed so inflation can t push people into higher brackets when they get cost of living pay raises government must never again use inflation to profit at the people s expense +today a working family earning $25 000 has $1 100 more in purchasing power than if tax and inflation rates were still at the 1980 levels real after tax income increased 5 percent last year and economic deregulation of key industries like transportation has offered more chances or choices i should say to consumers and new changes or chances for entrepreneurs and protecting safety tonight we can report and be proud of one of the best recoveries in decades send away the handwringers and the doubting thomases hope is reborn for couples dreaming of owning homes and for risktakers with vision to create tomorrow s opportunities +the spirit of enterprise is sparked by the sunrise industries of high tech and by small business people with big ideas people like barbara proctor who rose from a ghetto to build a multimillion dollar advertising agency in chicago carlos perez a cuban refugee who turned $27 and a dream into a successful importing business in coral gables florida +people like these are heroes for the eighties they helped 4 million americans find jobs in 1983 more people are drawing paychecks tonight than ever before and congress helps or progress helps everyone well congress does too everyone in 1983 women filled 73 percent of all the new jobs in managerial professional and technical fields +but we know that many of our fellow countrymen are still out of work wondering what will come of their hopes and dreams can we love america and not reach out to tell them you are not forgotten we will not rest until each of you can reach as high as your god given talents will take you +the heart of america is strong it s good and true the cynics were wrong america never was a sick society we re seeing rededication to bedrock values of faith family work neighborhood peace and freedom values that help bring us together as one people from the youngest child to the most senior citizen +the congress deserves america s thanks for helping us restore pride and credibility to our military and i hope that you re as proud as i am of the young men and women in uniform who have volunteered to man the ramparts in defense of freedom and whose dedication valor and skill increases so much our chance of living in a world at peace +people everywhere hunger for peace and a better life the tide of the future is a freedom tide and our struggle for democracy cannot and will not be denied this nation champions peace that enshrines liberty democratic rights and dignity for every individual america s new strength confidence and purpose are carrying hope and opportunity far from our shores a world economic recovery is underway it began here +we ve journeyed far but we have much farther to go franklin roosevelt told us 50 years ago this month civilization can not go back civilization must not stand still we have undertaken new methods it is our task to perfect to improve to alter when necessary but in all cases to go forward +it s time to move forward again time for america to take freedom s next step let us unite tonight behind four great goals to keep america free secure and at peace in the eighties together +we can ensure steady economic growth we can develop america s next frontier we can strengthen our traditional values and we can build a meaningful peace to protect our loved ones and this shining star of faith that has guided millions from tyranny to the safe harbor of freedom progress and hope +doing these things will open wider the gates of opportunity provide greater security for all with no barriers of bigotry or discrimination +the key to a dynamic decade is vigorous economic growth our first great goal we might well begin with common sense in federal budgeting government spending no more than government takes in +we must bring federal deficits down but how we do that makes all the difference +we can begin by limiting the size and scope of government under the leadership of vice president bush we have reduced the growth of federal regulations by more than 25 percent and cut well over 300 million hours of government required paperwork each year this will save the public more than $150 billion over the next 10 years +the grace commission has given us some 2 500 recommendations for reducing wasteful spending and they re being examined throughout the administration federal spending growth has been cut from 17 4 percent in 1980 to less than half of that today and we have already achieved over $300 billion in budget savings for the period of 1982 to 86 but that s only a little more than half of what we sought government is still spending too large a percentage of the total economy +now some insist that any further budget savings must be obtained by reducing the portion spent on defense this ignores the fact that national defense is solely the responsibility of the federal government indeed it is its prime responsibility and yet defense spending is less than a third of the total budget during the years of president kennedy and of the years before that defense was almost half the total budget and then came several years in which our military capability was allowed to deteriorate to a very dangerous degree we are just now restoring through the essential modernization of our conventional and strategic forces our capability to meet our present and future security needs we dare not shirk our responsibility to keep america free secure and at peace +the last decade saw domestic spending surge literally out of control but the basis for such spending had been laid in previous years a pattern of overspending has been in place for half a century as the national debt grew we were told not to worry that we owed it to ourselves +now we know that deficits are a cause for worry but there s a difference of opinion as to whether taxes should be increased spending cut or some of both fear is expressed that government borrowing to fund the deficit could inhibit the economic recovery by taking capital needed for business and industrial expansion well i think that debate is missing an important point whether government borrows or increases taxes it will be taking the same amount of money from the private sector and either way that s too much simple fairness dictates that government must not raise taxes on families struggling to pay their bills the root of the problem is that government s share is more than we can afford if we re to have a sound economy +we must bring down the deficits to ensure continued economic growth in the budget that i will submit on february 1st i will recommend measures that will reduce the deficit over the next 5 years many of these will be unfinished business from last year s budget +some could be enacted quickly if we could join in a serious effort to address this problem i spoke today with speaker of the house o neill senate majority leader baker senate minority leader byrd and house minority leader michel i asked them if they would designate congressional representatives to meet with representatives of the administration to try to reach prompt agreement on a bipartisan deficit reduction plan i know it would take a long hard struggle to agree on a full scale plan so what i have proposed is that we first see if we can agree on a down payment +now i believe there is basis for such an agreement one that could reduce the deficits by about a hundred billion dollars over the next 3 years we could focus on some of the less contentious spending cuts that are still pending before the congress these could be combined with measures to close certain tax loopholes measures that the treasury department has previously said to be worthy of support in addition we could examine the possibility of achieving further outlay savings based on the work of the grace commission +if the congressional leadership is willing my representatives will be prepared to meet with theirs at the earliest possible time i would hope the leadership might agree on an expedited timetable in which to develop and enact that down payment +but a down payment alone is not enough to break us out of the deficit problem it could help us start on the right path yet we must do more so i propose that we begin exploring how together we can make structural reforms to curb the built in growth of spending +i also propose improvements in the budgeting process some 43 of our 50 states grant their governors the right to veto individual items in appropriation bills without having to veto the entire bill california is one of those 43 states as governor i found this line item veto was a powerful tool against wasteful or extravagant spending it works in 43 states let s put it to work in washington for all the people +it would be most effective if done by constitutional amendment the majority of americans approve of such an amendment just as they and i approve of an amendment mandating a balanced federal budget many states also have this protection in their constitutions +to talk of meeting the present situation by increasing taxes is a band aid solution which does nothing to cure an illness that s been coming on for half a century to say nothing of the fact that it poses a real threat to economic recovery let s remember that a substantial amount of income tax is presently owed and not paid by people in the underground economy it would be immoral to make those who are paying taxes pay more to compensate for those who aren t paying their share +there s a better way let us go forward with an historic reform for fairness simplicity and incentives for growth i am asking secretary don regan for a plan for action to simplify the entire tax code so all taxpayers big and small are treated more fairly and i believe such a plan could result in that underground economy being brought into the sunlight of honest tax compliance and it could make the tax base broader so personal tax rates could come down not go up i ve asked that specific recommendations consistent with those objectives be presented to me by december 1984 +our second great goal is to build on america s pioneer spirit i said something funny i said america s next frontier and that s to develop that frontier a sparkling economy spurs initiatives sunrise industries and makes older ones more competitive +nowhere is this more important than our next frontier space nowhere do we so effectively demonstrate our technological leadership and ability to make life better on earth the space age is barely a quarter of a century old but already we ve pushed civilization forward with our advances in science and technology opportunities and jobs will multiply as we cross new thresholds of knowledge and reach deeper into the unknown +our progress in space taking giant steps for all mankind is a tribute to american teamwork and excellence our finest minds in government industry and academia have all pulled together and we can be proud to say we are first we are the best and we are so because we re free +america has always been greatest when we dared to be great we can reach for greatness again we can follow our dreams to distant stars living and working in space for peaceful economic and scientific gain tonight i am directing nasa to develop a permanently manned space station and to do it within a decade +a space station will permit quantum leaps in our research in science communications in metals and in lifesaving medicines which could be manufactured only in space we want our friends to help us meet these challenges and share in their benefits nasa will invite other countries to participate so we can strengthen peace build prosperity and expand freedom for all who share our goals +just as the oceans opened up a new world for clipper ships and yankee traders space holds enormous potential for commerce today the market for space transportation could surpass our capacity to develop it companies interested in putting payloads into space must have ready access to private sector launch services the department of transportation will help an expendable launch services industry to get off the ground we ll soon implement a number of executive initiatives develop proposals to ease regulatory constraints and with nasa s help promote private sector investment in space +and as we develop the frontier of space let us remember our responsibility to preserve our older resources here on earth preservation of our environment is not a liberal or conservative challenge it s common sense +though this is a time of budget constraints i have requested for epa one of the largest percentage budget increases of any agency we will begin the long necessary effort to clean up a productive recreational area and a special national resource the chesapeake bay +to reduce the threat posed by abandoned hazardous waste dumps epa will spend $410 million and i will request a supplemental increase of 50 million and because the superfund law expires in 1985 i ve asked bill ruckelshaus to develop a proposal for its extension so there ll be additional time to complete this important task +on the question of acid rain which concerns people in many areas of the united states and canada i m proposing a research program that doubles our current funding and we ll take additional action to restore our lakes and develop new technology to reduce pollution that causes acid rain +we have greatly improved the conditions of our natural resources we ll ask the congress for $157 million beginning in 1985 to acquire new park and conservation lands the department of the interior will encourage careful selective exploration and production on our vital resources in an exclusive economic zone within the 200 mile limit off our coasts but with strict adherence to environmental laws and with fuller state and public participation +but our most precious resources our greatest hope for the future are the minds and hearts of our people especially our children we can help them build tomorrow by strengthening our community of shared values this must be our third great goal for us faith work family neighborhood freedom and peace are not just words they re expressions of what america means definitions of what makes us a good and loving people +families stand at the center of our society and every family has a personal stake in promoting excellence in education excellence does not begin in washington a 600 percent increase in federal spending on education between 1960 and 1980 was accompanied by a steady decline in scholastic aptitude test scores excellence must begin in our homes and neighborhood schools where it s the responsibility of every parent and teacher and the right of every child +our children come first and that s why i established a bipartisan national commission on excellence in education to help us chart a commonsense course for better education and already communities are implementing the commission s recommendations schools are reporting progress in math and reading skills but we must do more to restore discipline to schools and we must encourage the teaching of new basics reward teachers of merit enforce tougher standards and put our parents back in charge +i will continue to press for tuition tax credits to expand opportunities for families and to soften the double payment for those paying public school taxes and private school tuition our proposal would target assistance to low and middle income families just as more incentives are needed within our schools greater competition is needed among our schools without standards and competition there can be no champions no records broken no excellence in education or any other walk of life +and while i m on this subject each day your members observe a 200 year old tradition meant to signify america is one nation under god i must ask if you can begin your day with a member of the clergy standing right here leading you in prayer then why can t freedom to acknowledge god be enjoyed again by children in every schoolroom across this land +america was founded by people who believed that god was their rock of safety he is ours i recognize we must be cautious in claiming that god is on our side but i think it s all right to keep asking if we re on his side +during our first 3 years we have joined bipartisan efforts to restore protection of the law to unborn children now i know this issue is very controversial but unless and until it can be proven that an unborn child is not a living human being can we justify assuming without proof that it isn t no one has yet offered such proof indeed all the evidence is to the contrary we should rise above bitterness and reproach and if americans could come together in a spirit of understanding and helping then we could find positive solutions to the tragedy of abortion +economic recovery better education rededication to values all show the spirit of renewal gaining the upper hand and all will improve family life in the eighties but families need more they need assurance that they and their loved ones can walk the streets of america without being afraid parents need to know their children will not be victims of child pornography and abduction this year we will intensify our drive against these and other horrible crimes like sexual abuse and family violence +already our efforts to crack down on career criminals organized crime drugpushers and to enforce tougher sentences and paroles are having effect in 1982 the crime rate dropped by 4 3 percent the biggest decline since 1972 protecting victims is just as important as safeguarding the rights of defendants +opportunities for all americans will increase if we move forward in fair housing and work to ensure women s rights provide for equitable treatment in pension benefits and individual retirement accounts facilitate child care and enforce delinquent parent support payments +it s not just the home but the workplace and community that sustain our values and shape our future so i ask your help in assisting more communities to break the bondage of dependency help us to free enterprise by permitting debate and voting yes on our proposal for enterprise zones in america this has been before you for 2 years its passage can help high unemployment areas by creating jobs and restoring neighborhoods +a society bursting with opportunities reaching for its future with confidence sustained by faith fair play and a conviction that good and courageous people will flourish when they re free these are the secrets of a strong and prosperous america at peace with itself and the world +a lasting and meaningful peace is our fourth great goal it is our highest aspiration and our record is clear americans resort to force only when we must we have never been aggressors we have always struggled to defend freedom and democracy +we have no territorial ambitions we occupy no countries we build no walls to lock people in americans build the future and our vision of a better life for farmers merchants and working people from the americas to asia begins with a simple premise the future is best decided by ballots not bullets +governments which rest upon the consent of the governed do not wage war on their neighbors only when people are given a personal stake in deciding their own destiny benefiting from their own risks do they create societies that are prosperous progressive and free tonight it is democracies that offer hope by feeding the hungry prolonging life and eliminating drudgery +when it comes to keeping america strong free and at peace there should be no republicans or democrats just patriotic americans we can decide the tough issues not by who is right but by what is right +together we can continue to advance our agenda for peace we can establish a more stable basis for peaceful relations with the soviet union strengthen allied relations across the board achieve real and equitable reductions in the levels of nuclear arms reinforce our peacemaking efforts in the middle east central america and southern africa or assist developing countries particularly our neighbors in the western hemisphere and assist in the development of democratic institutions throughout the world +the wisdom of our bipartisan cooperation was seen in the work of the scowcroft commission which strengthened our ability to deter war and protect peace in that same spirit i urge you to move forward with the henry jackson plan to implement the recommendations of the bipartisan commission on central america +your joint resolution on the multinational peacekeeping force in lebanon is also serving the cause of peace we are making progress in lebanon for nearly 10 years the lebanese have lived from tragedy to tragedy with no hope for their future now the multinational peacekeeping force and our marines are helping them break their cycle of despair there is hope for a free independent and sovereign lebanon we must have the courage to give peace a chance and we must not be driven from our objectives for peace in lebanon by state sponsored terrorism we have seen this ugly specter in beirut kuwait and rangoon it demands international attention i will forward shortly legislative proposals to help combat terrorism and i will be seeking support from our allies for concerted action +our nato alliance is strong 1983 was a banner year for political courage and we have strengthened our partnerships and our friendships in the far east we re committed to dialog deterrence and promoting prosperity we ll work with our trading partners for a new round of negotiations in support of freer world trade greater competition and more open markets +a rebirth of bipartisan cooperation of economic growth and military deterrence and a growing spirit of unity among our people at home and our allies abroad underline a fundamental and far reaching change the united states is safer stronger and more secure in 1984 than before we can now move with confidence to seize the opportunities for peace and we will +tonight i want to speak to the people of the soviet union to tell them it s true that our governments have had serious differences but our sons and daughters have never fought each other in war and if we americans have our way they never will +people of the soviet union there is only one sane policy for your country and mine to preserve our civilization in this modern age a nuclear war cannot be won and must never be fought the only value in our two nations possessing nuclear weapons is to make sure they will never be used but then would it not be better to do away with them entirely +people of the soviet president dwight eisenhower who fought by your side in world war ii said the essential struggle is not merely man against man or nation against nation it is man against war americans are people of peace if your government wants peace there will be peace we can come together in faith and friendship to build a safer and far better world for our children and our children s children and the whole world will rejoice that is my message to you +some days when life seems hard and we reach out for values to sustain us or a friend to help us we find a person who reminds us what it means to be americans +sergeant stephen trujillo a medic in the 2d ranger battalion 75th infantry was in the first helicopter to land at the compound held by cuban forces in grenada he saw three other helicopters crash despite the imminent explosion of the burning aircraft he never hesitated he ran across 25 yards of open terrain through enemy fire to rescue wounded soldiers he directed two other medics administered first aid and returned again and again to the crash site to carry his wounded friends to safety +sergeant trujillo you and your fellow service men and women not only saved innocent lives you set a nation free you inspire us as a force for freedom not for despotism and yes for peace not conquest god bless you +and then there are unsung heroes single parents couples church and civic volunteers their hearts carry without complaint the pains of family and community problems they soothe our sorrow heal our wounds calm our fears and share our joy +a person like father ritter is always there his covenant house programs in new york and houston provide shelter and help to thousands of frightened and abused children each year the same is true of dr charles carson paralyzed in a plane crash he still believed nothing is impossible today in minnesota he works 80 hours a week without pay helping pioneer the field of computer controlled walking he has given hope to 500 000 paralyzed americans that some day they may walk again +how can we not believe in the greatness of america how can we not do what is right and needed to preserve this last best hope of man on earth after all our struggles to restore america to revive confidence in our country hope for our future after all our hard won victories earned through the patience and courage of every citizen we cannot must not and will not turn back we will finish our job how could we do less we re americans +carl sandburg said i see america not in the setting sun of a black night of despair i see america in the crimson light of a rising sun fresh from the burning creative hand of god i see great days ahead for men and women of will and vision +i ve never felt more strongly that america s best days and democracy s best days lie ahead we re a powerful force for good with faith and courage we can perform great deeds and take freedom s next step and we will we will carry on the tradition of a good and worthy people who have brought light where there was darkness warmth where there was cold medicine where there was disease food where there was hunger and peace where there was only bloodshed +let us be sure that those who come after will say of us in our time that in our time we did everything that could be done we finished the race we kept them free we kept the faith +thank you very much god bless you and god bless america +note the president spoke at 9 02 p m in the house chamber of the capitol he was introduced by thomas p o neill jr speaker of the house of representatives the address was broadcast live on nationwide radio and television +mr speaker mr president distinguished members of the congress honored guests and fellow citizens +i come before you to report on the state of our union and i m pleased to report that after 4 years of united effort the american people have brought forth a nation renewed stronger freer and more secure than before +four years ago we began to change forever i hope our assumptions about government and its place in our lives out of that change has come great and robust growth in our confidence our economy and our role in the world +tonight america is stronger because of the values that we hold dear we believe faith and freedom must be our guiding stars for they show us truth they make us brave give us hope and leave us wiser than we were our progress began not in washington dc but in the hearts of our families communities workplaces and voluntary groups which together are unleashing the invincible spirit of one great nation under god +four years ago we said we would invigorate our economy by giving people greater freedom and incentives to take risks and letting them keep more of what they earned we did what we promised and a great industrial giant is reborn +tonight we can take pride in 25 straight months of economic growth the strongest in 34 years a 3 year inflation average of 3 9 percent the lowest in 17 years and 7 3 million new jobs in 2 years with more of our citizens working than ever before +new freedom in our lives has planted the rich seeds for future success +for an america of wisdom that honors the family knowing that if as the family goes so goes our civilization +for an america of vision that sees tomorrow s dreams in the learning and hard work we do today +for an america of courage whose service men and women even as we meet proudly stand watch on the frontiers of freedom +for an america of compassion that opens its heart to those who cry out for help +we have begun well but it s only a beginning we re not here to congratulate ourselves on what we have done but to challenge ourselves to finish what has not yet been done +we re here to speak for millions in our inner cities who long for real jobs safe neighborhoods and schools that truly teach we re here to speak for the american farmer the entrepreneur and every worker in industries fighting to modernize and compete and yes we re here to stand and proudly so for all who struggle to break free from totalitarianism for all who know in their hearts that freedom is the one true path to peace and human happiness +proverbs tell us without a vision the people perish when asked what great principle holds our union together abraham lincoln said something in the declaration giving liberty not alone to the people of this country but hope to the world for all future time +we honor the giants of our history not by going back but forward to the dreams their vision foresaw my fellow citizens this nation is poised for greatness the time has come to proceed toward a great new challenge a second american revolution of hope and opportunity a revolution carrying us to new heights of progress by pushing back frontiers of knowledge and space a revolution of spirit that taps the soul of america enabling us to summon greater strength than we ve ever known and a revolution that carries beyond our shores the golden promise of human freedom in a world of peace +let us begin by challenging our conventional wisdom there are no constraints on the human mind no walls around the human spirit no barriers to our progress except those we ourselves erect already pushing down tax rates has freed our economy to vault forward to record growth +in europe they re calling it the american miracle day by day we re shattering accepted notions of what is possible when i was growing up we failed to see how a new thing called radio would transform our marketplace well today many have not yet seen how advances in technology are transforming our lives +in the late 1950 s workers at the at t semiconductor plant in pennsylvania produced five transistors a day for $7 50 apiece they now produce over a million for less than a penny apiece +new laser techniques could revolutionize heart bypass surgery cut diagnosis time for viruses linked to cancer from weeks to minutes reduce hospital costs dramatically and hold out new promise for saving human lives +our automobile industry has overhauled assembly lines increased worker productivity and is competitive once again +we stand on the threshold of a great ability to produce more do more be more our economy is not getting older and weaker it s getting younger and stronger it doesn t need rest and supervision it needs new challenge greater freedom and that word freedom is the key to the second american revolution that we need to bring about +let us move together with an historic reform of tax simplification for fairness and growth last year i asked treasury secretary then regan to develop a plan to simplify the tax code so all taxpayers would be treated more fairly and personal tax rates could come further down +we have cut tax rates by almost 25 percent yet the tax system remains unfair and limits our potential for growth exclusions and exemptions cause similar incomes to be taxed at different levels low income families face steep tax barriers that make hard lives even harder the treasury department has produced an excellent reform plan whose principles will guide the final proposal that we will ask you to enact +one thing that tax reform will not be is a tax increase in disguise we will not jeopardize the mortgage interest deduction that families need we will reduce personal tax rates as low as possible by removing many tax preferences we will propose a top rate of no more than 35 percent and possibly lower and we will propose reducing corporate rates while maintaining incentives for capital formation +to encourage opportunity and jobs rather than dependency and welfare we will propose that individuals living at or near the poverty line be totally exempt from federal income tax to restore fairness to families we will propose increasing significantly the personal exemption +and tonight i am instructing treasury secretary james baker i have to get used to saying that to begin working with congressional authors and committees for bipartisan legislation conforming to these principles we will call upon the american people for support and upon every man and woman in this chamber together we can pass this year a tax bill for fairness simplicity and growth making this economy the engine of our dreams and america the investment capital of the world so let us begin +tax simplification will be a giant step toward unleashing the tremendous pent up power of our economy but a second american revolution must carry the promise of opportunity for all it is time to liberate the spirit of enterprise in the most distressed areas of our country +this government will meet its responsibility to help those in need but policies that increase dependency break up families and destroy self respect are not progressive they re reactionary despite our strides in civil rights blacks hispanics and all minorities will not have full and equal power until they have full economic power +we have repeatedly sought passage of enterprise zones to help those in the abandoned corners of our land find jobs learn skills and build better lives this legislation is supported by a majority of you +mr speaker i know we agree that there must be no forgotten americans let us place new dreams in a million hearts and create a new generation of entrepreneurs by passing enterprise zones this year and tip you could make that a birthday present +nor must we lose the chance to pass our youth employment opportunity wage proposal we can help teenagers who have the highest unemployment rate find summer jobs so they can know the pride of work and have confidence in their futures +we ll continue to support the job training partnership act which has a nearly two thirds job placement rate credits in education and health care vouchers will help working families shop for services that they need +our administration is already encouraging certain low income public housing residents to own and manage their own dwellings it s time that all public housing residents have that opportunity of ownership +the federal government can help create a new atmosphere of freedom but states and localities many of which enjoy surpluses from the recovery must not permit their tax and regulatory policies to stand as barriers to growth +let us resolve that we will stop spreading dependency and start spreading opportunity that we will stop spreading bondage and start spreading freedom +there are some who say that growth initiatives must await final action on deficit reductions well the best way to reduce deficits is through economic growth more businesses will be started more investments made more jobs created and more people will be on payrolls paying taxes the best way to reduce government spending is to reduce the need for spending by increasing prosperity each added percentage point per year of real gnp growth will lead to cumulative reduction in deficits of nearly $200 billion over 5 years +to move steadily toward a balanced budget we must also lighten government s claim on our total economy we will not do this by raising taxes we must make sure that our economy grows faster than the growth in spending by the federal government in our fiscal year 1986 budget overall government program spending will be frozen at the current level it must not be one dime higher than fiscal year 1985 and three points are key +first the social safety net for the elderly the needy the disabled and unemployed will be left intact growth of our major health care programs medicare and medicaid will be slowed but protections for the elderly and needy will be preserved +second we must not relax our efforts to restore military strength just as we near our goal of a fully equipped trained and ready professional corps national security is government s first responsibility so in past years defense spending took about half the federal budget today it takes less than a third we ve already reduced our planned defense expenditures by nearly a hundred billion dollars over the past 4 years and reduced projected spending again this year +you know we only have a military industrial complex until a time of danger and then it becomes the arsenal of democracy spending for defense is investing in things that are priceless peace and freedom +third we must reduce or eliminate costly government subsidies for example deregulation of the airline industry has led to cheaper airfares but on amtrak taxpayers pay about $35 per passenger every time an amtrak train leaves the station it s time we ended this huge federal subsidy +our farm program costs have quadrupled in recent years yet i know from visiting farmers many in great financial distress that we need an orderly transition to a market oriented farm economy we can help farmers best not by expanding federal payments but by making fundamental reforms keeping interest rates heading down and knocking down foreign trade barriers to american farm exports +we re moving ahead with grace commission reforms to eliminate waste and improve government s management practices in the long run we must protect the taxpayers from government and i ask again that you pass as 32 states have now called for an amendment mandating the federal government spend no more than it takes in and i ask for the authority used responsibly by 43 governors to veto individual items in appropriation bills senator mattingly has introduced a bill permitting a 2 year trial run of the line item veto i hope you ll pass and send that legislation to my desk +nearly 50 years of government living beyond its means has brought us to a time of reckoning ours is but a moment in history but one moment of courage idealism and bipartisan unity can change american history forever +sound monetary policy is key to long running economic strength and stability we will continue to cooperate with the federal reserve board seeking a steady policy that ensures price stability without keeping interest rates artificially high or needlessly holding down growth +reducing unneeded red tape and regulations and deregulating the energy transportation and financial industries have unleashed new competition giving consumers more choices better services and lower prices in just one set of grant programs we have reduced 905 pages of regulations to 31 we seek to fully deregulate natural gas to bring on new supplies and bring us closer to energy independence consistent with safety standards we will continue removing restraints on the bus and railroad industries we will soon end up legislation or send up legislation i should say to return conrail to the private sector where it belongs and we will support further deregulation of the trucking industry +every dollar the federal government does not take from us every decision it does not make for us will make our economy stronger our lives more abundant our future more free +our second american revolution will push on to new possibilities not only on earth but in the next frontier of space despite budget restraints we will seek record funding for research and development +we ve seen the success of the space shuttle now we re going to develop a permanently manned space station and new opportunities for free enterprise because in the next decade americans and our friends around the world will be living and working together in space +in the zero gravity of space we could manufacture in 30 days lifesaving medicines it would take 30 years to make on earth we can make crystals of exceptional purity to produce super computers creating jobs technologies and medical breakthroughs beyond anything we ever dreamed possible +as we do all this we ll continue to protect our natural resources we will seek reauthorization and expanded funding for the superfund program to continue cleaning up hazardous waste sites which threaten human health and the environment +now there s another great heritage to speak of this evening of all the changes that have swept america the past 4 years none brings greater promise than our rediscovery of the values of faith freedom family work and neighborhood +we see signs of renewal in increased attendance in places of worship renewed optimism and faith in our future love of country rediscovered by our young who are leading the way we ve rediscovered that work is good in and of itself that it ennobles us to create and contribute no matter how seemingly humble our jobs we ve seen a powerful new current from an old and honorable tradition american generosity +from thousands answering peace corps appeals to help boost food production in africa to millions volunteering time corporations adopting schools and communities pulling together to help the neediest among us at home we have refound our values private sector initiatives are crucial to our future +i thank the congress for passing equal access legislation giving religious groups the same right to use classrooms after school that other groups enjoy but no citizen need tremble nor the world shudder if a child stands in a classroom and breathes a prayer we ask you again give children back a right they had for a century and a half or more in this country +the question of abortion grips our nation abortion is either the taking of a human life or it isn t and if it is and medical technology is increasingly showing it is it must be stopped it is a terrible irony that while some turn to abortion so many others who cannot become parents cry out for children to adopt we have room for these children we can fill the cradles of those who want a child to love and tonight i ask you in the congress to move this year on legislation to protect the unborn +in the area of education we re returning to excellence and again the heroes are our people not government we re stressing basics of discipline rigorous testing and homework while helping children become computer smart as well for 20 years scholastic aptitude test scores of our high school students went down but now they have gone up 2 of the last 3 years we must go forward in our commitment to the new basics giving parents greater authority and making sure good teachers are rewarded for hard work and achievement through merit pay +of all the changes in the past 20 years none has more threatened our sense of national well being than the explosion of violent crime one does not have to be attacked to be a victim the woman who must run to her car after shopping at night is a victim the couple draping their door with locks and chains are victims as is the tired decent cleaning woman who can t ride a subway home without being afraid +we do not seek to violate the rights of defendants but shouldn t we feel more compassion for the victims of crime than for those who commit crime for the first time in 20 years the crime index has fallen 2 years in a row we ve convicted over 7 400 drug offenders and put them as well as leaders of organized crime behind bars in record numbers +but we must do more i urge the house to follow the senate and enact proposals permitting use of all reliable evidence that police officers acquire in good faith these proposals would also reform the habeas corpus laws and allow in keeping with the will of the overwhelming majority of americans the use of the death penalty where necessary +there can be no economic revival in ghettos when the most violent among us are allowed to roam free it s time we restored domestic tranquility and we mean to do just that +just as we re positioned as never before to secure justice in our economy we re poised as never before to create a safer freer more peaceful world our alliances are stronger than ever our economy is stronger than ever we have resumed our historic role as a leader of the free world and all of these together are a great force for peace +since 1981 we ve been committed to seeking fair and verifiable arms agreements that would lower the risk of war and reduce the size of nuclear arsenals now our determination to maintain a strong defense has influenced the soviet union to return to the bargaining table our negotiators must be able to go to that table with the united support of the american people all of us have no greater dream than to see the day when nuclear weapons are banned from this earth forever +each member of the congress has a role to play in modernizing our defenses thus supporting our chances for a meaningful arms agreement your vote this spring on the peacekeeper missile will be a critical test of our resolve to maintain the strength we need and move toward mutual and verifiable arms reductions +for the past 20 years we ve believed that no war will be launched as long as each side knows it can retaliate with a deadly counterstrike well i believe there s a better way of eliminating the threat of nuclear war it is a strategic defense initiative aimed ultimately at finding a nonnuclear defense against ballistic missiles it s the most hopeful possibility of the nuclear age but it s not very well understood +some say it will bring war to the heavens but its purpose is to deter war in the heavens and on earth now some say the research would be expensive perhaps but it could save millions of lives indeed humanity itself and some say if we build such a system the soviets will build a defense system of their own well they already have strategic defenses that surpass ours a civil defense system where we have almost none and a research program covering roughly the same areas of technology that we re now exploring and finally some say the research will take a long time well the answer to that is let s get started +harry truman once said that ultimately our security and the world s hopes for peace and human progress lie not in measures of defense or in the control of weapons but in the growth and expansion of freedom and self government +and tonight we declare anew to our fellow citizens of the world freedom is not the sole prerogative of a chosen few it is the universal right of all god s children look to where peace and prosperity flourish today it is in homes that freedom built victories against poverty are greatest and peace most secure where people live by laws that ensure free press free speech and freedom to worship vote and create wealth +our mission is to nourish and defend freedom and democracy and to communicate these ideals everywhere we can america s economic success is freedom s success it can be repeated a hundred times in a hundred different nations many countries in east asia and the pacific have few resources other than the enterprise of their own people but through low tax rates and free markets they ve soared ahead of centralized economies and now china is opening up its economy to meet its needs +we need a stronger and simpler approach to the process of making and implementing trade policy and we ll be studying potential changes in that process in the next few weeks we ve seen the benefits of free trade and lived through the disasters of protectionism tonight i ask all our trading partners developed and developing alike to join us in a new round of trade negotiations to expand trade and competition and strengthen the global economy and to begin it in this next year +there are more than 3 billion human beings living in third world countries with an average per capita income of $650 a year many are victims of dictatorships that impoverished them with taxation and corruption let us ask our allies to join us in a practical program of trade and assistance that fosters economic development through personal incentives to help these people climb from poverty on their own +we cannot play innocents abroad in a world that s not innocent nor can we be passive when freedom is under siege without resources diplomacy cannot succeed our security assistance programs help friendly governments defend themselves and give them confidence to work for peace and i hope that you in the congress will understand that dollar for dollar security assistance contributes as much to global security as our own defense budget +we must stand by all our democratic allies and we must not break faith with those who are risking their lives on every continent from afghanistan to nicaragua to defy soviet supported aggression and secure rights which have been ours from birth +the sandinista dictatorship of nicaragua with full cuban soviet bloc support not only persecutes its people the church and denies a free press but arms and provides bases for communist terrorists attacking neighboring states support for freedom fighters is self defense and totally consistent with the oas and u n charters it is essential that the congress continue all facets of our assistance to central america i want to work with you to support the democratic forces whose struggle is tied to our own security +and tonight i ve spoken of great plans and great dreams they re dreams we can make come true two hundred years of american history should have taught us that nothing is impossible +ten years ago a young girl left vietnam with her family part of the exodus that followed the fall of saigon they came to the united states with no possessions and not knowing a word of english ten years ago the young girl studied hard learned english and finished high school in the top of her class and this may may 22d to be exact is a big date on her calendar just 10 years from the time she left vietnam she will graduate from the united states military academy at west point i thought you might like to meet an american hero named jean nguyen +now there s someone else here tonight born 79 years ago she lives in the inner city where she cares for infants born of mothers who are heroin addicts the children born in withdrawal are sometimes even dropped on her doorstep she helps them with love go to her house some night and maybe you ll see her silhouette against the window as she walks the floor talking softly soothing a child in her arms mother hale of harlem and she too is an american hero +jean mother hale your lives tell us that the oldest american saying is new again anything is possible in america if we have the faith the will and the heart history is asking us once again to be a force for good in the world let us begin in unity with justice and love +thank you and god bless you +note the president spoke at 9 05 p m in the house chamber of the capitol he was introduced by thomas p o neill jr speaker of the house of representatives the address was broadcast live on nationwide radio and television +mr speaker mr president distinguished members of the congress honored guests and fellow citizens +thank you for allowing me to delay my address until this evening we paused together to mourn and honor the valor of our seven challenger heroes and i hope that we are now ready to do what they would want us to do go forward america and reach for the stars we will never forget those brave seven but we shall go forward +mr speaker before i begin my prepared remarks may i point out that tonight marks the 10th and last state of the union message that you ve presided over and on behalf of the american people i want to salute you for your service to congress and country here s to you +i have come to review with you the progress of our nation to speak of unfinished work and to set our sights on the future i am pleased to report the state of our union is stronger than a year ago and growing stronger each day tonight we look out on a rising america firm of heart united in spirit powerful in pride and patriotism america is on the move but it wasn t long ago that we looked out on a different land locked factory gates long gasoline lines intolerable prices and interest rates turning the greatest country on earth into a land of broken dreams government growing beyond our consent had become a lumbering giant slamming shut the gates of opportunity threatening to crush the very roots of our freedom what brought america back the american people brought us back with quiet courage and common sense with undying faith that in this nation under god the future will be ours for the future belongs to the free +tonight the american people deserve our thanks for 37 straight months of economic growth for sunrise firms and modernized industries creating 9 million new jobs in 3 years interest rates cut in half inflation falling over from 12 percent in 1980 to under 4 today and a mighty river of good works a record $74 billion in voluntary giving just last year alone and despite the pressures of our modern world family and community remain the moral core of our society guardians of our values and hopes for the future family and community are the costars of this great american comeback they are why we say tonight private values must be at the heart of public policies +what is true for families in america is true for america in the family of free nations history is no captive of some inevitable force history is made by men and women of vision and courage tonight freedom is on the march the united states is the economic miracle the model to which the world once again turns we stand for an idea whose time is now only by lifting the weights from the shoulders of all can people truly prosper and can peace among all nations be secure teddy roosevelt said that a nation that does great work lives forever we have done well but we cannot stop at the foothills when everest beckons it s time for america to be all that we can be +we speak tonight of an agenda for the future an agenda for a safer more secure world and we speak about the necessity for actions to steel us for the challenges of growth trade and security in the next decade and the year 2000 and we will do it not by breaking faith with bedrock principles but by breaking free from failed policies let us begin where storm clouds loom darkest right here in washington dc this week i will send you our detailed proposals tonight let us speak of our responsibility to redefine government s role not to control not to demand or command not to contain us but to help in times of need and above all to create a ladder of opportunity to full employment so that all americans can climb toward economic power and justice on their own +but we cannot win the race to the future shackled to a system that can t even pass a federal budget we cannot win that race held back by horse and buggy programs that waste tax dollars and squander human potential we cannot win that race if we re swamped in a sea of red ink now mr speaker you know i know and the american people know the federal budget system is broken it doesn t work before we leave this city let s you and i work together to fix it and then we can finally give the american people a balanced budget +members of congress passage of gramm rudman hollings gives us an historic opportunity to achieve what has eluded our national leadership for decades forcing the federal government to live within its means your schedule now requires that the budget resolution be passed by april 15th the very day america s families have to foot the bill for the budgets that you produce how often we read of a husband and wife both working struggling from paycheck to paycheck to raise a family meet a mortgage pay their taxes and bills and yet some in congress say taxes must be raised well i m sorry they re asking the wrong people to tighten their belts it s time we reduce the federal budget and left the family budget alone we do not face large deficits because american families are undertaxed we face those deficits because the federal government overspends +the detailed budget that we will submit will meet the gramm rudman hollings target for deficit reductions meet our commitment to ensure a strong national defense meet our commitment to protect social security and the truly less fortunate and yes meet our commitment to not raise taxes how should we accomplish this well not by taking from those in need as families take care of their own government must provide shelter and nourishment for those who cannot provide for themselves but we must revise or replace programs enacted in the name of compassion that degrade the moral worth of work encourage family breakups and drive entire communities into a bleak and heartless dependency gramm rudman hollings can mark a dramatic improvement but experience shows that simply setting deficit targets does not assure they ll be met we must proceed with grace commission reforms against waste +and tonight i ask you to give me what 43 governors have give me a line item veto this year give me the authority to veto waste and i ll take the responsibility i ll make the cuts i ll take the heat this authority would not give me any monopoly power but simply prevent spending measures from sneaking through that could not pass on their own merit and you can sustain or override my veto that s the way the system should work once we ve made the hard choices we should lock in our gains with a balanced budget amendment to the constitution +i mentioned that we will meet our commitment to national defense we must meet it defense is not just another budget expense keeping america strong free and at peace is solely the responsibility of the federal government it is government s prime responsibility we have devoted 5 years trying to narrow a dangerous gap born of illusion and neglect and we ve made important gains yet the threat from soviet forces conventional and strategic from the soviet drive for domination from the increase in espionage and state terror remains great this is reality closing our eyes will not make reality disappear we pledged together to hold real growth in defense spending to the bare minimum my budget honors that pledge and i m now asking you the congress to keep its end of the bargain the soviets must know that if america reduces her defenses it will be because of a reduced threat not a reduced resolve +keeping america strong is as vital to the national security as controlling federal spending is to our economic security but as i have said before the most powerful force we can enlist against the federal deficit is an ever expanding american economy unfettered and free the magic of opportunity unreserved unfailing unrestrained isn t this the calling that unites us i believe our tax rate cuts for the people have done more to spur a spirit of risk taking and help america s economy break free than any program since john kennedy s tax cut almost a quarter century ago +now history calls us to press on to complete efforts for an historic tax reform providing new opportunity for all and ensuring that all pay their fair share but no more we ve come this far will you join me now and we ll walk this last mile together you know my views on this we cannot and we will not accept tax reform that is a tax increase in disguise true reform must be an engine of productivity and growth and that means a top personal rate no higher than 35 percent true reform must be truly fair and that means raising personal exemptions to $2 000 true reform means a tax system that at long last is profamily projobs profuture and pro america +as we knock down the barriers to growth we must redouble our efforts for freer and fairer trade we have already taken actions to counter unfair trading practices and to pry open closed foreign markets we will continue to do so we will also oppose legislation touted as providing protection that in reality pits one american worker against another one industry against another one community against another and that raises prices for us all if the united states can trade with other nations on a level playing field we can outproduce outcompete and outsell anybody anywhere in the world +the constant expansion of our economy and exports requires a sound and stable dollar at home and reliable exchange rates around the world we must never again permit wild currency swings to cripple our farmers and other exporters farmers in particular have suffered from past unwise government policies they must not be abandoned with problems they did not create and cannot control we ve begun coordinating economic and monetary policy among our major trading partners but there s more to do and tonight i am directing treasury secretary jim baker to determine if the nations of the world should convene to discuss the role and relationship of our currencies +confident in our future and secure in our values americans are striving forward to embrace the future we see it not only in our recovery but in 3 straight years of falling crime rates as families and communities band together to fight pornography drugs and lawlessness and to give back to their children the safe and yes innocent childhood they deserve we see it in the renaissance in education the rising sat scores for 3 years last year s increase the greatest since 1963 it wasn t government and washington lobbies that turned education around it was the american people who in reaching for excellence knew to reach back to basics we must continue the advance by supporting discipline in our schools vouchers that give parents freedom of choice and we must give back to our children their lost right to acknowledge god in their classrooms +we are a nation of idealists yet today there is a wound in our national conscience america will never be whole as long as the right to life granted by our creator is denied to the unborn for the rest of my time i shall do what i can to see that this wound is one day healed +as we work to make the american dream real for all we must also look to the condition of america s families struggling parents today worry how they will provide their children the advantages that their parents gave them in the welfare culture the breakdown of the family the most basic support system has reached crisis proportions in female and child poverty child abandonment horrible crimes and deteriorating schools after hundreds of billions of dollars in poverty programs the plight of the poor grows more painful but the waste in dollars and cents pales before the most tragic loss the sinful waste of human spirit and potential we can ignore this terrible truth no longer as franklin roosevelt warned 51 years ago standing before this chamber he said welfare is a narcotic a subtle destroyer of the human spirit and we must now escape the spider s web of dependency +tonight i am charging the white house domestic council to present me by december 1 1986 an evaluation of programs and a strategy for immediate action to meet the financial educational social and safety concerns of poor families i m talking about real and lasting emancipation because the success of welfare should be judged by how many of its recipients become independent of welfare further after seeing how devastating illness can destroy the financial security of the family i am directing the secretary of health and human services dr otis bowen to report to me by year end with recommendations on how the private sector and government can work together to address the problems of affordable insurance for those whose life savings would otherwise be threatened when catastrophic illness strikes +and tonight i want to speak directly to america s younger generation because you hold the destiny of our nation in your hands with all the temptations young people face it sometimes seems the allure of the permissive society requires superhuman feats of self control but the call of the future is too strong the challenge too great to get lost in the blind alleyways of dissolution drugs and despair never has there been a more exciting time to be alive a time of rousing wonder and heroic achievement as they said in the film back to the future where we re going we don t need roads +well today physicists peering into the infinitely small realms of subatomic particles find reaffirmations of religious faith astronomers build a space telescope that can see to the