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State of the Union Address, 1976 - White House Staff Suggestions (2)
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State of the Union Address, 1976 - White House Staff Suggestions (2)
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The original documents are located in Box 31, folder "State of the Union Address, 1976 -
White House Staff Suggestions (2)" of the John Marsh Files at the Gerald R. Ford
Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
THE WHITE HOUSE
WASHINGTON
December 31, 1975
MEMORANDUM FOR THE PRESIDENT
FROM:
L. WILLIAM SEIDMAN hos
SUBJECT:
Discussion of Tax Policy in the State of the Union
Message
The Economic Policy Board Executive Committee has considered
three issues in connection with the treatment of tax policy
in your State of the Union Message: First, the structure of
additional tax reductions; Second, tax reform; Third, a broad-
ened stock ownership plan.
Additional Tax Reductions in 1976
In the wake of the recently enacted tax bill, you have public-
ly indicated that you will propose in the coming year a $10
billion increase in the annual level of tax reductions in addi-
tional tax cuts beyond the level of reductions embodied in the
six-month temporary tax reduction bill.
The EPB Executive Committee has considered alternative ways
of structuring such reductions and is unanimously agreed on
the following recommendation.
Recommendation: That you propose enactment of your $28 bil-
lion tax package originally proposed on October 6, 1975 ef-
fective July 1, 1976. The proposal provides for an increase
in the personal exemption and the standard deduction and re-
ductions in the tax rate. Withholding rates would be reduced
effective July 1, 1976 to the permanent rates required by the
October 6 package. Individual tax liabilities for the first
six months of 1976 would be recomputed, setting them at the
overall level provided by the Congress in the six-month tem-
porary reduction. Thus, the net effect would be that taxpayers
will be given a single tax rate for 1976 made up of an average
of the lower rates effective during the first half of the year
and your proposed deeper tax cuts effective during the second
half of the year. The package also includes a permanent re-
duction in the corporate income tax rate from 48 percent to
46 percent effective July 1, 1976. There will be, under this
proposal, no overall revenue effect from these changes that
is not already reflected in the current estimates in your bud-
Digitized from Box 31 of The John Marsh Files at the Gerald R. Ford Presidential Library
2
get.
Approve
Disapprove
Tax Reform
During the second session of the 94th Congress the Senate Fi-
nance Committee will take up the tax reform package completed
by the House Ways and Means Committee during the first session.
The tax reform package includes LAL, MTI, and other proposals
which are similar to the basic thrust of the Administration's
1973 tax reform proposals that you have endorsed.
The EPB Executive Committee unanimously feels that the Treas-
-ury should continue to work with the Congress in securing
passage of this tax reform legislation in a form as consis-
tent with the Administration's proposals as possible.
In addition, the issue of basic tax reform to provide greater
simplicity and equity in our tax system has received increas-
ing attention in recent months. Many taxpayers consider the
present set of complicated deductions and exclusions both a
burden in computing their own tax liabilities and a means for
some taxpayers to escape paying their fair share of government
taxes.
The Treasury has publicly supported basic tax reform and
estimates that at least a full year is necessary to refine a
comprehensive proposal for specific revisions in the tax struc-
ture. There is concern that some proponents of basic tax re-
form will attempt to use the exercise as an occasion to also
seek further redistribution of income, a thrust which the EPB
Executive Committee unanimously feels should be resisted.
There is general consensus that a comprehensive study of basic
tax reform is appropriate in view of the increasingly complex-
ity of the tax system in recent years.
Recommendation: The EPB Executive Committee recommends that
you announce your intention, in the State of the Union or an-
other appropriate message, to direct a study to develop pro-
posals for fundamental tax reform with three objectives: (1)
Reducing the complexity of the present tax system; (2) making
the present tax system more horizontally equitable to address
the apparent inequity of taxpayers with the same income paying
different amounts of tax; and (3) seeking modifications in the
tax system to encourage job creation.
Approve
Disapprove
3
If you approve undertaking the study two issues require your
decision.
Issue #1: Should a study of basic tax reform be undertaken
by the Treasury or by a non-partisan Presidential
Commission?