edge of the universe and possibly back to the moment of creation so yes this nation remains fully committed to america s space program we re going forward with our shuttle flights we re going forward to build our space station and we are going forward with research on a new orient express that could by the end of the next decade take off from dulles airport accelerate up to 25 times the speed of sound attaining low earth orbit or flying to tokyo within 2 hours and the same technology transforming our lives can solve the greatest problem of the 20th century a security shield can one day render nuclear weapons obsolete and free mankind from the prison of nuclear terror america met one historic challenge and went to the moon now america must meet another to make our strategic defense real for all the citizens of planet earth +let us speak of our deepest longing for the future to leave our children a land that is free and just and a world at peace it is my hope that our fireside summit in geneva and mr gorbachev s upcoming visit to america can lead to a more stable relationship surely no people on earth hate war or love peace more than we americans but we cannot stroll into the future with childlike faith our differences with a system that openly proclaims and practices an alleged right to command people s lives and to export its ideology by force are deep and abiding logic and history compel us to accept that our relationship be guided by realism rock hard cleareyed steady and sure our negotiators in geneva have proposed a radical cut in offensive forces by each side with no cheating they have made clear that soviet compliance with the letter and spirit of agreements is essential if the soviet government wants an agreement that truly reduces nuclear arms there will be such an agreement +but arms control is no substitute for peace we know that peace follows in freedom s path and conflicts erupt when the will of the people is denied so we must prepare for peace not only by reducing weapons but by bolstering prosperity liberty and democracy however and wherever we can we advance the promise of opportunity every time we speak out on behalf of lower tax rates freer markets sound currencies around the world we strengthen the family of freedom every time we work with allies and come to the aid of friends under siege and we can enlarge the family of free nations if we will defend the unalienable rights of all god s children to follow their dreams +to those imprisoned in regimes held captive to those beaten for daring to fight for freedom and democracy for their right to worship to speak to live and to prosper in the family of free nations we say to you tonight you are not alone freedom fighters america will support with moral and material assistance your right not just to fight and die for freedom but to fight and win freedom to win freedom in afghanistan in angola in cambodia and in nicaragua this is a great moral challenge for the entire free world +surely no issue is more important for peace in our own hemisphere for the security of our frontiers for the protection of our vital interests than to achieve democracy in nicaragua and to protect nicaragua s democratic neighbors this year i will be asking congress for the means to do what must be done for that great and good cause as former senator henry m scoop jackson the inspiration for our bipartisan commission on central america once said in matters of national security the best politics is no politics +what we accomplish this year in each challenge we face will set our course for the balance of the decade indeed for the remainder of the century after all we ve done so far let no one say that this nation cannot reach the destiny of our dreams america believes america is ready america can win the race to the future and we shall the american dream is a song of hope that rings through night winter air vivid tender music that warms our hearts when the least among us aspire to the greatest things to venture a daring enterprise to unearth new beauty in music literature and art to discover a new universe inside a tiny silicon chip or a single human cell +we see the dream coming true in the spirit of discovery of richard cavoli all his life he s been enthralled by the mysteries of medicine and richard we know that the experiment that you began in high school was launched and lost last week yet your dream lives and as long as it s real work of noble note will yet be done work that could reduce the harmful effects of x rays on patients and enable astronomers to view the golden gateways of the farthest stars +we see the dream glow in the towering talent of a 12 year old tyrone ford a child prodigy of gospel music he has surmounted personal adversity to become an accomplished pianist and singer he also directs the choirs of three churches and has performed at the kennedy center with god as your composer tyrone your music will be the music of angels +we see the dream being saved by the courage of the 13 year old shelby butler honor student and member of her school s safety patrol seeing another girl freeze in terror before an out of control school bus she risked her life and pulled her to safety with bravery like yours shelby america need never fear for our future +and we see the dream born again in the joyful compassion of a 13 year old trevor ferrell two years ago age 11 watching men and women bedding down in abandoned doorways on television he was watching trevor left his suburban philadelphia home to bring blankets and food to the helpless and homeless and now 250 people help him fulfill his nightly vigil trevor yours is the living spirit of brotherly love +would you four stand up for a moment thank you thank you you are heroes of our hearts we look at you and know it s true in this land of dreams fulfilled where greater dreams may be imagined nothing is impossible no victory is beyond our reach no glory will ever be too great +so now it s up to us all of us to prepare america for that day when our work will pale before the greatness of america s champions in the 21st century the world s hopes rest with america s future america s hopes rest with us so let us go forward to create our world of tomorrow in faith in unity and in love +god bless you and god bless america +note the president spoke at 8 04 p m in the house chamber of the capitol he was introduced by thomas p o neill jr speaker of the house of representatives the address was broadcast live on nationwide radio and television +mr speaker mr president distinguished members of congress honored guests and fellow citizens +may i congratulate all of you who are members of this historic 100th congress of the united states of america in this 200th anniversary year of our constitution you and i stand on the shoulders of giants men whose words and deeds put wind in the sails of freedom however we must always remember that our constitution is to be celebrated not for being old but for being young young with the same energy spirit and promise that filled each eventful day in philadelphia s statehouse we will be guided tonight by their acts and we will be guided forever by their words +now forgive me but i can t resist sharing a story from those historic days philadelphia was bursting with civic pride in the spring of 1787 and its newspapers began embellishing the arrival of the convention delegates with elaborate social classifications governors of states were called excellency justices and chancellors had reserved for them honorable with a capital h for congressmen it was honorable with a small h and all others were referred to as the following respectable characters well for this 100th congress i invoke special executive powers to declare that each of you must never be titled less than honorable with a capital h incidentally i m delighted you are celebrating the 100th birthday of the congress it s always a pleasure to congratulate someone with more birthdays than i ve had +now there s a new face at this place of honor tonight and please join me in warm congratulations to the speaker of the house jim wright mr speaker you might recall a similar situation in your very first session of congress 32 years ago then as now the speakership had changed hands and another great son of texas sam rayburn mr sam sat in your chair i cannot find better words than those used by president eisenhower that evening he said we shall have much to do together i am sure that we will get it done and that we shall do it in harmony and good will tonight i renew that pledge to you mr speaker and to senate majority leader robert byrd who brings 34 years of distinguished service to the congress may i say though there are changes in the congress america s interests remain the same and i am confident that along with republican leaders bob michel and bob dole this congress can make history +six years ago i was here to ask the congress to join me in america s new beginning well the results are something of which we can all be proud our inflation rate is now the lowest in a quarter of a century the prime interest rate has fallen from the 21 1 2 percent the month before we took office to 7 1 2 percent today and those rates have triggered the most housing starts in 8 years the unemployment rate still too high is the lowest in nearly 7 years and our people have created nearly 13 million new jobs over 61 percent of everyone over the age of 16 male and female is employed the highest percentage on record let s roll up our sleeves and go to work and put america s economic engine at full throttle we can also be heartened by our progress across the world most important america is at peace tonight and freedom is on the march and we ve done much these past years to restore our defenses our alliances and our leadership in the world our sons and daughters in the services once again wear their uniforms with pride +but though we ve made much progress i have one major regret i took a risk with regard to our action in iran it did not work and for that i assume full responsibility the goals were worthy i do not believe it was wrong to try to establish contacts with a country of strategic importance or to try to save lives and certainly it was not wrong to try to secure freedom for our citizens held in barbaric captivity but we did not achieve what we wished and serious mistakes were made in trying to do so we will get to the bottom of this and i will take whatever action is called for but in debating the past we must not deny ourselves the successes of the future let it never be said of this generation of americans that we became so obsessed with failure that we refused to take risks that could further the cause of peace and freedom in the world much is at stake here and the nation and the world are watching to see if we go forward together in the national interest or if we let partisanship weaken us and let there be no mistake about american policy we will not sit idly by if our interests or our friends in the middle east are threatened nor will we yield to terrorist blackmail +and now ladies and gentlemen of the congress why don t we get to work i am pleased to report that because of our efforts to rebuild the strength of america the world is a safer place earlier this month i submitted a budget to defend america and maintain our momentum to make up for neglect in the last decade well i ask you to vote out a defense and foreign affairs budget that says yes to protecting our country while the world is safer it is not safe +since 1970 the soviets have invested $500 billion more on their military forces than we have even today though nearly 1 in 3 soviet families is without running hot water and the average family spends 2 hours a day shopping for the basic necessities of life their government still found the resources to transfer $75 billion in weapons to client states in the past 5 years clients like syria vietnam cuba libya angola ethiopia afghanistan and nicaragua with 120 000 soviet combat and military personnel and 15 000 military advisers in asia africa and latin america can anyone still doubt their single minded determination to expand their power despite this the congress cut my request for critical u s security assistance to free nations by 21 percent this year and cut defense requests by $85 billion in the last 3 years +these assistance programs serve our national interests as well as mutual interests and when the programs are devastated american interests are harmed my friends it s my duty as president to say to you again tonight that there is no surer way to lose freedom than to lose our resolve today the brave people of afghanistan are showing that resolve the soviet union says it wants a peaceful settlement in afghanistan yet it continues a brutal war and props up a regime whose days are clearly numbered we are ready to support a political solution that guarantees the rapid withdrawal of all soviet troops and genuine self determination for the afghan people +in central america too the cause of freedom is being tested and our resolve is being tested there as well here especially the world is watching to see how this nation responds today over 90 percent of the people of latin america live in democracy democracy is on the march in central and south america communist nicaragua is the odd man out suppressing the church the press and democratic dissent and promoting subversion in the region we support diplomatic efforts but these efforts can never succeed if the sandinistas win their war against the nicaraguan people +our commitment to a western hemisphere safe from aggression did not occur by spontaneous generation on the day that we took office it began with the monroe doctrine in 1823 and continues our historic bipartisan american policy franklin roosevelt said we are determined to do everything possible to maintain peace on this hemisphere president truman was very blunt international communism seeks to crush and undermine and destroy the independence of the americas we cannot let that happen here and john f kennedy made clear that communist domination in this hemisphere can never be negotiated some in this congress may choose to depart from this historic commitment but i will not +this year we celebrate the second century of our constitution the sandinistas just signed theirs 2 weeks ago and then suspended it we won t know how my words tonight will be reported there for one simple reason there is no free press in nicaragua nicaraguan freedom fighters have never asked us to wage their battle but i will fight any effort to shut off their lifeblood and consign them to death defeat or a life without freedom there must be no soviet beachhead in central america +you know we americans have always preferred dialog to conflict and so we always remain open to more constructive relations with the soviet union but more responsible soviet conduct around the world is a key element of the u s soviet agenda progress is also required on the other items of our agenda as well real respect for human rights and more open contacts between our societies and of course arms reduction +in iceland last october we had one moment of opportunity that the soviets dashed because they sought to cripple our strategic defense initiative sdi i wouldn t let them do it then i won t let them do it now or in the future this is the most positive and promising defense program we have undertaken it s the path for both sides to a safer future a system that defends human life instead of threatening it sdi will go forward the united states has made serious fair and far reaching proposals to the soviet union and this is a moment of rare opportunity for arms reduction but i will need and american negotiators in geneva will need congress support enacting the soviet negotiating position into american law would not be the way to win a good agreement so i must tell you in this congress i will veto any effort that undercuts our national security and our negotiating leverage +now today we also find ourselves engaged in expanding peaceful commerce across the world we will work to expand our opportunities in international markets through the uruguay round of trade negotiations and to complete an historic free trade arrangement between the world s two largest trading partners canada and the united states our basic trade policy remains the same we remain opposed as ever to protectionism because america s growth and future depend on trade but we would insist on trade that is fair and free we are always willing to be trade partners but never trade patsies +now from foreign borders let us return to our own because america in the world is only as strong as america at home this 100th congress has high responsibilities i begin with a gentle reminder that many of these are simply the incomplete obligations of the past the american people deserve to be impatient because we do not yet have the public house in order we ve had great success in restoring our economic integrity and we ve rescued our nation from the worst economic mess since the depression but there s more to do for starters the federal deficit is outrageous for years i ve asked that we stop pushing onto our children the excesses of our government and what the congress finally needs to do is pass a constitutional amendment that mandates a balanced budget and forces government to live within its means states cities and the families of america balance their budgets why can t we +next the budget process is a sorry spectacle the missing of deadlines and the nightmare of monstrous continuing resolutions packing hundreds of billions of dollars of spending into one bill must be stopped we ask the congress once again give us the same tool that 43 governors have a lineitem veto so we can carve out the boondoggles and pork those items that would never survive on their own i will send the congress broad recommendations on the budget but first i d like to see yours let s go to work and get this done together +but now let s talk about this year s budget even though i have submitted it within the gramm rudman hollings deficit reduction target i have seen suggestions that we might postpone that timetable well i think the american people are tired of hearing the same old excuses together we made a commitment to balance the budget now let s keep it as for those suggestions that the answer is higher taxes the american people have repeatedly rejected that shop worn advice they know that we don t have deficits because people are taxed too little we have deficits because big government spends too much +now next month i ll place two additional reforms before the congress we ve created a welfare monster that is a shocking indictment of our sense of priorities our national welfare system consists of some 59 major programs and over 6 000 pages of federal laws and regulations on which more than $132 billion was spent in 1985 i will propose a new national welfare strategy a program of welfare reform through state sponsored community based demonstration projects this is the time to reform this outmoded social dinosaur and finally break the poverty trap now we will never abandon those who through no fault of their own must have our help but let us work to see how many can be freed from the dependency of welfare and made self supporting which the great majority of welfare recipients want more than anything else next let us remove a financial specter facing our older americans the fear of an illness so expensive that it can result in having to make an intolerable choice between bankruptcy and death i will submit legislation shortly to help free the elderly from the fear of catastrophic illness +now let s turn to the future it s widely said that america is losing her competitive edge well that won t happen if we act now how well prepared are we to enter the 21st century in my lifetime america set the standard for the world it is now time to determine that we should enter the next century having achieved a level of excellence unsurpassed in history we will achieve this first by guaranteeing that government does everything possible to promote america s ability to compete second we must act as individuals in a quest for excellence that will not be measured by new proposals or billions in new funding rather it involves an expenditure of american spirit and just plain american grit the congress will soon receive my comprehensive proposals to enhance our competitiveness including new science and technology centers and strong new funding for basic research the bill will include legal and regulatory reforms and weapons to fight unfair trade practices competitiveness also means giving our farmers a shot at participating fairly and fully in a changing world market +preparing for the future must begin as always with our children we need to set for them new and more rigorous goals we must demand more of ourselves and our children by raising literacy levels dramatically by the year 2000 our children should master the basic concepts of math and science and let s insist that students not leave high school until they have studied and understood the basic documents of our national heritage there s one more thing we can t let up on let s redouble our personal efforts to provide for every child a safe and drug free learning environment if our crusade against drugs succeeds with our children we will defeat that scourge all over the country +finally let s stop suppressing the spiritual core of our national being our nation could not have been conceived without divine help why is it that we can build a nation with our prayers but we can t use a schoolroom for voluntary prayer the 100th congress of the united states should be remembered as the one that ended the expulsion of god from america s classrooms +the quest for excellence into the 21st century begins in the schoolroom but must go next to the workplace more than 20 million new jobs will be created before the new century unfolds and by then our economy should be able to provide a job for everyone who wants to work we must also enable our workers to adapt to the rapidly changing nature of the workplace and i will propose substantial new federal commitments keyed to retraining and job mobility +over the next few weeks i ll be sending the congress a complete series of these special messages on budget reform welfare reform competitiveness including education trade worker training and assistance agriculture and other subjects the congress can give us these tools but to make these tools work it really comes down to just being our best and that is the core of american greatness the responsibility of freedom presses us towards higher knowledge and i believe moral and spiritual greatness through lower taxes and smaller government government has its ways of freeing people s spirits but only we each of us can let the spirit soar against our own individual standards excellence is what makes freedom ring and isn t that what we do best +we re entering our third century now but it s wrong to judge our nation by its years the calendar can t measure america because we were meant to be an endless experiment in freedom with no limit to our reaches no boundaries to what we can do no end point to our hopes the united states constitution is the impassioned and inspired vehicle by which we travel through history it grew out of the most fundamental inspiration of our existence that we are here to serve him by living free that living free releases in us the noblest of impulses and the best of our abilities that we would use these gifts for good and generous purposes and would secure them not just for ourselves and for our children but for all mankind +over the years i won t count if you don t nothing has been so heartwarming to me as speaking to america s young and the little ones especially so fresh faced and so eager to know well from time to time i ve been with them they will ask about our constitution and i hope you members of congress will not deem this a breach of protocol if you ll permit me to share these thoughts again with the young people who might be listening or watching this evening i ve read the constitutions of a number of countries including the soviet union s now some people are surprised to hear that they have a constitution and it even supposedly grants a number of freedoms to its people many countries have written into their constitution provisions for freedom of speech and freedom of assembly well if this is true why is the constitution of the united states so exceptional +well the difference is so small that it almost escapes you but it s so great it tells you the whole story in just three words we the people in those other constitutions the government tells the people of those countries what they re allowed to do in our constitution we the people tell the government what it can do and it can do only those things listed in that document and no others virtually every other revolution in history has just exchanged one set of rulers for another set of rulers our revolution is the first to say the people are the masters and government is their servant and you young people out there don t ever forget that someday you could be in this room but wherever you are america is depending on you to reach your highest and be your best because here in america we the people are in charge +just three words we the people those are the kids on christmas day looking out from a frozen sentry post on the 38th parallel in korea or aboard an aircraft carrier in the mediterranean a million miles from home but doing their duty +we the people those are the warmhearted whose numbers we can t begin to count who ll begin the day with a little prayer for hostages they will never know and mia families they will never meet why because that s the way we are this unique breed we call americans +we the people they re farmers on tough times but who never stop feeding a hungry world they re the volunteers at the hospital choking back their tears for the hundredth time caring for a baby struggling for life because of a mother who used drugs and you ll forgive me a special memory it s a million mothers like nelle reagan who never knew a stranger or turned a hungry person away from her kitchen door +we the people they refute last week s television commentary downgrading our optimism and our idealism they are the entrepreneurs the builders the pioneers and a lot of regular folks the true heroes of our land who make up the most uncommon nation of doers in history you know they re americans because their spirit is as big as the universe and their hearts are bigger than their spirits +we the people starting the third century of a dream and standing up to some cynic who s trying to tell us we re not going to get any better are we at the end well i can t tell it any better than the real thing a story recorded by james madison from the final moments of the constitutional convention september 17th 1787 as the last few members signed the document benjamin franklin the oldest delegate at 81 years and in frail health looked over toward the chair where george washington daily presided at the back of the chair was painted the picture of a sun on the horizon and turning to those sitting next to him franklin observed that artists found it difficult in their painting to distinguish between a rising and a setting sun +well i know if we were there we could see those delegates sitting around franklin leaning in to listen more closely to him and then dr franklin began to share his deepest hopes and fears about the outcome of their efforts and this is what he said i have often looked at that picture behind the president without being able to tell whether it was a rising or setting sun but now at length i have the happiness to know that it is a rising and not a setting sun well you can bet it s rising because my fellow citizens america isn t finished her best days have just begun +thank you god bless you and god bless america +note the president spoke at 9 03 p m in the house chamber of the capitol he was introduced by jim wright speaker of the house of representatives the address was broadcast live on nationwide radio and television +mr speaker mr president and distinguished members of the house and senate when we first met here 7 years ago many of us for the first time it was with the hope of beginning something new for america we meet here tonight in this historic chamber to continue that work if anyone expects just a proud recitation of the accomplishments of my administration i say let s leave that to history we re not finished yet so my message to you tonight is put on your work shoes we re still on the job +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 +all of this was made possible by an idea i spoke of when mr gorbachev was here the belief that the most exciting revolution ever known to humankind began with three simple words we the people the revolutionary notion that the people grant government its rights and not the other way around and there s one lesson that has come home powerfully to me which i would offer to you now just as those who created this republic pledged to each other their lives their fortunes and their sacred honor so too america s leaders today must pledge to each other that we will keep foremost in our hearts and minds not what is best for ourselves or for our party but what is best for america +in the spirit of jefferson let us affirm that in this chamber tonight there are no republicans no democrats just americans yes we will have our differences but let us always remember what unites us far outweighs whatever divides us those who sent us here to serve them the millions of americans watching and listening tonight expect this of us let s prove to them and to ourselves that democracy works even in an election year we ve done this before and as we have worked together to bring down spending tax rates and inflation employment has climbed to record heights america has created more jobs and better higher paying jobs family income has risen for 4 straight years and america s poor climbed out of poverty at the fastest rate in more than 10 years +our record is not just the longest peacetime expansion in history but an economic and social revolution of hope based on work incentives growth and opportunity a revolution of compassion that led to private sector initiatives and a 77 percent increase in charitable giving a revolution that at a critical moment in world history reclaimed and restored the american dream +in international relations too there s only one description for what together we have achieved a complete turnabout a revolution seven years ago america was weak and freedom everywhere was under siege today america is strong and democracy is everywhere on the move from central america to east asia ideas like free markets and democratic reforms and human rights are taking hold we ve replaced blame america with look up to america we ve rebuilt our defenses and of all our accomplishments none can give us more satisfaction than knowing that our young people are again proud to wear our country s uniform +and in a few moments i m going to talk about three developments arms reduction the strategic defense initiative and the global democratic revolution that when taken together offer a chance none of us would have dared imagine 7 years ago a chance to rid the world of the two great nightmares of the postwar era i speak of the startling hope of giving our children a future free of both totalitarianism and nuclear terror +tonight then we re strong prosperous at peace and we are free this is the state of our union and if we will work together this year i believe we can give a future president and a future congress the chance to make that prosperity that peace that freedom not just the state of our union but the state of our world +toward this end we have four basic objectives tonight first steps we can take this year to keep our economy strong and growing to give our children a future of low inflation and full employment second let s check our progress in attacking social problems where important gains have been made but which still need critical attention i mean schools that work economic independence for the poor restoring respect for family life and family values our third objective tonight is global continuing the exciting economic and democratic revolutions we ve seen around the world fourth and finally our nation has remained at peace for nearly a decade and a half as we move toward our goals of world prosperity and world freedom we must protect that peace and deter war by making sure the next president inherits what you and i have a moral obligation to give that president a national security that is unassailable and a national defense that takes full advantage of new technology and is fully funded +this is a full agenda it s meant to be you see my thinking on the next year is quite simple let s make this the best of 8 and that means it s all out right to the finish line i don t buy the idea that this is the last year of anything because we re not talking here tonight about registering temporary gains but ways of making permanent our successes and that s why our focus is the values the principles and ideas that made america great let s be clear on this point we re for limited government because we understand as the founding fathers did that it is the best way of ensuring personal liberty and empowering the individual so that every american of every race and region shares fully in the flowering of american prosperity and freedom +one other thing we americans like the future like the sound of it the idea of it the hope of it where others fear trade and economic growth we see opportunities for creating new wealth and undreamed of opportunities for millions in our own land and beyond where others seek to throw up barriers we seek to bring them down where others take counsel of their fears we follow our hopes yes we americans like the future and like making the most of it let s do that now +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 2 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 i can assure you the bipartisan leadership of congress of my help in fighting off any attempt to bust our budget agreement and this includes the swift and certain use of the veto power +now it s also time for some plain talk about the most immediate obstacle to controlling federal deficits the simple but frustrating problem of making expenses match revenues something american families do and the federal government can t has caused crisis after crisis in this city mr speaker mr president i will say to you tonight what i have said before and will continue to say the budget process has broken down it needs a drastic overhaul with each ensuing year the spectacle before the american people is the same as it was this christmas budget deadlines delayed or missed completely monstrous continuing resolutions that pack hundreds of billions of dollars worth of spending into one bill and a federal government on the brink of default +i know i m echoing what you here in the congress have said because you suffered so directly but let s recall that in 7 years of 91 appropriations bills scheduled to arrive on my desk by a certain date only 10 made it on time last year of the 13 appropriations bills due by october 1st none of them made it instead we had four continuing resolutions lasting 41 days then 36 days and 2 days and 3 days respectively +and then along came these behemoths this is the conference report 1 053 pages report weighing 14 pounds then this a reconciliation bill 6 months late that was 1 186 pages long weighing 15 pounds and the long term continuing resolution this one was 2 months late and it s 1 057 pages long weighing 14 pounds that was a total of 43 pounds of paper and ink you had 3 hours yes 3 hours to consider each and it took 300 people at my office of management and budget just to read the bill so the government wouldn t shut down congress shouldn t send another one of these no and if you do i will not sign it +let s change all this instead of a presidential budget that gets discarded and a congressional budget resolution that is not enforced why not a simple partnership a joint agreement that sets out the spending priorities within the available revenues and let s remember our deadline is october 1st not christmas let s get the people s work done in time to avoid a footrace with santa claus and yes this year to coin a phrase a new beginning 13 individual bills on time and fully reviewed by congress +i m also certain you join me in saying let s help ensure our future of prosperity by giving the president a tool that though i will not get to use it is one i know future presidents of either party must have give the president the same authority that 43 governors use in their states the right to reach into massive appropriation bills pare away the waste and enforce budget discipline let s approve the line item veto +and let s take a partial step in this direction most of you in this chamber didn t know what was in this catchall bill and report over the past few weeks we ve all learned what was tucked away behind a little comma here and there for example there s millions for items such as cranberry research blueberry research the study of crawfish and the commercialization of wildflowers and that s not to mention the five or so million $ 5 million that so that people from developing nations could come here to watch congress at work i won t even touch that so tonight i offer you this challenge in 30 days i will send back to you those items as rescissions which if i had the authority to line them out i would do so +now review this multibillion dollar package that will not undercut our bipartisan budget agreement as a matter of fact if adopted it will improve our deficit reduction goals and what an example we can set that we re serious about getting our financial accounts in order by acting and approving this plan you have the opportunity to override a congressional process that is out of control +there is another vital reform yes gramm rudman hollings has been profoundly helpful but let us take its goal of a balanced budget and make it permanent let us do now what so many states do to hold down spending and what 32 state legislatures have asked us to do let us heed the wishes of an overwhelming plurality of americans and pass a constitutional amendment that mandates a balanced budget and forces the federal government to live within its means reform of the budget process including the line item veto and balanced budget amendment will together with real restraint on government spending prevent the federal budget from ever again ravaging the family budget +let s ensure that the federal government never again legislates against the family and the home last september 1 signed an executive order on the family requiring that every department and agency review its activities in light of seven standards designed to promote and not harm the family but let us make certain that the family is always at the center of the public policy process not just in this administration but in all future administrations it s time for congress to consider at the beginning a statement of the impact that legislation will have on the basic unit of american society the family +and speaking of the family let s turn to a matter on the mind of every american parent tonight education we all know the sorry story of the sixties and seventies soaring spending plummeting test scores and that hopeful trend of the eighties when we replaced an obsession with dollars with a commitment to quality and test scores started back up there s a lesson here that we all should write on the blackboard a hundred times in a child s education money can never take the place of basics like discipline hard work and yes homework +as a nation we do of course spend heavily on education more than we spend on defense yet across our country governors like new jersey s tom kean are giving classroom demonstrations that how we spend is as important as how much we spend opening up the teaching profession to all qualified candidates merit pay so that good teachers get a s as well as apples and stronger curriculum as secretary bennett has proposed for high schools these imaginative reforms are making common sense the most popular new kid in america s schools how can we help well we can talk about and push for these reforms but the most important thing we can do is to reaffirm that control of our schools belongs to the states local communities and most of all to the parents and teachers +my friends some years ago the federal government declared war on poverty and poverty won today the federal government has 59 major welfare programs and spends more than $100 billion a year on them what has all this money done well too often it has only made poverty harder to escape federal welfare programs have created a massive social problem with the best of intentions government created a poverty trap that wreaks havoc on the very support system the poor need most to lift themselves out of poverty the family dependency has become the one enduring heirloom passed from one generation to the next of too many fragmented families +it is time this may be the most radical thing i ve said in 7 years in this office it s time for washington to show a little humility there are a thousand sparks of genius in 50 states and a thousand communities around the nation it is time to nurture them and see which ones can catch fire and become guiding lights states have begun to show us the way they ve demonstrated that successful welfare programs can be built around more effective child support enforcement practices and innovative programs requiring welfare recipients to work or prepare for work let us give the states more flexibility and encourage more reforms let s start making our welfare system the first rung on america s ladder of opportunity a boost up from dependency not a graveyard but a birthplace of hope +and now let me turn to three other matters vital to family values and the quality of family life the first is an untold american success story recently we released our annual survey of what graduating high school seniors have to say about drugs cocaine use is declining and marijuana use was the lowest since surveying began we can be proud that our students are just saying no to drugs but let us remember what this menace requires commitment from every part of america and every single american a commitment to a drugfree america the war against drugs is a war of individual battles a crusade with many heroes including america s young people and also someone very special to me she has helped so many of our young people to say no to drugs nancy much credit belongs to you and i want to express to you your husband s pride and your country s thanks surprised you didn t i +well now we come to a family issue that we must have the courage to confront tonight i call america a good nation a moral people to charitable but realistic consideration of the terrible cost of abortion on demand to those who say this violates a woman s right to control of her own body can they deny that now medical evidence confirms the unborn child is a living human being entitled to life liberty and the pursuit of happiness let us unite as a nation and protect the unborn with legislation that would stop all federal funding for abortion and with a human life amendment making of course an exception where the unborn child threatens the life of the mother our judeo christian tradition recognizes the right of taking a life in self defense but with that one exception let us look to those others in our land who cry out for children to adopt i pledge to you tonight i will work to remove barriers to adoption and extend full sharing in family life to millions of americans so that children who need homes can be welcomed to families who want them and love them +and let me add here so many of our greatest statesmen have reminded us that spiritual values alone are essential to our nation s health and vigor the congress opens its proceedings each day as does the supreme court with an acknowledgment of the supreme being yet we are denied the right to set aside in our schools a moment each day for those who wish to pray i believe congress should pass our school prayer amendment +now to make sure there is a full nine member supreme court to interpret the law to protect the rights of all americans i urge the senate to move quickly and decisively in confirming judge anthony kennedy to the highest court in the land and to also confirm 27 nominees now waiting to fill vacancies in the federal judiciary +here then are our domestic priorities yet if the congress and the administration work together even greater opportunities lie ahead to expand a growing world economy to continue to reduce the threat of nuclear arms and to extend the frontiers of freedom and the growth of democratic institutions +our policies consistently received the strongest support of the late congressman dan daniel of virginia i m sure all of you join me in expressing heartfelt condolences on his passing +one of the greatest contributions the united states can make to the world is to promote freedom as the key to economic growth a creative competitive america is the answer to a changing world not trade wars that would close doors create greater barriers and destroy millions of jobs we should always remember protectionism is destructionism america s jobs america s growth america s future depend on trade trade that is free open and fair +this year we have it within our power to take a major step toward a growing global economy and an expanding cycle of prosperity that reaches to all the free nations of this earth i m speaking of the historic free trade agreement negotiated between our country and canada and i can also tell you that we re determined to expand this concept south as well as north next month i will be traveling to mexico where trade matters will be of foremost concern and over the next several months our congress and the canadian parliament can make the start of such a north american accord a reality our goal must be a day when the free flow of trade from the tip of tierra del fuego to the arctic circle unites the people of the western hemisphere in a bond of mutually beneficial exchange when all borders become what the u s canadian border so long has been a meeting place rather than a dividing line +this movement we see in so many places toward economic freedom is indivisible from the worldwide movement toward political freedom and against totalitarian rule this global democratic revolution has removed the specter so frightening a decade ago of democracy doomed to permanent minority status in the world in south and central america only a third of the people enjoyed democratic rule in 1976 today over 90 percent of latin americans live in nations committed to democratic principles and the resurgence of democracy is owed to these courageous people on almost every continent who have struggled to take control of their own destiny +in nicaragua the struggle has extra meaning because that nation is so near our own borders the recent revelations of a former high level sandinista major roger miranda show us that even as they talk peace the communist sandinista government of nicaragua has established plans for a large 600 000 man army yet even as these plans are made the sandinista regime knows the tide is turning and the cause of nicaraguan freedom is riding at its crest because of the freedom fighters who are resisting communist rule the sandinistas have been forced to extend some democratic rights negotiate with church authorities and release a few political prisoners +the focus is on the sandinistas their promises and their actions there is a consensus among the four central american democratic presidents that the sandinistas have not complied with the plan to bring peace and democracy to all of central america the sandinistas again have promised reforms their challenge is to take irreversible steps toward democracy on wednesday my request to sustain the freedom fighters will be submitted which reflects our mutual desire for peace freedom and democracy in nicaragua i ask congress to pass this request let us be for the people of nicaragua what lafayette pulaski and von steuben were for our forefathers and the cause of american independence +so too in afghanistan the freedom fighters are the key to peace we support the mujahidin there can be no settlement unless all soviet troops are removed and the afghan people are allowed genuine self determination i have made my views on this matter known to mr gorbachev but not just nicaragua or afghanistan yes everywhere we see a swelling freedom tide across the world freedom fighters rising up in cambodia and angola fighting and dying for the same democratic liberties we hold sacred their cause is our cause freedom +yet even as we work to expand world freedom we must build a safer peace and reduce the danger of nuclear war but let s have no illusions three years of steady decline in the value of our annual defense investment have increased the risk of our most basic security interests jeopardizing earlier hard won goals we must face squarely the implications of this negative trend and make adequate stable defense spending a top goal both this year and in the future +this same concern applies to economic and security assistance programs as well but the resolve of america and its nato allies has opened the way for unprecedented achievement in arms reduction our recently signed inf treaty is historic because it reduces nuclear arms and establishes the most stringent verification regime in arms control history including several forms of short notice on site inspection i submitted the treaty today and i urge the senate to give its advice and consent to ratification of this landmark agreement thank you very much +in addition to the inf treaty we re within reach of an even more significant start agreement that will reduce u s and soviet long range missile or strategic arsenals by half but let me be clear our approach is not to seek agreement for agreement s sake but to settle only for agreements that truly enhance our national security and that of our allies we will never put our security at risk or that of our allies just to reach an agreement with the soviets no agreement is better than a bad agreement +as i mentioned earlier our efforts are to give future generations what we never had a future free of nuclear terror reduction of strategic offensive arms is one step sdi another our funding request for our strategic defense initiative is less than 2 percent of the total defense budget sdi funding is money wisely appropriated and money well spent sdi has the same purpose and supports the same goals of arms reduction it reduces the risk of war and the threat of nuclear weapons to all mankind strategic defenses that threaten no one could offer the world a safer more stable basis for deterrence we must also remember that sdi is our insurance policy against a nuclear accident a chernobyl of the sky or an accidental launch or some madman who might come along +we ve seen such changes in the world in 7 years as totalitarianism struggles to avoid being overwhelmed by the forces of economic advance and the aspiration for human freedom it is the free nations that are resilient and resurgent as the global democratic revolution has put totalitarianism on the defensive we have left behind the days of retreat america is again a vigorous leader of the free world a nation that acts decisively and firmly in the furtherance of her principles and vital interests no legacy would make me more proud than leaving in place a bipartisan consensus for the cause of world freedom a consensus that prevents a paralysis of american power from ever occurring again +but my thoughts tonight go beyond this and i hope you ll let me end this evening with a personal reflection you know the world could never be quite the same again after jacob shallus a trustworthy and dependable clerk of the pennsylvania general assembly took his pen and engrossed those words about representative government in the preamble of our constitution and in a quiet but final way the course of human events was forever altered when on a ridge overlooking the emmitsburg pike in an obscure pennsylvania town called gettysburg lincoln spoke of our duty to government of and by the people and never letting it perish from the earth +at the start of this decade i suggested that we live in equally momentous times that it is up to us now to decide whether our form of government would endure and whether history still had a place of greatness for a quiet pleasant greening land called america not everything has been made perfect in 7 years nor will it be made perfect in seven times 70 years but before us this year and beyond are great prospects for the cause of peace and world freedom +it means too that the young americans i spoke of 7 years ago as well as those who might be coming along the virginia or maryland shores this night and seeing for the first time the lights of this capital city the lights that cast their glow on our great halls of government and the monuments to the memory of our great men it means those young americans will find a city of hope in a land that is free +we can be proud that for them and for us as those lights along the potomac are still seen this night signaling as they have for nearly two centuries and as we pray god they always will that another generation of americans has protected and passed on lovingly this place called america this shining city on a hill this government of by and for the people +thank you and god bless you +note the president spoke at 9 07 p m in the house chamber of the capitol he was introduced by jim wright speaker of the house of representatives the address was broadcast live on nationwide radio and television +tonight i come not to speak about the state of the government not to detail every new initiative we plan for the coming year nor describe every line in the budget i m here to speak to you and to the american people about the state of the union about our world the changes we ve seen the challenges we face and what that means for america +there are singular moments in history dates that divide all that goes before from all that comes after and many of us in this chamber have lived much of our lives in a world whose fundamental features were defined in 1945 and the events of that year decreed the shape of nations the pace of progress freedom or oppression for millions of people around the world +nineteen forty five provided the common frame of reference the compass points of the postwar era we ve relied upon to understand ourselves and that was our world until now the events of the year just ended the revolution of 89 have been a chain reaction changes so striking that it marks the beginning of a new era in the world s affairs +think back think back just twelve short months ago to the world we knew as 1989 began +one year one year ago the people of panama lived in fear under the thumb of a dictator today democracy is restored panama is free +operation just cause has achieved its objective and the number of military personel in panama is now very close to what it was before the operation began and tonight i am announcing that before the end of february the additional numbers of american troops the brave men and women of our armed forces who made this mission a success will be back home +a year ago in poland lech walesa declared he was ready to open a dialogue with the communist rulers of that country and today with the future of a free poland in their own hands members of solidarity lead the polish government +and a year ago freedom s playwright vaclav havel languished as a prisoner in prague and today it s vaclav havel president of czechoslovakia +and one year ago erich honecker of east germany claimed history as his guide he predicted the berlin wall would last another hundred years and today less than one year later it s the wall that s history +remarkable events remarkable events events that fulfill the long held hopes of the american people events that validate the longstanding goals of american policy a policy based upon a single shining principle the cause of freedom +america not just the nation but an idea alive in the minds of the people everywhere as this new world takes shape america stands at the center of a widening circle of freedom today tomorrow and into the next century +our nation is the enduring dream of every immigrant who ever set foot on these shores and the millions still struggling to be free this nation this idea called america was and always will be a new world our new world +at a workers rally in a place called branik on the outskirts of prague the idea called america is alive a worker dressed in grimy overalls rises to speak at the factory gates and he begins his speech to his fellow citizens with these words words of a distant revolution we hold these truths to be self evident that all men are created equal that they are endowed by their creator with certain unalienable rights and that among these are life liberty and the pursuit of happiness it s no secret here at home freedom s door opened long ago the cornerstones of this free society have already been set in place democracy competition opportunity private investment stewardship and of course leadership +and our challenge today is to take this democratic system of ours a system second to none and make it better +a better america where there s a job for whoever wants one +where women working outside the home can be confident their children are in safe and loving care and where government works to expand child alternatives for parents +where we reconcile the needs of a clean environment and a strong economy +where made in the usa is recognized around the world as the symbol of quality and progress +and where every one of us enjoys the same opportunities to live to work and to contribute to society and where for the first time the american mainstream includes all of our disabled citizens +where everyone has a roof over his head and where the homeless get the help they need to live in dignity +where our schools challenge and support our kids and our teachers and every one of them makes the grade +where every street every city every school and every child is drug free +and finally and finally where no american is forgotten our hearts go out to our hostages our hostages who are ceaselessly in our minds and in our efforts that s part of the future we want to see the future we can make for ourselves but dreams alone won t get us there we need to extend our horizon to commit to the long view and our mission for the future starts today +in the tough competitive markets around the world america faces the great challenges and great opportunities and we know that we can succeed in the global economic arena of the 90 s but to meet that challenge we must make some fundamental changes some crucial investments in ourselves +yes we are going to invest in america this administration is determined to encourage the creation of capital capital of all kinds physical capital everything from our farms and factories to our workshops and production lines all that is needed to produce and deliver quality goods and quality services intellectual intellectual capital the source of ideas that spark tomorrow s products and of course human capital the talented work force that we ll need to compete in the global market +and let me tell you if we ignore human capital if we lose the spirit of american ingenuity the sprit that is the hallmark of the american worker that would be bad the american worker is the most productive worker in the world +we need to save more we need to expand the pool of capital for new investments that mean more jobs and more growth and that s the idea behind the new initiative i call the family savings plan which i will send to congress tomorrow +we need to cut the tax on capital gains encourage encourage risk takers especially those in small businesses to take those steps that translate into economic reward jobs and a better life for all of us +we ll do what it takes to invest in america s future the budget commitment is there the money is there it s there for research and development r and d a record high it s there for our housing initiative hope h o p e to help everyone from first time homebuyers to the homeless the money s there to keep our kids drug free 70 percent more than when i took office in 1989 it s there for space exploration and its there for education another record high +and one more and one more thing last fall at the education summit the governors and i agreed to look for ways to help make sure that our kids are ready to learn the very first day they walk into the classroom and i ve made good on that commitment by proposing a record increase in funds an extra half billion dollars for something near and dear to all of us head start +education is the one investment that means more for our future because it means the most for our children real improvement in our schools is not simply a matter of spending more it s a matter of asking more expecting more of our schools our teachers of our kids of our parents and of ourselves and that s why tonight and that s why tonight i am announcing america s education goals goals developed with enormous cooperation from the nation s governors and if i might i d like to say i m very pleased that governor gardner and governor clinton governor branstad governor campbell all of whom were very key in these discussion these deliberations are with us here tonight +by the by the year 2000 every child must start school ready to learn the united states must increase the high school graduation rate to no less than 90 percent and we are going to make sure our schools diplomas mean something in critical subjects at the fourth eighth and 12th grades we must assess our students performance +by the by the year 2000 u s students must be the first in the world in math and science achievement every american adult must be a skilled literate worker and citizen every school must offer the kind of disciplined environment that makes it possible for our kids to learn and every school in america must be drug free +ambitious aims of course easy to do far from it but the future s at stake the nation will not accept anything less than excellence in education +these investments will help keep america competitive and i know this about the american people we welcome competition we ll match our ingenuity our energy our experience and technology our spirit and enterprise against anyone but let the competition be free but let it also be fair america is ready +since we really mean it and since we re serious about being ready to meet our challenge we re getting our own house in order we have made real progress seven years ago the federal deficit was 6 percent of our gross national product 6 percent in the new budget i sent up two days ago the deficit is down to 1 percent of gnp +that budget brings federal spending under control it meets the gramm rudman target it brings the deficit down further and balances the budget by 1993 with no new taxes +and let me tell you there s still more than enough federal spending for most of us $1 2 trillion is still a lot of money +and once the budget is balanced we can operate the way every family must when it has bills to pay we won t leave it to our children and grandchildren once it s balanced we will start paying off the national debt +and there s something more and there s something more we owe the generations of the future stewardship the safekeeping of america s precious environmental inheritance +as just one sign of how serious we are we will elevate the environmental protection agency to cabinet rank not not more bureaucracy not more red tape but the certainty that here at home and especially in our dealings with other nations environmental issues have the status they deserve +this year s budget provides over $2 billion in new spending to protect our environment with over $1 billion for global change research and a new initiative i call america the beautiful to expand our national parks and wildlife preserves and improve recreational facilities on public lands +and something else something that will help keep this country clean from our forest land to the inner cities and keep america beautiful for generations to come the money to plant a billion trees a year +and tonight and tonight let me say again to all the members of the congress the american people did not send us here to bicker there is work to do and they sent us here to get it done and once again in the spirit of cooperation i offer my hand to all of you and let s work together to do the will of the people clean air child care the educational excellence act crime and drugs it s time to act the farm bill transportation policy product liability reform enterprise zones it s time to act together +and there s one thing i hope we can agree on it s about our commitments and i m talking about social security +to every american out there on social security to every every american supporting that system today and to everyone counting on it when they retire we made a promise to you and we are going to keep it +we we rescued the system in 1983 and it s sound again bipartisan arrangement our budget fully funds today s benefits and it assures that future benefits will be funded as well and the last thing we need to do is mess around with social security +there s one more problem we need to address we must give careful consideration to the recommendations of the health care studies under way now and that s why tonight i am asking dr sullivan lou sullivan secretary of health and human services to lead a domestic policy council review of recommendations on the quality accessibility and cost of our nation s health care system i am committed to bring the staggering costs of health care under control +the state of the government does indeed depend on many of us in this very chamber but the state of the union depends on all americans we must maintain the democratic decency that makes a nation out of millions of individuals and i ve been appalled at the recent mail bombings across this country every one of us must confront and condemn racism anti semitism bigotry and hate not next week not tomorrow but right now every single one of us +the state of the union depends on whether we help our neighbor claim the problems of our community as our own we ve got to step forward when there s trouble lend a hand be what i call a point of light to a stranger in need we ve got to take the time after a busy day to sit down and read with our kids help them with their homework pass along the values we had as children and that s how we sustain the state of the union +every effort is important it all adds up it s doing the things that give democracy meaning it all adds up to who we are and who we will be +and let me say that so long as we remember the american idea so long as we live up to the american ideal the state of the union will remain sound and strong +and to those who worry that we ve lost our way well i want you to listen to parts of a letter written by james markwell pvt 1st class james markwell a 20 year old army medic to the first battalion 75th rangers it s dated dec 18 the day before our armed forces went into action in panama it s a letter servicemen write and hope will never ever be sent and sadly private markwell s mother did receive this letter she passed it on to me out there in cincinnati +and here is some of what he wrote i ve never been afraid of death but i know he is waiting at the corner i ve been trained to kill and to save and so has everyone else i am frightened of what lays beyond the fog and yet do not mourn for me revel in the life that i have died to give you but most of all don t forget that the army was my choice something that i wanted to do remember i joined the army to serve my country and inure that you are free to do what you want and to live your lives freely +let me add that private markwell was among the first to see battle in panama and among the first to fall but he knew what he believed in he carried the idea we call america in his heart +i began tonight speaking about the changes we ve seen this past year there is a new world of challenges and opportunities before us and there is a need for leadership that only america can provide +nearly 40 years ago in his last address to the congress president harry truman predicted such a time would come he said as our world grows stronger more united more attractive to men on both sides of the iron curtain then inevitably there will come a time of change within the communist world today that change is taking place +for more than 40 years america and its allies held communism in check and insured that democracy would continue to exist and today with communism crumbling our aim must be to insure democracy s advance to take the lead in forging peace and freedom s best hope a great and growing commonwealth of free nations +and to the congress and to all americans i say it is time to acclaim a new consensus at home and abroad a common vision of the peaceful world we want to see +here in our own hemisphere it is time for all the people of the americas north and south to live in freedom +in the far east and africa it s time for the full flowering of free governments and free markets that have served the engine of progress +it is time to offer our hand to the emerging democracies of eastern europe so that continent for too long a continent divided can see a future whole and free +it s time to build on our new relationship with the soviet union to endorse and encourage a peaceful process of internal change toward democracy and economic opportunity +we are in a period of great transition great hope and yet great uncertainty we recognize that the soviet military threat in europe is diminishing but we see little change in soviet strategic modernization and therefore we must sustain our own strategic offense modernization and the strategic defense initiative +but the time is right to move forward on a conventional arms control agreement to move us to more appropriate levels of military forces in europe a coherent defense program that insures the u s will continue to be a catalyst for peaceful change in europe and i ve consulted with leaders of nato in fact i spoke by phone with president gorbachev just today +and i agree with our european allies that an american military presence in europe is essential and that it should not be solely tied to the soviet military presence in eastern europe +but our troop levels can still be lower and so tonight i am announcing a major new step for a further reduction in u s and soviet manpower in central and eastern europe to 195 000 on each side +this number this number this level reflects the advice of our senior military advisers it s designed to protect american and european interests and sustain nato s defense strategy a swift conclusion to our arms control talks conventional chemical and strategic must now be our goal and that time has come +still we must recognize an unfortunate fact in many regions of the world tonight the reality is conflict not peace enduring animosities and opposing interests remain and thus the cause of peace must be served by an america strong enough and sure enough to defend our interests and our ideals it s this american idea that for the past four decades helped inspire the revolution of 89 +and here at home and in the world there is history in the making and history to be made six months ago early in this season of change i stood at the gates of the gdansk shipyard in poland at the monument to the fallen workers of solidarity it s a monument of simple majesty three tall crosses rise up from the stones and atop each cross an anchor an ancient symbol of hope +the anchor in our world today is freedom holding us steady in times of change a symbol of hope to all the world and freedom is at the very heart of the idea that is america giving life to the idea depends on every one of us our anchor has always been faith and family +in the last few days of this past monumentous year our family was blessed once more celebrating the joy of life when a little boy became our 12th grandchild when i held the little guy for the first time the troubles at home and abroad seemed manageable and totally in perspective +and now i know i know you re probably thinking well that s just a grandfather talking +well maybe you re right but i ve met a lot of children this past year across this country as all of you have everywhere from the far east to eastern europe all kids are unique yet all kids are alike the budding young environmentalist i met this month who joined me in exploring the florida everglades the little leaguers i played catch with in poland ready to go from warsaw to the world series and even the kids who are ill or alone and god bless those boarder babies born addicted to drugs and aids coping with problems no child should have to face but you know when it comes to hope and the future every kid is the same full of dreams ready to take on the world all special because they are the very future of freedom and to them belongs this new world i ve been speaking about +and so tonight i m going to ask something of every one of you now let me start with my generation with the grandparents out there you are our living link with the past tell your grandchildren the story of struggles waged at home and abroad of sacrifices freely made for freedom s sake and tell them your own story as well because every american has a story to tell +and parents your children look to you for direction and guidance tell them of faith and family tell them we are one nation under god teach them that of all the many gifts they can receive liberty is their most precious legacy and of all the gifts they can give the greatest the greatest is helping others +and to the children and young people out there tonight with you rests our hope all that america will mean in the years and decades ahead fix your vision on a new century your century on dreams we cannot see on the destiny that is yours and yours alone +and finally let all americans all of us here in this chamber the symbolic center of democracy affirm our allegiance to this idea we call america and let us remember that the state of the union depends upon each and every one of us +god bless all of you and may god bless this great nation the united states of america +mr president mr speaker members of the united states congress +i come to this house of the people to speak to you and all americans certain we stand at a defining hour +halfway around the world we are engaged in a great struggle in the skies and on the seas and sands we know why we re there we are americans part of something larger than ourselves +for two centuries we ve done the hard work of freedom and tonight we lead the world in facing down a threat to decency and humanity +what is at stake is more than one small country it is a big idea a new world order where diverse nations are drawn together in common cause to achieve the universal aspirations of mankind peace and security freedom and the rule of law such is a world worthy of our struggle and worthy of our children s future +the community of nations has resolutely gathered to condemn and repel lawless aggression saddam hussein s unprovoked invasion his ruthless systematic rape of a peaceful neighbor violated everything the community of nations holds dear the world has said this aggression would not stand and it will not stand +together we have resisted the trap of appeasement cynicism and isolation that gives temptation to tyrants the world has answered saddam s invasion with 12 united nations resolutions starting with a demand for iraq s immediate and unconditional withdrawal and backed up by forces from 28 countries of six continents with few exceptions the world now stands as one +the end of the cold war has been a victory for all humanity a year and a half ago in germany i said our goal was a europe whole and free tonight germany is united europe has become whole and free and america s leadership was instrumental in making it possible +the principle that has guided us is simple our objective is to help the baltic peoples achieve their aspirations not to punish the soviet union in our recent discussions with the soviet leadership we have been given representations which if fulfilled would result in the withdrawal of some soviet forces a re opening of dialogue with the republics and a move away from violence +we will watch carefully as the situation develops and we will maintain our contact with the soviet leadership to encourage continued commitment to democratization and reform +if it is possible i want to continue to build a lasting basis for u s soviet cooperation for a more peaceful future for all mankind +the triumph of democratic ideas in eastern europe and latin america and the continuing struggle for freedom elsewhere around the world all confirm the wisdom of our nation s founders +tonight we work to achieve another victory a victory over tyranny and savage aggression +we in this union enter the last decade of the 20th century thankful for all our blessings steadfast in our purpose aware of our difficulties and responsive to our duties at home and around the world +for two centuries america has served the world as an inspiring example of freedom and democracy for generations america has led the struggle to preserve and extend the blessings of liberty and today in a rapidly changing world american leadership is indispensable americans know that leadership brings burdens and requires sacrifice +but we also know why the hopes of humanity turn to us we are americans we have a unique responsibility to do the hard work of freedom and when we do freedom works +the conviction and courage we see in the persian gulf today is simply the american character in action the indomitable spirit that is contributing to this victory for world peace and justice is the same spirit that gives us the power and the potential to meet our challenges at home +we are resolute and resourceful if we can selflessly confront evil for the sake of good in a land so far away then surely we can make this land all it should be +if anyone tells you america s best days are behind her they re looking the wrong way +tonight i come before this house and the american people with an appeal for renewal this is not merely a call for new government initiatives it is a call for new initiative in government in our communities and from every american to prepare for the next american century +america has always led by example so who among us will set this example which of our citizens will lead us in this next american century everyone who steps forward today to get one addict off drugs to convince one troubled teen ager not to give up on life to comfort one aids patient to help one hungry child +we have within our reach the promise of renewed america we can find meaning and reward by serving some purpose higher than ourselves a shining purpose the illumination of a thousand points of light it is expressed by all who know the irresistible force of a child s hand of a friend who stands by you and stays there a volunteer s generous gesture an idea that is simply right +the problems before us may be different but the key to solving them remains the same it is the individual the individual who steps forward and the state of our union is the union of each of us one to the other the sum of our friendships marriages families and communities +we all have something to give so if you know how to read find someone who can t if you ve got a hammer find a nail if you re not hungry not lonely not in trouble seek out someone who is +join the community of conscience do the hard work of freedom that will define the state of our union +since the birth of our nation we the people has been the source of our strength what government can do alone is limited but the potential of the american people knows no limits +we are a nation of rock solid realism and clear eyed idealism we are americans we are the nation that believes in the future we are the nation that can shape the future +and we ve begun to do just that by strengthening the power and choice of individuals and families +together these last two years we ve put dollars for child care directly in the hands of patients instead of bureaucracies unshackled the potential of americans with disabilities applied the creativity of the marketplace in the service of the environment for clean air and made homeownership possible for more americans +the strength of a democracy is not in bureaucracy it is in the people and their communities in everything we do let us unleash the potential of our most precious resource our citizens we must return to families communities counties cities states and institutions of every kind the power to chart their own destiny and the freedom and opportunity provided by strong economic growth that s what america is all about +i know tonight in some regions of our country people are in genuine economic distress i hear them +earlier this month kathy blackwell of massachusetts wrote me about what can happen when the economy slows down saying my heart is aching and i think that you should know your people out here are hurting badly +i understand and i m not unrealistic about the future but there are reasons to be optimistic about our economy +first we don t have to fight double digit inflation second most industries won t have to make big cuts in production because they don t have big inventories piled up and third our exports are running solid and strong in fact american businesses are exporting at a record rate +so let s put these times in perspective together since 1981 we ve created almost 20 million jobs cut inflation in half and cut interest rates in half +yes the largest peacetime economic expansion in history has been temporarily interrupted but our economy is still over twice as large as our closest competitor +we will get this recession behind us and return to growth soon we will get on our way to a new record of expansion and achieve the competitive strength that will carry us into the next american century +we should focus our efforts today on encouraging economic growth investing in the future and giving power and opportunity to the individual +we must begin with control of federal spending that s why i m submitting a budget that holds the growth in spending to less than the rate of inflation and that s why amid all the sound and fury of last year s budget debate we put into law new enforceable spending caps so that future spending debates will mean a battle of ideas not a bidding war +though controversial the budget agreement finally put the federal government on a pay as you go basis and cut the growth of debt by nearly $500 billion and that frees funds for saving and job creating investment +now let s do more my budget again includes tax free family savings accounts penalty free withdrawals from i r a s for first time homebuyers and to increase jobs and growth a reduced tax for long term capital gains +i know their are differences among us about the impact and the effects of a capital gains incentive so tonight i am asking the congressional leaders and the federal reserve to cooperate with us in a study led by chairman alan greenspan to sort out our technical differences so that we can avoid a return to unproductive partisan bickering +but just as our efforts will bring economic growth now and in the future they must also be matched by long term investments for the next american century +that requires a forward looking plan of action and that s exactly what we will be sending to the congress we have prepared a detailed series of proposals that include a budget that promotes investment in america s future in children education infrastructure space and high technology legislation to achieve excellence in education building on the partnership forged with the 50 governors at the education summit enabling parents to choose their children s schools and helping to make america no 1 in math and science a blueprint for a new national highway system a critical investment in our transportation infrastructure a research and development agenda that includes record levels of federal investment and a permanent tax credit to strengthen private r and d and create jobs a comprehensive national energy strategy that calls for energy conservation and efficiency increased development and greater use of alternative fuels a banking reform plan to bring america s financial system into the 21st century so that our banks remain safe and secure and can continue to make job creating loans for our factories businesses and homebuyers i do think there has been too much pessimism sound banks should be making more sound loans now and interest rates should be lower now in addition to these proposals we must recognize that our economic strength depends upon being competitive in world markets we must continue to expand america s exports a successful uruguay round of world trade negotiations will create more real jobs and more real growth for all nations you and i know that if the playing field is level america s workers and farmers can outwork and outproduce anyone anytime anywhere +and with the mexican free trade agreement and our enterprise for the americas initiative we can help our partners strengthen their economies and move toward a free trade zone throughout this entire hemisphere +the budget also includes a plan of action right here at home to put more power and opportunity in the hands of the individual that means new incentives to create jobs in our inner cities by encouraging investment through enterprise zones it also means tenant control and ownership of public housing freedom and the power to choose should not be the privilege of wealth they are the birthright of every american +civil rights are also crucial to protecting equal opportunity every one of us has a responsibility to speak out against racism bigotry and hate we will continue our vigorous enforcement of existing statutes and i will once again press the congress to strengthen the laws against employment discrimination without resorting to the use of unfair preferences +we re determined to protect another fundamental civil right freedom from crime and the fear that stalks our cities the attorney general will soon convene a crime summit of the nation s law enforcement officials and to help us support them we need a tough crime control legislation and we need it now +as we fight crime we will fully implement our nation strategy for combatting drug abuse recent data show we are making progress but much remains to be done we will not rest until the day of the dealer is over forever +good health care is every american s right and every american s responsibility so we are proposing an aggression program of new prevention initiatives for infants for children for adults and for the elderly to promote a healthier america and to help keep costs from spiraling +it s time to give people more choice in government by reviving the ideal of the citizen politician who comes not to stay but to serve one of the reasons there is so much support for term limitations is that the american people are increasingly concerned about big money influence in politics we must look beyond the next election to the next generation the time has come to put the national interest ahead of the special interest and totally eliminate political action committees +that would truly put more competition in elections and more power in the hands of individuals and where power cannot be put directly into the hands of the individual it should be moved closer to the people away from washington +the federal government too often treats government programs as if they are of washington by washington and for washington once established federal programs seem to become immortal +it s time for a more dynamic program life cycle some programs should increase some should decrease some should be terminated and some should be consolidated and turned over to the states +my budget includes a list of programs for potential turnover totaling more than $20 billion working with congress and the governors i propose we select at least $15 billion in such programs and turn them over to the states in a single consolidated grant fully funded for flexible management by the states +the value of this turnover approach is straightforward it allows the federal government to reduce overhead it allows states to manage more flexibly and more efficiently it moves power and decision making closer to the people and it re enforces a theme of this administration appreciation and encouragement of the innovative power of states as laboratories +this nation was founded by leaders who understood that power belongs in the hands of the people they planned for the future and so must we here and around the world +as americans we know there are times when we must step forward and accept our responsibility to lead the world away from the dark chaos of dictators toward the bright promise of a better day +almost 50 years ago we began a long struggle against aggressive totalitarianism now we face another defining hour for america and the world +there is no one more devoted more committed to the hard work of freedom than every soldier and sailor every marine airman and coastguardsman every man and every woman now serving in the persian gulf +each of them has volunteered to provide for this nation s defense and now they bravely struggle to earn for america and for the world and for future generations a just and lasting peace +our commitment to them must be equal of their commitment to our country they are truly america s finest +the war in the gulf is not a war we wanted we worked hard to avoid war for more than five months we along with the arab league the european community and the united nations tried every diplomatic avenue u n secretary general perez de cuellar presidents gorbachev mitterand ozal mubarak and bendjedid kings fahd and hassan prime ministers major and andreotti just to name a few all worked for a solution but time and again saddam hussein flatly rejected the path of diplomacy and peace +the world well knows how this conflict began and when it began on august 2nd when saddam invaded and sacked a small defenseless neighbor and i am certain of how it will end so that peace can prevail we will prevail +tonight i m pleased to report that we are on course iraq s capacity to sustain war is being destroyed our investment our training our planning all are paying off time will not be saddam s salvation +our purpose in the persian gulf remains constant to drive iraq out from kuwait to restore kuwait s legitimate government and to insure the stability and security of this critical region +let me make clear what i mean by the region s stability and security we do not seek the destruction of iraq its culture or its people rather we seek an iraq that uses its great resources not to destroy not to serve the ambitions of a tyrant but to build a better life for itself and its neighbors we seek a persian gulf where conflict is no longer the rule where the strong are neither tempted nor able to intimidate the weak +most americans know instinctively why we are in the gulf they know we had to stop saddam now not later they know this brutal dictator will do anything will use any weapon will commit any outrage no matter how many innocents must suffer +they know we must make sure that control of the world s oil resources does not fall into his hands only to finance further aggression they know that we need to build a new enduring peace based not on arms races and confrontation but on shared principles and the rule of law +and we all realize that our responsibility to be the catalyst for peace in the region does not end with the successful conclusion of this war +democracy brings the undeniable value of thoughtful dissent and we have heard some dissenting voices here at home some reckless most responsible but the fact the all the voices have the right to speak out is one of the reasons we ve been united in principle and purpose for 200 years +our progress in this great struggle is the result of years of vigilance and a steadfast commitment to a strong defense now with remarkable technological advances like the patriot missile we can defend the ballistic missile attacks aimed at innocent civilians +looking forward i have directed that the s d i program be refocused on providing protection from limited ballistic missile strikes whatever their source let us pursue an s d i program that can deal with any future threat to the united states to our forces overseas and to our friends and allies +the quality of american technology thanks to the american worker has enabled us to successfully deal with difficult military conditions and help minimize the loss of life we have given our men and women the very best and they deserve it +we all have a special place in our hearts for the families of men and women serving in the gulf they are represented here tonight by mrs norman schwarzkopf and to all those serving with him and to the families let me say our forces in the gulf will not stay there one day longer than is necessary to complete their mission +the courage and success of the r a f pilots of the kuwaiti saudi french canadians italians the pilots of qatar and bahrain all are proof that for the first time since world war ii the international community is united the leadership of the united nations once only a hoped for ideal is now confirming its founders vision +i am heartened that we are not being asked to bear alone the financial burden of this struggle last year our friends and allies provided the bulk of the economic costs of desert shield and having now received commitments of over $40 billion for the first three months of 1991 i am confident they will do no less as we move through desert storm +but the world has to wonder what the dictator of iraq is thinking if he thinks that by targeting innocent civilians in israel and saudi arabia that he will gain an advantage he is dead wrong if he thinks that he will advance his cause through tragic and despicable environmental terrorism he is dead wrong and if he thinks that by abusing coalition p o w s he will benefit he is dead wrong +we will succeed in the gulf and when we do the world community will have sent an enduring warning to any dictator or despot present or future who contemplates outlaw aggression +the world can therefore seize this opportunity to fulfill the long held promise of a new world order where brutality will go unrewarded and aggression will meet collective resistance +yes the united states bears a major share of leadership in this effort among the nations of the world only the united states of america has had both the moral standing and the means to back it up we are the only nation on this earth that could assemble the forces of peace +this is the burden of leadership and the strength that has made america the beacon of freedom in a searching world +this nation has never found glory in war our people have never wanted to abandon the blessings of home and work for distant lands and deadly conflict if we fight in anger it is only because we have to fight at all and all of us yearn for a world where we will never have to fight again +each of us will measure within ourselves the value of this great struggle any cost in lives is beyond our power to measure but the cost of closing our eyes to aggression is beyond mankind s power to imagine +this we do know our cause is just our cause is moral our cause is right +let future generations understand the burden and the blessings of freedom let them say we stood where duty required us to stand +let them know that together we affirmed america and the world as a community of conscience +the winds of change are with us now the forces of freedom are united we move toward the next century more confident than ever that we have the will at home and abroad to do what must be done the hard work of freedom +may god bless the united states of america +mr speaker mr president distinguished members of congress honored guests and fellow citizens +i mean to speak tonight of big things of big changes and the promises they hold and of some big problems and how together we can solve them and move our country forward as the undisputed leader of the age +we gather tonight at a dramatic and deeply promising time in our history and in the history of man on earth for in the past 12 months the world has known changes of almost biblical proportions and even now months after the failed coup that doomed a failed system i am not sure we have absorbed the full impact the full import of what happened +but communism died this year even as president with the most fascinating possible vantage point there were times when i was so busy helping to manage progress and lead change that i didn t always show the joy that was in my heart but the biggest thing that has happened in the world in my life in our lives is this by the grace of god america won the cold war and there s another to be singled out though it may seem inelegant i mean a mass of people called the american taxpayer no ever thinks to thank the people who pay country s bill or an alliance s bill but for a half century now the american people have shouldered the burden and paid taxes that were higher than they would have been to support a defense that was bigger than it would have been if imperial communism had never existed but it did but it doesn t anymore and here is a fact i wouldn t mind the world acknowledging the american taxpayer bore the brunt of the burden and deserves a hunk of the glory +and so now for the first time in 35 years our strategic bombers stand down no longer are they on round the clock alert tomorrow our children will go to school and study history and how plants grow and they won t have as my children did air raid drills in which they crawl under their desks and cover their heads in case of nuclear war my grandchildren don t have to do that and won t have the bad dreams children once had in decades past there are still threats but the long drawn out dread is over +a year ago tonight i spoke to you at a moment of high peril american forces had just unleashed operation desert storm and after 40 days in the desert skies and 4 days on the ground the men and women of america s armed forces and our allies accomplished the goals that i declared and that you endorsed we liberated kuwait +soon after the arab world and israel sat down to talk seriously and comprehensively about peace an historic first and soon after that at christmas the last american hostages came home our policies were vindicated +much good can come from the prudent use of power and much good can come from this a world once divided into two armed camps now recognizes one sole and pre eminent power the united states of america and this they regard with no dread for the world trusts us with power and the world is right they trust us to be fair and restrained they trust us to be on the side of decency they trust us to do what s right +i use those words advisedly a few days after the war began i received a telegram from joanne speicher the wife of the first pilot killed in the gulf lieutenant commander scott speicher even in her grief she wanted me to know that some day when her children were old enough she would tell them that their father went away to war because it was the right thing to do she said it all it was the right thing to do +and we did it together there were honest differences here in this chamber but when the war began you put your partisanship aside and supported our troops this is still a time for pride but this is no time to boast for problems face us and we must stand together once again and solve them and not let our country down +two years ago i began planning cuts in military spending that reflected the changes of the new era but now this year with imperial communism gone that process can be accelerated tonight i can tell you of dramatic changes in our strategic nuclear force these are actions we are taking on our own because they are the right thing to do +after completing 20 planes for which we have begun procurement we will shut down production of the b 2 bomber we will cancel the icbm program we will cease production of new warheads for our sea based missiles we will stop all production of the peacekeeper missile and we will not purchase any more advanced cruise missiles +this weekend i will meet at camp david with boris yeltsin of the russian federation i have informed president yeltsin that if the commonwealth the former soviet union will eliminate all land based multiple warhead ballistic missiles i will do the following we will eliminate all peacekeeper missiles we will reduce the number of warheads on minuteman missiles to one and reduce the number of warheads on our sea based missiles by about one third and we will convert a substantial portion of our strategic to primarily conventional use +president yeltsin s early response has been very positive and i expect our talks at camp david to be fruitful i want you to know that for half a century american presidents have longed to make such decisions and say such words but even in the midst of celebration we must keep caution as a friend for the world is still a dangerous place only the dead have seen the end of conflict and though yesterday s challenges are behind us tomorrow s are being born +the secretary of defense recommended these cuts after consultation with the joint chiefs of staff and i make them with confidence but do not misunderstand me the reductions i have approved will save us an additional $50 billion over the next five years by 1997 we will have cut defense by 30 percent since i took office these cuts are deep and you must know my resolve this deep and no deeper to do less would be insensible to progress but to do more would be ignorant of history we must not go back to the days of the hollow army we cannot repeat the mistakes made twice in this century when armistice was followed by recklessness and defense was purged as if the world was permanently safe +i remind you this evening that i have asked for your support in funding a program to protect our country from limited nuclear missile attack we must have this protection because too many people in too many countries have access to nuclear arms there are those who say that now we can turn away from the world that we have no special role no special place but we are the united states of america the leader of the west that has become the leader of the world +as long as i am president we will continue to lead in support of freedom everywhere not out of arrogance and not out of altruism but for the safety and security of our children this is a fact strength in the pursuit of peace is no vice isolationism in the pursuit of security is no virtue +now to our troubles at home they are not all economic but the primary problem is our economy there are some good signs inflation that thief is down and interest rates are down but unemployment is too high some industries are in trouble and growth is not what it should be let me tell you right from the start and right from the heart i know we re in hard times but i know something else this will not stand +my friends in this chamber we can bring the same courage and sense of common purpose to the economy that we brought to desert storm and we can defeat hard times together i believe you will help one reason is that you re patriots and you want the best for your country and i believe that in your hearts you want to put partisanship aside and get the job done because it s the right thing to do +the power of america rests in a stirring but simple idea that people will do great things if only you set them free well we re going to have to set the economy free for if this age of miracles and wonders has taught us anything it s that if we can change the world we can change america +we must encourage investment we must make it easier for people to invest money and make new products new industries and new jobs we must clear away obstacles to new growth high taxes high regulation red tape and yes wasteful government spending none of this will happen with a snap of the fingers but it will happen and the test of a plan isn t whether it s called new or dazzling the american people aren t impressed by gimmicks they re smarter on this score than all of us in this room the only test of a plan is it is sound and will it work we must have a short term plan to address our immediate needs and heat up the economy and then we need a long term plan to keep the combustion going and to guarantee our place in the world economy +there are certain things that a president can do without congress and i am going to do them i have this evening asked major cabinet departments and federal agencies to institute a 90 day moratorium on any new federal regulations that could hinder growth in those 90 days major departments and agencies will carry out a top to bottom review of all regulations old and new to stop the ones that will hurt growth and speed up those that will help growth +further for the untold number of hard working responsible american workers and businessmen and women who ve been forced to go without needed bank loans the banking credit crunch must end i won t neglect my responsibility for sound regulations that serve the public good but regulatory overkill must be stopped and i have instructed our government regulators to stop it +i have directed cabinet departments and federal agencies to speed up pro growth expenditures as quickly as possible this should put an extra $10 billion into the economy in the next six months and our new transportation bill provides more than $150 billion for construction and maintenance projects that are vital to our growth and well being that means jobs building roads jobs building bridges and jobs building railways and i have this evening directed the secretary of the treasury to change the federal tax withholding tables with this change millions of americans from whom the government withholds more than necessary can now choose to have the government withhold less from their paychecks something tells me a number of taxpayers may take us up on this one this initiative could return about $25 billion back into the economy over the next 12 months money people can use to help pay for clothing college or a new car and finally working with the federal reserve we will continue to support monetary policy that keeps both interest rates and inflation down +now these are the things that i can do and now members of congress let me tell you what you can do for your country you must you must pass the other elements of my plan to meet our economic needs everyone knows investment speeds recovery and i am proposing this evening a change in the alternative minimum tax and the creation of a new 15 investment tax allowance this will encourage businesses to accelerate investment and bring people back to work real estate has led our economy out of almost all the tough times we ve ever had once building starts carpenters and plumbers work people buy homes and take out mortgages +my plan would modify the passive loss rule for active real estate developers and it would make it easier for pension plans to purchase real estate for those americans who dream of buying a first home but who can t quite afford it my plan would allow first time home buyers to withdraw savings from iras without penalty and provide a $5000 tax credit for the first purchase of that home +and finally my immediate plan calls on congress to give crucial help to people who own a home to every one who has a business a farm or a single investment +this time at this hour i cannot take no for an answer you must cut the capital gains tax on the people of this country never has an issue been so demagogued by its opponents but the demagogues are wrong they are wrong and they know it sixty percent of people who benefit from lower capital gains have incomes under $50 000 a cut in the capital gains tax increases jobs and helps just about everyone in our country and so i m asking you to cut the capital gains tax to a maximum of 15 4 and i ll tell you i ll tell you those of you who say oh no someone who s comfortable may benefit from this you kind of remind me of the old definition of the puritan who couldn t sleep at night worrying that somehow someone somewhere was out having a good time +the opponents of this measure and those who ve authored various so called soak the rich bills that are floating around this chamber should be reminded of something when they aim at the big guy they usually hit the little guy and maybe it s time that stopped +this then is my short term plan your part members of congress requires enactment of these common sense proposals that will have a strong effect on the economy without breaking the budget agreement and without raising tax rates and while my plan is being passed and kicking in we ve got to care for those in trouble today i have provided for up to $4 4 billion in my budget to extend federal unemployment benefits and i ask for congressional action right away and i thank the committee well at last and let s be frank let s be frank let me level with you +i know and you know that my plan is unveiled in a political season i know and you know that everything i propose will be viewed by some in merely partisan terms but i ask you to know what is in my heart and my aim is to increase our nation s good and i m doing what i think is right i m proposing what i know will help i pride myself that i m a prudent man and i believe that patience is a virtue but i understand politics is for some a game and that sometimes the game is to stop all progress and then decry the lack of improvement but let me tell you let me tell you far more important than my political future and far more important than yours is the well being of our country and members of this chamber members of this chamber are practical people and i know you won t resent some practical advice when people put their party s fortunes whatever the party whatever the side of this aisle before the public good they court defeat not only for their country but for themselves and they will certainly deserve it +and i submit my plan tomorrow and i am asking you to pass it by march 20 from the day after that if it must be the battle is joined and you know when principle is at stake i relish a good fair fight +i said my plan has two parts and it does and it s the second part that is the heart of the matter for it s not enough to get an immediate burst we need long term improvement in our economic position we all know that the key to our economic future is to insure that america continues as the economic leader of the world we have that in our power here then is my long term plan to guarantee our future +first trade we will work to break down the walls that stop world trade we will work to open markets everywhere and in our major trade negotiations i will continue pushing to eliminate tariffs and subsidies that damage america s farmers and workers and we ll get more good american jobs within our own hemisphere through the north american free trade agreement and through the enterprise for the americas initiative but changes are here and more are coming the work place of the future will demand more highly skilled workers than ever people who are computer literate highly educated +and we must be the world s leader in education and we must revolutionize america s schools my america 2000 strategy will help us reach that goal my plan will give parents more choice give teachers more flexibility and help communities create new american schools thirty states across the nation have established america 2000 programs hundreds of cities and towns have joined now congress must join this great movement pass my proposals for new american schools +that was my second long term proposal and here s my third we must make common sense investments that will help us compete long term in the marketplace we must encourage research and development my plan is to make the r and d tax credit permanent and to provide record levels of support over $76 billion this year alone for people who explore the promise of emerging technologies +and fourth we must do something about crime and drugs and it is time for a major renewed investment in fighting violent street crime its saps our strength and hurts our faith in our society and in our future together surely a tired woman on her way to work at six in the morning on a subway deserves the right to get there safely and surely it s true that everyone who changes his or her way of life because of crime from those afraid to go our at night to those afraid to walk in the parks they pay for surely those people have been denied a basic civil right it is time to restore it congress pass my comprehensive crime bill it is tough on criminals and supportive of police and it has been languishing in these hallowed halls for years now pass it help your country +and fifth i ask you tonight to fund our hope housing proposal and to pass my enterprise zone legislation which will get businesses into the inner city we must empower the poor with the pride that comes from owning a home getting a job becoming part of things my plan would encourage real estate construction by extending tax incentives for mortgage revenue bonds and low income housing and i ask tonight for record expenditures for the program that helps children born into want move into excellence head start +step six we must reform our health care system for this too bears on whether or not we can compete in the world american health costs have been exploding this year america will spend over $800 billion on health and that is expected to grow to $1 6 trillion by the end of the decade we simply cannot afford this the cost of health care shows up not only in your family budget but in the price of everything we buy and everything we sell when health coverage for a fellow on the assembly line costs thousands of dollars the cost goes into the product he makes and you pay the bill now we must make a choice +now some pretend we can have it both ways they call it play or pay but that expensive approach is unstable it will mean higher taxes fewer jobs and eventually a system under complete government control really there are only two options and we can move toward a nationalized system a system which will restrict patient choice in picking a doctor and force the government to ration services arbitrarily and what we ll get is patients in long lines indifferent service and a huge new tax burden or we can reform our own private health care system which still gives us for all its flaws the best quality health care in the world well let s build on our strengths +my plan provides insurance security for all americans while preserving and increasing the idea of choice we make basic health insurance affordable for all low income people not now covered we do it by providing a health insurance tax credit of up to $3750 for each low income family the middle class gets help too and by reforming the health insurance market my plan assures that americans will have access to basic health insurance even if they change jobs or develop serious health problem we must bring costs under control preserve quality preserve choice and reduce people s nagging daily worry about health insurance my plan the details of which i will announce shortly does just that +and seventh we must get the federal deficit under control we now have in law enforcable spending caps and a requirement that we pay for the programs we create there are those in congress who would ease that discipline now but i cannot let them do it and i won t my plan would freeze all domestic discretionary budget authority which means no more next year than this year i will not tamper with social security but i would put real caps on the growth of uncontrolled spending and i would also freeze federal domestic government employment and with the help of congress my plan will get rid of 246 programs that don t deserve federal funding some of them have noble titles but none of them is indispensible we can get rid of each and every one of them +you know it s time we rediscovered a home truth the american people have never forgotten the government is too big and spends too much and i call on congress to adopt a measure that will help put an end to the annual ritual of filling the budget with pork barrel appropriations every year the press has a field day making fun of outrageous examples a lawrence welk museum a research grant for belgian endive we all know how these things get into the budget and maybe you need someone to help you say no i know how to say it and you know what i need to make it stick give me the same thing 43 governors have the line item veto and let me help you control spending +we must put an end to unfinanced government mandates these are the requirements congress puts on our cities counties and states without supplying the money and if congress passes a mandate it should be forced to pay for it and balance the cost with savings elsewhere after all a mandate just increases someone else s tax burden and that means higher taxes at the state and local level +step eight congress should enact the bold reform proposals that are still awaiting congressional action bank reform civil justice reform tort reform and my national energy strategy +and finally we must strengthen the family because it is the family that has the greatest bearing on our future when barbara holds an aids baby in her arms and reads to children she s saying to every person in this country family matters +and i am announcing tonight a new commission on america s urban families i ve asked missouri s governor john ashcroft to be chairman former dallas mayor annetter strauss to be co chair you know i had mayors the leading mayors from the league of cities in the other day at the white house and they told me something striking they said that every one of them republican and democrat agreed on one thing that the major cause of the problems of the cities is the dissolution of the family and they asked for this commission and they were right to ask because it s time to determine what we can do to keep families together strong and sound +there s one thing we can do right away ease the burden of rearing a child i ask you tonight to raise the personal exemption by $500 per child for every family for a family with four kids that s an increase of $2000 this is a good start in the right direction and it s what we can afford it s time to allow families to deduct the interest they pay on student loans and i m asking you to do just that and i m asking you to allow people to use money from their iras to pay medical and educational expenses all without penalties and i m asking for more ask american parents what they dislike about how things are going in our country and chances are good that pretty soon they ll get to welfare +americans are the most generous people on earth but we have to go back to the insight of franklin roosevelt who when he spoke of what became the welfare program want that it must not become a narcotic and a subtle destroyer of the spirit welfare was never meant to be a life style it was never meant to be a habit it was never supposed to be passed on from generation to generation like a legacy it s time to replace the assumptions of the welfare state and help reform the welfare system +states throughout the country are beginning to operate with new assumptions that when able bodied people receive government assistance they have responsibilities to the taxpayer a responsibility to seek work education or job training a responsibility to get their lives in order a responsibility to hold their families together and refrain from having children out of wedlock and a responsibility to obey the law we are going to help this movement often state reform requires waiving certain federal regulations i will act to make that process easier and quicker for every state that asks our help and i want to add as we make these changes we work together to improve this system that our intention is not scapegoating and finger pointing if you read the papers or watch tv you know there s been a rise these days in a certain kind of ugliness racist comments anti semitism an increased sense of division really this is not us this is not who we are and this is not acceptable +and so you have my plan for america and i am asking for big things but i believe in my heart you will do what s right +and you know it s kind of an american tradition to show a certain skepticism toward our democratic institutions i myself have sometimes thought the aging process could be delayed if it had to make its way through congress but you will deliberate and you will discuss and that is fine but my friends the people cannot wait they need help now and there s a mood among us people are worried there has been talk of decline someone even said our workers are lazy and uninspired and i thought really go tell neil armstrong standing on the moon tell the american farmer who feeds his country and the world tell the men and women of desert storm moods come and go but greatness endures our does +and maybe for a moment it s good to remember what in the dailyness of our lives we forget we are still and ever the freest nation on earth the kindest nation on earth the strongest nation on earth and we have always risen to the occasion and we are going to lift this nation out of hard times inch by inch and day by day and those who would stop us better step aside because i look at hard times and i make this vow this will not stand and so we move on together a rising nation the once and future miracle that is still this night the hope of the world +mr speaker mr president members of the 103rd congress my fellow americans +i am not sure what speech is in the teleprompter tonight but i hope we can talk about the state of the union +i ask you to begin by recalling the memory of the giant who presided over this chamber with such force and grace tip o neill liked to call himself a man of the house and he surely was that but even more he was a man of the people a bricklayer s son who helped to build the great american middle class tip o neill never forgot who he was where he came from or who sent him here tonight he s smiling down on us for the first time from the lord s gallery but in his honor may we too also remember who we are where we come from and who sent us here +if we do that we will return over and over again to the principle that if we simply give ordinary people equal opportunity quality education and a fair shot at the american dream they will do extraordinary things +we gather tonight in a world of changes so profound and rapid that all nations are tested our american heritage has always been to master such change to use it to expand opportunity at home and our leadership abroad but for too long and in too many ways that heritage was abandoned and our country drifted +for 30 years family life in america has been breaking down for 20 years the wages of working people have been stagnant or declining for the 12 years of trickle down economics we built a false prosperity on a hollow base as our national debt quadrupled from 1989 to 1992 we experienced the slowest growth in a half century for too many families even when both parents were working the american dream has been slipping away +in 1992 the american people demanded that we change i year ago i asked all of you to join me in accepting responsibility for the future of our country +well we did we replaced drift and deadlock with renewal and reform and i want to thank every one of you here who heard the american people who broke gridlock who gave them the most successful teamwork between a president and a congress in 30 years +accomplishments +this congress produced a budget that cut the deficit by half a trillion dollars cut spending and raised income taxes on only the wealthiest americans this congress produced tax relief for millions of low income workers to reward work over welfare it produced nafta it produced the brady bill now the brady law +and thank you jim brady for being here and god bless you sarah this congress produced tax cuts to reduce the taxes of nine out of 10 small businesses who use the money to invest more and create more jobs it produced more research and treatment for aids more childhood immunizations more support for women s health research more affordable college loans for the middle class a new national service program for those who want to give something back to their country and their communities for higher education a dramatic increase in high tech investments to move us from a defense to a domestic high tech economy this congress produced a new law the motor voter bill to help millions of people register to vote it produced family and medical leave all passed all signed into law with not one single veto +these accomplishments were all commitments i made when i sought this office and in fairness they all had to be passed by you in this congress but i am persuaded that the real credit belongs to the people who sent us here who pay our salaries who hold our feet to the fire but what we do here is really beginning to change lives let me just give you one example +family and medical leave +i will never forget what the family and medical leave law meant to just one father i met early one sunday morning in the white house it was unusual to see a family there touring early sunday morning but he had his wife and his three children there one of them in a wheelchair and i came up and after we had our picture taken and had a little visit i was walking off and that man grabbed me by the arm and he said mr president let me tell you something my little girl here is desperately ill she s probably not going to make it but because of the family leave law i was able to take time off to spend with her the most important i ever spent in my life without losing my job and hurting the rest of my family it means more to me than i will ever be able to say don t you people up here ever think what you do doesn t make a difference it does +though we are making a difference our work has just begun many americans still haven t felt the impact of what we ve done the recovery still hasn t touched every community or created enough jobs incomes are still stagnant there s still too much violence and not enough hope in too many places +abroad the young democracies we are strongly supporting still face very difficult times and look to us for leadership +and so tonight let us resolve to continue the journey of renewal to create more and better jobs to guarantee health security for all to reward welfare work over welfare to promote democracy abroad and to begin to reclaim our streets from violent crime and drugs and gangs to renew our own american community +deficit reduction +last year we began to put our house in order by tackling the budget deficit that was driving us toward bankruptcy we cut $255 billion in spending including entitlements in over 340 separate budget items we froze domestic spending and used honest budget numbers +led by the vice president we ve launched a campaign to reinvent government we ve cut staff cut perks even trimmed the fleet of federal limousines after years of leaders whose rhetoric attacked bureaucracy but whose actions expanded it we will actually reduce it by 252 000 people over the next five years by the time we have finished the federal bureaucracy will be at its lowest point in 30 years +because the deficit was so large and because they benefited from tax cuts in the 1980s we did ask the wealthiest americans to pay more to reduce the deficit so on