Option A: Direct the Secretary of the Treasury to undertake
the study of basic tax reform. The Secretary of
the Treasury would appoint a Commission composed
of non-government experts to advise the Treasury
in this effort.
Advantages:
The study will more likely be perceived as a signi-
ficant Administration effort.
The study could be completed more quickly and could
probably be finalized by January 1977.
Option B: Appoint a non-partisan Presidential Commission to
undertake the study.
Criticism of the project might be deflected from
the Administration if the study were by a non-
partisan Commission.
The Treasury would not be pressured to make pre-
mature disclosure of its work.
Decision
Option A
Direct the Secretary of the Treasury to under-
take the study of basic tax reform.
Option B
Appoint a non-partisan Presidential Commission
to undertake the study of basic tax reform.
4
Issue #2: When should a study of basic tax reform be announced?
Option A: Announce the basic tax reform project in your State
of the Union Message
Advantages:
The project is significant and hopefully will be
favorably received.
Including it in the State of the Union would give
it proper emphasis.
Option B: Announce the basic tax reform project in a message
following the State of the Union.
Advantages:
If the Treasury is directed to undertake the study,
inclusion in the State of the Union would make the
project "public" before the Treasury has proceeded
very far in developing specific plans. Accordingly,
pressures for premature disclosure and premature
questions of you and others might hinder proper
development of the project.
Decision
Option A
Announce the basic tax reform project in
your State of the Union Message.
Option B
Announce the basic tax reform project in a
message following the State of the Union.
5
Broadened Stock Ownership Plan
The Executive Committee has reviewed a range of employee and
broadened stock ownership plans in recent weeks: A strong
likelihood exists that Senator Long will continue to success-
fully push his employee stock ownership plan (ESOP) in the
Senate. There is general agreement that if a stock ownership
plan is to be enacted that a plan more broadly-based than the
Long approach is desireable.
The Executive Committee recommends that you propose a Broadened
Stock Ownership Plan to encourage savings and investment in
equity issues. In brief, the plan would permit participation
in employer-sponsored plans for purchase of company stock or
in private plans where the employee could select his own port-
folio or participate in a mutual fund arrangement. Employees
not covered by employer plans could establish their own BSOP.
The tax incentive would take the form of an exclusion from in-
come for amounts contributed to the plan. The plan would be
restricted to individuals in the middle and lower income ranges.
A table showing alternative income range limits and estimated
revenue effects is attached. The funds could be withdrawn
from the plan without penalty after a seven year period.
Advantages of a Broadened Stock Ownership Plan
A broadened stock ownership plan has several advantages:
The plan has broad coverage and would be available to
government employees, service personnel, and employees
of small businesses as well as to employees of large
corporations with established stock purchase programs.
The earned income limitation focuses the benefits on
low and middle income families.
The withdrawl penalty provision should tend to stabilize
savings and provide support for the equity market.
Disadvantages of a Broadened Stock Ownership Plan
A broadened stock ownership plan has several disadvantages:
The plan lacks neutrality in that it favors equity ownership
as opposed to other forms of savings such as savings ac-
counts or insurance.
6
There is a valid question as to whether this vehicle
would achieve its objectives of encouraging stock owner-
ship, increasing aggregate savings, and increasing iden-
tification with the free enterprise system.
Entails revenue losses estimated by the Treasury at be-
tween $360 million and $1.5 billion depending on the
parameters of the program.
Recommendation: That you propose a Broadened Stock Ownership
Plan to encourage savings and investment in
equity issues.
Approve
Disapprove
TOHN
CERRED
BROADENED STOCK OWNERSHIP PLAN ALTERNATIVES
A
B
C
Maximum annual amount
eligible for exclusion
$1,500
$1,500
$2,500
from taxable income
Maximum income eligible
to participate in the
$25,000
$25,000
$50,000
plan
Range of phase-out
$10-25,000
$20-25,000
$25-50,000
Restriction on withdrawl
7 years
7 years
7 years
without a penalty
Estimated number of par-
ticipants
2.1 million 2.4 million 2.5 million
Estimated revenue cost
$360 million $500-600
$1.5 billion
million
THE WHITE HOUSE
WASHINGTON
December 31, 1975
MEMORANDUM FOR THE PRESIDENT
FROM:
L. WILLIAM SEIDMAN
has
SUBJECT:
Discussion of Unemployment in the State of
the Union Message
The Economic Policy Board Executive Committee has discussed
at length the approach and substance of your discussion of
unemployment in the State of the Union Message. This memor-
andum outlines the current unemployment forecast, describes
the current programs in place to alleviate and reduce unem-
ployment, and suggests alternative approaches and possible
initiatives for the State of the Union Message.
The economic forecast, which you approved, that will be pub-
lished in the Budget projects the following calendar year
average unemployment rates:
1975
8.5 percent
1976
7.7 percent
1977
6.9 percent
1978
6.4 percent
1979
5.8 percent
1980
5.2 percent
Since the 1930's the Federal Government has established and
maintained a number of programs, referred to by economists
as automatic stabilizers, to cushion the impact of unemploy-
ment on those laid off their jobs and to stimulate economic
activity during a recession.
A large number of programs currently exist to provide job
training and employment. A detailed list and a description
of such manpower programs, prepared by OMB, is attached at
Tab A.
Moreover, in the wake of the economic downturn during the
fourth quarter of 1974 you successfully proposed several
new initiatives including a tax reduction, expanded public
2
service employment programs, broadening the eligibility for
unemployment insurance payments, lengthening the number of
weeks of unemployment insurance compensation, and releasing
additional highway trust funds.
There are some encouraging indicators on the unemployment
front. 1.4 million more people were at work in November
than were employed last March and almost a full point has
been shaved from the peak unemployment rate.
The general approach of the Administration to date has been
to focus its outlays through existing, tried and tested pro-
grams coupled with tax reductions to stimulate economic ac-
tivity and create jobs in the private sector. This approach
is much less visible than an approach involving outlays for
entirely new programs or for large public works efforts.
The Administration's relatively less visible approach than
many of the programs suggested by Democrats in the Congress
to deal with unemployment has contributed to a public per-
ception that the Administration is less concerned than the
Democratic Congress about unemployment. There is general con-
sensus within the Economic Policy Board that, at a minimum,
we should attempt to change this perception through a syste-
matic and concerted effort to more fully explain the Admin-
istration's program to the public.
There is also general agreement that unemployment remains a
difficult problem for public policy and that it is essential
that the subject of unemployment be addressed in the State
of the Union Message.
Issue #1: What should be the general approach in discussing
unemployment in the State of the Union Message?
Option A: Reaffirm your commitment to reducing unemployment
through existing programs. Announce increases in
funding levels for unemployment-related programs
in your 1977 Budget (i.e. CETA) Outline your
proposal for additional tax cuts of $10 billion
in FY 1977 to help sustain the recovery. Indicate
that a long-term solution to our unemployment
problem requires adequate capital formation and
urge Congress to respond to your capital formation
proposals.
3
This approach is consistent with utilizing existing programs
with primary reliance on individual and corporate tax reduc-
tions to stimulate private sector economic activity. It may
prompt Democratic criticism that the Administration has fail-
ed to propose imaginative solutions to the unemployment prob-
lem.
Option B: Supplement Option A by proposing in addition one
or more new initiatives specifically designed to
reduce unemployment. (Several potential initia-
tives are outlined below.)
This approach makes more visible the Administration's effort to
reduce unemployment and helps to alleviate the perception that
the Administration is less concerned about unemployment than the
Democratic Congress.
Issue #2: What, if any, additional unemployment initiatives
should be proposed in the State of the Union Mes-
sage?
Option A: Propose tax incentives (accelerated depreciation)
for construction of plants and equipment in areas
of high unemployment.
This proposal would allow rapid depreciation (5 years for equip-
ment and 10 years for facilities) for companies who begin con-
struction on projects after July 1, 1976 but before July 1, 1977,
complete them within 36 months, and increase total company em-
ployment. An unemployment trigger level would establish area
criteria to qualify for this incentive.
The objectives of the proposal include stimulating construc-
tion and capital formation, providing employment opportunities
in the most severely impacted areas, and revitalizing industry
in urban areas.
Pro:
Designed to both stimulate capital formation and
reduce unemployment in the hard-hit construction
industry.