april the 15th the american people will discover the truth about what we did last year on taxes only the top one the top 1 2 percent of americans as i said all along will face higher income tax rates let me repeat only the wealthiest 1 2 percent of americans will face higher income tax rates and no one else will and that is the truth of course there were as there always are in politics naysayers who said this plan wouldn t work but they were wrong when i became president the experts predicted that next year s deficit would be $300 billion but because we acted those same people now say the deficit s going to be under $180 billion 40 percent lower than was previously predicted +the economy +our economic program has helped to produce the lowest core inflation rate and the lowest interest rates in 20 years and because those interest rates are down business investment and equipment is growing at seven times the rate of the previous four years auto sales are way up home sales at a record high millions of americans have refinanced their homes and our economy has produced 1 6 million private sector jobs in 1993 more than were created in the previous four years combined +the people who supported this economic plan should be proud of its early results proud but everyone in this chamber should know and acknowledge that there is more to do next month i will send you one of the toughest budgets ever presented to congress it will cut spending in more than 300 programs eliminate 100 domestic programs and reforms the way in which governments buy goods and services +this year we must again make the hard choices to live within the hard spending ceilings we have set we must do it we have proved we can bring the deficit down without choking off recovery without punishing seniors or the middle class and without putting our national security at risk if you will stick with this plan we will post three consecutive years of declining deficits for the first time since harry truman lived in the white house and once again the buck stops here +trade +our economic plan also bolsters our strength and our credibility around the world once we reduced the deficit and put the steel back into our competitive edge the world echoed with the sound of falling trade barriers in one year with nafta with gatt with our efforts in asia and the national export strategy we did more to open world markets to american products than at any time in the last two generations that means more jobs and rising living standards for the american people low deficits low inflation low interest rates low trade barriers and high investments these are the building blocks of our recovery but if we want to take full advantage of the opportunities before us in the global economy you all know we must do more +as we reduce defense spending i ask congress to invest more in the technologies of tomorrow defense conversion will keep us strong militarily and create jobs for our people here at home +as we protect our environment we must invest in the environmental technologies of the future which will create jobs this year we will fight for a revitalized clean water act and a safe drinking water act and a reformed superfund program +and the vice president is right we must also work with the private sector to connect every classroom every clinic every library every hospital in america into a national information superhighway by the year 2000 think of it instant access to information will increase productivity it will help to educate our children it will provide better medical care it will create jobs and i call on the congress to pass legislation to establish that information superhighway this year +as we expand opportunity and create jobs no one can be left out we must continue to enforce fair lending and fair housing and all civil rights laws because america will never be complete in its renewal until everyone shares in its bounty but we all know too we can do all these things put our economic house in order expand world trade target the jobs of the future guarantee equal opportunity +but if we re honest we ll all admit that this strategy still cannot work unless we also give our people the education training and skills they need to seize the opportunities of tomorrow we must set tough world class academic and occupational standards for all our children and give our teachers and students the tools they need to meet them +education +our goals 2000 proposal will empower individual school districts to experiment with ideas like chartering their schools to be run by private corporations or having more public school choice to do whatever they wish to do as long as we measure every school by one high standard are our children learning what they need to know to compete and win in the global economy +goals 2000 links world class standards to grassroots reforms and i hope congress will pass it without delay our school to work initiative will for the first time link school to the world of work providing at least one year of apprenticeship beyond high school after all most of the people we re counting on to build our economic future won t graduate from college it s time to stop ignoring them and start empowering them we must literally transform our outdated unemployment system into a new reemployment system the old unemployment system just sort of kept you going while you waited for your old job to come back we ve got to have a new system to move people into new and better jobs because most of those old jobs just don t come back and we know that the only way to have real job security in the future to get a good job with a growing income is to have real skills and the ability to learn new ones so we ve got to streamline today s patchwork of training programs and make them a source of new skill for our people who lose their jobs reemployment not unemployment must become the centerpiece of our economic renewal i urge you to pass it in this session of congress +welfare +and just as we must transform our unemployment system so must we also revolutionize our welfare system it doesn t work it defies our values as a nation if we value work we can t justify a system that makes welfare more attractive than work if people are worried about losing their health care +if we value responsibility we can t ignore the $34 billion in child support absent parents out to be paying to millions of parents who are taking care of their children if we value strong families we can t perpetuate a system that actually penalizes those who stay together can you believe that a child who has a child gets more money from the government for leaving home than for staying home with a parent or a grandparent that s not just bad policy it s wrong and we ought to change it +i worked on this problem for years before i became president with other governors and with members of congress in both parties and with the previous administration of another party i worked on it with people who were on welfare lots of them and i want to say something to everybody here who cares about this issue the people who most want to change this system are the people who are dependent on it they want to get off welfare they want to go back to work they want to do right by their kids +i once had a hearing when i was a governor and i brought in people on welfare from all over america who had found their way to work and a woman from my state who testified was asked this question what s the best thing about being off welfare and in a job and without blinking an eye she looked at 40 governors and she said when my boy goes to school and they say what does your mother do for a living he can give an answer these people want a better system and we ought to give it to them +last year we began this we gave the states more power to innovate because we know that a lot of great ideas come from outside washington and many states are already using it then this congress took a dramatic step instead of taxing people with modest incomes into poverty we helped them to work their way out of poverty by dramatically increasing the earned income tax credit it will lift 15 million working families out of poverty rewarding work over welfare making it possible for people to be successful workers and successful parents now that s real welfare reform +but there is more to be done this spring i will send you a comprehensive welfare reform bill that builds on the family support act of 1988 and restores the basic values of work and responsibility we will say to teenagers if you have a child out of wedlock we ll no longer give you a check to set up a separate household we want families to stay together say to absent parents who aren t paying their child support if you re not providing for your children we ll garnish your wages suspend your license track you across state lines and if necessary make some of you work off what you owe +people who bring children into this world cannot and must not walk away from them +but to all those who depend on welfare we should offer ultimately a simple compact we will provide the support the job training the child care you need for up to two years but after that anyone who can work must in the private sector wherever possible in community service if necessary that s the only way we ll ever make welfare what it ought to be a second chance not a way of life +i know it will be difficult to tackle welfare reform in 1994 at the same time we tackle health care but let me point out i think it is inevitable and imperative it is estimated that one million people are on welfare today because it s the only way they can get health care coverage for their children those who choose to leave welfare for jobs without health benefits and many entry level jobs don t have health benefits find themselves in the incredible position of paying taxes that help to pay for health care coverage for those who made the other choice to stay on welfare no wonder people leave work and go back to welfare to get health care coverage we ve got to solve the health care problem to have real welfare reform +health care reform +so this year we will make history by reforming the health care system and i would say to you all of you my fellow public servants this is another issue where the people are way ahead of the politicians +that may not be popular with either party but it happens to be the truth +you know the first lady has received now almost a million letters from people all across america and from all walks of life i d like to share just one of them with you richard anderson of reno nevada lost his job and with it his health insurance two weeks later his wife judy suffered a cerebral aneurysm he rushed her to the hospital where she stayed in intensive care for 21 days the anderson s bills were over $120 000 although judy recovered and richard went back to work at $8 an hour the bills were too much for them and they were literally forced into bankruptcy +mrs clinton he wrote to hillary no one in the united states of america should have to lose everything they ve worked for all their lives because they were unfortunate enough to become ill it was to help the richard and judy andersons of america that the first lady and so many others have worked so hard and so long on this health care reform issue we owe them our thanks and our action +i know there are people here who say there s no health care crisis tell it to richard and judy anderson tell it to the 58 million americans who have no coverage at all for some time each year tell it to the 81 million americans with those preexisting conditions those folks are paying more or they can t get insurance at all or they can t ever change their jobs because they or someone in their family has one of those preexisting conditions tell it to the small businesses burdened by skyrocketing costs of insurance most small businesses cover their employers and they pay on average 35 percent more in premiums than big businesses or government or tell it to the 76 percent of insured americans three out of four whose policies have lifetime limits and that means they can find themselves without any coverage at all just when they need it the most +so if any of you believe there s no crisis you tell it to those people because i can t +there are some people who literally do not understand the impact of this problem on people s lives but all you have to do is go out and listen to them just go talk to them anywhere in any congressional district in this country they re republicans and democrats and independents it doesn t have a lick to do with party they think we don t get it and it s time we show that we do get it +from the day we began our health care initiative has been designed to strengthen what is good about our health care system the world s best health care professionals cutting edge research and wonderful research institutions medicare for older americans none of this none of it should be put at risk but we re paying more and more money for less and less care every year fewer and fewer americans even get to choose their doctors every year doctors and nurses spend more time on paperwork and less time with patients because of the absolute bureaucratic nightmare the present system has become +this system is riddled with inefficiency with abuse with fraud and everybody knows it in today s health care system insurance companies call the shots they pick whom they cover and how they cover them they can cut off your benefits when you need your coverage the most they are in charge +what does it mean it means every night millions of well insured americans go to bed just an illness an accident or a pink slip away from having no coverage or financial ruin it means every morning millions of americans go to work without any health insurance at all something the workers in no other advanced country in the world do it means that every year more and more hard working people are told to pick a new doctor because their boss has had to pick a new plan and countless others turndown better jobs because they know if they take the better job they ll lose their health insurance +if we just let the health care system continue to drift our country will have people with less care fewer choices and higher bill +now our approach protects the quality of care and people s choices it builds on what works today in the private sector to expand employer based coverage to guarantee private insurance for every american and i might say employer based private insurance for every american was proposed 20 years ago by president richard nixon to the united states congress it was a good idea then and it s a better idea today +why do we want guaranteed private insurance because right now nine out of ten people who have insurance get it through their employers and that should continue and if your employer is providing good benefits at reasonable prices that should continue too and that ought to make the congress and the president feel better our goal is health insurance everybody can depend on comprehensive benefits that cover preventive care and prescription drugs health premiums that don t just explode when you get sick or you get older the power no matter how small your business is to choose dependable insurance at the same competitive rates that governments and big business get today one simple form for people who are sick and most of all the freedom to choose a plan and the right to choose your own doctor +our approach protects older americans every plan before the congress proposes to slow the growth of medicare the difference is this we believe those savings should be used to improve health care for senior citizens medicare must be protected and it should cover prescription drugs and we should take the first steps in covering long term care +to those who would cut medicare without protecting seniors i say the solution to today s squeeze on middle class working people s health care is not to put the squeeze on middle class retired people s health care we can do better than that when it s all said and done it s pretty simple to me insurance ought to mean what it used to mean you pay a fair price for security and when you get sick health care is always there no matter what +along with the guarantee of health security we all have to admit too there must be more responsibility on the part of all of us in how we use this system people have to take their kids to get immunized we should all take advantage of preventive care we must all work together to stop the violence that explodes our emergency rooms we have to practice better health habits and we can t abuse the system and those who don t have insurance under our approach will get coverage but they will have to pay something for it too the minority of businesses that provide no insurance at all and in so doing shift the cost of the care of their employees to others should contribute something people who smoke should pay more for a pack of cigarettes everybody can contribute something if we want to solve the health care crisis there can t be anymore something for nothing it will not be easy but it can be done now in the coming months i hope very much to work with both democrats and republicans to reform a health care system by using the market to bring down costs and to achieve lasting health security but if you look at history we see that for 60 years this country has tried to reform health care president roosevelt tried president truman tried president nixon tried president carter tried every time the special interests were powerful enough to defeat them but not this time +campaign finance reform +i know that facing up to these interests will require courage it will raise critical questions about the way we finance our campaigns and how lobbyists yield their influence the work of change frankly will never get any easier until we limit the influence of well financed interests who profit from this current system so i also must now call on you to finish the job both houses began last year by passing tough and meaningful campaign finance reform and lobby reform legislation this year +you know my fellow americans this is really a test for all of us the american people provide those of us in government service with terrific health care benefits at reasonable costs we have health care that s always there i think we need to give every hard working taxpaying american the same health care security they have already given to us +i want to make this very clear i am open as i have said repeatedly to the best ideas of concerned members of both parties i have no special brief for any specific approach even in our own bill except this if you send me legislation that does not guarantee every american private health insurance that can never be taken away you will force me to take this pen veto the legislation and we ll come right back here and start all over again +but i don t think that s going to happen i think we re ready to act now i believe that you re ready to act now and if you re ready to guarantee every american the same health care that you have health care that can never be taken away now not next year or the year after now is the time to stand with the people who sent us here now +foreign policy +as we take these steps together to renew our strength at home we cannot turn away from our obligations to renew our leadership abroad this is a promising moment because of the agreements we have reached this year last year russia s strategic nuclear missiles soon will no longer be pointed at the united states nor will we point ours at them +instead of building weapons in space russian scientists will help us to build the international space station +and of course there are still dangers in the world rampant arms proliferation bitter regional conflicts ethnic and nationalist tensions in many new democracies severe environmental degradation the world over and fanatics who seek to cripple the world s cities with terror as the world s greatest power we must therefore maintain our defenses and our responsibilities this year we secured indictments against terrorists and sanctions against those harbor them we worked to promote environmentally sustainable economic growth we achieved agreements with ukraine with belarus with kazakhstan to eliminate completely their nuclear arsenals we are working to achieve a korean peninsula free of nuclear weapons we will seek early ratification of the treaty to ban chemical weapons worldwide and earlier today we joined with over 30 nations to begin negotiations on a comprehensive ban to stop all nuclear testing +but nothing nothing is more important to our security than our nation s armed forces we honor their contributions including those who are carrying out the longest humanitarian airlift in history in bosnia those who will complete their mission in somalia this year and their brave comrades who gave their lives there our forces are the finest military our nation has ever had and i have pledged that as long as i am president they will remain the best equipped the best trained and the best prepared fighting force on the face of the earth +defense +last year i proposed a defense plan that maintains our post cold war security at a lower cost this year many people urged me to cut our defense spending further to pay for other government programs i said no the budget i send to congress draws the line against further defense cuts it protects the readiness and quality of our forces ultimately the best strategy is to do that we must not cut defense further i hope the congress without regard to party will support that position +ultimately the best strategy to ensure our security and to build a durable peace is to support the advance of democracy elsewhere democracies don t attack each other they make better trading partners and partners in diplomacy that is why we have supported you and i the democratic reformers in russia and in the other states of the former soviet bloc i applaud the bipartisan support this congress provided last year for our initiatives to help russia ukraine and the other states through their epic transformations +our support of reform must combine patience for the enormity of the task and vigilance for our fundamental interest and values we will continue to urge russia and the other states to press ahead with economic reforms and we will seek to cooperate with russia to solve regional problems while insisting that if russian troops operate in neighboring states they do so only when those states agree to their presence and in strict accord with international standards +but we must also remember as these nations chart their own futures and they must chart their own futures how much more secure and more prosperous our own people will be if democratic and market reform succeed all across the former communist bloc our policy has been to support that move and that has been the policy of the congress we should continue it +europe +that is why i went to europe earlier this month to work with our european partners to help to integrate all the former communist countries into a europe that has the possibility of becoming unified for the first time in its entire history it s entire history based on the simple commitments of all nations in europe to democracy to free markets and to respect for existing borders +with our allies we have created a partnership for peace that invites states from the former soviet bloc and other non nato members to work with nato in military cooperation when i met with central europe s leaders including lech walesa and vaclav havel men who put their lives on the line for freedom i told them that the security of their region is important to our country s security +this year we must also do more to support democratic renewal and human rights and sustainable development all around the world we will ask congress to ratify the new gatt accord we will continue standing by south africa as it works its way through its bold and hopeful and difficult transition to democracy we will convene a summit of the western hemisphere s democratic leaders from canada to the tip of south america and we will continue to press for the restoration of true democracy in haiti +and as we build a more constructive relationship with china we must continue to insist on clear signs of improvement in that nation s human rights record +middle east +we will also work for new progress toward the middle east peace last year the world watched yitzhak rabin and yasir arafat at the white house when they had their historic handshake of reconciliation but there is a long hard road ahead and on that road i am determined that i and our administration will do all we can to achieve a comprehensive and lasting peace for all the peoples of the region +now there are some in our country who argue that with the cold war america should turn its back on the rest of the world many around the world were afraid we would do just that but i took this office on a pledge that had no partisan tinge to keep our nation secure by remaining engaged in the rest of the world and this year because of our work together enacting nafta keeping our military strong and prepared supporting democracy abroad we have reaffirmed america s leadership america s engagement and as a result the american people are more secure than they were before +crime +but while americans are more secure from threats abroad i think we all now that in many ways we are less secure from threats here at home everyday the national peace is shattered by crime +in petaluma california an innocent slumber party gives way to agonizing tragedy for the family of polly klaas an ordinary train ride on long island ends in a hail of nine millimeter rounds a tourist in florida is nearly burned alive by bigots simply because he is black right here in our nation s capital a brave young man named jason white a policeman the son and grandson of policemen is ruthlessly gunned down +violent crime and the fear it provokes are crippling our society limiting personal freedom and fraying the ties that bind us +the crime bill before congress gives you a chance to do something about it a chance to be tough and smart what does that mean let me begin by saying i care a lot about this issue many years ago when i started out in public life i was the attorney general of my state i served as a governor for a dozen years i know what it s like to sign laws increasing penalties to build more prison cells to carry out the death penalty i understand this issue and it is not a simple thing +first we must recognize that most violent crimes are committed by a small percentage of criminals who too often break the laws even when they are on parole now those who commit crimes should be punished and those who commit repeated violent crimes should be told when you commit a third violent crime you will be put away and put away for good three strikes and you are out +second we must take serious steps to reduce violence and prevent crime beginning with more police officers and more community policing we know right now that police who work the streets know the folks have the respect of the neighborhood kids focus on high crime areas we know that they are more likely to prevent crime as well as catch criminals look at the experience of houston where the crime rate dropped 17 percent in one year when that approach was taken here tonight is one of those community policemen a brave young detective kevin jett whose beat is eight square blocks in one of the toughest neighborhoods in new york every day he restores some sanity and safety and a sense of values and connection to the people whose lives he protects i d like to ask him to stand up and be recognized tonight +you will be given a chance to give the children of this country the law abiding working people of this country and don t forget in the toughest neighborhoods in this country in the highest crime neighborhoods in this country the vast majority of people get up every day and obey the law pay their taxes do their best to raise their kids they deserve people like kevin jett and you re going to be given the chance to give the american people another 100 000 of them well trained and i urge you to do it +you have before you crime legislation which also establishes a police corps to encourage young people to get an education and pay it off by serving as police officers which encourages retiring military personnel to move into police forces and enormous resources for our country one which has a safe schools provisions which will give our young people the chance to walk to school in safety and to be in school in safety instead of dodging bullets these are important things +the third thing we have to do is to build on the brady bill the brady law to take further steps to take further steps to keep guns out of the hands of criminals +now i want to say something about this issue hunters must always be free to hunt law abiding adults should always be free to own guns and protect their homes i respect that part of our culture i grew up in it but i want to ask the sportsmen and others who lawfully own guns to join us in this campaign to reduce gun violence i say to you i know you didn t create this problem but we need your help to solve it there is no sporting purpose on earth that should stop the united states congress from banishing assault weapons that outgun police and cut down children +fourth we must remember that drugs are a factor in an enormous percentage of crimes recent studies indicate sadly that drug use is on the rise again among our young people the crime bill contains all the crime bills contain more money for drug treatment for criminal addicts and boot camps for youthful offenders that include incentives to get off drugs and to stay off drugs our administration s budget with all its cuts contains a large increase in funding for drug treatment and drug education you must pass them both we need then desperately +my fellow americans the problem of violence is an un american problem it has no partisan or philosophical element therefore i urge you find ways as quickly as possible to set aside partisan differences and pass a strong smart tough crime bill +but further i urge you to consider this as you demand tougher penalties for those who choose violence let us also remember how we came to this sad point in our toughest neighborhoods on our meanest streets in our poorest rural areas we have seen a stunning and simultaneous breakdown of community family and work the heart and soul of civilized society this has created a vast vacuum which has been filled by violence and drugs and gangs so i ask you to remember that even as we say no to crime we must give people especially our young people something to say yes to many of our initiatives from job training to welfare reform to health care to national service will help to rebuild distressed communities to strengthen families to provide work but more needs to be done that s what our community empowerment agenda is all about challenging businesses to provide more investment through empowerment zones ensuring banks will make loans in the same communities their deposits come from passing legislation to unleash the power of capital through community development banks to create jobs opportunity and hope where they re needed most +but i think you know that to really solve this problem we ll all have to put our heads together leave our ideological armor aside and find some new ideas to do even more +the role of government +and let s be honest we all know something else too our problems go way beyond the reach of government they re rooted in the loss of values and the disappearance of work and the breakdown of our families and our communities my fellow americans we can cut the deficit create jobs promote democracy around the world pass welfare reform and health care pass the toughest crime bill in history and still leave too many of our people behind +the american people have got to want to change from within if we re going to bring back work and family and community we cannot renew our country when within a decade more than half of the children will be born into families where there has been no marriage we cannot renew this country when 13 year old boys get semi automatic weapons to shoot 9 year olds for kicks we can t renew our country when children are having children and the fathers walk away as if the kids don t amount to anything we can t renew the country when our businesses eagerly look for new investments and new customers abroad but ignore those people right here at home who d give anything to have their jobs and would gladly buy their products if they had the money to do it +we can t renew our country unless more of us i mean all of us are willing to join the churches and the other good citizens people like all the black ministers i ve worked with over the years or the priests and the nuns i met at our lady of help in east los angeles or my good friend tony campolo in philadelphia unless we re willing to work with people like that people who are saving kids adopting schools making streets safer all of us can do that +we can t renew our country until we realize that governments don t raise children parents do parents who know their children s teachers and turn off the television and help with the homework and teach their kids right from wrong those kind of parents can make all the difference i know i had one and i m telling you we have got to stop pointing our fingers at these kids who have no future and reach our hands out to them our country needs it we need it and they deserve it +and so i say to you tonight let s give our children a future let us take away their guns and give them books let us overcome their despair and replace it with hope let us by our example teach them to obey the law respect our neighbors and cherish our values let us weave these sturdy threads into a new american community that once more stand strong against the forces of despair and evil because everybody has a chance to walk into a better tomorrow +oh there will be naysayers who fear that we won t be equal to the challenges of this time but they misread our history our heritage even today s headlines all those things tell us we can and we will overcome any challenge +when the earth shook and fires raged in california when i saw the mississippi deluge the farmlands of the midwest in a 500 year flood when the century s bitterest cold swept from north dakota to newport news it seemed as though the world itself was coming apart at the seams but the american people they just came together they rose to the occasion neighbor helping neighbor strangers risking life and limb to stay total strangers showing the better angels of our nature +let us not reserve the better angels only for natural disasters leaving our deepest and most profound problems to petty political fighting +let us instead by true to our spirit facing facts coming together bringing hope and moving forward +tonight my fellow americans we are summoned to answer a question as old as the republic itself what is the state of our union +it is growing stronger but it must be stronger still with your help and god s help it will be +thank you and god bless america +mr president mr speaker members of the 104th congress my fellow americans +again we are here in the sanctuary of democracy and once again our democracy has spoken +so let me begin by congratulating all of you here in the 104th congress and congratulating you mr speaker +if we agree on nothing else tonight we must agree that the american people certainly voted for change in 1992 and in 1994 +and as i look out at you i know how some of you must have felt in 1992 +i must say that in both years we didn t hear america singing we heard america shouting and now all of us republicans and democrats alike must say we hear you we will work together to earn the jobs you have given us for we are the keepers of the sacred trust and we must be faithful to it in this new and very demanding era +over 200 years ago our founders changed the entire course of human history by joining together to create a new country based on a single powerful idea we hold these truths to be self evident that all men are created equal endowed by their creator with certain inalienable rights among these are life liberty and the pursuit of happiness +it has fallen to every generation since then to preserve that idea the american idea and to deepen and expand its meaning in new and different times to lincoln and to his congress to preserve the union and to end slavery to theodore roosevelt and woodrow wilson to restrain the abuses and excesses of the industrial revolution and to assert our leadership in the world to franklin roosevelt to fight the failure and pain of the great depression and to win our country s great struggle against fascism +and to all our presidents since to fight the cold war especially i recall two who struggled to fight that cold war in partnership with congresses where the majority was of a different party to harry truman who summoned us to unparalleled prosperity at home and who built the architecture of the cold war and to ronald reagan whom we wish well tonight and who exhorted us to carry on until the twilight struggle against communism was won +in another time of change and challenge i had the honor to be the first president to be elected in the post cold war era an era marked by the global economy the information revolution unparalleled change in opportunity and in security for the american people +i came to this hallowed chamber two years ago on a mission to restore the american dream for all our people and to make sure that we move into the 21st century still the strongest force for freedom and democracy in the entire world +i was determined then to tackle the tough problems too long ignored in this effort i am frank to say that i have made my mistakes and i have learned again the importance of humility in all human endeavor +but i am also proud to say tonight that our country is stronger than it was two years ago +accomplishments +record numbers record numbers of americans are succeeding in the new global economy we are at peace and we are a force for peace and freedom throughout the world we have almost six million new jobs since i became president and we have the lowest combined rate of unemployment and inflation in 25 years +our businesses are more productive and here we have worked to bring the deficit down to expand trade to put more police on our streets to give our citizens more of the tools they need to get an education and to rebuild their own communities but the rising tide is not lifting all the boats +while our nation is enjoying peace and prosperity too many of our people are still working harder and harder for less and less while our businesses are restructuring and growing more productive and competitive too many of our people still can t be sure of having a job next year or even next month and far more than our material riches are threatened things far more precious to us our children our families our values +our civil life is suffering in america today citizens are working together less and shouting at each other more the common bonds of community which have been the great strength of our country from its very beginning are badly frayed +what are we to do about it +more than 60 years ago at the dawn of another new era president roosevelt told our nation new conditions impose new requirements on government and those who conduct government and from that simple proposition he shaped the new deal which helped to restore our nation to prosperity and defined the relationship between our people and their government for half a century +that approach worked in its time but today we face a very different time and very different conditions we are moving from an industrial age built on gears and sweat to an information age demanding skills and learning and flexibility +our government once a champion of national purpose is now seen by many as simply a captive of narrow interests putting more burdens on our citizens rather than equipping them to get ahead the values that used to hold us all together seem to be coming apart +so tonight we must forge a new social compact to meet the challenges of this time as we enter a new era we need a new set of understandings not just with government but even more important with one another as americans +new covenant +that s what i want to talk with you about tonight i call it the new covenant but it s grounded in a very very old idea that all americans have not just a right but a solemn responsibility to rise as far as their god given talents and determination can take them and to give something back to their communities and their country in return +opportunity and responsibility they go hand in hand we can t have one without the other and our national community can t hold together without both +our new covenant is a new set of understandings for how we can equip our people to meet the challenges of the new economy how we can change the way our government works to fit a different time and above all how we can repair the damaged bonds in our society and come together behind our common purpose we must have dramatic change in our economy our government and ourselves +my fellow americans without regard to party let us rise to the occasion let us put aside partisanship and pettiness and pride as we embark on this course let us put our country first remembering that regardless of party label we are all americans and let the final test of everything we do be a simple one is it good for the american people +let me begin by saying that we cannot ask americans to be better citizens if we are not better servants you made a good start by passing that law which applies to congress all the laws you put on the private sector and i was proud to sign it yesterday +but we have a lot more to do before people really trust the way things work around here three times as many lobbyists are in the streets and corridors of washington as were here 20 years ago the american people look at their capital and they see a city where the well connected and the well protected can work the system but the interests of ordinary citizens are often left out +as the new congress opened its doors lobbyists were still doing business as usual the gifts the trips all the things that people are concerned about haven t stopped +twice this month you missed opportunities to stop these practices i know there were other considerations in those votes but i want to use something that i ve heard my republican friends say from time to time there doesn t have to be a law for everything +so tonight i ask you to just stop taking the lobbyists perks just stop +we don t have to wait for legislation to pass to send a strong signal to the american people that things are really changing but i also hope you will send me the strongest possible lobby reform bill and i ll sign that too we should require lobbyists to tell the people for whom they work what they re spending what they want we should also curb the role of big money in elections by capping the cost of campaigns and limiting the influence of pac s +and as i have said for three years we should work to open the air waves so that they can be an instrument of democracy not a weapon of destruction by giving free tv time to candidates for public office +when the last congress killed political reform last year it was reported in the press that the lobbyists actually stood in the halls of this sacred building and cheered this year let s give the folks at home something to cheer about +more important i think we all agree that we have to change the way the government works let s make it smaller less costly and smarter leaner not meaner +i just told the speaker the equal time doctrine s alive and well +the role of government +the new covenant approach to governing is as different from the old bureaucratic way as the computer is from the manual typewriter the old way of governing around here protected organized interests we should look out for the interests of ordinary people the old way divided us by interests constituency or class the new covenant way should unite us behind a common vision of what s best for our country +the old way dispensed services through large top down inflexible bureaucracies the new covenant way should shift these resources and decision making from bureaucrats to citizens injecting choice and competition and individual responsibility into national policy +the old way of governing around here actually seemed to reward failure the new covenant way should have built in incentives to reward success +the old way was centralized here in washington the new covenant way must take hold in the communities all across america and we should help them to do that +our job here is to expand opportunity not bureaucracy to empower people to make the most of their own lives and to enhance our security here at home and abroad +we must not ask government to do what we should do for ourselves we should rely on government as a partner to help us to do more for ourselves and for each other +i hope very much that as we debate these specific and exciting matters we can go beyond the sterile discussion between the illusion that there is somehow a program for every problem on the one hand and the other illusion that the government is the source of every problem that we have +our job is to get rid of yesterday s government so that our own people can meet today s and tomorrow s needs +and we ought to do it together +you know for years before i became president i heard others say they would cut government and how bad it was but not much happened +we actually did it we cut over a quarter of a trillion dollars in spending more than 300 domestic programs more than 100 000 positions from the federal bureaucracy in the last two years alone +based on decisions already made we will have cut a total of more than a quarter of a million positions from the federal government making it the smallest it has been since john kennedy was president by the time i come here again next year +under the leadership of vice president gore our initiatives have already saved taxpayers $ 63 billion the age of the $ 500 hammer and the ashtray you can break on david letterman is gone deadwood programs like mohair subsidies are gone we ve streamlined the agriculture department by reducing it by more than 1 200 offices we ve slashed the small business loan form from an inch thick to a single page we ve thrown away the government s 10 000 page personnel manual +and the government is working better in important ways fema the federal emergency management agency has gone from being a disaster to helping people in disaster +you can ask the farmers in the middle west who fought the flood there or the people in california who ve dealt with floods and earthquakes and fires and they ll tell you that +government workers working hand in hand with private business rebuilt southern california s fractured freeways in record time and under budget +and because the federal government moved fast all but one of the 5 600 schools damaged in the earthquake are back in business +now there are a lot of other things that i could talk about i want to just mention one because it ll be discussed here in the next few weeks +university administrators all over the country have told me that they are saving weeks and weeks of bureaucratic time now because of our direct college loan program which makes college loans cheaper and more affordable with better repayment terms for students costs the government less and cuts out paperwork and bureaucracy for the government and for the universities +we shouldn t cap that program we should give every college in america the opportunity to be a part of it +previous government programs gather dust the reinventing government report is getting results and we re not through there s going to be a second round of reinventing government +we propose to cut $ 130 billion in spending by shrinking departments extending our freeze on domestic spending cutting 60 public housing programs down to 3 getting rid of over a hundred programs we do not need like the interstate commerce commission and the helium reserve program +and we re working on getting rid of unnecessary regulations and making them more sensible the programs and regulations that have outlived their usefulness should go we have to cut yesterday s government to help solve tomorrow s problems +and we need to get government closer to the people it s meant to serve we need to help move programs down to the point where states and communities and private citizens in the private sector can do a better job if they can do it we ought to let them do it we should get out of the way and let them do what they can do better +community empowerment +taking power away from federal bureaucracies and giving it back to communities and individuals is something everyone should be able to be for it s time for congress to stop passing onto the states the cost of decisions we make here in washington +i know there are still serious differences over the details of the unfunded mandates legislation but i want to work with you to make sure we pass a reasonable bill which will protect the national interest and give justified relief where we need to give it +for years congress concealed in the budget scores of pet spending projects last year was no different there was a million dollars to study stress in plants and $ 12 million for a tick removal program that didn t work it s hard to remove ticks those of us who ve had them know +but i ll tell you something if you ll give me the line item veto i ll remove some of that unnecessary spending +but i think we should all remember and almost all of us would agree that government still has important responsibilities +our young people we should think of this when we cut our young people hold our future in their hands we still owe a debt to our veterans and our senior citizens have made us what we are +budget +now my budget cuts a lot but it protects education veterans social security and medicare and i hope you will do the same thing you should and i hope you will +and when we give more flexibility to the states let us remember that there are certain fundamental national needs that should be addressed in every state north and south east and west +immunization against childhood disease school lunches in all our schools head start medical care and nutrition for pregnant women and infants all these things are in the national interest +i applaud your desire to get rid of costly and unnecessary regulations but when we deregulate let s remember what national action in the national interest has given us safer food for our families safer toys for our children safer nursing homes for our parents safer cars and highways and safer workplaces cleaner air and cleaner water do we need common sense and fairness in our regulations you bet we do but we can have common sense and still provide for safe drinking water we can have fairness and still clean up toxic dumps and we ought to do it +should we cut the deficit more well of course we should of course we should but we can bring it down in a way that still protects our economic recovery and does not unduly punish people who should not be punished but instead should be helped +i know many of you in this chamber support the balanced budget amendment i certainly want to balance the budget our administration has done more to bring the budget down and to save money than any in a very very long time +if you believe passing this amendment is the right thing to do then you have to be straight with the american people they have a right to know what you re going to cut what taxes you re going to raise how it s going to affect them +and we should be doing things in the open around here for example everybody ought to know if this proposal is going to endanger social security i would oppose that and i think most americans would +welfare +nothing is done more to undermine our sense of common responsibility than our failed welfare system this is one of the problems we have to face here in washington in our new covenant it rewards welfare over work it undermines family values it lets millions of parents get away without paying their child support it keeps a minority but a significant minority of the people on welfare trapped on it for a very long time +i worked on this problem for a long time nearly 15 years now as a governor i had the honor of working with the reagan administration to write the last welfare reform bill back in 1988 +in the last two years we made a good start in continuing the work of welfare reform our administration gave two dozen states the right to slash through federal rules and regulations to reform their own welfare systems and to try to promote work and responsibility over welfare and dependency +last year i introduced the most sweeping welfare reform plan ever presented by an administration we have to make welfare what it was meant to be a second chance not a way of life +we have to help those on welfare move to work as quickly as possible to provide child care and teach them skills if that s what they need for up to two years but after that there ought to be a simple hard rule anyone who can work must go to work +if a parent isn t paying child support they should be forced to pay +we should suspend driver s licenses track them across state lines make them work off what they owe that is what we should do governments do not raise children people do and the parents must take responsibility for the children they bring into this world +i want to work with you with all of you to pass welfare reform but our goal must be to liberate people and lift them from dependence to independence from welfare to work from mere childbearing to responsible parenting our goal should not be to punish them because they happen to be poor +we should we should require work and mutual responsibility but we shouldn t cut people off just because they re poor they re young or even because they re unmarried we should promote responsibility by requiring young mothers to live at home with their parents or in other supervised settings by requiring them to finish school but we shouldn t put them and their children out on the street +and i know all the arguments pro and con and i have read and thought about this for a long time i still don t think we can in good conscience punish poor children for the mistakes of their parents +my fellow americans every single survey shows that all the american people care about this without regard to party or race or region so let this be the year we end welfare as we know it +but also let this be the year that we are all able to stop using this issue to divide america +no one is more eager to end welfare +i may be the only president who s actually had the opportunity to sit in the welfare office who s actually spent hours and hours talking to people on welfare and i am telling you the people who are trapped on it know it doesn t work they also want to get off +so we can promote together education and work and good parenting i have no problem with punishing bad behavior or the refusal to be a worker or a student or a responsible parent i just don t want to punish poverty and past mistakes all of us have made our mistakes and none of us can change our yesterdays but every one of us can change our tomorrows +and america s best example of that may be lynn woolsey who worked her way off welfare to become a congresswoman from the state of california +crime +i know the members of this congress are concerned about crime as are all the citizens of our country but i remind you that last year we passed a very tough crime bill longer sentences three strikes and you re out almost 60 new capital punishment offenses more prisons more prevention 100 000 more police and we paid for it all by reducing the size of the federal bureaucracy and giving the money back to local communities to lower the crime rate +there may be other things we can do to be tougher on crime to be smarter with crime to help to lower that rate first well if there are let s talk about them and let s do them but let s not go back on the things that we did last year that we know work that we know work because the local law enforcement officers tell us that we did the right thing because local community leaders who ve worked for years and years to lower the crime rate tell us that they work +let s look at the experience of our cities and our rural areas where the crime rate has gone down and ask the people who did it how they did it and if what we did last year supports the decline in the crime rate and i am convinced that it does let us not go back on it let s stick with it implement it we ve got four more hard years of work to do to do that +i don t want to destroy the good atmosphere in the room or in the country tonight but i have to mention one issue that divided this body greatly last year the last congress also passed the brady bill and in the crime bill the ban on 19 assault weapons +i don t think it s a secret to anybody in this room that several members of the last congress who voted for that aren t here tonight because they voted for it and i know therefore that some of you that are here because they voted for it are under enormous pressure to repeal it i just have to tell you how i feel about it +the members who voted for that bill and i would never do anything to infringe on the right to keep and bear arms to hunt and to engage in other appropriate sporting activities i ve done it since i was a boy and i m going to keep right on doing it until i can t do it anymore +but a lot of people laid down their seats in congress so that police officers and kids wouldn t have to lay down their lives under a hail of assault weapon attacks and i will not let that be repealed i will not let it be repealed +i d like to talk about a couple of other issues we have to deal with i want us to cut more spending but i hope we won t cut government programs that help to prepare us for the new economy promote responsibility and are organized from the grass roots up not by federal bureaucracy +the very best example of this is the national service corps americorps it passed with strong bipartisan support and now there are 20 000 americans more than ever served in one year in the peace corps working all over this country helping person to person in local grass roots volunteer groups solving problems and in the process earning some money for their education +this is citizenship at its best it s good for the americorps members but it s good for the rest of us too it s the essence of the new covenant and we shouldn t stop it +illegal immigration +all americans not only in the states most heavily affected but in every place in this country are rightly disturbed by the large numbers of illegal aliens entering our country +the jobs they hold might otherwise be held by citizens or legal immigrants the public services they use impose burdens on our taxpayers that s why our administration has moved aggressively to secure our borders more by hiring a record number of new border guards by deporting twice as many criminal aliens as ever before by cracking down on illegal hiring by barring welfare benefits to illegal aliens +in the budget i will present to you we will try to do more to speed the deportation of illegal aliens who are arrested for crimes to better identify illegal aliens in the workplace as recommended by the commission headed by former congresswoman barbara jordan +we are a nation of immigrants but we are also a nation of laws it is wrong and ultimately self defeating for a nation of immigrants to permit the kind of abuse of our immigration laws we have seen in recent years and we must do more to stop it +the most important job of our government in this new era is to empower the american people to succeed in the global economy america has always been a land of opportunity a land where if you work hard you can get ahead we ve become a great middle class country middle class values sustain us we must expand that middle class and shrink the underclass even as we do everything we can to support the millions of americans who are already successful in the new economy +america is once again the world s strongest economic power almost six million new jobs in the last two years exports booming inflation down high wage jobs are coming back a record number of american entrepreneurs are living the american dream +if we want it to stay that way those who work and lift our nation must have more of its benefits +today too many of those people are being left out they re working harder for less they have less security less income less certainty that they can even afford a vacation much less college for their kids or retirement for themselves +we cannot let this continue if we don t act our economy will probably keep doing what it s been doing since about 1978 when the income growth began to go to those at the very top of our economic scale and the people in the vast middle got very little growth and people who worked like crazy but were on the bottom then fell even further and further behind in the years afterward no matter how hard they worked +we ve got to have a government that can be a real partner in making this new economy work for all of our people a government that helps each and every one of us to get an education and to have the opportunity to renew our skills +education +that s why we worked so hard to increase educational opportunities in the last two years from head start to public schools to apprenticeships for young people who don t go to college to making college loans more available and more affordable +that s the first thing we have to do we ve got to do something to empower people to improve their skills +taxes +second thing we ought to do is to help people raise their incomes immediately by lowering their taxes +we took the first step in 1993 with a working family tax cut for 15 million families with incomes under $ 27 000 a tax cut that this year will average about $ 1 000 a family +and we also gave tax reductions to most small and new businesses before we could do more than that we first had to bring down the deficit we inherited and we had to get economic growth up now we ve done both and now we can cut taxes in a more comprehensive way +but tax cuts should reinforce and promote our first obligation to empower our citizens through education and training to make the most of their own lives the spotlight should shine on those who make the right choices for themselves their families and their communities +middle class bill of rights +i have proposed a middle class bill of rights which should properly be called the bill of rights and responsibilities because its provisions only benefit those who are working to educate and raise their children and to educate themselves it will therefore give needed tax relief and raise incomes in both the short run and the long run in a way that benefits all of us +there are four provisions +first a tax deduction for all education and training after high school if you think about it we permit businesses to deduct their investment we permit individuals to deduct interest on their home mortgages but today an education is even more important to the economic well being of our whole country than even those things are we should do everything we can to encourage it and i hope you will support it +second we ought to cut taxes $ 500 for families with children under 13 +third we ought to foster more savings and personal responsibility by permitting people to establish an individual retirement account and withdraw from it tax free for the cost of education health care first time home buying or the care of a parent +and fourth we should pass a g i bill for america s workers we propose to collapse nearly 70 federal programs and not give the money to the states but give the money directly to the american people offer vouchers to them so that they if they re laid off or if they re working for a very low wage can