Has minimal risk cost impact. If the program fails
to attract additional investment it does not entail
revenue losses. If the program succeeds in attract-
ing additional investment it generates increased
taxes and reduced unemployment compensation outlays.
4
Does not require a new administrative structure to
administer.
Con:
Reduces economic efficiency through distortion of
the allocation of economic resources.
May be considered as a pro-business approach to re-
ducing unemployment.
Perpetuates use of the tax system to accomplish
social goals and increases the complexity of the
tax laws.
Revenue Cost Estimate:
1977
$400 million
1978
$1.0 billion
1979
$1.4 billion
Option B: Propose tax incentives (accelerated depreciation)
for the construction of industrial environmental
control and safety equipment and facilities.
This proposal would allow rapid depreciation for such facili-
ties which are started between July 1, 1976 and July 1, 1977
and which are scheduled for completion within a 36 month per-
iod. The proposal would include a special automobile indus-
try provision permitting tooling for auto emissions equipment
to be expensed (declared as a current cost).
The objective of the proposal is to accelerate construction
of EPA and OSHA mandated facilities, particularly in basic
processing industries, and to improve cash flow to stimulate
capital formation and investment.
Pro:
Designed to both stimulate capital formation and
reduce unemployment in the hard-hit construction
industry.
Accelerates progress toward improving environmen-
tal control and worker health and safety condi-
tions.
5
Con:
Provides tax benefit for projects which would have
been undertaken anyway without fulfilling the cen-
tral objective of generating new construction.
May be perceived as an oblique approach to the
task of reducing unemployment.
May be considered as a pro-business approach.
O
Increases the complexity of the tax laws.
Revenue Cost Estimate:
1977
$1.2 billion
1978
$1.2 billion
1979
$1.2 billion
Option C: Propose an employment tax credit of $200 per employee
per month for all employers who make additions to
their labor force above a base level of average
employment in 1975.
As an alternative a percentage, e.g. 25 percent of base pay, in
lieu of a flat dollar credit could be allowed as a tax credit.
Although more complicated from an accounting standpoint, a
percentage credit would remove any bias toward hiring lower
paid personnel.
Pro:
Involves no additional budget outlays.
Does not require a new administrative structure to
administer.
Focuses attention on stimulating employment in the
private sector.
Con:
Entails extremely high revenue costs. Even with a
baseline to calculate additional employees, the ef-
fect would be to provide a windfall benefit to em-
6
ployers for workers who would be rehired as a re-
sult of normal recovery from the recession. This
approach is highly inefficient in achieving its
objective since it is impossible to isolate the
additional workers who would be hired as a result
of the tax credit at the margin.
O
Would create severe inequities within industries.
Firms that have dismissed a large number of em-
ployees who rehire them would benefit dispropor-
tionately. The program could result in most the
least efficient firms who have been forced to lay
off a relatively higher percentage of their work
force.
Revenue Cost Estimate:
1977
$4.6 billion
1978
$8.6 billion
1979
$12.8 billion
This revenue estimate assumes a lowering of the unemployment
rate to 5 percent. The revenue cost has been netted after
deducting estimated increased tax receipts generated through
the additional economic activity. It does not reflect lower
unemployment insurance costs.
Option D: Propose additional funding for CETA, Title I to sup-
port expanded work opportunities for youth to engage
in a one-year Bicentennial Clean-Up America effort.
The objective of the program would be to provide added jobs for
unemployed youth through the existing CETA, Title I program.
(Current estimate for FY 1977, $1.6 billion providing the equi-
valent of 467,000 full year opportunities for 1,280,000 parti-
cipants.)
By focusing the additional funding on the work experience part
of the CETA Title I program (the equivalent of the old Neigh-
borhood Youth Corps Program) the cost per job could be held to
approximately $4,000 so that an additional 100,000 jobs would
cost roughly $400 million.
7
Pro:
Would provide a visible attack on an acknowledged
problem -- high teenage unemployment.
The thrust of the program as a bicentennial Clean-
Up America effort would make it easier to keep the
program temporary and terminate it at the end of
one year.
Con:
Impacts budget outlays rather than revenues as do
the other unemployment initiatives and thus would
require budget reductions elsewhere to maintain
a $395 billion spending limit in FY 1977.