get a voucher worth $ 2 600 a year for up to two years to go to their local community colleges or wherever else they want to get the skills they need to improve their lives let s empower people in this way move it from the government directly to the workers of america +cutting the deficit now +any one of us can call for a tax cut but i won t accept one that explodes the deficit or puts our recovery at risk we ought to pay for our tax cuts fully and honestly just two years ago it was an open question whether we would find the strength to cut the deficit +thanks to the courage of the people who were here then many of whom didn t return we did cut the deficit we began to do what others said would not be done we cut the deficit by over $ 600 billion about $ 10 000 for every family in this country it s coming down three years in a row for the first time since mr truman was president and i don t think anybody in america wants us to let it explode again +in the budget i will send you the middle class bill of rights is fully paid for by budget cuts in bureaucracy cuts in programs cuts in special interest subsidies and the spending cuts will more than double the tax cuts my budget pays for the middle class bill of rights without any cuts in medicare and i will oppose any attempts to pay for tax cuts with medicare cuts that s not the right thing to do +i know that a lot of you have your own ideas about tax relief and some of them i find quite interesting i really want to work with all of you +my tests for our proposals will be will it create jobs and raise incomes will it strengthen our families and support our children is it paid for will it build the middle class and shrink the underclass +if it does i ll support it but if it doesn t i won t +minimum wage +the goal of building the middle class and shrinking the underclass is also why i believe that you should raise the minimum wage +it rewards work two and a half million americans often women with children are working out there today for four and a quarter an hour in terms of real buying power by next year that minimum wage will be at a 40 year low that s not my idea of how the new economy ought to work +now i studied the arguments and the evidence for and against a minimum wage increase i believe the weight of the evidence is that a modest increase does not cost jobs and may even lure people back into the job market but the most important thing is you can t make a living on $ 4 25 an hour now especially if you have children even with the working families tax cut we passed last year +in the past the minimum wage has been a bipartisan issue and i think it should be again so i want to challenge you to have honest hearings on this to get together to find a way to make the minimum wage a living wage +members of congress have been here less than a month but by the end of the week 28 days into the new year every member of congress will have earned as much in congressional salary as a minimum wage worker makes all year long +everybody else here including the president has something else that too many americans do without and that s health care +health care +now last year we almost came to blows over health care but we didn t do anything and the cold hard fact is that since last year since i was here another 1 1 million americans in working families have lost their health care and the cold hard fact is that many millions more most of them farmers and small business people and self employed people have seen their premiums skyrocket their co pays and deductibles go up +there s a whole bunch of people in this country that in the statistics have health insurance but really what they ve got is a piece of paper that says they won t lose their home if they get sick +now i still believe our country has got to move toward providing health security for every american family but but i know that last year as the evidence indicates we bit off more than we could chew +so i m asking you that we work together let s do it step by step let s do whatever we have to do to get something done let s at least pass meaningful insurance reform so that no american risks losing coverage for facing skyrocketing prices but that nobody loses their coverage because they face high prices or unavailable insurance when they change jobs or lose a job or a family member gets sick +i want to work together with all of you who have an interest in this with the democrats who worked on it last time with the republican leaders like senator dole who has a longtime commitment to health care reform and made some constructive proposals in this area last year we ought to make sure that self employed people in small businesses can buy insurance at more affordable rates through voluntary purchasing pools we ought to help families provide long term care for a sick parent to a disabled child we can work to help workers who lose their jobs at least keep their health insurance coverage for a year while they look for work and we can find a way it may take some time but we can find a way to make sure that our children have health care +you know i think everybody in this room without regard to party can be proud of the fact that our country was rated as having the world s most productive economy for the first time in nearly a decade but we can t be proud of the fact that we re the only wealthy country in the world that has a smaller percentage of the work force and their children with health insurance today than we did 10 years ago the last time we were the most productive economy in the world +so let s work together on this it is too important for politics as usual +much of what the american people are thinking about tonight is what we ve already talked about a lot of people think that the security concerns of america today are entirely internal to our borders they relate to the security of our jobs and our homes and our incomes and our children our streets our health and protecting those borders +foreign policy +now that the cold war has passed it s tempting to believe that all the security issues with the possible exception of trade reside here at home but it s not so our security still depends on our continued world leadership for peace and freedom and democracy we still can t be strong at home unless we re strong abroad +mexico +the financial crisis in mexico is a case in point i know it s not popular to say it tonight but we have to act not for the mexican people but for the sake of the millions of americans whose livelihoods are tied to mexico s well being if we want to secure american jobs preserve american exports safeguard america s borders then we must pass the stabilization program and help to put mexico back on track +now let me repeat it s not a loan it s not foreign aid it s not a bail out we ll be given a guarantee like co signing a note with good collateral that will cover our risk +this legislation is the right thing for america that s why the bipartisan leadership has supported it and i hope you in congress will pass it quickly it is in our interest and we can explain it to the american people because we re going to do it in the right way +russia +you know tonight this is the first state of the union address ever delivered since the beginning of the cold war when not a single russian missile is pointed at the children of america +and along with the russians we re on our way to destroying the missiles and the bombers that carry 9 000 nuclear warheads we ve come so far so fast in this post cold war world that it s easy to take the decline of the nuclear threat for granted but it s still there and we aren t finished yet +this year i ll ask the senate to approve start ii to eliminate weapons that carry 5 000 more warheads the united states will lead the charge to extend indefinitely the nuclear nonproliferation treaty to enact a comprehensive nuclear test ban and to eliminate chemical weapons +north korea +to stop and roll back north korea s potentially deadly nuclear program we ll continue to implement the agreement we have reached with that nation it s smart it s tough it s a deal based on continuing inspection with safeguards for our allies and ourselves +this year i ll submit to congress comprehensive legislation to strengthen our hand in combating terrorists whether they strike at home or abroad as the cowards who bombed the world trade center found out this country will hunt down terrorists and bring them to justice +middle east +just this week another horrendous terrorist act in israel killed 19 and injured scores more on behalf of the american people and all of you i send our deepest sympathy to the families of the victims i know that in the face of such evil it is hard for the people in the middle east to go forward but the terrorists represent the past not the future we must and we will pursue a comprehensive peace between israel and all her neighbors in the middle east +accordingly last night i signed an executive order that will block the assets in the united states of terrorist organizations that threaten to disrupt the peace process it prohibits financial transactions with these groups +and tonight i call on all our allies in peace loving nations throughout the world to join us with renewed fervor in a global effort to combat terrorism we cannot permit the future to be marred by terror and fear and paralysis +defense +from the day i took the oath of office i pledged that our nation would maintain the best equipped best trained and best prepared military on earth we have and they are they have managed the dramatic downsizing of our forces after the cold war with remarkable skill and spirit but to make sure our military is ready for action and to provide the pay and the quality of life the military and their families deserve i m asking the congress to add $ 25 billion in defense spending over the next six years +i have visited many bases at home and around the world since i became president tonight i repeat that request with renewed conviction we ask a very great deal of our armed forces now that they are smaller in number we ask more of them they go out more often to more different places and stay longer they are called to service in many many ways and we must give them and their families what the times demand and what they have earned +just think about what our troops have done in the last year showing america at its best helping to save hundreds of thousands of people in rwanda moving with lightning speed to head off another threat to kuwait giving freedom and democracy back to the people of haiti +we have proudly supported peace and prosperity and freedom from south africa to northern ireland from central and eastern europe to asia from latin america to the middle east all these endeavors are good in those places but they make our future more confident and more secure +well my fellow americans that s my agenda for america s future expanding opportunity not bureaucracy enhancing security at home and abroad empowering our people to make the most of their own lives +it s ambitious and achievable but it s not enough +we even need more than new ideas for changing the world or equipping americans to compete in the new economy more than a government that s smaller smarter and wiser more than all the changes we can make in government and in the private sector from the outside in +values and voices +our fortunes and our prosperity also depend upon our ability to answer some questions from within from the values and voices that speak to our hearts as well as our heads voices that tell us we have to do more to accept responsibility for ourselves and our families for our communities and yes for our fellow citizens +we see our families and our communities all over this country coming apart and we feel the common ground shifting from under us the pta the town hall meeting the ball park it s hard for a lot of overworked parents to find the time and space for those things that strengthen the bonds of trust and cooperation +too many of our children don t even have parents and grandparents who can give them those experiences that they need to build their own character and their sense of identity we all know that while we here in this chamber can make a difference on those things that the real differences will be made by our fellow citizens where they work and where they live +and it ll be made almost without regard to party when i used to go to the softball park in little rock to watch my daughter s league and people would come up to me fathers and mothers and talk to me i can honestly say i had no idea whether 90 percent of them were republicans or democrats +when i visited the relief centers after the floods in california northern california last week a woman came up to me and did something that very few of you would do she hugged me and said mr president i m a republican but i m glad you re here +now why we can t wait for disasters to act the way we used to act every day because as we move into this next century everybody matters we don t have a person to waste and a lot of people are losing a lot of chances to do better +that means that we need a new covenant for everybody for our corporate and business leaders we re going to work here to keep bringing the deficit down to expand markets to support their success in every possible way but they have an obligation when they re doing well to keep jobs in our communities and give their workers a fair share of the prosperity they generate +for people in the entertainment industry in this country we applaud your creativity and your worldwide success and we support your freedom of expression but you do have a responsibility to assess the impact of your work and to understand the damage that comes from the incessant repetitive mindless violence and irresponsible conduct that permeates our media all the time +we ve got to ask our community leaders and all kinds of organizations to help us stop our most serious social problem the epidemic of teen pregnancies and births where there is no marriage i have sent to congress a plan to target schools all over this country with anti pregnancy programs that work but government can only do so much tonight i call on parents and leaders all across this country to join together in a national campaign against teen pregnancy to make a difference we can do this and we must +and i would like to say a special word to our religious leaders you know i m proud of the fact that the united states has more house of worship per capita than any country in the world these people who lead our houses of worship can ignite their congregations to carry their faith into action can reach out to all of our children to all of the people in distress to those who have been savaged by the breakdown of all we hold dear because so much of what must be done must come from the inside out and our religious leaders and their congregations can make all the difference they have a role in the new covenant as well +there must be more responsibility for all of our citizens you know it takes a lot of people to help all the kids in trouble stay off the streets and in school it takes a lot of people to build the habitat for humanity houses that the speaker celebrates on his lapel pin it takes a lot of people to provide the people power for all the civic organizations in this country that made our communities mean so much to most of us when we were kids it takes every parent to teach the children the difference between right and wrong and to encourage them to learn and grow and to say no to the wrong things but also to believe that they can be whatever they want to be +i know it s hard when you re working harder for less when you re under great stress to do these things a lot of our people don t have the time or the emotional stress they think to do the work of citizenship most of us in politics haven t helped very much for years we ve mostly treated citizens like they were consumers or spectators sort of political couch potatoes who were supposed to watch the tv ads either promise them something for nothing or play on their fears and frustrations and more and more of our citizens now get most of their information in very negative and aggressive ways that is hardly conducive to honest and open conversations but the truth is we have got to stop seeing each other as enemies just because we have different views +if you go back to the beginning of this country the great strength of america as de tocqueville pointed out when he came here a long time ago has always been our ability to associate with people who were different from ourselves and to work together to find common ground and in this day everybody has a responsibility to do more of that we simply cannot wait for a tornado a fire or a flood to behave like americans ought to behave in dealing with one another +i want to finish up here by pointing out some folks that are up with the first lady that represent what i m trying to talk about citizens i have no idea what their party affiliation is or who they voted for in the last election but they represent what we ought to be doing +cindy perry teaches second graders to read in americorps in rural kentucky she gains when she gives she s a mother of four +she says that her service inspired her to get her high school equivalency last year she was married when she was a teen ager stand up cindy she married when she was a teen ager she had four children but she had time to serve other people to get her high school equivalency and she s going to use her americorps money to go back to college +steven bishop is the police chief of kansas city he s been a national leader stand up steve he s been a national leader in using more police in community policing and he s worked with americorps to do it and the crime rate in kansas city has gone down as a result of what he did +cpl gregory depestre went to haiti as part of his adopted country s force to help secure democracy in his native land and i might add we must be the only country in the world that could have gone to haiti and taken haitian americans there who could speak the language and talk to the people and he was one of them and we re proud of him +the next two folks i ve had the honor of meeting and getting to know a little bit the rev john and the rev diana cherry of the a m e zion church in temple hills md i d like to ask them to stand i want to tell you about them in the early 80 s they left government service and formed a church in a small living room in a small house in the early 80 s today that church has 17 000 members it is one of the three or four biggest churches in the entire united states it grows by 200 a month +they do it together and the special focus of their ministry is keeping families together they are two things they did make a big impression on me i visited their church once and i learned they were building a new sanctuary closer to the washington d c line in a higher crime higher drug rate area because they thought it was part of their ministry to change the lives of the people who needed them second thing i want to say is that once reverend cherry was at a meeting at the white house with some other religious leaders and he left early to go back to his church to minister to 150 couples that he had brought back to his church from all over america to convince them to come back together to save their marriages and to raise their kids this is the kind of work that citizens are doing in america we need more of it and it ought to be lifted up and supported +the last person i want to introduce is jack lucas from hattiesburg mississippi jack would you stand up fifty years ago in the sands of iwo jima jack lucas taught and learned the lessons of citizenship on february the 20th 1945 he and three of his buddies encountered the enemy and two grenades at their feet jack lucas threw himself on both of them in that moment he saved the lives of his companions and miraculously in the next instant a medic saved his life he gained a foothold for freedom and at the age of 17 just a year older than his grandson who s up there with him today and his son who is a west point graduate and a veteran at 17 jack lucas became the youngest marine in history and the youngest soldier in this century to win the congressional medal of honor all these years later yesterday here s what he said about that day didn t matter where you were from or who you were you relied on one another you did it for your country we all gain when we give and we reap what we sow that s at the heart of this new covenant responsibility opportunity and citizenship +more than stale chapters in some remote civic book they re still the virtue by which we can fulfill ourselves and reach our god given potential and be like them and also to fulfill the eternal promise of this country the enduring dream from that first and most sacred covenant i believe every person in this country still believes that we are created equal and given by our creator the right to life liberty and the pursuit of happiness +this is a very very great country and our best days are still to come thank you and god bless you all +mr speaker mr vice president members of the 104th congress distinguished guests my fellow americans all across our land +let me begin tonight by saying to our men and women in uniform around the world and especially those helping peace take root in bosnia and to their families i thank you america is very very proud of you +my duty tonight is to report on the state of the union not the state of our government but of our american community and to set forth our responsibilities in the words of our founders to form a more perfect union +the state of the union is strong our economy is the healthiest it has been in three decades we have the lowest combined rates of unemployment and inflation in 27 years we have created nearly 8 million new jobs over a million of them in basic industries like construction and automobiles america is selling more cars than japan for the first time since the 1970s and for three years in a row we have had a record number of new businesses started in our country +our leadership in the world is also strong bringing hope for new peace and perhaps most important we are gaining ground in restoring our fundamental values the crime rate the welfare and food stamp rolls the poverty rate and the teen pregnancy rate are all down and as they go down prospects for america s future go up +we live in an age of possibility a hundred years ago we moved from farm to factory now we move to an age of technology information and global competition these changes have opened vast new opportunities for our people but they have also presented them with stiff challenges while more americans are living better too many of our fellow citizens are working harder just to keep up and they are rightly concerned about the security of their families +the role of government +we must answer here three fundamental questions first how do we make the american dream of opportunity for all a reality for all americans who are willing to work for it second how do we preserve our old and enduring values as we move into the future and third how do we meet these challenges together as one america +we know big government does not have all the answers we know there s not a program for every problem we have worked to give the american people a smaller less bureaucratic government in washington and we have to give the american people one that lives within its means +the era of big government is over but we cannot go back to the time when our citizens were left to fend for themselves instead we must go forward as one america one nation working together to meet the challenges we face together self reliance and teamwork are not opposing virtues we must have both +i believe our new smaller government must work in an old fashioned american way together with all of our citizens through state and local governments in the workplace in religious charitable and civic associations our goal must be to enable all our people to make the most of their own lives with stronger families more educational opportunity economic security safer streets a cleaner environment in a safer world +to improve the state of our union we must ask more of ourselves we must expect more of each other and we must face our challenges together +here in this place our responsibility begins with balancing the budget in a way that is fair to all americans there is now broad bipartisan agreement that permanent deficit spending must come to an end +i compliment the republican leadership and the membership for the energy and determination you have brought to this task of balancing the budget and i thank the democrats for passing the largest deficit reduction plan in history in 1993 which has already cut the deficit nearly in half in three years +deficit +since 1993 we have all begun to see the benefits of deficit reduction lower interest rates have made it easier for businesses to borrow and to invest and to create new jobs lower interest rates have brought down the cost of home mortgages car payments and credit card rates to ordinary citizens now it is time to finish the job and balance the budget +though differences remain among us which are significant the combined total of the proposed savings that are common to both plans is more than enough using the numbers from your congressional budget office to balance the budget in seven years and to provide a modest tax cut +these cuts are real they will require sacrifice from everyone but these cuts do not undermine our fundamental obligations to our parents our children and our future by endangering medicare or medicaid or education or the environment or by raising taxes on working families +i have said before and let me say again many good ideas have come out of our negotiations i have learned a lot about the way both republicans and democrats view the debate before us i have learned a lot about the good ideas that we could all embrace +we ought to resolve our remaining differences i am willing to work to resolve them i am ready to meet tomorrow but i ask you to consider that we should at least enact these savings that both plans have in common and give the american people their balanced budget a tax cut lower interest rates and a brighter future we should do that now and make permanent deficits yesterday s legacy +now it is time for us to look also to the challenges of today and tomorrow beyond the burdens of yesterday the challenges are significant but america was built on challenges not promises and when we work together to meet them we never fail that is the key to a more perfect union our individual dreams must be realized by our common efforts +tonight i want to speak to you about the challenges we all face as a people +strengthening families +our first challenge is to cherish our children and strengthen america s families family is the foundation of american life if we have stronger families we will have a stronger america +before i go on i would like to take just a moment to thank my own family and to thank the person who has taught me more than anyone else over 25 years about the importance of families and children a wonderful wife a magnificent mother and a great first lady thank you hillary +all strong families begin with taking more responsibility for our children i have heard mrs gore say that it s hard to be a parent today but it s even harder to be a child so all of us not just as parents but all of us in our other roles our media our schools our teachers our communities our churches and synagogues our businesses our governments all of us have a responsibility to help our children to make it and to make the most of their lives and their god given capacities +to the media i say you should create movies and cds and television shows you d want your own children and grandchildren to enjoy +i call on congress to pass the requirement for a v chip in tv sets so that parents can screen out programs they believe are inappropriate for their children when parents control what their young children see that is not censorship that is enabling parents to assume more personal responsibility for their children s upbringing and i urge them to do it the v chip requirement is part of the important telecommunications bill now pending in this congress it has bipartisan support and i urge you to pass it now +to make the v chip work i challenge the broadcast industry to do what movies have done to identify your programming in ways that help parents to protect their children and i invite the leaders of major media corporations in the entertainment industry to come to the white house next month to work with us in a positive way on concrete ways to improve what our children see on television i am ready to work with you +i say to those who make and market cigarettes every year a million children take up smoking even though it is against the law three hundred thousand of them will have their lives shortened as a result our administration has taken steps to stop the massive marketing campaigns that appeal to our children we are simply saying market your products to adults if you wish but draw the line on children +i say to those who are on welfare and especially to those who have been trapped on welfare for a long time for too long our welfare system has undermined the values of family and work instead of supporting them the congress and i are near agreement on sweeping welfare reform we agree on time limits tough work requirements and the toughest possible child support enforcement but i believe we must also provide child care so that mothers who are required to go to work can do so without worrying about what is happening to their children +i challenge this congress to send me a bipartisan welfare reform bill that will really move people from welfare to work and do the right thing by our children i will sign it immediately +let us be candid about this difficult problem passing a law even the best possible law is only a first step the next step is to make it work i challenge people on welfare to make the most of this opportunity for independence i challenge american businesses to give people on welfare the chance to move into the work force i applaud the work of religious groups and others who care for the poor more than anyone else in our society they know the true difficulty of the task before us and they are in a position to help every one of us should join them that is the only way we can make real welfare reform a reality in the lives of the american people +to strengthen the family we must do everything we can to keep the teen pregnancy rate going down i am gratified as i m sure all americans are that it has dropped for two years in a row but we all know it is still far too high +tonight i am pleased to announce that a group of prominent americans is responding to that challenge by forming an organization that will support grass roots community efforts all across our country in a national campaign against teen pregnancy and i challenge all of us and every american to join their efforts +i call on american men and women in families to give greater respect to one another we must end the deadly scourge of domestic violence in our country and i challenge america s families to work harder to stay together for families who stay together not only do better economically their children do better as well +in particular i challenge the fathers of this country to love and care for their children if your family has separated you must pay your child support we re doing more than ever to make sure you do and we re going to do more but let s all admit something about that too a check will not substitute for a parent s love and guidance and only you only you can make the decision to help raise your children no matter who you are how low or high your station in life it is the most basic human duty of every american to do that job to the best of his or her ability +education +our second challenge is to provide americans with the educational opportunities we will all need for this new century in our schools every classroom in america must be connected to the information superhighway with computers and good software and well trained teachers we are working with the telecommunications industry educators and parents to connect 20 percent of california s classrooms by this spring and every classroom and every library in the entire united states by the year 2000 i ask congress to support this education technology initiative so that we can make sure this national partnership succeeds +every diploma ought to mean something i challenge every community every school and every state to adopt national standards of excellence to measure whether schools are meeting those standards to cut bureaucratic red tape so that schools and teachers have more flexibility for grass roots reform and to hold them accountable for results that s what our goals 2000 initiative is all about +i challenge every state to give all parents the right to choose which public school their children will attend and to let teachers form new schools with a charter they can keep only if they do a good job +i challenge all our schools to teach character education to teach good values and good citizenship and if it means that teenagers will stop killing each other over designer jackets then our public schools should be able to require their students to wear school uniforms +i challenge our parents to become their children s first teachers turn off the tv see that the homework is done and visit your children s classroom no program no teacher no one else can do that for you +my fellow americans higher education is more important today than ever before we ve created a new student loan program that s made it easier to borrow and repay those loans and we have dramatically cut the student loan default rate that s something we should all be proud of because it was unconscionably high just a few years ago through americorps our national service program this year 25 000 young people will earn college money by serving their local communities to improve the lives of their friends and neighbors these initiatives are right for america and we should keep them going +and we should also work hard to open the doors of college even wider i challenge congress to expand work study and help one million young americans work their way through college by the year 2000 to provide a $1000 merit scholarship for the top five percent of graduates in every high school in the united states to expand pell grant scholarships for deserving and needy students and to make up to $10 000 a year of college tuition tax deductible it s a good idea for america +our third challenge is to help every american who is willing to work for it achieve economic security in this new age people who work hard still need support to get ahead in the new economy they need education and training for a lifetime they need more support for families raising children they need retirement security they need access to health care more and more americans are finding that the education of their childhood simply doesn t last a lifetime +g i bill for workers +so i challenge congress to consolidate 70 overlapping antiquated job training programs into a simple voucher worth $2 600 for unemployed or underemployed workers to use as they please for community college tuition or other training this is a g i bill for america s workers we should all be able to agree on +more and more americans are working hard without a raise congress sets the minimum wage within a year the minimum wage will fall to a 40 year low in purchasing power four dollars and 25 cents an hour is no longer a living wage but millions of americans and their children are trying to live on it i challenge you to raise their minimum wage +in 1993 congress cut the taxes of 15 million hard pressed working families to make sure that no parents who work full time would have to raise their children in poverty and to encourage people to move from welfare to work this expanded earned income tax credit is now worth about $1 800 a year to a family of four living on $20 000 the budget bill i vetoed would have reversed this achievement and raised taxes on nearly 8 million of these people we should not do that +i also agree that the people who are helped under this initiative are not all those in our country who are working hard to do a good job raising their children and at work i agree that we need a tax credit for working families with children that s one of the things most of us in this chamber i hope can agree on i know it is strongly supported by the republican majority and it should be part of any final budget agreement +i want to challenge every business that can possibly afford it to provide pensions for your employees and i challenge congress to pass a proposal recommended by the white house conference on small business that would make it easier for small businesses and farmers to establish their own pension plans that is something we should all agree on +we should also protect existing pension plans two years ago with bipartisan support that was almost unanimous on both sides of the aisle we moved to protect the pensions of 8 million working people and to stabilize the pensions of 32 million more congress should not now let companies endanger those workers pension funds i know the proposal to liberalize the ability of employers to take money out of pension funds for other purposes would raise money for the treasury but i believe it is false economy i vetoed that proposal last year and i would have to do so again +health care +finally if our working families are going to succeed in the new economy they must be able to buy health insurance policies that they do not lose when they change jobs or when someone in their family gets sick over the past two years over one million americans in working families have lost their health insurance we have to do more to make health care available to every american and congress should start by passing the bipartisan bill sponsored by senator kennedy and senator kassebaum that would require insurance companies to stop dropping people when they switch jobs and stop denying coverage for preexisting conditions let s all do that +and even as we enact savings in these programs we must have a common commitment to preserve the basic protections of medicare and medicaid not just to the poor but to people in working families including children people with disabilities people with aids and senior citizens in nursing homes +in the past three years we ve saved $15 billion just by fighting health care fraud and abuse we have all agreed to save much more we have all agreed to stabilize the medicare trust fund but we must not abandon our fundamental obligations to the people who need medicare and medicaid america cannot become stronger if they become weaker +the g i bill for workers tax relief for education and child rearing pension availability and protection access to health care preservation of medicare and medicaid these things along with the family and medical leave act passed in 1993 these things will help responsible hard working american families to make the most of their own lives +but employers and employees must do their part as well as they are doing in so many of our finest companies working together putting the long term prosperity ahead of the short term gain as workers increase their hours and their productivity employers should make sure they get the skills they need and share the benefits of the good years as well as the burdens of the bad ones when companies and workers work as a team they do better and so does america +crime +our fourth great challenge is to take our streets back from crime and gangs and drugs at last we have begun to find a way to reduce crime forming community partnerships with local police forces to catch criminals and prevent crime this strategy called community policing is clearly working violent crime is coming down all across america in new york city murders are down 25 percent in st louis 18 percent in seattle 32 percent but we still have a long way to go before our streets are safe and our people are free from fear +the crime bill of 1994 is critical to the success of community policing it provides funds for 100 000 new police in communities of all sizes we re already a third of the way there and i challenge the congress to finish the job let us stick with a strategy that s working and keep the crime rate coming down +community policing also requires bonds of trust between citizens and police i ask all americans to respect and support our law enforcement officers and to our police i say our children need you as role models and heroes don t let them down +the brady bill has already stopped 44 000 people with criminal records from buying guns the assault weapons ban is keeping 19 kinds of assault weapons out of the hands of violent gangs i challenge the congress to keep those laws on the books +our next step in the fight against crime is to take on gangs the way we once took on the mob i m directing the fbi and other investigative agencies to target gangs that involve juveniles in violent crime and to seek authority to prosecute as adults teenagers who maim and kill like adults +and i challenge local housing authorities and tenant associations criminal gang members and drug dealers are destroying the lives of decent tenants from now on the rule for residents who commit crime and peddle drugs should be one strike and you re out +i challenge every state to match federal policy to assure that serious violent criminals serve at least 85 percent of their sentence +more police and punishment are important but they re not enough we have got to keep more of our young people out of trouble with prevention strategies not dictated by washington but developed in communities i challenge all of our communities all of our adults to give our children futures to say yes to and i challenge congress not to abandon the crime bill s support of these grass roots prevention efforts +finally to reduce crime and violence we have to reduce the drug problem the challenge begins in our homes with parents talking to their children openly and firmly it embraces our churches and synagogues our youth groups and our schools +i challenge congress not to cut our support for drug free schools people like the d a r e officers are making a real impression on grade schoolchildren that will give them the strength to say no when the time comes +meanwhile we continue our efforts to cut the flow of drugs into america for the last two years one man in particular has been on the front lines of that effort tonight i am nominating him a hero of the persian gulf war and the commander in chief of the united states military southern command general barry mccaffrey as america s new drug czar +general mccaffrey has earned three purple hearts and two silver stars fighting for this country tonight i ask that he lead our nation s battle against drugs at home and abroad to succeed he needs a force far larger than he has ever commanded before he needs all of us every one of us has a role to play on this team +thank you general mccaffrey for agreeing to serve your country one more time +environment +our fifth challenge to leave our environment safe and clean for the next generation because of a generation of bipartisan effort we do have cleaner water and air lead levels in children s blood has been cut by 70 percent toxic emissions from factories cut in half lake erie was dead and now it s a thriving resource but 10 million children under 12 still live within four miles of a toxic waste dump a third of us breathe air that endangers our health and in too many communities the water is not safe to drink we still have much to do +yet congress has voted to cut environmental enforcement by 25 percent that means more toxic chemicals in our water more smog in our air more pesticides in our food lobbyists for polluters have been allowed to write their own loopholes into bills to weaken laws that protect the health and safety of our children some say that the taxpayer should pick up the tab for toxic waste and let polluters who can afford to fix it off the hook i challenge congress to reexamine those policies and to reverse them +this issue has not been a partisan issue the most significant environmental gains in the last 30 years were made under a democratic congress and president richard nixon we can work together we have to believe some basic things do you believe we can expand the economy without hurting the environment i do do you believe we can create more jobs over the long run by cleaning the environment up i know we can that should be our commitment +we must challenge businesses and communities to take more initiative in protecting the environment and we have to make it easier for them to do it to businesses this administration is saying if you can find a cheaper more efficient way than government regulations require to meet tough pollution standards do it as long as you do it right to communities we say we must strengthen community right to know laws requiring polluters to disclose their emissions but you have to use the information to work with business to cut pollution people do have a right to know that their air and their water are safe +foreign policy +our sixth challenge is to maintain america s leadership in the fight for freedom and peace throughout the world because of american leadership more people than ever before live free and at peace and americans have known 50 years of prosperity and security +we owe thanks especially to our veterans of world war ii i would like to say to senator bob dole and to all others in this chamber who fought in world war ii and to all others on both sides of the aisle who have fought bravely in all our conflicts since i salute your service and so do the american people +all over the world even after the cold war people still look to us and trust us to help them seek the blessings of peace and freedom but as the cold war fades into memory voices of isolation say america should retreat from its responsibilities i say they are wrong +the threats we face today as americans respect no nation s borders think of them terrorism the spread of weapons of mass destruction organized crime drug trafficking ethnic and religious hatred aggression by rogue states environmental degradation if we fail to address these threats today we will suffer the consequences in all our tomorrows +of course we can t be everywhere of course we can t do everything but where our interests and our values are at stake and where we can make a difference america must lead we must not be isolationist +we must not be the world s policeman but we can and should be the world s very best peacemaker by keeping our military strong by using diplomacy where we can and force where we must by working with others to share the risk and the cost of our efforts america is making a difference for people here and around the world for the first time since the dawn of the nuclear age there is not a single russian missile pointed at america s children +north korea +north korea has now frozen its dangerous nuclear weapons program in haiti the dictators are gone democracy has a new day the flow of desperate refugees to our shores has subsided through tougher trade deals for america over 80 of them we have opened markets abroad and now exports are at an all time high growing faster than imports and creating good american jobs +northern ireland +we stood with those taking risks for peace in northern ireland where catholic and protestant children now tell their parents violence must never return in the middle east where arabs and jews who once seemed destined to fight forever now share knowledge and resources and even dreams +bosnia +and we stood up for peace in bosnia remember the skeletal prisoners the mass graves the campaign to rape and torture the endless lines of refugees the threat of a spreading war all these threats all these horrors have now begun to give way to the promise of peace now our troops and a strong nato together with our new partners from central europe and elsewhere are helping that peace to take hold +as all of you know i was just there with a bipartisan congressional group and i was so proud not only of what our troops were doing but of the pride they evidenced in what they were doing they knew what america s mission in this world is and they were proud to be carrying it out +through these efforts we have enhanced the security of the american people but make no mistake about it important challenges remain +russia +the start ii treaty with russia will cut our nuclear stockpiles by another 25 percent i urge the senate to ratify it now we must end the race to create new nuclear weapons by signing a truly comprehensive nuclear test ban treaty this year +as we remember what happened in the japanese subway we can outlaw poison gas forever if the senate ratifies the chemical weapons convention this year we can intensify the fight against terrorists and organized criminals at home and abroad if congress passes the anti terrorism legislation i proposed after the oklahoma city bombing now we can help more people move from hatred to hope all across the world in our own interest if congress gives us the means to remain the world s leader for peace +my fellow americans the six challenges i have just discussed are for all of us our seventh challenge is really america s challenge to those of us in this hallowed hall tonight to reinvent our government and make our democracy work for them +reform +last year this congress applied to itself the laws it applies to everyone else this congress banned gifts and meals from lobbyists this congress forced lobbyists to disclose who pays them and what legislation they are trying to pass or kill this congress did that and i applaud you for it +now i challenge congress to go further to curb special interest influence in politics by passing the first truly bipartisan campaign reform bill in a generation you republicans and democrats alike can show the american people that we can limit spending and open the airwaves to all candidates +i also appeal to congress to pass the line item veto you promised the american people +our administration is working hard to give the american people a government that works better and costs less thanks to the work of vice president gore we are eliminating 16 000 pages of unnecessary rules and regulations shifting more decision making out of washington back to states and local communities +as we move into the era of balanced budgets and smaller government we must work in new ways to enable people to make the most of their own lives we are helping america s communities not with more bureaucracy but with more opportunities through our successful empowerment zones and community development banks we are helping people to find jobs to start businesses and with tax incentives for companies that clean up abandoned industrial property we can bring jobs back to places that desperately desperately need them +but there are some areas that the federal government should not leave and should address and address strongly one of these areas is the problem of illegal immigration after years of neglect this administration has taken a strong stand to stiffen the protection of our borders we are increasing border controls by 50 percent we are increasing inspections to prevent the hiring of illegal immigrants and tonight i announce i will sign an executive order to deny federal contracts to businesses that hire illegal immigrants +let me be very clear about this we are still a nation of immigrants we should be proud of it we should honor every legal immigrant here working hard to become a new citizen but we are also a nation of laws +i want to say a special word now to those who work for our federal government today our federal government is 200 000 employees smaller than it was the day i took office as president +our federal government today is the smallest it has been in 30 years and it s getting smaller every day most of our fellow americans probably don t know that and there is a good reason the remaining federal work force is composed of americans who are now working harder and working smarter than ever before to make sure the quality of our services does not decline +i d like to give you one example his name is richard dean he is a 49 year old vietnam veteran who s worked for the social security administration for 22 years now last year he was hard at work in the federal building in oklahoma city when the blast killed 169 people and brought the rubble down all around him he reentered that building four times he saved the lives of three women he s here with us this evening and i want to recognize richard and applaud both his public service and his extraordinary personal heroism +but richard dean s story doesn t end there this last november he was forced out of his office when the government shut down and the second time the government shut down he continued helping social security recipients but he was working without pay +on behalf of richard dean and his family and all the other people who are out there working every day doing a good job for the american people i challenge all of you in this chamber never ever shut the federal government down again +on behalf of all americans especially those who need their social security payments at the beginning of march i also challenge the congress to preserve the full faith and credit of the united states to honor the obligations of this great nation as we have for 220 years to rise above partisanship and pass a straightforward extension of the debt limit and show people america keeps its word +i know that this evening i have asked a lot of congress and even more from america but i am confident when americans work together in their homes their schools their churches their synagogues their civic groups their workplace they can meet any challenge +i say again the era of big government is over but we can t go back to the era of fending for yourself we have to go forward to the era of working together as a community as a team as one america with all of us reaching across these lines that divide us the division the discrimination the rancor we have to reach across it to find common ground we have got to work together if we want america to work +i want you to meet two more people tonight who do just that lucius wright is a teacher in the jackson mississippi public school system a vietnam veteran he has created groups to help inner city children turn away from gangs and build futures they can believe in sergeant jennifer rodgers is a police officer in oklahoma city like richard dean she helped to pull her fellow citizens out of the rubble and deal with that awful tragedy she reminds us that in their response to that atrocity the people of oklahoma city lifted all of us with their basic sense of decency and community +lucius wright and jennifer rodgers are special americans and i have the honor to announce tonight that they are the very first of several thousand americans who will be chosen to carry the olympic torch on its long journey from los angeles to the centennial of the modern olympics in atlanta this summer not because they are star athletes but because they are star citizens community heroes meeting america s challenges they are our real champions +now each of us must hold high the torch of citizenship in our own lives none of us can finish the race alone we can only achieve our destiny together one hand one generation one american connecting to another +there have always been things we could do together dreams we could make real which we could never have done on our own we americans have forged our identity our very union from every point of view and every point on the planet every different opinion but we must be bound together by a faith more powerful than any doctrine that divides us by our belief in progress our love of liberty and our relentless search for common ground +america has always sought and always risen to every challenge who would say that having come so far together we will not go forward from here who would say that this age of possibility is not for all americans +our country is and always has been a great and good nation but the best is yet to come if we all do our part +thank you god bless you and god bless the united states of america thank you +mr speaker mr vice president members of the 105th congress distinguished guests my fellow americans +i think i should start by saying thanks for inviting me back +i come before you tonight with a challenge as great as any in our peacetime history and a plan of action to meet that challenge to prepare our people for the bold new world of the 21st century +we have much to be thankful for with four years of growth we have won back the basic strength of our economy with crime and welfare rolls declining we are winning back our optimism the enduring faith that we can master any difficulty with the cold war receding and global commerce at record levels we are helping to win an unrivaled peace and prosperity all across the world +my fellow americans the state of our union is strong but now we must rise to the decisive moment to make a nation and a world better than any we have ever known +the new promise of the global economy the information age unimagined new work life enhancing technology all these are ours to seize that is our honor and our challenge we must be shapers of events not observers for if we do not act the moment will pass and we will lose the best possibilities of our future +we face no imminent threat but we do have an enemy the enemy of our time is inaction +so tonight i issue a call to action action by this congress action by our states by our people to prepare america for the 21st century action to keep our economy and our democracy strong and working for all our people action to strengthen education and harness the forces of technology and science action to build stronger families and stronger communities and a safer environment action to keep america the world s strongest force for peace freedom and prosperity and above all action to build a more perfect union here at home +the spirit we bring to our work will make all the difference +we must be committed to the pursuit of opportunity for all americans responsibility from all americans in a community of all americans and we must be committed to a new kind of government not to solve all our problems for us but to give our people all our people the tools they need to make the most of their own lives and we must work together +the people of this nation elected us all they want us to be partners not partisans they put us all right here in the same boat they gave us all oars and they told us to row now here is the direction i believe we should take +first we must move quickly to complete the unfinished business of our country to balance the budget renew our democracy and finish the job of welfare reform +over the last four years we have brought new economic growth by investing in our people expanding our exports cutting our deficits creating over 11 million new jobs a four year record +now we must keep our economy the strongest in the world we here tonight have an historic opportunity let this congress be the congress that finally balances the budget thank you +in two days i will propose a detailed plan to balance the budget by 2002 this plan will balance the budget and invest in our people while protecting medicare medicaid education and the environment it will balance the budget and build on the vice president s efforts to make our government work better even as it costs less +it will balance the budget and provide middle class tax relief to pay for education and health care to help to raise a child to buy and sell a home +balancing the budget requires only your vote and my signature it does not require us to rewrite our constitution i believe i believe it is both unnecessary unwise to adopt a balanced budget amendment that could cripple our country in time of economic crisis and force unwanted results such as judges halting social security checks or increasing taxes +let us at least agree we should not pass any measure no measure should be passed that threatens social security we don t need whatever your view on that we all must concede we don t need a constitutional amendment we need action whatever our differences we should balance the budget now and then for the long term health of our society we must agree to a bipartisan process to preserve social security and reform medicare for the long run so that these fundamental programs will be as strong for our children as they are for our parents +and let me say something that s not in my script tonight i know this is not going to be easy but i really believe one of the reasons the american people gave me a second term was to take the tough decisions in the next four years that will carry our country through the next 50 years i know it is easier for me than for you to say or do but another reason i was elected is to support all of you without regard to party to give you what is necessary to join in these decisions we owe it to our country and to our future +our second piece of unfinished business requires us to commit ourselves tonight before the eyes of america to finally enacting bipartisan campaign finance reform +now senators mccain and feingold representatives shays and meehan have reached across party lines here to craft tough and fair reform their proposal would curb spending reduce the role of special interests create a level playing field between challengers and incumbents and ban contributions from non citizens all corporate sources and the other large soft money contributions that both parties receive +you know and i know that this can be delayed and you know and i know that delay will mean the death of reform +so let s set our own deadline let s work together to write bipartisan campaign finance reform into law and pass mccain feingold by the day we celebrate the birth of our democracy july the 4th +there is a third piece of unfinished business over the last four years we moved a record two and a quarter million people off the welfare roles then last year congress enacted landmark welfare reform legislation demanding that all able bodied recipients assume the responsibility of moving from welfare to work now each and every one of us has to fulfill our responsibility indeed our moral obligation to make sure that people who now must work can work and now we must act to meet a new goal two million more people off the welfare rolls by the year 2000 +here is my plan tax credits and other incentives for businesses that hire people off welfare incentives for job placement firms in states to create more jobs for welfare recipients training transportation and child care to help people go to work now i challenge every state turn those welfare checks into private sector paychecks i challenge every religious congregation every community nonprofit every business to hire someone off welfare and i d like to say especially to every employer in our country who ever criticized the old welfare system you can t blame that old system anymore we have torn it down now do your part give someone on welfare the chance to go to work +tonight i am pleased to announce that five major corporations sprint monsanto ups burger king and united airlines will be the first to join in a new national effort to marshal america s businesses large and small to create jobs so that people can move from welfare to work +we passed welfare reform all of you know i believe we were right to do it but no one can walk out of this chamber with a clear conscience unless you are prepared to finish the job +and we must join together to do something else too something both republican and democratic governors have asked us to do to restore basic health and disability benefits when misfortune strikes immigrants who came to this country legally who work hard pay taxes and obey the law to do otherwise is simply unworthy of a great nation of immigrants +now looking ahead the greatest step of all the high threshold to the future we must now cross and my number one priority for the next four years is to ensure that all americans have the best education in the world thank you +let s work together to meet these three goals every eight year old must be able to read every 12 year old must be able to log on to the internet every 18 year old must be able to go to college and every adult american must be able to keep on learning for a lifetime +my balanced budget makes an unprecedented commitment to these goals $51 billion next year but far more than money is required i have a plan a call to action for american education based on these 10 principles +first a national crusade for education standards not federal government standards but national standards representing what all our students must know to succeed in the knowledge economy of the 21st century every state and school must shape the curriculum to reflect these standards and train teachers to lift students up to them to help schools meet the standards and measure their progress we will lead an effort over the next two years to develop national tests of student achievement in reading and math +tonight i issue a challenge to the nation every state should adopt high national standards and by 1999 every state should test every 4th grader in reading and every 8th grader in math to make sure these standards are met +raising standards will not be easy and some of our children will not be able to meet them at first the point is not to put our children down but to lift them up good tests will show us who needs help what changes in teaching to make and which schools need to improve they can help us end social promotion for no child should move from grade school to junior high or junior high to high school until he or she is ready +last month our secretary of education dick riley and i visited northern illinois where 8th grade students from 20 school districts in a project aptly called first in the world took the third international math and science study +that s a test that reflects the world class standards our children must meet for the new era and those students in illinois tied for first in the world in science and came in second in math two of them kristen tanner and chris getsla are here tonight along with their teacher sue winski they re up there with the first lady and they prove that when we aim high and challenge our students they will be the best in the world let s give them a hand stand up please +second to have the best schools we must have the best teachers most of us in this chamber would not be here tonight without the help of those teachers i know that i wouldn t be here +for years many of our educators led by north carolina s governor jim hunt and the national board for professional teaching standards have worked very hard to establish nationally accepted credentials for excellence in teaching +just 500 of these teachers have been certified since 1995 my budget will enable 100 000 more to seek national certification as master teachers we should reward and recognize our best teachers and as we reward them we should quickly and fairly remove those few who don t measure up and we should challenge more of our finest young people to consider teaching as a career +third we must do more to help all our children read forty percent 40 percent of our 8 year olds cannot read on their own that s why we have just launched the america reads initiative to build a citizen army of one million volunteer tutors to make sure every child can read independently by the end of the 3rd grade we will use thousands of americorps volunteers to mobilize this citizen army we want at least 100 000 college students to help +and tonight i m pleased that 60 college presidents have answered my call pledging that thousands of their work study students will serve for one year as reading tutors +this is also a challenge to every teacher and every principal +you must use these tutors to help your students read and it is especially a challenge to our parents you must read with your children every night +this leads to the fourth principle learning begins in the first days of life scientists are now discovering how young children develop emotionally and intellectually from their very first days and how important it is for parents to begin immediately talking singing even reading to their infants the first lady has spent years writing about this issue studying it and she and i are going to convene a white house conference on early learning and the brain this spring to explore how parents and educators can best use these startling new findings +we already know we should start teaching children before they start school that s why this balanced budget expands head start to one million children by 2002 and that is why the vice president and mrs gore will host their annual family conference this june on what we can do to make sure that parents are an active part of their children s learning all the way through school +they ve done a great deal to highlight the importance of family in our life and now they re turning their attention to getting more parents involved in their children s learning all the way through school i thank you mr vice president and i thank you especially tipper for what you re doing +fifth every state should give parents the power to choose the right public school for their children their right to choose will foster competition and innovation that can make public schools better we should also make it possible for more parents and teachers to start charter schools schools that set and meet the highest standards and exist only as long as they do +our plan will help america to create 3 000 of these charter schools by the next century nearly seven times as there are in the country today so that parents will have even more choices in sending their children to the best schools +sixth character education must be taught in our schools we must teach our children to be good citizens and we must continue to promote order and discipline supporting communities that introduce school uniforms impose curfews enforce truancy laws remove disruptive students from the classroom and have zero tolerance for guns and drugs in schools +seventh we cannot expect our children to raise themselves up in schools that are literally falling down with the student population at an all time high and record numbers of school buildings falling into disrepair this has now become a serious national concern therefore my budget includes a new initiative $5 billion to help communities finance $20 billion in school construction over the next four years +eighth we must make the 13th and 14th years of education at least two years of college just as universal in america by the 21st century as a high school education is today and we must open the doors of college to all americans +to do that i propose america s hope scholarship based on georgia s pioneering program two years of a $1 500 tax credit for college tuition enough to pay for the typical community college i also propose a tax deduction of up to $10 000 a year for all tuition after high school an expanded ira you can withdraw from tax free for education and the largest increase in pell grant scholarship in 20 years +now this plan will give most families the ability to pay no taxes on money they save for college tuition i ask you to pass it and give every american who works hard the chance to go to college +ninth in the 21st century we must expand the frontiers of learning across a lifetime all our people of whatever age must have the chance to learn new skills +most americans live near a community college the roads that take them there can be paths to a better future my gi bill for america s workers will transform the confusing tangle of federal training programs into a simple skill grant to go directly into eligible workers hands +for too long this bill has been sitting on that desk there without action i ask you to pass it now let s give more of our workers the ability to learn and to earn for a lifetime +tenth we must bring the power of the information age into all our schools +last year i challenged america to connect every classroom and library to the internet by the year 2000 so that for the first time in our history children in the most isolated rural town the most comfortable suburbs the poorest inner city schools will have the same access to the same universe of knowledge +that is my plan a call to action for american education some may say that it is unusual for a president to pay this kind of attention to education some may say it is simply because the president and his wonderful wife have been obsessed with this subject for more years than they can recall that is not what is driving these proposals we must understand the significance of this endeavor +one of the greatest sources of our strength throughout the cold war was a bipartisan foreign policy because our future was at stake politics stopped at the water s edge now i ask you and i ask all our nation s governors i ask parents teachers and citizens all across america for a new nonpartisan commitment to education because education is a critical national security issue for our future and politics must stop at the schoolhouse door +to prepare america for the 21st century we must harness the powerful forces of science and technology to benefit all americans this is the first state of the union carried live in video over the internet but we ve only begun to spread the benefits of a technology revolution that should become the modern birthright of every citizen +our effort to connect every classroom is just the beginning now we should connect every hospital to the internet so that doctors can instantly share data about their patients with the best specialists in the field +and i challenge the private sector tonight to start by connecting every children s hospital as soon as possible so that a child in bed can stay in touch with school family and friends a sick child need no longer be a child alone +we must build the second generation of the internet so that our leading universities and national laboratories can communicate in speeds a thousand times faster than today to develop new medical treatments new sources of energy new ways of working together but we cannot stop there +as the internet becomes our new town square a computer in every home a teacher of all subjects a connection to all cultures this will no longer be a dream but a necessity and over the next decade that must be our goal +we must continue to explore the heavens pressing on with the mars probes and the international space station both of which will have practical applications for our everyday living +we must speed the remarkable advances in medical science the human genome project is now decoding the genetic mysteries of life american scientists have discovered genes linked to breast cancer and ovarian cancer and medication that stops a stroke in progress and begins to reverse its effects and treatments that dramatically lengthen the lives of people with hiv and aids +since i took office funding for aids research at the national institutes of health has increased dramatically to $1 5 billion with new resources nih will now become the most powerful discovery engine for an aids vaccine working with other scientists to finally end the threat of aids thank you remember that every year every year we move up the discovery of an aids vaccine we ll save millions of lives around the world we must reinforce our commitment to medical science +to prepare america for the 21st century we must build stronger families over the past four years the family and medical leave law has helped millions of americans to take time off to be with their families +with new pressures on people and the way they work and live i believe we must expand family leave so that workers can take time off for teacher conferences and a child s medical checkup we should pass flex time so workers can choose to be paid for overtime in income or trade it in for time off to be with their families +we must continue we must continue step by step to give more families access to affordable quality health care forty million americans still lack health insurance ten million children still lack health insurance eighty percent of them have working parents who pay taxes that is wrong +my my balanced budget will extend health coverage to up to 5 million of those children since nearly half of all children who lose their insurance do so because their parents lose or change a job my budget will also ensure that people who temporarily lose their jobs can still afford to keep their health insurance no child should be without a doctor just because a parent is without a job +my medicare plan modernizes medicare increases the life of the trust fund to 10 years provides support for respite care for the many families with loved ones afflicted with alzheimer s and for the first time it would fully pay for annual mammograms +just as we ended drive through deliveries of babies last year we must now end the dangerous and demeaning practice of forcing women home from the hospital only hours after a mastectomy +i ask your support for bipartisan legislation to guarantee that a woman can stay in the hospital for 48 hours after a mastectomy with us tonight is dr kristen zarfos a connecticut surgeon whose outrage at this practice spurred a national movement and inspired this legislation i d like her to stand so we can thank her for her efforts dr zarfos thank you +in the last four years we have increased child support collections by 50 percent now we should go further and do better by making it a felony for any parent to cross a state line in an attempt to flee from this his or her most sacred obligation +finally we must also protect our children by standing firm in our determination to ban the advertising and marketing of cigarettes that endanger their lives +to prepare america for the 21st century we must build stronger communities we should start with safe streets serious crime has dropped five years in a row the key has been community policing we must finish the job of putting 100 000 community police on the streets of the united states +we should pass the victims rights amendment to the constitution and i ask you to mount a full scale assault on juvenile crime with legislation that declares war on gangs with new prosecutors and tougher penalties extends the brady bill so violent teen criminals will not be able to buy handguns requires child safety locks on handguns to prevent unauthorized use and helps to keep our schools open after hours on weekends and in the summer so our young people will have someplace to go and something to say yes to +this balanced budget includes the largest anti drug effort ever to stop drugs at their source punish those who push them and teach our young people that drugs are wrong drugs are illegal and drugs will kill them i hope you will support it +our growing economy has helped to revive poor urban and rural neighborhoods but we must do more to empower them to create the conditions in which all families can flourish and to create jobs through investment by business and loans by banks +we should double the number of empowerment zones they ve already brought so much hope to communities like detroit where the unemployment rate has been cut in half in four years we should restore contaminated urban land and buildings to constructive use we should expand the network of community development banks +and together we must pledge tonight that we will use this empowerment approach including private sector tax incentives to renew our capital city so that washington is a great place to work and live and once again the proud face america shows the world +we must protect our environment in every community in the last four years we cleaned up 250 toxic waste sites as many as in the previous 12 now we should clean up 500 more so that our children grow up next to parks not poison i urge to pass my proposal to make big polluters live by a simple rule if you pollute our environment you should pay to clean it up +in the last four years we strengthened our nation s safe food and clean drinking water laws we protected some of america s rarest most beautiful land in utah s red rocks region created three new national parks in the california desert and began to restore the florida everglades +now we must be as vigilant with our rivers as we are with our lands tonight i announce that this year i will designate 10 american heritage rivers to help communities alongside them revitalize their waterfronts and clean up pollution in the rivers proving once again that we can grow the economy as we protect the environment +we must also protect our global environment working to ban the worst toxic chemicals and to reduce the greenhouse gases that challenge our health even as they change our climate +now we all know that in all of our communities some of our children simply don t have what they need to grow and learn in their own homes or schools or neighborhoods and that means the rest of us must do more for they are our children too that s why president bush general colin powell former housing secretary henry cisneros will join the vice president and me to lead the president s summit of service in philadelphia in april +our national service program americorps has already helped 70 000 young people to work their way through college as they serve america now we intend to mobilize millions of americans to serve in thousands of ways citizen service is an american responsibility which all americans should embrace and i ask your support for that endeavor +i d like to make just one last point about our national community our economy is measured in numbers and statistics and it s very important but the enduring worth of our nation lies in our shared values and our soaring spirit so instead of cutting back on our modest efforts to support the arts and humanities i believe we should stand by them and challenge our artists musicians and writers challenge our museums libraries and theaters +we should challenge all americans in the arts and humanities to join with their fellow citizens to make the year 2000 a national celebration of the american spirit in every community a celebration of our common culture in the century that is past and in the new one to come in a new millennium so that we can remain the world s beacon not only of liberty but of creativity long after the fireworks have faded +to prepare america for the 21st century we must master the forces of change in the world and keep american leadership strong and sure for an uncharted time +fifty years ago a farsighted america led in creating the institutions that secured victory in the cold war and built a growing world economy as a result today more people than ever embrace our ideals and share our interests already we have dismantled many of the blocks and barriers that divided our parents world for the first time more people live under democracy than dictatorship including every nation in our own hemisphere but one and its day too will come +now we stand at another moment of change and choice and another time to be farsighted to bring america 50 more years of security and prosperity +in this endeavor our first task is to help to build for the very first time an undivided democratic europe when europe is stable prosperous and at peace america is more secure +to that end we must expand nato by 1999 so that countries that were once our adversaries can become our allies at the special nato summit this summer that is what we will begin to do we must strengthen nato s partnership for peace with non member allies and we must build a stable partnership between nato and a democratic russia +an expanded nato is good for america and a europe in which all democracies define their future not in terms of what they can do to each other but in terms of what they can do together for the good of all that kind of europe is good for america +second america must look to the east no less than to the west +our security demands it americans fought three wars in asia in this century +our prosperity requires it more than 2 million american jobs depend upon trade with asia there too we are helping to shape an asia pacific community of cooperation not conflict +let our let our progress there not mask the peril that remains together with south korea we must advance peace talks with north korea and bridge the cold war s last divide and i call on congress to fund our share of the agreement under which north korea must continue to freeze and then dismantle its nuclear weapons program +we must pursue a deeper dialogue with china for the sake of our interests and our ideals an isolated china is not good for america a china playing its proper role in the world is i will go to china and i have invited china s president to come here not because we agree on everything but because engaging china is the best way to work on our common challenges like ending nuclear testing and to deal frankly with our fundamental differences like human rights +the american people must prosper in the global economy we ve worked hard to tear down trade barriers abroad so that we can create good jobs at home i m proud to say that today america is once again the most competitive nation and the no 1 exporter in the world +now we must act to expand our exports especially to asia and latin america two of the fastest growing regions on earth or be left behind as these emerging economies forge new ties with other nations that is why we need the authority now to conclude new trade agreements that open markets to our goods and services even as we preserve our values +we need not shrink from the challenge of the global economy after all we have the best workers and the best products in a truly open market we can out compete anyone anywhere on earth +but this is about more than economics by expanding trade we can advance the cause of freedom and democracy around the world there is no better example of this truth than latin america where democracy and open markets are on the march together that is why i will visit there in the spring to reinforce our important ties +we should all be proud that america led the effort to rescue our neighbor mexico from its economic crisis and we should all be proud that last month mexico repaid the united states three full years ahead of schedule with half a billion dollar profit to us +america must continue to be an unrelenting force for peace from the middle east to haiti from northern ireland to africa taking reasonable risks for peace keeps us from being drawn into far more costly conflicts later with american leadership the killing has stopped in bosnia now the habits of peace must take hold +the new nato force will allow reconstruction and reconciliation to accelerate tonight i ask congress to continue its strong support of our troops they are doing a remarkable job there for america and america must do right by them +fifth we must move strongly against new threats to our security in the past four years we agreed to ban we led the way to a worldwide agreement to ban nuclear testing +with russia we dramatically cut nuclear arsenals and we stopped targeting each other s citizens we are acting to prevent nuclear materials from falling into the wrong hands and to rid the world of land mines +we are working with other nations with renewed intensity to fight drug traffickers and to stop terrorists before they act and hold them fully accountable if they do +now we must rise to a new test of leadership ratifying the chemical weapons convention make no mistake about it it will make our troops safer from chemical attack it will help us to fight terrorism we have no more important obligations especially in the wake of what we now know about the gulf war +this treaty has been bipartisan from the beginning supported by republican and democratic administrations and republican and democratic members of congress and already approved by 68 nations but if we do not act by april the 29th when this convention goes into force with or without us we will lose the chance to have americans leading and enforcing this effort together we must make the chemical weapons convention law so that at last we can begin to outlaw poisoned gas from the earth +finally we must have the tools to meet all these challenges we must maintain a strong and ready military we must increase funding for weapons modernization by the year 2000 and we must take good care of our men and women in uniform they are the world s finest +we must also renew our commitment to america s diplomacy and pay our debts and dues to international financial institutions like the world bank and to a reforming united nations every dollar every dollar we devote to preventing conflicts to promoting democracy to stopping the spread of disease and starvation brings a sure return in security and savings yet international affairs spending today is just 1 percent of the federal budget a small fraction of what america invested in diplomacy to choose leadership over escapism at the start of the cold war +if america is to continue to lead the world we here who lead america simply must find the will to pay our way a farsighted america moved the world to a better place over these last 50 years and so it can be for another 50 years but a shortsighted america will soon find its words falling on deaf ears all around the world +almost exactly 50 years ago in the first winter of the cold war president truman stood before a republican congress and called upon our country to meet its responsibilities of leadership this was his warning he said if we falter we may endanger the peace of the world and we shall surely endanger the welfare of this nation +that congress led by republicans like senator arthur vandenburg answered president truman s call together they made the commitments that strengthened our country for 50 years now let us do the same let us do what it takes to remain the indispensable nation to keep america strong secure and prosperous for another 50 years +in the end more than anything else our world leadership grows out of the power of our example here at home out of our ability to remain strong as one america +all over the world people are being torn asunder by racial ethnic and religious conflicts that fuel fanaticism and terror we are the world s most diverse democracy and the world looks to us to show that it is possible to live and advance together across those kinds of differences america has always been a nation of immigrants +from the start a steady stream of people in search of freedom and opportunity have left their own lands to make this land their home we started as an experiment in democracy fueled by europeans we have grown into an experiment in democratic diversity fueled by openness and promise +my fellow americans we must never ever believe that our diversity is a weakness it is our greatest strength +americans speak every language know every country people on every continent can look to us and see the reflection of their own great potential and they always will as long as we strive to give all our citizens whatever their background an opportunity to achieve their own greatness +we re not there yet we still see evidence of a biting bigotry and intolerance in ugly words and awful violence in burned churches and bombed buildings we must fight against this in our country and in our hearts +just a few days before my second inauguration one of our country s best known pastors reverend robert schuller suggested that i read isaiah 58 12 here s what it says thou shalt raise up the foundations of many generations and thou shalt be called the repairer of the breach the restorer of paths to dwell in +i placed my hand on that verse when i took the oath of office on behalf of all americans for no matter what our differences in our faiths our backgrounds our politics we must all be repairers of the breach +i want to say a word about two other americans who show us how congressman frank tejeda was buried yesterday a proud american whose family came from mexico he was only 51 years old he was awarded the silver star the bronze star and the purple heart fighting for his country in vietnam and he went on to serve texas and america fighting for our future here in this chamber +we are grateful for his service and honored that his mother lillie tejeda and his sister mary alice have come from texas to be with us here tonight and we welcome you thank you +gary locke the newly elected governor of washington state is the first chinese american governor in the history of our country he s the proud son of two of the millions of asian american immigrants who strengthened america with their hard work family values and good citizenship +he represents the future we can all achieve thank you governor for being here please stand up +reverend schuller congressman tejeda governor locke along with kristen tanner and chris getsla sue winski and dr kristen zarfos they re all americans from different roots whose lives reflect the best of what we can become when we are one america +we may not share a common past but we surely do share a common future building one america is our most important mission the foundation for many generations of every other strength we must build for this new century money cannot buy it power cannot compel it technology cannot create it it can only come from the human spirit +america is far more than a place it is an idea the most powerful idea in the history of nations and all of us in this chamber we are now the bearers of that idea leading a great people into a new world +a child born tonight will have almost no memory of the 20th century everything that child will know about america will be because of what we do now to build a new century we don t have a moment to waste +tomorrow there will be just over 1 000 days until the year 2000 one thousand days to prepare our people one thousand days to work together one thousand days to build a bridge to a land of new promise +my fellow americans we have work to do let us seize those days and the century +thank you god bless you and god bless america +mr speaker mr vice president members of the 105th congress distinguished guests my fellow americans +since the last time we met in this chamber america has lost two patriots and fine public servants though they sat on opposite sides of the aisle representatives walter capps and sonny bono shared a deep love for this house and an unshakable commitment to improving the lives of all our people +in the past few weeks they have both been eulogized tonight i think we should begin by sending a message to their families and their friends that we celebrate their lives and give thanks for their service to our nation +for 209 years it has been the president s duty to report to you on the state of the union because of the hard work and high purpose of the american people these are good times for america we have more than 14 million new jobs the lowest unemployment in 24 years the lowest core inflation in 30 years incomes are rising and we have the highest home ownership in history crime has dropped for a record five years in a row and the welfare rolls are at their lowest levels in 27 years our leadership in the world is unrivaled ladies and gentlemen the state of our union is strong +but with barely 700 days left in the 20th century this is not a time to rest it is a time to build to build the america within reach an america where everybody has a chance to get ahead with hard work where every citizen can live in a safe community where families are strong schools are good and all our young people can go on to college an america where scientists find cures for diseases from diabetes to alzheimer s to aids an america where every child can stretch a hand across a keyboard and reach every book ever written every painting ever painted every symphony ever composed where government provides opportunity and citizens honor the responsibility to give something back to their communities an america which leads the world to new heights of peace and prosperity +this is the america we have begun to build this is the america we can leave to our children if we join together to finish the work at hand let us strengthen our nation for the 21st century +rarely have americans lived through so much change in so many ways in so short a time quietly but with gathering force the ground has shifted beneath our feet as we have moved into an information age a global economy a truly new world +for five years now we have met the challenge of these changes as americans have at every turning point in our history by renewing the very idea of america widening the circle of opportunity deepening the meaning of our freedom forging a more perfect union we shaped a new kind of government for the information age i thank the vice president for his leadership and the congress for its support in building a government that is leaner more flexible a catalyst for new ideas and most of all a government that gives the american people the tools they need to make the most of their own lives +we have moved past the sterile debate between those who say government is the enemy and those who say government is the answer my fellow americans we have found a third way we have the smallest government in 35 years but a more progressive one we have a smaller government but a stronger nation +we are moving steadily toward a an even stronger america in the 21st century an economy that offers opportunity a society rooted in responsibility and a nation that lives as a community +first americans in this chamber and across this nation have pursued a new strategy for prosperity fiscal discipline to cut interest rates and spur growth investments in education and skills in science and technology and transportation to prepare our people for the new economy new markets for american products and american workers +when i took office the deficit for 1998 was projected to be $357 billion and heading higher this year our deficit is projected to be $10 billion and heading lower +for three decades six presidents have come before you to warn of the damage deficits pose to our nation tonight i come before you to announce that the federal deficit once so incomprehensively large that it had 11 zeros will be simply zero +i will submit to congress for 1999 the first balanced budget in 30 years +and if we hold fast to fiscal discipline we may balance the budget this year four years ahead of schedule +you can all be proud of that because turning a sea of red ink into black is no miracle it is the product of hard work by the american people and of two visionary actions in congress the courageous vote in 1993 that led to a cut in the deficit of 90 percent and the truly historic bipartisan balanced budget agreement passed by this congress +here s the really good news if we maintain our resolve we will produce balanced budgets as far as the eye can see +we must not go back to unwise spending or untargeted tax cuts that risk reopening the deficit last year together we enacted targeted tax cuts so that the typical middle class family will now have the lowest tax rates in 20 years +my plan to balance the budget next year includes both new investments and new tax cuts targeted to the needs of working families for education for child care for the environment +but whether the issue is tax cuts or spending i ask all of you to meet this test approve only those priorities that can actually be accomplished without adding a dime to the deficit +now if we balance the budget for next year it is projected that we ll then have a sizeable surplus in the years that immediately follow what should we do with this projected surplus +i have a simple four word answer save social security first +tonight i propose that we reserve 100 percent of the surplus that s every penny of any surplus until we have taken all the necessary measures to strengthen the social security system for the 21st century +let us say let us say to all americans watching tonight whether you re 70 or 50 or whether you just started paying into the system social security will be there when you need it let us make this commitment social security first let s do that together +i also want to say that all the american people who are watching us tonight should be invited to join in this discussion in facing these issues squarely and forming a true consensus on how we should proceed we ll start by conducting nonpartisan forums in every region of the country and i hope that lawmakers of both parties will participate we ll hold a white house conference on social security in december and one year from now i will convene the leaders of congress to craft historic bipartisan legislation to achieve a landmark for our generation a social security system that is strong in the 21st century +in an economy that honors opportunity all americans must be able to reap the rewards of prosperity because these times are good we can afford to take one simple sensible step to help millions of workers struggling to provide for their families we should raise the minimum wage +the information age is first and foremost an education age in which education will start at birth and continue throughout a lifetime last year from this podium i said that education has to be our highest priority i laid out a 10 point plan to move us forward and urged all of us to let politics stop at the schoolhouse door +since then this congress across party lines and the american people have responded in the most important year for education in a generation expanding public school choice opening the way to 3 000 charter schools working to connect every classroom in the country to the information superhighway committing to expand head start to a million children launching america reads sending literally thousands of college students into our elementary schools to make sure all our 8 year olds can read +last year i proposed and you passed 220 000 new pell grant scholarships for deserving students student loans already less expensive and easier to repay now you get to deduct the interest families all over america now can put their savings into new tax free education iras +and this year for the first two years of college families will get a $1500 tax credit a hope scholarship that will cover the cost of most community college tuition and for junior and senior year graduate school and job training there is a lifetime learning credit you did that and you should be very proud of it +and because of these actions i have something to say to every family listening to us tonight your children can go on to college if you know a child from a poor family tell her not to give up she can go on to college if you know a young couple struggling with bills worried they won t be able to send their children to college tell them not to give up their children can go on to college if you know somebody who s caught in a dead end job and afraid he can t afford the classes necessary to get better jobs for the rest of his life tell him not to give up he can go on to college +because of the things that have been done we can make college as universal in the 21st century as high school is today and my friends that will change the face and future of america +we have opened wide the doors of the world s best system of higher education now we must make our public elementary and secondary schools the world s best as well by raising standards raising expectations and raising accountability +thanks to the actions of this congress last year we will soon have for the very first time a voluntary national test based on national standards in fourth grade reading and eighth grade math +parents have a right to know whether their children are mastering the basics and every parent already knows the key good teachers and small classes +tonight i propose the first ever national effort to reduce class size in the early grades my balanced budget will help to hire a hundred thousand new teachers who have passed the state competency tests now with these teachers listen with these teachers we will actually be able to reduce class size in the first second and third grades to an average of 18 students a class all across america +now if i ve got the math right more teachers teaching smaller classes requires more classrooms so i also propose a school construction tax cut to help communities modernize or build 5 000 schools +we must also demand greater accountability when we promote a child from grade to grade who hasn t mastered the work we don t do that child any favors it is time to end social promotion in america s schools +last year in chicago they made that decision not to hold our children back but to lift them up chicago stopped social promotion and started mandatory summer school to help students who are behind to catch up +i propose to help other communities follow chicago s lead let s say to them stop promoting children who don t learn and we will give you the tools to make sure they do +i also ask this congress to support our efforts to enlist colleges and universities to reach out to disadvantaged children starting in the sixth grade so that they can get the guidance and hope they need so they can know that they too will be able to go on to college +as we enter the 21st century the global economy requires us to seek opportunity not just at home but in all the markets of the world we must shape this global economy not shrink from it +in the last five years we have led the way in opening new markets with 240 trade agreements that remove foreign barriers to products bearing the proud stamp made in the usa today record high exports account for fully one third of our economic growth i want to keep them going because that s the way to keep america growing and to advance a safer more stable world +now all of you know whatever your views are that i think this is a great opportunity for america i know there is opposition to more comprehensive trade agreements i have listened carefully and i believe that the opposition is rooted in two fears first that our trading partners will have lower environmental and labor standards which will give them an unfair advantage in our market and do their own people no favors even if there s more business and second that if we have more trade more of our workers will lose their jobs and have to start over +i think we should seek to advance worker and environmental standards around the world it should i have made it abundantly clear that it should be a part of our trade agenda but we cannot influence other countries decisions if we send them a message that we re backing away from trade with them +this year i will send legislation to congress and ask other nations to join us to fight the most intolerable labor practice of all abusive child labor +we should also offer help and hope to those americans temporarily left behind with the global marketplace or by the march of technology which may have nothing to do with trade that s why we have more than doubled funding for training dislocated workers since 1993 and if my new budget is adopted we will triple funding that s why we must do more and more quickly to help workers who lose their jobs for whatever reason +you know we help communities in a special way when their military base closes we ought to help them in the same way if their factory closes again i ask the congress to continue its bipartisan work to consolidate the tangle of training programs we have today into one single gi bill for workers a simple skills grant so people can on their own move quickly to new jobs to higher incomes and brighter futures +now we all know in every way in life change is not always easy but we have to decide whether we re going to try to hold it back and hide from it or reap its benefits and remember the big picture here while we ve been entering into hundreds of new trade agreements we ve been creating millions of new jobs so this year we will forge new partnerships with latin america asia and europe and we should pass the new african trade act it has bipartisan support +i will also renew my request for the fast track negotiating authority necessary to open more new markets created more new jobs which every president has had for two decades +you know whether we like it or not in ways that are mostly positive the world s economies are more and more interconnected and interdependent today an economic crisis anywhere can affect economies everywhere recent months have brought serious financial problems to thailand indonesia south korea and beyond +now why should americans be concerned about this +first these countries are our customers if they sink into recession they won t be able to buy the goods we d like to sell them +second they re also our competitors so if their currencies lose their value and go down then the price of their goods will drop flooding our market and others with much cheaper goods which makes it a lot tougher for our people to compete +and finally they are our strategic partners their stability bolsters our security +the american economy remains sound and strong and i want to keep it that way but because the turmoil in asia will have an impact on all the world s economies including ours making that negative impact as small as possible is the right thing to do for america and the right thing to do for a safer world +our policy is clear no nation can recover if it does not reform itself but when nations are willing to undertake serious economic reform we should help them do it so i call on congress to renew america s commitment to the international monetary fund +and i think we should say to all the people we re trying to represent here that preparing for a far off storm that may reach our shores is far wiser than ignoring the thunder til the clouds are just overhead +a strong nation rests on the rock of responsibility a society rooted in responsibility must first promote the value of work not welfare we could be proud that after decades of finger pointing and failure together we ended the old welfare system and we re now replacing welfare checks with paychecks +last year after a record four year decline in welfare rolls i challenged our nation to move two million more americans off welfare by the year 2000 i m pleased to report we have also met that goal two full years ahead of schedule +this is a grand achievement the sum of many acts of individual courage persistence and hope +for 13 years elaine kinslow of indianapolis indiana was on and off welfare today she s a dispatcher with a van company she s saved enough money to move her family into a good neighborhood and she s helping other welfare recipients go to work +elaine kinslow and all those like her are the real heroes of the welfare revolution there are millions like her all across america and i am happy she could join the first lady tonight elaine we re very proud of you please stand up +we still have a lot more to do all of us to make welfare reform a success providing child care helping families move closer to available jobs challenging more companies to join our welfare to work partnership increasing child support collections from deadbeat parents who have a duty to support their own children i also want to thank congress for restoring some of the benefits to immigrants who are here legally and working hard and i hope you will finish that job this year +we have to make it possible for all hard working families to meet their most important responsibilities two years ago we helped guarantee that americans can keep their health insurance when they changed jobs last year we extended health care to up to 5 million children this year i challenge congress to take the next historic steps a hundred and sixty million of our fellow citizens are in managed care plans these plans save money and they can improve care but medical decisions ought to be made by medical doctors not insurance company accountants +i urge this congress to reach across the aisle and write into law a consumer bill of rights that says this you have the right to know all your medical options not just the cheapest you have the right to choose the doctor you want for the care you need you have the right to emergency room care wherever and whenever you need it you have the right to keep your medical records confidential +now traditional care or managed care every american deserves quality care millions of americans between the ages of 55 and 65 have lost their health insurance some are retired some are laid off some lose their coverage when their spouses retire after a lifetime of work they re left with nowhere to turn +so i ask the congress let these hard working americans buy into the medicare system it won t add a dime to the deficit but the peace of mind it will provide will be priceless +next we must help parents protect their children from the gravest health threat that they face an epidemic of teen smoking spread by multimillion dollar marketing campaigns i challenge congress let s pass bipartisan comprehensive legislation that will improve public health protect our tobacco farmers and change the way tobacco companies do business forever +let s do what it takes to bring teen smoking down let s raise the price of cigarettes by up to $1 50 a pack over the next 10 years with penalties on the tobacco industry if it keeps marketing to our children +now tomorrow like every day 3 000 children will start smoking and a thousand will die early as a result let this congress be remembered as the congress that saved their lives +in the new economy most parents work harder than ever they face a constant struggle to balance their obligations to be good workers and their even more important obligations to be good parents +the family and medical leave act was the very first bill i was privileged to sign into law as president in 1993 since then about 15 million people have taken advantage of it and i ve met a lot of them all across this country i ask you to extend the law to cover 10 million more workers and to give parents time off when they have to go see their children s teachers or take them to the doctor +child care is the next frontier we must face to enable people to succeed at home and at work last year i co hosted the very first white house conference on child care with one of our foremost experts america s first lady from all corners of america we heard the same message without regard to region or income or political affiliation we ve got to raise the quality of child care we ve got to make it safer we ve got to make it more affordable +so here s my plan help families to pay for child care for a million more children scholarships and background checks for child care workers and a new emphasis on early learning tax credits for businesses that provide child care for their employees and a larger child care tax credit for working families +now if you pass my plan what this means is that a family of four with an income of $35 000 and high child care costs will no longer pay a single penny of federal income tax +you know i think this is such a big issue with me because of my own personal experience i have often wondered how my mother when she was a young widow would have been able to go away to school and get an education and come back and support me if my grandparents hadn t been able to take care of me she and i were really very lucky +how many other families have never had that same opportunity the truth is we don t know the answer to that question but we do know what the answer should be not a single american family should ever have to choose between the job they need and the child they love +a society rooted in responsibility must provide safe streets safe schools and safe neighborhoods we pursued a strategy of more police tougher punishment smarter prevention with crime fighting partnerships with local law enforcement and citizen groups where the rubber hits the road +i can report to you tonight that it s working violent crime is down robbery is down assault is down burglary is down for five years in a row all across america now we need to finish the job of putting 100 000 more police on our streets +again i ask congress to pass a juvenile crime bill that provides more prosecutors and probation officers to crack down on gangs and guns and drugs and bar violent juveniles from buying guns for life and i ask you to dramatically expand our support for after school programs i think every american should know that most juvenile crime is committed between the hours of 3 00 in the afternoon and 8 00 at night we can keep so many of our children out of trouble in the first place if we give them some place to go other than the streets and we ought to do it +drug use is on the decline i thank general mccaffrey for his leadership and i thank this congress for passing the largest anti drug budget in history now i ask you to join me in a ground breaking effort to hire a thousand new border patrol agents and to deploy the most sophisticated available new technologies to help close the door on drugs at our borders +police prosecutors and prevention programs good as they are they can t work if our court system doesn t work today there are large numbers of vacancies in our federal courts here is what the chief justice of the united states wrote judicial vacancies cannot remain at such high levels indefinitely without eroding the quality of justice +i simply ask the united states senate to heed this plea and vote on the highly qualified nominees before you up or down +we must exercise responsibility not just at home but around the world on the eve of a new century we have the power and the duty to build a new era of peace and security but make no mistake about it today s possibilities are not tomorrow s guarantees america must stand against the poisoned appeals of extreme nationalism we must combat an unholy access of new threats from terrorists international criminals and drug traffickers +these 21st century predators feed on technology and the free flow of information and ideas and people and they will be all the more lethal if weapons of mass destruction fall into their hands to meet these challenges we are helping to write international rules of the road for the 21st century protecting those who join the family of nations and isolating those who do not +within days i will ask the senate for its advice and consent to make hungary poland and the czech republic the newest members of nato for 50 years nato contained communism and kept america and europe secure now these three formerly communist countries have said yes to democracy i ask the senate to say yes to them our new allies +by taking in new members and working closely with new partners including russia and ukraine nato can help to assure that europe is a stronghold for peace in the 21st century +next i will ask congress to continue its support for our troops and their mission in bosnia this christmas hillary and i traveled to sarajevo with senator and mrs dole and a bipartisan congressional delegation we saw children playing in the streets where two years ago they were hiding from snipers and shells the shops were filled with food the cafes were alive with conversation the progress there is unmistakable but it is not yet irreversible +to take firm root bosnia s fragile peace still needs the support of american and allied troops when the current nato mission ends in june i think senator dole actually said it best he said this is like being ahead in the fourth quarter of a football game now is not the time to walk off the field and forfeit the victory +i wish all of you could have seen our troops in tuzla they re very proud of what they are doing in bosnia and we re all very proud of them one of those one of those brave soldiers is sitting with the first lady tonight army sergeant michael tolbert his father was a decorated vietnam vet after college in colorado he joined the army last year he led an infantry unit that stopped a mob of extremists from taking over a radio station that is a voice of democracy and tolerance in bosnia thank you very much sergeant for what you represent +in bosnia and around the world our men and women in uniform always do their mission well our mission must be to keep them well trained and ready to improve their quality of life and to provide the 21st century weapons they need to defeat any enemy +i ask congress to join me in pursuing an ambitious agenda to reduce the serious threat of weapons of mass destruction this year four decades after it was first proposed by president eisenhower a comprehensive nuclear test ban is within reach by ending nuclear testing we can help to prevent the development of new and more dangerous weapons and make it more difficult for non nuclear states to build them +i am pleased to announce that four former chairmen of the joint chiefs of staff generals john shalikashvili colin powell and david jones and admiral william crowe have endorsed this treaty and i ask the senate to approve it this year +together we must also confront the new hazards of chemical and biological weapons and the outlaw states terrorists and organized criminals seeking to acquire them +saddam hussein has spent the better part of this decade and much of his nation s wealth not on providing for the iraqi people but on developing nuclear chemical and biological weapons and the missiles to deliver them +the united nations weapons inspectors have done a truly remarkable job finding and destroying more of iraq s arsenal than was destroyed during the entire gulf war now saddam hussein wants to stop them from completing their mission +i know i speak for everyone in this chamber republicans and democrats when i say to saddam hussein you cannot defy the will of the world and when i say to him you have used weapons of mass destruction before we are determined to deny you the capacity to use them again +last year the senate ratified the chemical weapons convention to protect our soldiers and citizens from poison gas now we must act to prevent the use of disease as a weapon of war and terror the biological weapons convention has been in effect for 23 years now the rules are good but the enforcement is weak we must strengthen it with a new international inspection system to detect and deter cheating in the months ahead i will pursue our security strategy with old allies in asia and europe and new partners from africa to india and pakistan from south america to china and from belfast to korea to the middle east america will continue to stand with those who stand for peace +finally it s long past time to make good on our debt to the united nations +more and more we are working with other nations to achieve common goals if we want america to lead we ve got to set a good example as we see as we see so clearly in bosnia allies who share our goals can also share our burdens in this new era our freedom and independence are actually enriched not weakened by our increasing interdependence with other nations but we have to do our part +our founders set america on a permanent course toward a more perfect union to all of you i say it is a journey we can only make together living as one community +first we have to continue to reform our government the instrument of our national community everyone knows elections have become too expensive fueling a fund raising arms race +this year by march the 6th at long last the senate will actually vote on bipartisan campaign finance reform proposed by senators mccain and feingold let s be clear a vote against mccain feingold is a vote for soft money and for the status quo i ask you to strengthen our democracy and pass campaign finance reform this year +but at least equally important we have to address the real reason for the explosion in campaign costs the high cost of media advertising i will for the folks watching at home those were the groans of pain in the audience i will formally request that the federal communications commission act to provide free or reduced cost television time for candidates who observe spending limits voluntarily the airwaves are a public trust and broadcasters also have to help us in this effort to strengthen our democracy +under the leadership of vice president gore we have reduced the federal payroll by 300 000 workers cut 16 000 pages of regulation eliminated hundreds of programs and improved the operations of virtually every government agency but we can do more +like every taxpayer i m outraged by the reports of abuses by the irs we need some changes there new citizen advocacy panels a stronger taxpayer advocate phone lines open 24 hours a day relief for innocent taxpayers +last year by an overwhelming bipartisan margin the house of representatives passed sweeping irs reforms this bill must not now languish in the senate tonight i ask the senate follow the house pass the bipartisan package as your first order of business i hope to goodness before i finish i can think of something to say follow the senate on so i ll be out of trouble +a nation that lives as a community must value all its communities for the past five years we have worked to bring the spark of private enterprise to inner city and poor rural areas with community development banks more commercial loans into poor neighborhoods cleanup of polluted sites for development +under the continued leadership of the vice president we propose to triple the number of empowerment zones to give business incentives to invest in those areas we should we should also give poor families more help to move into homes of their own and we should use tax cuts to spur the construction of more low income housing +last year this congress took strong action to help the district of columbia let us renew our resolve to make our capital city a great city for all who live and visit here +our cities are the vibrant hubs of great metropolitan areas they are still the gateway for new immigrants from every continent who come here to work for their own american dreams let s keep our cities going strong into the 21st century they re a very important part of our future +our communities are only as healthy as the air our children breathe the water they drink the earth they will inherit last year we put in place the toughest ever controls on smog and soot we moved to protect yellowstone the everglades lake tahoe we expanded every community s right to know about toxics that threaten their children +just yesterday our food safety plan took effect using new science to protect consumers from dangers like e coli and salmonella +tonight i ask you to join me in launching a new clean water initiative a far reaching effort to clean our rivers our lakes and our coastal waters for our children +our overriding environmental challenge tonight is the worldwide problem of climate change global warming the gathering crisis that requires worldwide action the vast majority of scientists have concluded unequivocally that if we don t reduce the emission of greenhouse gases at some point in the next century we ll disrupt our climate and put our children and grandchildren at risk +this past december america led the world to reach a historic agreement committing our nation to reduce greenhouse gas emissions through market forces new technologies energy efficiency +we have it in our power to act right here right now i propose $6 billion in tax cuts in research and development to encourage innovation renewable energy fuel efficient cars energy efficient homes every time we have acted to heal our environment pessimists have told us it would hurt the economy well today our economy is the strongest in a generation and our environment is the cleanest in a generation we have always found a way to clean the environment and grow the economy at the same time and when it comes to global warming we ll do it again +finally community means living by the defining american value the ideal heard round the world that we re all created equal throughout our history we haven t always honored that ideal and we ve never fully lived up to it often it s easier to believe that our differences matter more than what we have in common it may be easier but it s wrong +what we have to do in our day and generation to make sure that america truly becomes one nation what do we have to do we re becoming more and more and more diverse do you believe we can become one nation the answer cannot be to dwell on our differences but to build on our shared values +and we all cherish family and faith freedom and responsibility we all want our children to grow up in the world where their talents are matched by their opportunities +i ve launched this national initiative on race to help us recognize our common interests and to bridge the opportunity gaps that are keeping us from becoming one america let us begin by recognizing what we still must overcome +discrimination against any american is un american we must vigorously enforce the laws that make it illegal i ask your help to end the backlog at the equal employment opportunity commission sixty thousand of our fellow citizens are waiting in line for justice and we should act now to end their wait +we should also recognize that the greatest progress we can make toward building one america lies in the progress we make for all americans without regard to race when we open the doors of college to all americans when we rid all our streets of crime when there are jobs available to people from all our neighborhoods when we make sure all parents have the child care they need we re helping to build one nation +we in this chamber and in this government must do all we can to address the continuing american challenge to build one america but we ll only move forward if all our fellow citizens including every one of you at home watching tonight is also committed to this cause +we must work together learn together live together serve together on the forge of common enterprise americans of all backgrounds can hammer out a common identity +we see it today in the united states military in the peace corps in americorps wherever people of all races and backgrounds come together in a shared endeavor and get a fair chance we do just fine with shared values and meaningful opportunities and honest communications and citizen service we can unite a diverse people in freedom and mutual respect we are many we must be one +in that spirit let us lift our eyes to the new millennium how will we mark that passage it just happens once every thousand years this year hillary and i launched the white house millennium program to promote america s creativity and innovation and to preserve our heritage and culture into the 21st century our culture lives in every community and every community has places of historic value that tell our stories as americans we should protect them +i am proposing a public private partnership to advance our arts and humanities and to celebrate the millennium by saving america s treasures great and small and while we honor the past let us imagine the future +now think about this the entire store of human knowledge now doubles every five years in the 1980s scientists identified the gene causing cystic fibrosis it took nine years last year scientists located the gene that causes parkinson s disease in only nine days within a decade gene chips will offer a road map for prevention of illnesses throughout a lifetime soon we ll be able to carry all the phone calls on mother s day on a single strand of fiber the width of a human hair a child born in 1998 may well live to see the 22nd century +tonight as part of our gift to the millennium i propose a 21st century research fund for pathbreaking scientific inquiry the largest funding increase in history for the national institutes of health the national science foundation and the national cancer institute we have already discovered we have already discovered genes for breast cancer and diabetes i ask you to support this initiative so ours will be the generation that finally wins the war against cancer and begins a revolution in our fight against all deadly diseases +as important as all this scientific progress is we must continue to see that science serves humanity not the other way around we must prevent the misuse of genetic tests to discriminate against any american and we must ratify the ethical consensus of the scientific and religious communities and ban the cloning of human beings +we should enable all the world s people to explore the far reaches of cyberspace think of this the first time i made a state of the union speech to you only a handful of physicists used the world wide web literally just a handful of people +now in schools and libraries homes and businesses millions and millions of americans surf the net every day +we must give parents the tools they need to help protect their children from inappropriate material on the net but we also must make sure that we protect the exploding global commercial potential of the internet we can do the kinds of things that we need to do and still protect our kids for one thing i ask congress to step up support for building the next generation internet it s getting kind of clogged you know and the next generation internet will operate at speeds up to a thousand times faster than today +even as we explore this inner space in the new millennium we re going to open new frontiers in outer space +throughout all history human kind has had only one place to call home our planet earth beginning this year 1998 men and women from 16 countries will build a foothold in the heavens the international space station with its vast expanses scientists and engineers will actually set sail on an uncharted sea of limitless mystery and unlimited potential +and this october a true american hero a veteran pilot of 149 combat missions and one five hour space flight that changed the world will return to the heavens godspeed john glenn +john you will carry with you america s hopes and on your uniform once again you will carry america s flag marking the unbroken connection between the deeds of america s past and the daring of america s future +nearly 200 years ago a tattered flag its broad stripes and bright stars still gleaming through the smoke of a fierce battle moved francis scott key to scribble a few words on the back of an envelope the words that became our national anthem today that star spangled banner along with the declaration of independence the constitution and the bill of rights are on display just a short walk from here they are america s treasures and we must also save them for the ages +i ask all americans to support our project to restore all our treasures so that the generations of the 21st century can see for themselves the images and the words that are the old and continuing glory of america an america that has continued to rise through every age against every challenge a people of great works and greater possibilities who have always always found the wisdom and strength to come together as one nation to widen the circle of opportunity to deepen the meaning of our freedom to form that more perfect union +let that be our gift to the 21st century +god bless you and god bless the united states +mr speaker mr vice president members of congress honored guests my fellow americans +tonight i have the honor of reporting to you on the state of the union +let me begin by saluting the new speaker of the house and thanking him especially tonight for extending an invitation to two guests sitting in the gallery with mrs hastert lyn gibson and wei ling chestnut are the widows of the two brave capitol hill police officers who gave their lives to defend freedom s house +mr speaker at your swearing in you asked us all to work together in a spirit of civility and bipartisanship mr speaker let s do exactly that +tonight i stand before you to report that america has created the longest peacetime economic expansion in our history with nearly 18 million new jobs wages rising at more than twice the rate of inflation the highest homeownership in history the smallest welfare roles in 30 years and the lowest peacetime unemployment since 1957 +for the first time in three decades the budget is balanced from a deficit of $290 billion in 1992 we had a surplus of $70 billion last year and now we are on course for budget surpluses for the next 25 years +thanks to the pioneering leadership of all of you we have the lowest violent crime rate in a quarter century and the cleanest environment in a quarter century +america is a strong force for peace from northern ireland to bosnia to the middle east +thanks to the leadership of vice president gore we have a government for the information age once again a government that is a progressive instrument of the common good rooted in our oldest values of opportunity responsibility and community devoted to fiscal responsibility determined to give our people the tools they need to make the most of their own lives in the 21st century a 21st century government for 21st century america +my fellow americans i stand before you tonight to report that the state of our union is strong now america is working again the promise of our future is limitless but we cannot realize that promise if we allow the hum of our prosperity to lull us into complacency how we fare as a nation far into the 21st century depends upon what we do as a nation today +so with our budget surplus growing our economy expanding our confidence rising now is the moment for this generation to meet our historic responsibility to the 21st century +our fiscal discipline gives us an unsurpassed opportunity to address a remarkable new challenge the aging of america with the number of elderly americans set to double by 2030 the baby boom will become a senior boom +so first and above all we must save social security for the 21st century +early in this century being old meant being poor when president roosevelt created social security thousands wrote to thank him for eliminating what one woman called the stark terror of penniless helpless old age even today without social security half our nation s elderly would be forced into poverty +today social security is strong but by 2013 payroll taxes will no longer be sufficient to cover monthly payments by 2032 the trust fund will be exhausted and social security will be unable to pay the full benefits older americans have been promised +the best way to keep social security a rock solid guarantee is not to make drastic cuts in benefits not to raise payroll tax rates not to drain resources from social security in the name of saving it instead i propose that we make the historic decision to invest the surplus to save social security +specifically i propose that we commit 60 percent of the budget surplus for the next 15 years to social security investing a small portion in the private sector just as any private or state government pension would do this will earn a higher return and keep social security sound for 55 years +but we must aim higher we should put social security on a sound footing for the next 75 years we should reduce poverty among elderly women who are nearly twice as likely to be poor as are other seniors and we should eliminate the limits on what seniors on social security can earn +now these changes will require difficult but fully achievable choices over and above the dedication of the surplus they must be made on a bipartisan basis they should be made this year so let me say to you tonight i reach out my hand to all of you in both houses in both parties and ask that we join together in saying to the american people we will save social security now +now last year we wisely reserved all of the surplus until we knew what it would take to save social security again i say we shouldn t spend any of it not any of it until after social security is truly saved first thing s first +second once we have saved social security we must fulfill our obligation to save and improve medicare already we have extended the life of the medicare trust fund by 10 years but we should extend it for at least another decade tonight i propose that we use one out of every six dollars in the surplus for the next 15 years to guarantee the soundness of medicare until the year 2020 +but again but again we should aim higher we must be willing to work in a bipartisan way and look at new ideas including the upcoming report of the bipartisan medicare commission if we work together we can secure medicare for the next two decades and cover the greatest growing need of seniors affordable prescription drugs +third we must help all americans from their first day on the job to save to invest to create wealth +from its beginnings americans have supplemented social security with private pensions and savings yet today millions of people retire with little to live on other than social security americans living longer than ever simply must save more than ever +therefore in addition to saving social security and medicare i propose a new pension initiative for retirement security in the 21st century i propose that we use a little over 11 percent of the surplus to establish universal savings accounts usa accounts to give all americans the means to save +with these new accounts americans can invest as they choose and receive funds to match a portion of their savings with extra help for those least able to save usa accounts will help all americans to share in our nation s wealth and to enjoy a more secure retirement i ask you to support them +fourth we must invest in long term care +i propose a tax credit of $1 000 for the aged ailing or disabled and the families who care for them long term care will become a bigger and bigger challenge with the aging of america and we must do more to help our families deal with it +i was born in 1946 the first year of the baby boom i can tell you that one of the greatest concerns of our generation is our absolute determination not to let our growing old place an intolerable burden on our children and their ability to raise our grandchildren +our economic success and our fiscal discipline now give us the opportunity to lift that burden from their shoulders and we should take it +saving social security medicare creating u s accounts this is the right way to use the surplus if we do so if we do so we will still have resources to meet critical needs and education and defense +and i want to point out that this proposal is fiscally sound listen to this if we set aside 60 percent of the surplus for social security and 16 percent for medicare over the next 15 years that savings will achieve the lowest level of publicly held debt since right before world war i in 1917 +so with these four measures saving social security strengthening medicare establishing the usa accounts supporting long term care we can begin to meet our generation s historic responsibility to establish true security for 21st century seniors +now there are more children from more diverse backgrounds in our public schools that any time in our history their education must provide the knowledge and nurture the creativity that will allow our entire nation to thrive in the new economy +today we can say something we couldn t say six years ago with tax credits and more affordable student loans with more work study grants and more pell grants with education iras the new hope scholarship tax cut that more than five million americans will receive this year we have finally opened the doors of college to all americans +with our support nearly every state has set higher academic standards for public schools and a voluntary national test is being developed to measure the progress of our students with over $1 billion in discounts available this year we are well on our way to our goal of connecting every classroom and library to the internet +last fall you passed our proposal to start hiring 100 000 new teachers to reduce class size in the early grades now i ask you to finish the job +you know our children are doing better sat scores are up math scores have risen in nearly all grades but there s a problem while our fourth graders out performed their peers in other countries in math and science our eighth graders are around average and our 12th graders rank near the bottom we must do better +now each year the national government invests more than $15 billion in our public schools i believe we must change the way we invest that money to support what works and to stop supporting what does not work +first later this year i will send to congress a plan that for the first time holds states and school districts accountable for progress and rewards them for results my education accountability act will require every school district receiving federal help to take the following five steps +first all schools must end social promotion +now no child no child should graduate from high school with a diploma he or she can t read we do our children no favors when we allow them to pass from grade to grade without mastering the material but we can t just hold students back because the system fails them +so my balanced budget triples the funding for summer school and after school programs to keep a million children learning now if if you doubt this will work just look at chicago which ended social promotion and made summer school mandatory for those who don t master the basics math and reading scores are up three years running with some of the biggest gains in some of the poorest neighborhoods it will work and we should do it +second all states and school districts must turn around their worst performing schools or shut them down that s the policy established in north carolina by governor jim hunt north carolina made the biggest gains in test scores in the nation last year our budget includes $200 million to help states turn around their own failing schools +third all states and school districts must be held responsible for the quality of their teachers the great majority of our teachers do a fine job but in too many schools teachers don t have college majors or even minors in the subjects they teach new teachers should be required to pass performance exams and all teachers should know the subject their teaching +this year s balanced budget contains resources to help them reach higher standards and to attract talented young teachers to the toughest assignments i recommend a six fold increase in our program for college scholarships for students who commit to teach in the inner cities and isolated rural areas and in indian communities let us bring excellence to every part of america +fourth we must empower parents with more information and more choices in too many communities it s easier to get information on the quality of the local restaurants than on the quality of the local schools +every school district should issue report cards on every school and parents should be given more choices in selecting their public schools +when i became president there was just one independent public charter school in all america with our support on a bipartisan basis today there are 1 100 my budget assures that early in the next century there will be 3 000 +fifth to assure that our classrooms are truly places of learning and to respond to what teachers have been asking us to do for years we should say that all states and school districts must both adopt and implement sensible discipline policies +now let s do one more thing for our children today too many schools are so old they re falling apart or so overcrowded students are learning in trailers last fall congress missed the opportunity to change that this year with 53 million children in our schools congress must not miss that opportunity again i ask you to help our communities build or modernize 5 000 schools +if we do these things end social promotion turn around failing schools build modern ones support qualified teachers promote innovation competition and discipline then we will begin to meet our generation s historic responsibility to create to 21st century schools +now we also have to do more to support the millions of parents who give their all every day at home and at work +the most basic tool of all is a decent income so let s raise the minimum wage by a dollar an hour over the next two years +and let s make sure that women and men get equal pay for equal work by strengthening enforcement of the equal pay laws +that was encouraging you know there was more balance on the seesaw i like that let s give them a hand that s great +working parents also need quality child care so again this year i ask congress to support our plan for tax credits and subsidies for working families for improved safety and quality for expanded after school program and our plan also includes a new tax credit for stay at home parents too they need support as well +parents should never have to worry about choosing between their children and their work now the family and medical leave act the very first bill i signed into law has now since 1993 helped millions and millions of americans to care for a newborn baby or an ailing relative without risking their jobs i think it s time with all of the evidence that it has been so little burdensome to employers to extend family leave to 10 million more americans working for smaller companies and i hope you will support it +finally on the matter of work parents should never have to face discrimination in the workplace so i want to ask congress to prohibit companies from refusing to hire or promote workers simply because they have children that is not right +america s families deserve the world s best medical care thanks to bipartisan federal support for medical research we are not on the verge of new treatments to prevent or delay diseases from parkinson s to alzheimer s to arthritis to cancer but as we continue our advances in medical science we can t let our medical system lag behind +managed care has literally transformed medicine in america driving down costs but threatening to drive down quality as well +i think we ought to say to every american you should have the right to know all you medical options not just the cheapest if you need a specialist you should have a right to see one you have a right to the nearest emergency care if you re in an accident these are things that we ought to say and i think we ought to say you should have a right to keep your doctor during a period of treatment whether it s a pregnancy or a chemotherapy treatment or anything else i believe this +now i ve ordered these rights to be extended to the 85 million americans served by medicare medicaid and other federal health programs but only congress can pass a patients bill of rights for all americans +last year congress missed that opportunity and we must not miss that opportunity again for the sake of our families i ask us to join together across party lines and pass a strong enforceable patients bill of rights +as more of our medical records are stored electronically the threats to all of our privacy increase because congress has given me the authority to act if it does not do so by august one way or another we can all say to the american people we will protect the privacy of medical records this year +now two years ago we acted to extend health coverage to up to five million children now we should go beyond that we should make it easier for small businesses to offer health insurance we should give people between the ages of 55 and 65 who lose their health insurance the chance to buy into medicare +and we should continue to ensure access to family planning no one should have to choose between keeping health care and taking a job and therefore i especially ask you tonight to join hands to pass the landmark bipartisan legislation proposed by sens kennedy and jeffords roth and moynihan to allow people with disabilities to keep their health insurance when they go to work +we need to enable our public hospitals our community our university health centers to provide basic affordable care for all the millions of working families who don t have any insurance they do a lot of that today but much more can be done and my balanced budget makes a good down payment toward that goal i hope you will think about them and support that provision +let me say we must step up our efforts to treat and prevent mental illness no american should ever be able afraid ever to address this disease this year we will host a white house conference on mental health with sensitivity commitment and passion tipper gore is leading our efforts here and i d like to thank her for what she s done thank you thank you +as everyone knows our children are targets of a massive media campaign to hook them on cigarettes now i ask this congress to resist the tobacco lobby to reaffirm the fda s authority to protect our children from tobacco and to hold tobacco companies accountable while protecting tobacco farmers +smoking has cost taxpayers hundreds of billions of dollars under medicare and other programs you know the states have been right about this taxpayers shouldn t pay for the cost of lung cancer emphysema and other smoking related illnesses the tobacco companies should +so tonight i announce that the justice department is preparing a litigation plan to take the tobacco companies to court and with the funds we recover to strengthen medicare +now if we act in these areas minimum wage family leave child care health care the safety of our children then we will begin to meet our generation s historic responsibilities to strengthen our families for the 21st century +today america is the most dynamic competitive job creating economy in history but we can do even better in building a 21st century economy that embraces all americans +today s income gap is largely a skills gap last year the congress passed a law enabling workers to get a skills grant to choose the training they need and i applaud all of you here who were part of that +this year i recommend a five year commitment to the new system so that we can provide over the next five years appropriate training opportunities for all americans who lose their jobs and expand rapid response teams to help all towns which have been really hurt when businesses close i hope you will support this +also i ask your support for a dramatic increase in federal support for adult literacy to mount a national campaign aimed at helping the millions and millions of working people who still read at less than a fifth grade level we need to do this +here s some good news in the past six years we have cut the welfare rolls nearly in half +two years ago from this podium i asked five companies to lead a national effort to hire people off welfare tonight our welfare to work partnership includes 10 000 companies who have hired hundreds of thousands of people and our balanced budget will help another 200 000 people move to the dignity and pride of work i hope you will support it +we must bring the spark of private enterprise to every corner of america to build a bridge from wall street to appalachia to the mississippi delta to our native american communities with more support for community development banks for empowerment zones for 100 000 more vouchers for affordable housing +and i ask congress to support our bold new plan to help businesses raise up to $15 billion in private sector capital to bring jobs and opportunities and inner cities rural areas with tax credits loan guarantees including the new american private investment companies modeled on the overseas private investment companies +now for years and years we ve had this opic this overseas private investment corporation because we knew we had untapped markets overseas but our greatest untapped markets are not overseas they are right here at home and we should go after them +we must work hard to help bring prosperity back to the family farm +as this congress knows very well dropping prices and the loss of foreign markets have devastated too many family farmers last year the congress provided substantial assistance to help stave off a disaster in american agriculture and i am ready to work with lawmakers of both parties to create a farm safety net that will include crop insurance reform and farm income assistance +i ask you to join with me and do this this should not be a political issue everyone knows what an economic problem is going on out there in rural america today and we need an appropriate means to address it +we must strengthen our lead in technology it was government investment that led to the creation of the internet i propose a 28 percent increase in long term computing research +we also must be ready for the 21st century from its very first moment by solving the so called y2k computer problem we had one member of congress stand up and applaud and we may have about that ration out there applauding at home in front of their television sets but remember this is a big big problem and we ve been working hard on it already we ve made sure that the social security checks will come on time +but i want all the folks at home listening to this to know that we need every state and local government every business large and small to work with us to make sure that this y2k computer bug will be remembered as the last headache of the 20th century not the first crisis of the 21st +for our own prosperity we must support economic growth abroad you know until recently a third of our economic growth came from exports but over the past year and a half financial turmoil has put that growth at risk today much of the world is in recession with asia hit especially hard this is the most serious financial crisis in half a century +to meet it the u s and other nations have reduced interest rates and strengthened the international monetary fund and while the turmoil is not over we have worked very hard with other nations to contain it +at the same time we will continue to work on the long term project building a global financial system for the 21st century that promotes prosperity and tames the cycle of boom and bust that has engulfed so much of asia this june i will meet with other world leaders to advance this historic purpose and i ask all of you to support our endeavors i also ask you to support creating a freer and fairer trading system for 21st century america +you know i d like to say something really serious to everyone in this chamber in both parties i think trade has divided us and divided americans outside this chamber for too long somehow we have to find a common ground on which business and workers and environmentalists and farmers and government can stand together i believe these are the things we ought to all agree on so let me try +first we ought to tear down barriers open markets and expand trade but at the same time we must ensure that ordinary citizens in all countries actually benefit from trade a trade that promotes the dignity of work and the rights of workers and protects the environment +we must insist that international trade organizations be open to public scrutiny instead of mysterious secret things subject to wild criticism +when you come right down to it now that the world economy is becoming more and more integrated we have to do in the world what we spent the better part of this century doing here at home we have got to put a human face on the global economy +now we must enforce our trade laws when imports unlawfully flood our nation i have already informed the government of japan if that nation s sudden surge of steel imports into our country is not reversed america will respond +we must help all manufacturers hit hard by the present crisis with loan guarantees and other incentives to increase american exports by nearly $2 billion i d like to believe we can achieve a new consensus on trade based on these principles and i ask the congress to join me again in this common approach and to give the president the trade authority long used and now overdue and necessary to advance our prosperity in the 21st century +tonight i issue a call to the nations of the world to join the united states in a new round of global trade negotiation to expand exports of services manufactures and farm products +tonight i say we will work with the international labor organization on a new initiative to raise labor standards around the world and this year we will lead the international community to conclude a treaty to ban abusive child labor everywhere in the world +if we do these things invest in our people our communities our technology and lead in the global economy then we will begin to meet our historic responsibility to build a 21st century prosperity for america +you know no nation in history has had the opportunity and the responsibility we now have to shape a world that is more peaceful more secure more free +all americans can be proud that our leadership helped to bring peace in northern ireland +all americans can be proud that our leadership has put bosnia on the path to peace and with our nato allies we are pressing the serbian government to stop its brutal repression in kosovo to bring those responsible to justice and to give the people of kosovo the self government they deserve +all americans can be proud that our leadership renewed hope for lasting peace in the middle east some of you were with me last december as we watched the palestinian national council completely renounce its call for the destruction of israel +now i ask congress to provide resources so that all parties can implement the wye agreement to protect israel s security to stimulate the palestinian economy to support our friends in jordan we must not we dare not let them down i hope you will help me +as we work for peace we must also meet threats to our nation s security including increased danger from outlaw nations and terrorism +we will defend our security wherever we are threatened as we did this summer when we struck at osama bin laden s network of terror the bombing of our embassies in kenya and tanzania reminds us again of the risks faced every day by those who represent america to the world so let s give them the support they need the safest possible workplaces and the resources they must have so america can continue to lead +we must work to keep terrorists from disrupting computer networks we must work to prepare local communities for biological and chemical emergencies to support research into vaccines and treatments we must increase our efforts to restrain the spread of nuclear weapons and missiles from korea to india and pakistan we must expand our work with russia ukraine and other former soviet nations to safeguard nuclear materials and technology so they never fall into the wrong hands our balanced budget will increase funding for these critical efforts by almost two thirds over the next five years +with russia we must continue to reduce our nuclear arsenals the start ii treaty and the framework we have already agreed to for start iii could cut them by 80 percent from their cold war height +it s been two years since i signed the comprehensive test ban treaty if we don t do the right thing other nations won t either i ask the senate to take this vital step approve the treaty now to make it harder for other nations to develop nuclear arms and to make sure we can end nuclear testing for ever +for nearly a decade iraq has defied its obligations to destroy its weapons of terror and the missiles to deliver them +america will continue to contain iraqi president saddam hussein and we will work for the day when iraq has a government worthy of its people now last month in our action over iraq our troops were superb their mission was so flawlessly executed that we risk taking for granted the bravery and skill it required captain jeff taliaferro a 10 year air force veteran of the air force flew a b 1b bomber over iraq as we attacked saddam s war machine he is here with us tonight i would like to ask you to honor him and all the 33 000 men and women of operation desert fox +it is time to reverse the decline in defense spending that began in 1985 +since april together we have added nearly $6 billion to maintain our military readiness my balanced budget calls for a sustained increase over the next six years for readiness for modernization and for pay and benefits for our troops and their families +you know we are the heirs of a legacy of bravery represented in every community in america by millions of our veterans america s defenders today still stand ready at a moments notice to go where comforts are few and dangers are many to do what needs to be done as no one else can they always come through for america we must come through for them +the new century demands new partnerships for peace and security the united nations plays a crucial role with allies sharing burdens america might otherwise bear alone america needs a strong and effective u n i want to work with this new congress to pay our dues and our debts +we must continue to support security and stability in europe and asia expanding nato and defining its new missions maintaining our alliance with japan with korea with our other asian allies and engaging china +in china last year i said to the leaders and the people what i d like to say again tonight stability can no longer be bought at the expense of liberty +but i d also like to say again to the american people it s important not to isolate china the more we bring china into the world the more the world will bring change and freedom to china +last spring with some of you i traveled to africa where i saw democracy and reform rising but still held back by violence and disease we must fortify african democracy and peace by launching radio democracy for africa supporting the transition to democracy now beginning to take place in nigeria and passing the african trade and development act +we must continue to deepen our ties to the americas and the caribbean our common work to educate children fight drugs strengthen democracy and increase trade in this hemisphere every government but one is freely chosen by its people we are determined that cuba too will know the blessings of liberty +the american people have opened their arms and their hearts and their arms to our central american and caribbean neighbors who have been so devastated by the recent hurricanes working with congress i am committed to help them rebuild +when the first lady and tipper gore visited the region they saw thousands of our troops and thousands of american volunteers in the dominican republic hillary helped to rededicate a hospital that had been rebuilt by dominicans and americans working side by side with her was some one else who has been very important to the relief efforts you know sports records are made and sooner or later they re broken but making other people s lives better and showing our children the true meaning of brotherhood that lasts forever so for far more than baseball sammy sosa you re a hero in two countries tonight thank you +so i say to all of you if we do these things if we pursue peace fight terrorism increase our strength renew our alliances we will begin to meet our generation s historic responsibility to build a stronger 21st century america in a freer more peaceful world +as the world has changed so have our own communities we must make the safer more livable and more united this year we will reach our goal of 100 000 community police officers ahead of schedule and under budget +the brady bill has stopped a quarter million felons fugitives and stalkers from buying handguns and now the murder rate is the lowest in 30 years and the crime rate has dropped for six straight years +tonight i propose a 21st century crime bill to deploy the latest technologies and tactics to make our communities even safer our balanced budget will help put up to 50 000 more police on the street in the areas hardest hit by crime and then to equip them with new tools from crime mapping computers to digital mug shots we must break the deadly cycle of drugs and crime +our budget expands support for drug testing and treatment saying to prisoners if you stay on drugs you have to stay behind bars and to those on parole if you want to keep your freedom you must stay free of drugs +i ask congress to restore the five day waiting period for buying a handgun and extend the brady bill to prevent juveniles who commit violent crimes from buying a gun +we must do more to keep our schools the safest places in our communities last year every american was horrified and heartbroken by the tragic killings in jonesboro paducah pearl edinboro springfield we were deeply moved by the courageous parents now working to keep guns out of the hands of children and to make other efforts so that other parents don t have to live through their loss +after she lost her daughter suzann wilson of jonesboro arkansas came here to the white house with a powerful plea she said please please for the sake of your children lock up your guns don t let what happened in jonesboro happen in your town +it s a message she is passionately advocating every day suzann is here with us tonight with the first lady i would like to thank her for her courage and her commitment +in memory of all the children who lost their lives to school violence i ask you to strengthen the safe and drug free school act to pass legislation to require child trigger locks to do everything possible to keep our children safe +today we re excuse me a century ago president theodore roosevelt defined our great central task as leaving this land even a better land for our descendants than it is for us today we re restoring the florida everglades saving yellowstone preserving the red rock canyons of utah protecting california s redwoods and our precious coasts +but our most fateful new challenge is the threat of global warming nineteen ninety eight was the warmest year ever recorded last year s heat waves floods and storm are but a hint of what future generations may endure if we do not act now +tonight i propose a new clean air fund to help communities reduce greenhouse and other pollutions and tax incentives and investment to spur clean energy technologies and i want to work with members of congress in both parties to reward companies that take early voluntary action to reduce greenhouse gases +now all our communities face a preservation challenge as they grow and green space shrinks seven thousand acres of farmland and open space are lost every day in response i propose two major initiatives first a $1 billion livability agenda to help communities save open space ease traffic congestion and grow in ways that enhance every citizen s quality of life and second a $1 billion lands legacy initiative to preserve places of natural beauty all across america from the most remote wilderness to the nearest city park +these are truly landmark initiatives which could not have been developed without the visionary leadership of the vice president and i want to thank him very much for his commitment here thank you +now to get the most out of your community you have to give something back that s why we created americorps our national service program that gives today s generation a chance to serve their communities and earn money for college +so far in just four years 100 000 young americans have built low income homes with habitat for humanity helped tutor children with churches work with fema to ease the burden of natural disasters and performed countless other acts of service that has made america better i ask congress to give more young americans the chance to follow their lead and serve america in americorps +now we must work to renew our national community as well for the 21st century last year the house passed the bipartisan campaign finance reform legislation sponsored by representatives christopher shays r conn and martin t meehan d mass and sens john mccain r ariz and russell feingold d wis but a partisan minority in the senate blocked reform so i would like to say to the house pass it again quickly +and i d like to say to the senate i hope you will say yes to a stronger american democracy in the year 2000 +since 1997 our initiative on race has sought to bridge the divides between and among our people in its report last fall the initiatives advisory board found that americans really do want to bring our people together across racial lines +we know it s been a long journey for some it goes back to before the beginning of our republic for others back since the civil war for others throughout the 21st century but for most of us alive today in a very real sense this journey began 43 years ago when a woman named rosa parks sat down on a bus in alabama and wouldn t get up +she s sitting down with the first lady tonight and she may get up or not as she chooses +we know that our continuing racial problems are aggravated as the presidential initiative said by opportunity gaps +the initiative i ve outlined tonight will help to close them but we know that the discrimination gap has not been fully closed either discrimination or violence because of race or religion ancestry or gender disability or sexual orientation is wrong and it ought to be illegal therefore i ask congress to make the employment non discrimination act and the hate crimes prevention act the law of the land +you know now since every person in america counts every american ought to be counted we need a census that uses modern scientific methods to do that +our new immigrants must be part of our one america after all they re revitalizing our cities they re energizing our culture they re building up our economy we have a responsibility to make them welcome here and they have a responsibility to enter the mainstream of american life +that means learning english and learning about our democratic system of government there are now long waiting lines of immigrants that are trying to do just that +therefore our budget significantly expands our efforts to help them meet their responsibility i hope you will support it +whether our ancestors came here on the mayflower on slave ships whether they came to ellis island or lax in los angeles whether they came yesterday or walked this land 1 000 years ago our great challenge for the 21st century is to find a way to be one america we can meet all the other challenges if we can go forward as one america +you know barely more than 300 days from now we will cross that bridge into the new millennium this is a moment as the first lady has said to honor the past and imagine the future +i d like to take just a minute to honor her for leading our millennium project for all she s done for our children for all she has done in her historic role to serve our nation and our best ideals at home and abroad i honor her +last year last year i called on congress and every citizen to mark the millennium by saving america s treasures hillary s traveled all across the country to inspire recognition and support for saving places like thomas edison s invention factory or harriet tubman s home +now we have to preserve our treasures in every community and tonight before i close i want to invite every town every city every community to become a nationally recognized millennium community by launching projects that save our history promote our arts and humanities prepare our children for the 21st century +already the response has been remarkable and i want to say a special word of thanks to our private sector partners and to members in congress of both parties for their support just one example because of you the star spangled banner will be preserved for the ages +in ways large and small as we look to the millennium we are keeping alive what george washington called the sacred fire of liberty +six years ago i came to office in a time of doubt for america with our economy troubled our deficit high our people divided some even wondered whether our best days were behind us but across this nation in a thousand neighborhoods i have seen even amidst the pain and uncertainty of recession the real heart and character of america +i knew then we americans could renew this country +tonight as i deliver the last state of the union address for the 20th century no one anywhere in the world can doubt the enduring resolve and boundless capacity of the american people to work toward that more perfect union of our founders dreams +we are now at the end of a century when generation after generation of americans answered the call to greatness overcoming depression lifting up the dispossessed bringing down barriers to racial prejudice building the largest middle class in history winning two world wars and the long twilight struggle of the cold war +we must all be profoundly grateful for the magnificent achievements of our forbearers in this century +yet perhaps in the daily press of events in the clash of controversy we don t see our own time for what it truly is a new dawn for america +a hundred years from tonight another american president will stand in this place and report on the state of the union he or she will look back on the 21st century shaped in so many ways by the decisions we make here and now +so let it be said of us then that we were thinking not only of our time but of their time that we reached as high as our ideals that we put aside our divisions and found a new hour of healing and hopefulness that we joined together to serve and strengthen the land we love +my fellow americans this is our moment let us lift our eyes as one nation and from the mountaintop of this american century look ahead to the next one asking god s blessing on our endeavors and on our beloved country +thank you and good evening +mr speaker mr vice president members of congress honored guests my fellow americans +we are fortunate to be alive at this moment in history never before has our nation enjoyed at once so much prosperity and social progress with so little internal crisis or so few external threats never before have we had such a blessed opportunity and therefore such a profound obligation to build the more perfect union of our founders dreams +we begin the new century with over 20 million new jobs the fastest economic growth in more than 30 years the lowest unemployment rates in 30 years the lowest poverty rates in 20 years the lowest african american and hispanic unemployment rates on record the first back to back budget surpluses in 42 years +next month america will achieve the longest period of economic growth in our entire history +we have built a new economy +our economic revolution has been matched by a revival of the american spirit crime down by 20 percent to its lowest level in 25 years teen births down seven years in a row and adoptions up by 30 percent welfare rolls cut in half to their lowest levels in 30 years +my fellow americans the state of our union is the strongest it has ever been +as always the credit belongs to the american people +my gratitude also goes to those of you in this chamber who have worked with us to put progress above partisanship +eight years ago it was not so clear to most americans there would be much to celebrate in the year 2000 then our nation was gripped by economic distress social decline political gridlock the title of a best selling book asked america what went wrong +in the best traditions of our nation americans determined to set things right we restored the vital center replacing outdated ideologies with a new vision anchored in basic enduring values opportunity for all responsibility from all and a community of all americans +we reinvented government transforming it into a catalyst for new ideas that stress both opportunity and responsibility and give our people the tools to solve their own problems +with the smallest federal workforce in 40 years we turned record deficits into record surpluses and doubled our investment in education we cut crime with 100 000 community police and the brady law which has kept guns out of the hands of half a million criminals +we ended welfare as we knew it requiring work while protecting health care and nutrition for children and investing more in child care transportation and housing to help their parents go to work we have helped parents to succeed at work and at home with family leave which 20 million americans have used to care for a newborn child or a sick loved one we have engaged 150 000 young americans in citizen service through americorps while also helping them earn their way through college +in 1992 we had a roadmap today we have results more important america again has the confidence to dream big dreams but we must not let our renewed confidence grow into complacency we will be judged by the dreams and deeds we pass on to our children and on that score we will be held to a high standard indeed because our chance to do good is so great +my fellow americans we have crossed the bridge we built to the 21st century now we must shape a 21st century american revolution of opportunity responsibility and community we must be as we were in the beginning a new nation +at the dawn of the last century theodore roosevelt said the one characteristic more essential than any other is foresight it should be the growing nation with a future which takes the long look ahead +tonight let us take our look long ahead and set great goals for our nation +to 21st century america let us pledge that +every child will begin school ready to learn and graduate ready to succeed every family will be able to succeed at home and at work and no child will be raised in poverty we will meet the challenge of the aging of america we will assure quality affordable healthcare for all americans we will make america the safest big country on earth we will bring prosperity to every american community we will reverse the course of climate change and leave a cleaner safer planet america will lead the world toward shared peace and prosperity and the far frontiers of science and technology and we will become at last what our founders pledged us to be so long ago one nation under god indivisible with liberty and justice for all +these are great goals worthy of a great nation we will not reach them all this year not even in this decade but we will reach them let us remember that the first american revolution was not won with a single shot the continent was not settled in a single year the lesson of our history and the lesson of the last seven years is that great goals are reached step by step always building on our progress always gaining ground +of course you can t gain ground if you re standing still for too long this congress has been standing still on some of our most pressing national priorities let s begin with them +i ask you again to pass a real patient s bill of rights pass common sense gun safety legislation pass campaign finance reform vote on long overdue judicial nominations and other important appointees and again i ask you to raise the minimum wage +two years ago as we reached our first balanced budget i asked that we meet our responsibility to the next generation by maintaining our fiscal discipline because we refused to stray from that path we are doing something that would have seemed unimaginable seven years ago we are actually paying down the national debt if we stay on this path we can pay down the debt entirely in 13 years and make america debt free for the first time since andrew jackson was president in 1835 +in 1993 we began to put our fiscal house in order with the deficit reduction act winning passage in both houses by just one vote your former colleague my first secretary of the treasury led that effort he is here tonight lloyd bentsen you have served america well +beyond paying off the debt we must ensure that the benefits of debt reduction go to preserving two of the most important guarantees we make to every american social security and medicare i ask you tonight to work with me to make a bipartisan down payment on social security reform by crediting the interest savings from debt reduction to the social security trust fund to ensure that it is strong and sound for the next 50 years +but this is just the start of our journey now we must take the right steps toward reaching our great goals +opportunity and responsibility in education +first and foremost we need a 21st century revolution in education guided by our faith that every child can learn because education is more than ever the key to our children s future we must make sure all our children have that key that means quality preschool and afterschool the best trained teachers in every classroom and college opportunities for all our children +for seven years we have worked hard to improve our schools with opportunity and responsibility investing more but demanding more in return +reading math and college entrance scores are up and some of the most impressive gains are in schools in poor neighborhoods +all successful schools have followed the same proven formula higher standards more accountability so all children can reach those standards i have sent congress a reform plan based on that formula it holds states and school districts accountable for progress and rewards them for results each year the national government invests more than $15 billion in our schools it s time to support what works and stop supporting what doesn t +as we demand more than ever from our schools we should invest more than ever in our schools +let s double our investment to help states and districts turn around their worst performing schools or shut them down +let s double our investment in afterschool and summer school programs boosting achievement and keeping children off the street and out of trouble if we do we can give every child in every failing school in america the chance to meet high standards +since 1993 we ve nearly doubled our investment in head start and improved its quality tonight i ask for another $1 billion to head start the largest increase in the program s history +we know that children learn best in smaller classes with good teachers for two years in a row congress has supported my plan to hire 100 000 new qualified teachers to lower class sizes in the early grades this year i ask you to make it three in a row +and to make sure all teachers know the subjects they teach tonight i propose a new teacher quality initiative to recruit more talented people into the classroom reward good teachers for staying there and give all teachers the training they need +we know charter schools provide real public school choice when i became president there was just one independent public charter school in all america today there are 1 700 i ask you to help us meet our goal of 3 000 by next year +we know we must connect all our classrooms to the internet we re getting there in 1994 only three percent of our classrooms were connected today with the help of the vice president s e rate program more than half of them are and 90 percent of our schools have at least one connection to the internet +but we can t finish the job when a third of all schools are in serious disrepair many with walls and wires too old for the internet tonight i propose to help 5 000 schools a year make immediate urgent repairs and again to help build or modernize 6 000 schools to get students out of trailers and into high tech classrooms +we should double our bipartisan gear up program to mentor 1 4 million disadvantaged young people for college and let s offer these students a chance to take the same college test prep courses wealthier students use to boost their test scores +to make the american dream achievable for all we must make college affordable for all for seven years on a bipartisan basis we have taken action toward that goal larger pell grants more affordable student loans education iras and our hope scholarships which have already benefited 5 million young people 67 percent of high school graduates now go on to college up almost 10 percent since 1993 yet millions of families still strain to pay college tuition they need help +i propose a landmark $30 billion college opportunity tax cut a middle class tax deduction for up to $10 000 in college tuition costs we ve already made two years of college affordable for all now let s make four years of college affordable for all +if we take all these steps we will move a long way toward making sure every child starts school ready to learn and graduates ready to succeed +rewarding work and strengthening families +we need a 21st century revolution to reward work and strengthen families by giving every parent the tools to succeed at work and at the most important work of all raising their children that means making sure that every family has health care and the support to care for aging parents the tools to bring their children up right and that no child grows up in poverty +from my first days as president we have worked to give families better access to better health care in 1997 we passed the children s health insurance program chip so that workers who don t have health care coverage through their employers at least can get it for their children so far we ve enrolled 2 million children and we re well on our way to our goal of 5 million +but there are still more than 40 million americans without health insurance more than there were in 1993 tonight i propose that we follow vice president gore s suggestion to make low income parents eligible for the insurance that covers their kids together with our children s initiative we can cover nearly one quarter of the uninsured in america +again i ask you to let people between 55 and 65 the fastest growing group of uninsured buy into medicare and let s give them a tax credit to make that choice an affordable one +when the baby boomers retire medicare will be faced with caring for twice as many of our citizens and yet it is far from ready to do so my generation must not ask our children s generation to shoulder our burden we must strengthen and modernize medicare now +my budget includes a comprehensive plan to reform medicare to make it more efficient and competitive and it dedicates nearly $400 billion of our budget surplus to keep medicare solvent past 2025 and at long last to give every senior a voluntary choice of affordable coverage for prescription drugs +lifesaving drugs are an indispensable part of modern medicine no one creating a medicare program today would even consider excluding coverage for prescription drugs yet more than three in five seniors now lack dependable drug coverage which can lengthen and enrich their lives millions of older americans who need prescription drugs the most pay the highest prices for them +in good conscience we cannot let another year pass without extending to all seniors the lifeline of affordable prescription drugs +record numbers of americans are providing for aging or ailing loved ones at home last year i proposed a $1 000 tax credit for long term care frankly that wasn t enough this year let s triple it to $3 000 and this year let s pass it +and we must make needed investments to expand access to mental health care i want to thank the person who has led our efforts to break down the barriers to the decent treatment of mental illness tipper gore +taken together these proposals would mark the largest investment in health care in the 35 years since the creation of medicare a big step toward assuring health care for all americans young and old +we must also make investments that reward work and support families nothing does that better than the earned income tax credit the eitc the e in eitc is about earning working taking responsibility and being rewarded for it in my first address to you i asked congress to greatly expand this tax credit and you did as a result in 1998 alone the eitc helped more than 4 3 million americans work their way out of poverty and toward the middle class double the number in 1993 +tonight i propose another major expansion we should reduce the marriage penalty for the eitc making sure it rewards marriage just as it rewards work and we should expand the tax credit for families with more than two children to provide up to $1 100 more in tax relief +we can t reward work and family unless men and women get equal pay for equal work the female unemployment rate is the lowest in 46 years yet women still earn only about 75 cents for every dollar men earn we must do better by providing the resources to enforce present equal pay laws training more women for high paying high tech jobs and passing the paycheck fairness act +two thirds of new jobs are in the suburbs far away from many low income families in the past two years i have proposed and congress has approved 110 000 new housing vouchers rent subsidies to help working families live closer to the workplace this year let us more than double that number if we want people to go to work they have to be able to get to work +many working parents spend up to a quarter of their income on child care last year we helped parents provide child care for about two million children my child care initiative along with funds already secured in welfare reform would make child care better safer and more affordable for another 400 000 children +for hard pressed middle income families we should also expand the child care tax credit and we should take the next big step we should make that tax credit refundable for low income families for those making under $30 000 a year that could mean up to $2 400 for child care costs we all say we re pro work and pro family passing this proposal would prove it +tens of millions of americans live from paycheck to paycheck as hard as they work they still don t have the opportunity to save too few can make use of iras and 401 k retirement plans we should do more to help working families save and accumulate wealth that s the idea behind so called individual development accounts let s take that idea to a new level with retirement savings accounts that enable every low and moderate income family in america to save for retirement a first home a medical emergency or a college education i propose to match their contributions however small dollar for dollar every year they save and to give a major new tax credit for any small business that provides a meaningful pension to its workers +nearly one in three american children grows up in a home without a father these children are five times more likely to live in poverty than children with both parents at home clearly demanding and supporting responsible fatherhood is critical to lifting all children out of poverty +we have doubled child support collections since 1992 and i am proposing tough new measures to hold still more fathers responsible but we should recognize that a lot of fathers want to do right by their children and need help to do it carlos rosas of st paul minnesota got that help now he has a good job and he supports his son ricardo my budget will help 40 000 fathers make the choices carlos did and i thank him for being here +if there is any issue on which we can reach across party lines it is in our common commitment to reward work and strengthen families thanks to overwhelming bipartisan support from this congress we have improved foster care supported those who leave it when they turn eighteen and dramatically increased the number of foster children going to adoptive homes i thank you for that of course i am especially grateful to the person who has led our efforts from the beginning and who has worked tirelessly for children and families for thirty years now my wife hillary +if we take all these steps we will move a long way toward empowering parents to succeed at home and at work and ensuring that no child is raised in poverty we can make these vital investments in health care education and support for working families and still offer tax cuts to help pay for college for retirement to care for aging parents and reduce the marriage penalty without forsaking the path of fiscal discipline that got us here indeed we must make these investments and tax cuts in the context of a balanced budget that strengthens and extends the life of social security and medicare and pays down the national debt +responsibility and crime +crime in america has dropped for the past seven years the longest decline on record thanks to a national consensus we helped to forge on community police sensible gun safety laws and effective prevention but nobody believes america is safe enough so let s set a higher goal let s make america the safest big country in the world +last fall congress supported my plan to hire in addition to the 100 000 community police we have already funded 50 000 more concentrated in high crime neighborhoods i ask your continued support +soon after the columbine tragedy congress considered common sense gun safety legislation to require brady background checks at gun shows child safety locks for all new handguns and a ban on the importation of large capacity ammunition clips with courage and a tie breaking vote by the vice president the senate faced down the gun lobby stood up for the american people and passed this legislation but the house failed to follow suit +we ve all seen what happens when guns fall into the wrong hands daniel mauser was only 15 years old when he was gunned down at columbine he was an amazing kid a straight a student a good skier like all parents who lose their children his father tom has borne unimaginable grief somehow tom has found the strength to honor his son by transforming his grief into action earlier this month he took a leave of absence from his job to fight for tougher gun safety laws i pray that his courage and wisdom will move this congress to make common sense gun safety legislation the very next order of business tom thank you for being here tonight +we must strengthen gun laws and better enforce laws already on the books federal gun crime prosecutions are up 16 percent since i took office but again we must do more i propose to hire more federal and local gun prosecutors and more atf agents to crack down on illegal gun traffickers and bad apple dealers and we must give law enforcement the tools to trace every gun and every bullet used in a crime in america +listen to this the accidental gun death rate of children under 15 in the united states is nine times higher than in the other 25 industrialized nations combined technologies now exist that could lead to guns that can only be fired by the adults who own them i ask congress to fund research in smart gun technology i also call on responsible leaders in the gun industry to work with us on smart guns and other steps to keep guns out of the wrong hands and keep our children safe +every parent i know worries about the impact of violence in the media on their children i thank the entertainment industry for accepting my challenge to put voluntary ratings on tv programs and video and internet games but the ratings are too numerous diverse and confusing to be really useful to parents therefore i now ask the industry to accept the first lady s challenge to develop a single voluntary rating system for all children s entertainment one that is easier for parents to understand and enforce +if we take all these steps we will be well on our way to making america the safest big country in the world +opening new markets +to keep our historic economic expansion going we need a 21st century revolution to open new markets start new businesses and hire new workers right here in america in our inner cities poor rural areas and on indian reservations +our nation s prosperity has not yet reached these places over the last six months i have traveled to many of them joined by many of you and many far sighted business people to shine a spotlight on the enormous potential in communities from appalachia to the mississippi delta from watts to the pine ridge indian reservation everywhere i ve gone i ve met talented people eager for opportunity and able to work let s put them to work +for business it s the smart thing to do for america it s the right thing to do and if we don t do it now when will we ever get around to it +i ask congress to give businesses the same incentives to invest in america s new markets that they now have to invest in foreign markets tonight i propose a large new markets tax credit and other incentives to spur $22 billion in private sector capital to create new businesses and new investments in inner cities and rural areas +empowerment zones have been creating these opportunities for five years now we should also increase incentives to invest in them and create more of them +this is not a democratic or a republican issue it is an american issue mr speaker it was a powerful moment last november when you joined me and the reverend jesse jackson in your home state of illinois and committed to working toward our common goal by combining the best ideas from both sides of the aisle mr speaker i look forward to working with you +we must maintain our commitment to community development banks and keep the community reinvestment act strong so all americans have access to the capital they need to buy homes and build businesses +we need to make special efforts to address the areas with the highest rates of poverty my budget includes a special $110 million initiative to promote economic development in the mississippi delta and $1 billion to increase economic opportunity health care education and law enforcement for native american communities in this new century we should honor our historic responsibility to empower the first americans i thank leaders and members from both parties who have already expressed an interest in working with us on these efforts +there s another part of our american community in trouble today our family farmers when i signed the farm bill in 1996 i said there was a great danger it would work well in good times but not in bad well droughts floods and historically low prices have made times very bad for our farmers we must work together to strengthen the farm safety net invest in land conservation and create new markets by expanding our program for bio based fuels and products +today opportunity for all requires something new having access to a computer and knowing how to use it that means we must close the digital divide between those who have these tools and those who don t +connecting classrooms and libraries to the internet is crucial but it s just a start my budget ensures that all new teachers are trained to teach 21st century skills and creates technology centers in 1 000 communities to serve adults this spring i will invite high tech leaders to join me on another new markets tour to close the digital divide and open opportunity for all our people i thank the high tech companies that are already doing so much in this area and i hope the new tax incentives i have proposed will encourage others to join us +if we take these steps we will go a long way toward our goal of bringing opportunity to every community +global change and american leadership +to realize the full possibilities of the new economy we must reach beyond our own borders to shape the revolution that is tearing down barriers and building new networks among nations and individuals economies and cultures globalization +it is the central reality of our time change this profound is both liberating and threatening but there is no turning back and our open creative society stands to benefit more than any other if we understand and act on the new realities of interdependence we must be at the center of every vital global network as a good neighbor and partner we cannot build our future without helping others to build theirs +first we must forge a new consensus on trade those of us who believe passionately in the power of open trade must ensure that it lifts both our living standards and our values never tolerating abusive child labor or a race to the bottom on the environment and worker protection still open markets and rules based trade are the best engines we know for raising living standards reducing global poverty and environmental destruction and assuring the free flow of ideas there is only one direction for america on trade we must go forward +and we must make developing economies our partners in prosperity which is why i ask congress to finalize our groundbreaking african and caribbean basin trade initiatives +globalization is about more than economics our purpose must be to bring the world together around democracy freedom and peace and to oppose those who would tear it apart +here are the fundamental challenges i believe america must meet to shape the 21st century world +first we must continue to encourage our former adversaries russia and china to emerge as stable prosperous democratic nations both are being held back from reaching their full potential russia by the legacy of communism economic turmoil a cruel and self defeating war in chechnya china by the illusion that it can buy stability at the expense of freedom but think how much has changed in the past decade thousands of former soviet nuclear weapons eliminated russian soldiers serving with ours in the balkans russian people electing their leaders for the first time in a thousand years and in china an economy more open to the world than ever before no one can know for sure what direction these great countries will choose but we must do everything in our power to increase the chance they will choose wisely to be constructive members of the global community +that is why we must support those russians struggling for a democratic prosperous future continue to reduce both our nuclear arsenals and help russia safeguard weapons and materials that remain +that is why congress should support the agreement we negotiated to bring china into the wto by passing permanent normal trade relations as soon as possible this year our markets are already open to china this agreement will open china s markets to us and it will advance the cause of peace in asia and promote the cause of change in china +a second challenge is to protect our security from conflicts that pose the risk of wider war and threaten our common humanity america cannot prevent every conflict or stop every outrage but where our interests are at stake and we can make a difference we must be peacemakers +we should be proud of america s role in bringing the middle east closer than ever to a comprehensive peace building peace in northern ireland working for peace in east timor and africa promoting reconciliation between greece and turkey and in cyprus working to defuse crises between india and pakistan defending human rights and religious freedom +and we should be proud of the men and women of our armed forces and those of our allies who stopped the ethnic cleansing in kosovo enabling a million innocent people to return to their homes +when slobodan milosevic unleashed his terror on kosovo captain john cherrey was one of the brave airmen who turned the tide and when another american plane went down over serbia he flew into the teeth of enemy air defenses to bring his fellow pilot home thanks to our armed forces skill and bravery we prevailed without losing a single american in combat captain cherrey we honor you and promise to finish the job you began +a third challenge is to keep the inexorable march of technology from giving terrorists and potentially hostile nations the means to undermine our defenses the same advances that have shrunk cell phones to fit in the palms of our hands can also make weapons of terror easier to conceal and easier to use +we must meet this threat by making effective agreements to restrain nuclear and missile programs in north korea curbing the flow of lethal technology to iran preventing iraq from threatening its neighbors increasing our preparedness against chemical and biological attack protecting our vital computer systems from hackers and criminals and developing a system to defend against new missile threats while working to preserve our anti ballistic missile treaty with russia +i hope we can have a constructive bipartisan dialogue this year to build a consensus which will lead eventually to the ratification of the comprehensive nuclear test ban treaty +a fourth challenge is to ensure that the stability of our planet is not threatened by the huge gulf between rich and poor we cannot accept a world in which part of humanity lives on the cutting edge of a new economy while the rest live on the bare edge of survival we must do our part with expanded trade expanded aid and the expansion of freedom +from nigeria to indonesia more people won the right to choose their leaders in 1999 than in 1989 the year the berlin wall fell we must stand by democracies like colombia fighting narco traffickers for its people s lives and our children s lives i have proposed a strong two year package to help colombia win this fight and i ask for your support and i will propose tough new legislation to go after what drug barons value most their money +in a world where 1 2 billion people live on less than a dollar a day we must do our part in the global endeavor to reduce the debts of the poorest countries so they can invest in education health and economic growth as the pope and other religious leaders have urged last year congress made a down payment on america s share and i ask for your continued support +and america must help more nations break the bonds of disease last year in africa aids killed ten times as many people as war did my budget invests $150 million more in the fight against this and other infectious killers today i propose a tax credit to speed the development of vaccines for diseases like malaria tb and aids i ask the private sector and our partners around the world to join us in embracing this cause together we can save millions of lives +our final challenge is the most important to pass a national security budget that keeps our military the best trained and best equipped in the world with heightened readiness and 21st century weapons raises salaries for our service men and women protects our veterans fully funds the diplomacy that keeps our soldiers out of war and makes good on our commitment to pay our un dues and arrears i ask you to pass this budget and i thank you for the extraordinary support you have given republicans and democrats alike to our men and women in uniform i especially want to thank secretary cohen for symbolizing our bipartisan commitment to our national security and janet cohen i thank you for tirelessly traveling the world to show our support for the troops +if we meet all these challenges america can lead the world toward peace and freedom in an era of globalization +responsibility opportunity and the environment +i am grateful for the opportunities the vice president and i have had to work hard to protect the environment and finally to put to rest the notion that you can t expand the economy while protecting the environment as our economy has grown we have rid more than 500 neighborhoods of toxic waste and ensured cleaner air and water for millions of families in the past three months alone we have acted to preserve more than 40 million acres of roadless lands in our national forests and created three new national monuments +but as our communities grow our commitment to conservation must grow as well tonight i propose creating a permanent conservation fund to restore wildlife protect coastlines and save natural treasures from california redwoods to the everglades this lands legacy endowment represents by far the most enduring investment in land preservation ever proposed +last year the vice president launched a new effort to help make communities more livable so children will grow up next to parks not parking lots and parents can be home with their children instead of stuck in traffic tonight we propose new funding for advanced transit systems for saving precious open spaces for helping major cities around the great lakes protect their waterways and enhance their quality of life +the greatest environmental challenge of the new century is global warming scientists tell us that the 1990s were the hottest decade of the entire millennium if we fail to reduce emissions of greenhouse gases deadly heat waves and droughts will become more frequent coastal areas will be flooded economies disrupted +many people in the united states and around the world still believe we can t cut greenhouse gas pollution without slowing economic growth in the industrial age that may have been true in the digital economy it isn t new technologies make it possible to cut harmful emissions and provide even more growth for example just last week automakers unveiled cars that get 70 to 80 miles a gallon the fruits of a unique research partnership between government and industry before you know it efficient production of biofuels will give us the equivalent of hundreds of miles from a gallon of gas +to speed innovations in environmental technologies i propose giving major tax incentives to businesses for the production of clean energy and to families for buying energy saving homes and appliances and the next generation of super efficient cars when they hit the showroom floor i also call on the auto industry to use available technologies to make all new cars more fuel efficient right away and on congress to make more of our clean energy technologies available to the developing world creating cleaner growth abroad and new jobs at home +the opportunity and responsibility of science and technology +in the new century innovations in science and technology will be the key not only to the health of the environment but to miraculous improvements in the quality of our lives and advances in the economy +later this year researchers will complete the first draft of the entire human genome the very blueprint of life it is important for all americans to recognize that your tax dollars have fueled this research and that this and other wise investments in science are leading to a revolution in our ability to detect treat and prevent disease +for example researchers have identified genes that cause parkinson s disease diabetes and certain types of cancer and they are designing precision therapies that will block the harmful effects of these faulty genes for good researchers are already using this new technique to target and destroy cells that cause breast cancer soon we may be able to use it to prevent the onset of alzheimer s disease scientists are also working on an artificial retina to help many blind people to see and microchips that would directly stimulate damaged spinal cords and allow people who are now paralyzed to stand up and walk +science and engineering innovations are also propelling our remarkable prosperity information technology alone now accounts for a third of our economic growth with jobs that pay almost 80 percent above the private sector average again we should keep in mind government funded research brought supercomputers the internet and communications satellites into being soon researchers will bring us devices that can translate foreign languages as fast as you can speak materials 10 times stronger than steel at a fraction of the weight and molecular computers the size of a teardrop with the power of today s fastest supercomputers +to accelerate the march of discovery across all disciplines of science and technology my budget includes an unprecedented $3 billion increase in the 21st century research fund the largest increase in civilian research in a generation +these new breakthroughs must be used in ways that reflect our most cherished values first and foremost we must safeguard our citizens privacy last year we proposed rules to protect every citizen s medical records this year we will finalize those rules we have also taken the first steps to protect the privacy of bank and credit card statements and other financial records soon i will send legislation to the congress to finish that job we must also act to prevent any genetic discrimination by employers or insurers +these steps will allow america to lead toward the far frontiers of science and technology enhancing our health environment and economy in ways we cannot even imagine today +community +at a time when science technology and the forces of globalization are bringing so many changes into our lives it is more important than ever that we strengthen the bonds that root us in our local communities and in our national communities +no tie binds different people together like citizen service there is a new spirit of service in america a movement we have supported with americorps an expanded peace corps and unprecedented new partnerships with businesses foundations and community groups partnerships to enlist 12 000 companies in moving 650 000 of our fellow citizens from welfare to work to battle drug abuse and aids to teach young people to read to save america s treasures to strengthen the arts to fight teen pregnancy to prevent youth violence to promote racial healing +we can do even more to help americans help each other we should help faith based organizations do more to fight poverty and drug abuse and help young people get back on the right track with initiatives like second chance homes to help unwed teen mothers we should support americans who tithe and contribute to charities but don t earn enough to claim a tax deduction for it tonight i propose new tax incentives to allow low and middle income citizens to get that deduction +we should do more to help new immigrants fully participate in the american community investing more to teach them civics and english and since everyone in our community counts we must make sure everyone is counted in this year s census +within ten years there will be no majority race in our largest state california in a little more than 50 years there will be no majority race in america in a more interconnected world this diversity can be our greatest strength just look around this chamber we have members from virtually every racial ethnic and religious background and america is stronger for it but as we have seen these differences all too often spark hatred and division even here at home +we have seen a man dragged to death in texas simply because he was black a young man murdered in wyoming simply because he was gay in the last year alone we ve seen the shootings of african americans asian americans and jewish children simply because of who they were this is not the american way we must draw the line without delay we must pass the hate crimes prevention act and the employment non discrimination act and we should reauthorize the violence against women act +no american should be subjected to discrimination in finding a home getting a job going to school or securing a loan tonight i propose the largest ever investment to enforce america s civil rights laws protections in law must be protections in fact +last february i created the white house office of one america to promote racial reconciliation that s what hank aaron has done all his life from his days as baseball s all time homerun king to his recent acts of healing he has always brought americans together we re pleased he s with us tonight +this fall at the white house one of america s leading scientists said something we should all remember he said all human beings genetically are 99 9 percent the same so modern science affirms what ancient faith has always taught the most important fact of life is our common humanity +therefore we must do more than tolerate diversity we must honor it and celebrate it +my fellow americans each time i prepare for the state of the union i approach it with great hope and expectations for our nation but tonight is special because we stand on the mountaintop of a new millennium behind us we see the great expanse of american achievement before us even grander frontiers of possibility +we should be filled with gratitude and humility for our prosperity and progress with awe and joy at what lies ahead and with absolute determination to make the most of it +when the framers finished crafting our constitution benjamin franklin stood in independence hall and reflected on a painting of the sun low on the horizon he said i have often wondered whether that sun was rising or setting today franklin said i have the happiness to know it is a rising sun well today because each generation of americans has kept the fire of freedom burning brightly lighting those frontiers of possibility we still bask in the warmth of mr franklin s rising sun +after 224 years the american revolution continues we remain a new nation as long as our dreams outweigh our memories america will be forever young that is our destiny and this is our moment +thank you god bless you and god bless america diff --git a/l5/TM-Lab5.ipynb b/l5/TM-Lab5.ipynb new file mode 100644 index 0000000000000000000000000000000000000000..5700cd42663271c9ddcbf56261931a8ffa7116c0 --- /dev/null +++ b/l5/TM-Lab5.ipynb @@ -0,0 +1,1253 @@ +{ + "cells": [ + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "<div class=\"alert alert-info\">\n", + " \n", + "➡️ Before you start, make sure that you are familiar with the **[study guide](https://liu-nlp.ai/text-mining/logistics/)**, in particular the rules around **cheating and plagiarism** (found in the course memo).\n", + "\n", + "➡️ If you use code from external sources (e.g. StackOverflow, ChatGPT, ...) as part of your solutions, don't forget to add a reference to these source(s) (for example as a comment above your code).\n", + "\n", + "➡️ Make sure you fill in all cells that say **`YOUR CODE HERE`** or **YOUR ANSWER HERE**. You normally shouldn't need to modify any of the other cells.\n", + "\n", + "</div>" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "# L5: Text Summarization" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "In this lab, you will use large language models (LLMs) to generate summaries of (short) news articles. In the first part, you will use an encoder language model to perform extractive text summarization, while in the second part, you will use a decoder LLM to perform abstractive text summarization." + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "**_A technical note:_** This lab is made to work without requiring a GPU. If you have access to a GPU, you will be able to use larger (and better) models than the ones used by default in this notebook, and inference time should be much faster. In order for this to work, you need to make sure that you have CUDA installed, that [PyTorch is installed for the correct CUDA version](https://pytorch.org/get-started/locally/), and also that you have installed the GPU-enabled version of [llama-cpp-python](https://github.com/abetlen/llama-cpp-python) (which is the default, but not the one used in the lab environment)." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "e0e1945bcb70fbdeb0ecefe1c7930e5b", + "grade": false, + "grade_id": "cell-c4776a1666a48ddd", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + }, + "slideshow": { + "slide_type": "" + }, + "tags": [] + }, + "outputs": [], + "source": [ + "# Define some helper functions that are used in this notebook\n", + "\n", + "%matplotlib inline\n", + "from IPython.display import display, HTML\n", + "\n", + "def success():\n", + " display(HTML('<div class=\"alert alert-success\"><strong>Checks have passed!</strong></div>'))" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Dataset 1: DBpedia" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "We have prepared a data set containing a small sample of sentences from DBpedia, each containing the word _record_, but describing different types of entities: either a company, a (music) album, or an athlete." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "0cdbd05d89e466f7a560be0b9c1dd6ea", + "grade": false, + "grade_id": "cell-59c1ac1d68e6c524", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "import pandas as pd\n", + "import numpy as np\n", + "import bz2\n", + "\n", + "with bz2.open(\"dbpedia_record_sample.json.bz2\", \"rt\", encoding=\"utf-8\") as f:\n", + " df = pd.read_json(f)" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "There are two labelled columns in the data set: `sentence` (the sentence from DBpedia), and `label` (the category of the DBpedia entry where the sentence is from). The `label` column can take three values: Company, Album, or Athlete. " + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "pd.set_option('display.max_colwidth', None)\n", + "df.head()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Introduction (_or_ Problem 0): Sentence embeddings" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Neural language models can be used to produce _embeddings_ of words, sentences, or entire documents — i.e., a representation of that string of text in a large-dimensional vector space.\n", + "\n", + "In this lab, we are interested in _sentence embeddings_. The library [SentenceTransformers](https://www.sbert.net/) is specifically made for embedding sentences with neural, transformer-based models. We start by importing this library and loading a small, pre-trained language model.\n", + "\n", + "**_Note:_** The first time you run this, the model will automatically be downloaded onto your machine (ca. 90 MB)." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "from sentence_transformers import SentenceTransformer\n", + "model = SentenceTransformer(\"all-MiniLM-L6-v2\")" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "It’s very easy to obtain sentence embeddings from a loaded model:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "sentences = [\n", + " \"The weather is lovely today.\",\n", + " \"It's so sunny outside!\",\n", + " \"He drove to the stadium.\",\n", + "]\n", + "model.encode(sentences)" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "As you can see, the result of calling `model.encode()` is an array of vectors of floating-point numbers. Let’s check the _dimensionality_ of these embeddings:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "embeddings = model.encode(sentences)\n", + "embeddings.shape" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Your first task is to simply **encode all sentences from the DBpedia dataset** using this embedding model, and also produce a list of the corresponding _labels_ for later use." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "a2f8e7ff05cac9e8b805b8a8a112666f", + "grade": true, + "grade_id": "cell-de8a785e8a4c9a09", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "embeddings = ...\n", + "labels = [] # labels should be a list so that labels[i] corresponds to the sentence encoded by embeddings[i]\n", + "\n", + "# YOUR CODE HERE\n", + "raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 1: Visualisation with t-SNE" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "A downside of embeddings like these is that a 384-dimensional embedding space is hard to visualise or interpret. We need a _dimensionality reduction_ technique like [t-SNE](https://scikit-learn.org/1.5/modules/manifold.html#t-sne) to produce a visualization of vectors in such a space. This is conveniently implemented by scikit-learn, so we first import the relevant classes:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "8b33cc9dd48ee58fa6462ca86f0b8abb", + "grade": false, + "grade_id": "cell-84f8f87ddab59d2c", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "from sklearn.manifold import TSNE\n", + "import seaborn as sns\n", + "sns.set(style=\"white\")" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Your task is to **visualise the sentence embeddings from the DBpedia dataset** by using t-SNE to map them into a two-dimensional space, then plot the resulting points as a scatterplot, using the category labels for the _color_ of each point. This gives you a way to visualise the vectors with respect to the category labels.\n", + "\n", + "Complete the function in the cell below, where we have already instantiated the TSNE class. You can use either plain Matplotlib or Seaborn for the plot." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "b24f4bdd4cf0d5c3c1bd3cd927c8992b", + "grade": true, + "grade_id": "cell-2647656718b47656", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "def plot_tsne(vectors, labels, perplexity=30.0, max_iter=1000):\n", + " \"\"\"Compute and plot a t-SNE reduction of the given vectors.\n", + " \n", + " Arguments:\n", + " vectors: A list of embedding vectors.\n", + " labels: A list of class labels; must have the same length as `vectors`.\n", + " perplexity (float): A hyperparameter of the t-SNE algorithm; recommended values\n", + " are between 5 and 50, and can result in significantly different results.\n", + " max_iter (int): A hyperparameter of the t-SNE algorithm, controlling the maximum\n", + " number of iterations of the optimization algorithm.\n", + "\n", + " Returns:\n", + " Nothing, but shows the plot.\n", + " \"\"\"\n", + " tsne = TSNE(verbose=True, perplexity=perplexity, max_iter=max_iter)\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "#### 🤞 Test your code\n", + "\n", + "If your implementation is correct, you should be able to produce the plot by running the following cell:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "plot_tsne(embeddings, labels, perplexity=30.0, max_iter=1000)" + ] + }, + { + "cell_type": "markdown", + "metadata": { + "editable": true, + "slideshow": { + "slide_type": "" + }, + "tags": [] + }, + "source": [ + "Afterwards, **re-run the visualisation** a few times with different values for the `perplexity` and `max_iter` parameter, and observe if and how the resulting visualisation changes. Take a moment to consider how you would interpret the results; you will need this for the reflection part." + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Dataset 2: CNN/DailyMail\n", + "\n", + "In the remainder of this lab, we will look specifically at the task of text summarization. For this, we are using a subset of the CNN/DailyMail 3.0.0 data set, a popular dataset for summarization composed of news articles." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "49bdc6b118662b49349ec70e8cfcaba6", + "grade": false, + "grade_id": "cell-1a94e1bd051732a1", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "with bz2.open(\"cnn_dailymail_3.0.0_shorts.json.bz2\", \"rt\", encoding=\"utf-8\") as f:\n", + " news_df = pd.read_json(f)" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "There are two labelled columns in the data set: `article` (the full news article), and `highlights` (highlights from the article, which we will treat as a “reference summary”).\n", + "\n", + "The entire dataset contains 5,000 news articles, but since some of the techniques we will explore here can be quite compute-intensive (depending on the hardware used to run this lab), we limit ourselves to a hand-picked selection of ten articles for some of the exercises:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "indices = [6, 53, 56, 340, 730, 1940, 1983, 2404, 2826, 4673]\n", + "short_news_df = news_df.iloc[indices]\n", + "short_news_df" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 2: Extractive summarization\n", + "\n", + "In this problem, we will produce a summary of a news article by extracting a small number of sentences from it." + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### Task 2.1: Extracting sentence embeddings\n", + "\n", + "In the data set, each news article is given as a single string. Your first task is to **split the text up into sentences** and run them through the sentence embedding model from the Introduction. You can perform the sentence splitting with the help of spaCy:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "eff0a6e95e40ca00cf5d4d5da584b669", + "grade": false, + "grade_id": "cell-946f1654677db457", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "import spacy\n", + "nlp = spacy.load(\"en_core_web_md\")" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "169e447db4715e29447f21b8e8a36bb8", + "grade": false, + "grade_id": "cell-ff8bb57e1fe5a1ba", + "locked": false, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "def get_sentences_and_embeddings(text):\n", + " \"\"\"Splits the text into sentences and computes embeddings for each of them.\n", + "\n", + " Arguments:\n", + " text: The text to process, e.g. one entire news article.\n", + "\n", + " Returns:\n", + " A tuple (sentences, sentence_vectors). `sentences` should be a list of \n", + " sentences from the text, while `sentence_vectors` should be a list of\n", + " embedding vectors corresponding to these sentences.\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "#### 🤞 Test your code\n", + "\n", + "The following cell shows how your function should be called, and sanity-checks the returned value for one of the news articles:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "975bc87aac828b7070c2152233e99f42", + "grade": true, + "grade_id": "cell-24d4917c62190190", + "locked": true, + "points": 1, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "sents, vecs = get_sentences_and_embeddings(short_news_df.iloc[2][\"article\"])\n", + "\n", + "# Check if the article appears to be split up correctly\n", + "assert len(sents) == len(vecs) == 13, \"The news article should produce 13 sentences and 13 vectors\"\n", + "assert sents[4] == 'The Disney Wonder is registered in the Bahamas.', \"The fifth sentence in the article should be 'The Disney Wonder is registered in the Bahamas.'\"\n", + "success()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### Task 2.2: Extractive summarization with MMR\n", + "\n", + "You now have all the necessary inputs to produce an extractive summary of a news article. Write a function that takes a list of sentences and their corresponding embedding vectors, as well as a number of sentences to extract from it. Your function should then implement the **maximum marginal relevance (MMR) algorithm** as follows:\n", + "\n", + "1. Initially, your candidate set $C$ contains all sentences in the news article, and the set of selected sentences $S$ is empty.\n", + "2. As the “profile vector” $p$, use the **centroid** of all the sentence vectors from the news article.\n", + "3. Pick the next sentence to extract from $C\\textbackslash S$ using the marginal relevance formula:\n", + "\n", + "$$\n", + "s_i = \\textrm{arg\\,max}_{s \\in C\\textbackslash S} ~\\left( \\textrm{sim}(s, p) - \\textrm{max}_{s_j \\in S} ~\\textrm{sim}(s, s_j) \\right)\n", + "$$\n", + "\n", + "In this formula, “sim” is the plain **cosine similarity** between the vectors. We recommend you use the [`cosine_similarity` function from scikit-learn](https://scikit-learn.org/stable/modules/generated/sklearn.metrics.pairwise.cosine_similarity.html) for this purpose.\n", + "\n", + "4. Repeat step 3 until you have extracted $n$ sentences, where $n$ is given as an argument to your function." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "6390805de5cf88a88aeb8354ff419849", + "grade": true, + "grade_id": "cell-c5e7eac6c849b557", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "from sklearn.metrics.pairwise import cosine_similarity\n", + "\n", + "def summarize(sentences, vectors, n=3):\n", + " \"\"\"Produce an extractive summary from a list of sentences and their vectors.\n", + "\n", + " Arguments:\n", + " sentences (list): A list of sentences.\n", + " vectors (list): A list of vectors, one for each sentence.\n", + " n (int): The number of sentences to extract for the summary.\n", + "\n", + " Returns:\n", + " A summary of `n` extracted sentences, as a single string.\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "#### 🤞 Test your code\n", + "\n", + "The following cell puts it all together: it extracts the sentences and embeddings for one news article, generates the extractive summary, and displays it:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "news = short_news_df.iloc[4]\n", + "sents, vecs = get_sentences_and_embeddings(news[\"article\"])\n", + "summary = summarize(sents, vecs, n=3)\n", + "\n", + "# Show the article, highlights, and extracted summary in a table\n", + "pd.DataFrame({\n", + " \"article\": [news[\"article\"]],\n", + " \"highlights\": [news[\"highlights\"]],\n", + " \"summary\": [summary]\n", + "})" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "If your implementation is correct, your summary should look like this:\n", + "\n", + "> The Premier League has announced that next season's competition will begin on August 8. The move could allow Roy Hodgson more time to prepare his squad for Euro 2016, if England qualify . The Premier League announced the news on Twitter on Wednesday .\n", + "\n", + "Try it out with different news articles to see what happens!" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 3: Evaluating text summarization\n", + "\n", + "In this problem, you implement a ROUGE metric to automatically compare the extracted summaries against the “highlights” column of the data set." + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### Task 3.1: Implementing ROUGE-2\n", + "\n", + "Concretely, you should implement **ROUGE-2**, which is the version of the ROUGE metric based on bigram overlap between a system output and a reference. In our case, the “system output” is the (concatenated) string of sentences from the generated summary, while the “reference” is the `highlights` column from the news data set. The ROUGE-2 score is the F1-score computed from the **number of overlapping bigrams** compared against the **total number of bigrams** in the system output and the reference.\n", + "\n", + "You will need to tokenize the inputs in order to compute the bigram overlap. The caveat here is that different tokenizers may result in different ROUGE scores. For the purpose of this problem, you should use spaCy to tokenize your input. If in doubt, you can refer to [the spaCy 101 documentation on tokenization](https://spacy.io/usage/spacy-101#annotations-token).\n" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "fe0f46630814a3524ffc1c2c625980ef", + "grade": false, + "grade_id": "cell-63aabda8fa7143e9", + "locked": false, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "def rouge_2(system, reference):\n", + " \"\"\"Compute the ROUGE-2 score between a system output and a reference.\n", + " \n", + " Arguments:\n", + " system (str): The system output, as a single string.\n", + " reference (str): The reference to compare against, as a single string.\n", + "\n", + " Returns:\n", + " The F1-score of the ROUGE-2 metric between system output and reference.\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "#### 🤞 Test your code\n", + "\n", + "The following cell tests your implementation of ROUGE-2 with some toy examples:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "687c6101ff610313025a2fc19c1116eb", + "grade": true, + "grade_id": "cell-daf48c74916dfc78", + "locked": true, + "points": 1, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "assert rouge_2(\"System output.\", \"Reference summary.\") == 0.0, \"Two strings without any bigram overlap should return a score of zero\"\n", + "assert rouge_2(\"Two identical strings.\", \"Two identical strings.\") == 1.0, \"Two identical strings should return a score of one\"\n", + "assert rouge_2(\"This is my summary.\", \"This is the summary.\") == 0.5, \"In this example, when using spaCy’s tokenization, exactly half of the bigrams overlap, so the ROUGE-2 score should be 0.5\"\n", + "success()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### Task 3.2: Baselines for extractive summarization\n", + "\n", + "Now that you have an implementation of an evaluation metric, you can use it to evaluate the extractive summaries on the small set of news articles in `short_news_df`.\n", + "\n", + "After running the following cell:\n", + "- `extractive` should contain the extractive summaries for all articles in `short_news_df`, one summary per article, with **two sentences per summary**.\n", + "- `extractive_rouge_2` should contain the average ROUGE-2 score for the extractive summaries, when evaluated against the \"highlights\" column in `short_news_df`." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "e139b9bda8f52f780d0cbeaee67d9ad9", + "grade": true, + "grade_id": "cell-5a61bde18eb3cd8f", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "extractive = [] # Summaries of all articles in `short_news_df`\n", + "extractive_rouge_2 = ... # Average ROUGE-2 score\n", + "# YOUR CODE HERE\n", + "raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "We cannot say much about the ROUGE-2 score unless we compare it against a **baseline**. A simple baseline for text summarization is to just take the first $n$ sentences from the article. In the following cell, you should compute the ROUGE-2 score of this baseline, i.e., taking the **first two sentences** of the article as your “summary”." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "dc7d7ccd44592a5381d72bc7ea934a2b", + "grade": true, + "grade_id": "cell-5820bf4cd617611b", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "baseline_rouge_2 = ... # Average ROUGE-2 score of baseline\n", + "# YOUR CODE HERE\n", + "raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "#### 🤞 Test your code\n", + "\n", + "The following cell prints both ROUGE-2 scores:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "f5b2a5f20dbfd69e4e9e99904d7fa8d9", + "grade": false, + "grade_id": "cell-e0ac74d7536d6e70", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "print(f\"ROUGE-2 (baseline) : {baseline_rouge_2:.4f}\")\n", + "print(f\"ROUGE-2 (extractive): {extractive_rouge_2:.4f}\")" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 4: Prompting an instruction-tuned LLM\n", + "\n", + "In order to perform _abstractive_ summarization, we will turn to an open-source, instruction-fine-tuned large language model (LLM). Concretely, we will use a quantized version of a [Llama 3.2](https://ai.meta.com/blog/llama-3-2-connect-2024-vision-edge-mobile-devices/) model, released in September 2024, that we load via the [llama-cpp-python](https://github.com/abetlen/llama-cpp-python) library. _Quantization_ is a technique to distill a model down to a smaller size, allowing it to run faster and on smaller hardware, while sacrificing some of its performance.\n", + "\n", + "The model is loaded in the following cell. Please note:\n", + "\n", + "- **If you are running this on the LiU computers,** the following cell will use the model file that we already downloaded to the shared course folder.\n", + "- **If you are running this on your own computer,** the following cell will automatically download the model from Huggingface the first time you run it, which **requires approx. 2 GB of disk space!**" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "import os\n", + "from llama_cpp import Llama\n", + "\n", + "# Path to the model on the LiU computers\n", + "model_path = \"/courses/TDDE16/models/Llama-3.2-3B-Instruct-Q4_K_M.gguf\"\n", + "\n", + "if os.path.exists(model_path):\n", + " # Running on the LiU computers\n", + " llm = Llama(model_path, verbose=False)\n", + "else:\n", + " # *NOT* running on the LiU computers\n", + " llm = Llama.from_pretrained(\n", + " repo_id=\"bartowski/Llama-3.2-3B-Instruct-GGUF\",\n", + " \tfilename=\"Llama-3.2-3B-Instruct-Q4_K_M.gguf\", # 2GB\n", + " verbose=False,\n", + " )\n", + "\n", + "print(f\"Using model: {llm.metadata.get('general.name')}\")\n", + "print(f\"Stored at: {llm.model_path}\")" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Generating text with this model is simple — we can just call the `llm` object directly. Note that we don’t have to (and in fact _shouldn’t_) perform any preprocessing on the text input, as this is all done within the model." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "llm(\"What is the capital of Sweden?\", max_tokens=64)" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "**Run the cell above multiple times** and see how the output changes!\n", + "\n", + "You should notice two things:\n", + "1. The call to `llm()` returns more than just the generated text; the generated output is wrapped in a bunch of metadata about the model and the generation.\n", + "2. The generated text contains more than just the answer to our question, adding more or less relevant (or sensible) output after the answer itself. _(If you haven’t observed that, run the generation a few more times!)_" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Let’s look at the second issue first. Instruction-tuned models like Llama are fine-tuned with a specific _chat_ or _prompt template_ that structures the input in a pre-defined way. For Llama models, this template might look approximately like this:\n", + "\n", + "```\n", + "<|start_header_id|>system<|end_header_id|>\n", + "Answer the user query as accurately as possible.<|eot_id|>\n", + "<|start_header_id|>user<|end_header_id|>\n", + "What is the capital of Sweden?<|eot_id|>\n", + "```\n", + "\n", + "There are different, clearly separated parts in the template, corresponding to different _roles_ of the respective input:\n", + "\n", + "- The **system** role contains global instructions for the LLM (e.g. how to behave, or meta information such as its knowledge cutoff date).\n", + "- The **user** role contains instructions from the user.\n", + "- The **input** role (not shown above) contains additional _input data_ that the LLM can refer to when processing the user query." + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "The llama-cpp-python library provides a function for automatically applying the correct template for the loaded model; it takes a list of _messages_, which are text strings with their corresponding roles. Here’s an example of how to call it:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "llm.create_chat_completion(\n", + "\tmessages=[\n", + "\t\t{\n", + "\t\t\t\"role\": \"user\",\n", + "\t\t\t\"content\": \"What is the capital of Sweden?\"\n", + "\t\t},\n", + "\t],\n", + " max_tokens=64,\n", + ")" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "Hopefully, the output now only contains the answer to the question, and no further chatter! You should also see that, in contrast to simply calling `llm()`, using the prompt template makes the model response appear in a message with the **assistant** role." + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### Task 4.1: Understanding prompt templates\n", + "\n", + "Your task now is to test the behaviour of prompt templates (and your understanding of them) with the following exercise:\n", + "\n", + "**Write a function that returns the capital of a country by prompting the LLM.** In particular, your function should:\n", + "\n", + "- use the \"system\" message to make the LLM return only the desired answer, rather than a full sentence (i.e., not _\"The capital of Sweden is Stockholm.\"_ but just _\"Stockholm\"_)\n", + "- use the \"input\" message to supply the name of the country\n", + "- return only a text string with the generated answer" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": true, + "nbgrader": { + "cell_type": "code", + "checksum": "87e754cae5a15c3db10aa155af2f9409", + "grade": true, + "grade_id": "cell-e5c606393991af24", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + }, + "slideshow": { + "slide_type": "" + }, + "tags": [] + }, + "outputs": [], + "source": [ + "def get_capital_of(country):\n", + " \"\"\"Prompt an LLM for the capital of a country.\n", + " \n", + " Arguments:\n", + " country (str): The name of the country.\n", + "\n", + " Returns:\n", + " A text string containing the LLM’s response.\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "#### 🤞 Test your code\n", + "\n", + "The following cell should return only “Stockholm”:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "06677ad9f6289e7cd7a55149f2574210", + "grade": false, + "grade_id": "cell-8689c414b0d9329b", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "get_capital_of(\"Sweden\")" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "If your code works with the input “Sweden”, **re-run the function with different inputs** to see what happens. Does the LLM return the correct answer even for lesser-known countries? What happens if you give it input that’s not an actual country?" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "# Example — try out your own inputs!\n", + "get_capital_of(\"Iceland\")" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Problem 5: Abstractive summarization\n", + "\n", + "We now have everything we need to perform abstractive summarization, by prompting our LLM to generate a summary based on the input text." + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### Task 5.1: Prompting for summaries\n", + "\n", + "In the same vein as in Task 4.1, **write a function that returns a summary of the input text** by prompting the LLM. Note the following:\n", + "\n", + "- Since we could specify the desired number of sentences for the extractive summaries (in Task 2.2), we want to have the same functionality here, so construct your messages in a way that request the given number of sentences from the LLM. (Note that this is not an absolute guarantee that the LLM will always follow this instruction, but it should do so in most cases.)\n", + "- As before, construct your messages in such a way that the returned response will only contain the requested summary, without any further text (such as “Sure, here is a summary...”)." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "cebbe4eb890fa6725a6fd20fac0a7747", + "grade": true, + "grade_id": "cell-e0a6ad3731e55108", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "def llm_summarize(text, n=3):\n", + " \"\"\"Produce an abtractive summary for a given text.\n", + " \n", + " Arguments:\n", + " text (str): The text to summarize.\n", + " n (int): The number of sentences to extract for the summary.\n", + "\n", + " Returns:\n", + " A text string containing the abstractive summary produced by the LLM.\n", + " \"\"\"\n", + " # YOUR CODE HERE\n", + " raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "#### 🤞 Test your code\n", + "\n", + "The following cell should produce a summary for one of the news articles:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "news = short_news_df.iloc[4]\n", + "summary = llm_summarize(news[\"article\"], n=3)\n", + "\n", + "# Show the article, highlights, and extracted summary in a table\n", + "pd.DataFrame({\n", + " \"article\": [news[\"article\"]],\n", + " \"highlights\": [news[\"highlights\"]],\n", + " \"summary\": [summary]\n", + "})" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "### Task 5.2: Generate all summaries & evaluate\n", + "\n", + "The only thing left to do is to generate summaries for all the articles in our (tiny) dataset, compute their ROUGE-2 scores against the \"highlights\" column, and compare the results against both the baseline and the extractive summaries.\n", + "\n", + "After running the following cell:\n", + "- `abstractive` should contain the abstractive summaries for all articles in `short_news_df`, one summary per article.\n", + " - **Important:** Since we used two sentences for the extractive summarization & baselines, we should also prompt for **two-sentence summaries** here.\n", + "- `abstractive_rouge_2` should contain the average ROUGE-2 score for the abstractive summaries, when evaluated against the \"highlights\" column.\n", + "\n", + "**_Note:_** This cell should take the longest time to run out of all exercises in this notebook; in our testing, it took around 3–5 minutes on the lab computers. You may want to [use a progress bar](https://rich.readthedocs.io/en/stable/progress.html) or print an update in each loop iteration to get an idea of how many articles have already been processed." + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "fa3d8805573d45e7d43c5c78aeedeed0", + "grade": true, + "grade_id": "cell-9960c7a1f1c1d578", + "locked": false, + "points": 1, + "schema_version": 3, + "solution": true, + "task": false + } + }, + "outputs": [], + "source": [ + "%%time\n", + "\n", + "abstractive = [] # Summaries of all articles in `short_news_df`\n", + "abstractive_rouge_2 = ... # Average ROUGE-2 score\n", + "# YOUR CODE HERE\n", + "raise NotImplementedError()" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "#### 🤞 Test your code\n", + "\n", + "The following cell prints all ROUGE-2 scores, and the cell after that displays a table with the highlights and generated summaries, side-by-side:" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": { + "deletable": false, + "editable": false, + "nbgrader": { + "cell_type": "code", + "checksum": "03d19a87db7a42466c7a2f3d8469db72", + "grade": false, + "grade_id": "cell-5913076d05206107", + "locked": true, + "schema_version": 3, + "solution": false, + "task": false + } + }, + "outputs": [], + "source": [ + "print(f\"ROUGE-2 (baseline) : {baseline_rouge_2:.4f}\")\n", + "print(f\"ROUGE-2 (extractive) : {extractive_rouge_2:.4f}\")\n", + "print(f\"ROUGE-2 (abstractive): {abstractive_rouge_2:.4f}\")" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "metadata": {}, + "outputs": [], + "source": [ + "pd.set_option('display.max_colwidth', None)\n", + "pd.DataFrame({\n", + " \"highlights\": short_news_df.loc[:, \"highlights\"],\n", + " \"extractive\": extractive,\n", + " \"abstractive\": abstractive\n", + "})" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "As before, the summaries (and therefore the ROUGE scores) will most likely be different if you run the same prompt again, so we encourage you to run it at least twice before you write up your reflection!" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "## Individual reflection\n", + "\n", + "<div class=\"alert alert-info\">\n", + " <strong>After you have solved the lab,</strong> write a <em>brief</em> reflection (max. one A4 page) on the question(s) below. Remember:\n", + " <ul>\n", + " <li>You are encouraged to discuss this part with your lab partner, but you should each write up your reflection <strong>individually</strong>.</li>\n", + " <li><strong>Do not put your answers in the notebook</strong>; upload them in the separate submission opportunity for the reflections on Lisam.</li>\n", + " </ul>\n", + "</div>" + ] + }, + { + "cell_type": "markdown", + "metadata": {}, + "source": [ + "1. In Problem 1, you visualised sentence embeddings with the help of t-SNE. How do you interpret the results you got? Were there any patterns, and/or did the parameters of t-SNE make a difference?\n", + "2. Pick one example from the final evaluation in Task 5.2 and discuss what qualitative differences you see between the extractive and abstractive summaries. Do the ROUGE-2 scores you got agree with your own judgment on how “good” the summaries are? What conclusion do you draw from this experiment?" + ] + }, + { + "cell_type": "markdown", + "id": "125ccdbd-4375-4d2f-8b1d-f47097ef2e84", + "metadata": {}, + "source": [ + "**Congratulations on finishing this lab! 👍**\n", + "\n", + "<div class=\"alert alert-info\">\n", + " \n", + "➡️ Before you submit, **make sure the notebook can be run from start to finish** without errors. For this, _restart the kernel_ and _run all cells_ from top to bottom. In Jupyter Notebook version 7 or higher, you can do this via \"Run$\\rightarrow$Restart Kernel and Run All Cells...\" in the menu (or the \"⏩\" button in the toolbar).\n", + "\n", + "</div>" + ] + }, + { + "cell_type": "code", + "execution_count": null, + "id": "f3ad192d-7557-4cd9-9ead-6699b8de9114", + "metadata": {}, + "outputs": [], + "source": [] + } + ], + "metadata": { + "kernelspec": { + "display_name": "Python 3 (ipykernel)", + "language": "python", + "name": "python3" + }, + "language_info": { + "codemirror_mode": { + "name": "ipython", + "version": 3 + }, + "file_extension": ".py", + "mimetype": "text/x-python", + "name": "python", + "nbconvert_exporter": "python", + "pygments_lexer": "ipython3", + "version": "3.12.7" + } + }, + "nbformat": 4, + "nbformat_minor": 4 +} diff --git a/l5/cnn_dailymail_3.0.0_shorts.json.bz2 b/l5/cnn_dailymail_3.0.0_shorts.json.bz2 new file mode 100644 index 0000000000000000000000000000000000000000..95fd4bbfbfacac783256c1a3f2500cc9eb0dedf3 Binary files /dev/null and b/l5/cnn_dailymail_3.0.0_shorts.json.bz2 differ diff --git a/l5/dbpedia_record_sample.json.bz2 b/l5/dbpedia_record_sample.json.bz2 new file mode 100644 index 0000000000000000000000000000000000000000..809c83a99103ff7c4d8433dc9415f6e475f9a841 Binary files /dev/null and b/l5/dbpedia_record_sample.json.bz2 differ