It is doubtful that we could avoid the incremental
funding addition to the CETA "base" in future years.
Budget Cost:
1977
$500 million
Option E: Propose an employment tax credit effectively reduc-
ing the minimum wage to an employer to encourage
hiring of workers between the ages of 18 and 22.
This proposal would provide an employment tax credit of $1.00
per hour worked for new employees between the ages of 18 and
22 added to the work force during 1976 and 1977 who are hired
at the minimum wage.
Pro:
Would encourage hiring of young workers, an age
classification with a relatively high unemployment
rate.
Is a relatively efficient means of targeting unem-
ployment assistance.
Utilizes the tax system and thus does not entail
expenditure outlays.
Con:
Would likely be opposed by organized labor.
Would misallocate resources by encouraging labor-
'8
intensity.
Revenue Cost Estimate:
1977
$500 million
1978
$500 million
1979
$500 million
Decisions
Issue #1:
What should be the general approach in discussing
unemployment in the State of the Union Message?
Option A
Reaffirm your commitment to reducing unem-
ployment through existing programs.
Option B
Supplement Option A by proposing in addition
one or more new initiatives specifically
designed to reduce unemployment.
Issue #2:
What additional unemployment initiatives, if any,
should be proposed in the State of the Union Mes-
sage?
Option A
Propose tax incentives (accelerated deprecia-
tion) for construction of plants and equip-
ment in areas of high unemployment.
Option B
Propose tax incentives (accelerated deprecia-
tion) for the construction of industrial en-
vironmental control and safety equipment and
facilities.
Option C
Propose an employment tax credit of $200 per
employee per month for all employers who
make additions to their labor force above
a base level of average employment in 1975.
9
Option D
Propose additional funding for CETA, Title I
to support expanded work opportunities for
youth to engage in a one-year Bicentennial
Clean-Up America effort.
Option E
Propose an employment tax credit effectively
reducing the minimum wage to an employer to
encourage hiring of workers between the ages
of 18 and 22.
JAN 9 1976
THE WHITE HOUSE
WASHINGTON
January 8, 1976 of
Jack -
Re the State of the Union message and the President's
regulatory reform proposal, I thought you might find at least
three paragraphs in Governor Carey's State of the State
message of interest.
I continue to feel it is important that the President
forcefully continue his regulatory reform thrust in the SOTU.
Attached are some papers which the Domestic Council
Review Group has prepared for the use of the drafters of
the Message.
Ed Schmults
Attachment
cc: Dave Gergen
LIBRARY GERALD ? FORD
THE WHITE HOUSE
WASHINGTON
MEMORANDUM FOR THE ECONOMIC POLICY BOARD
FROM:
ED SCHMULTS
PAUL MacAVOY
SUBJECT:
The State of the Union Address
This year the State of the Union Address is of even more
critical importance than in most previous years. It
represents the best opportunity for the President to
state in a clear and comprehensive way what he sees as
the goals for the United States through the end of this
decade. Coming in the bicentennial year, it presents a
magnificent occasion to draw some striking parallels
between the problems which faced America in 1776 and the
problems America faces today.
While parts of the Address must properly deal with
critical issues of national security and energy policy,
we believe that a major theme must be the pernicious
threat to individual opportunity and freedom posed
by the growth of massive and uncontrollable government.
Today the threat to individual liberty is much more
complex than it was in 1776. It is enhanced by a swollen
Federal bureaucracy controlled by organized interest
groups whose concerns are remote from those of the average
American.
The President has attacked the problem of massive govern-
ment in a variety of ways. First, he has established a
Federal spending ceiling of $395 billion. By proposing
a significant reduction tied to a spending ceiling,
President Ford has tried to assure that the proportion
of GNP spent by the Federal establishment will decrease
rather than increase over the next period of years.
FORD is LIBRARY 07V830
2
The President has also launched a major campaign to free
our economy from costly, inefficient, and outmoded
government regulation. He has submitted to the Congress
a comprehensive legislative program designed to produce a
competitive and efficient transportation system free from
unnecessary government regulation. He has also proposed
elimination of Federal rate regulation of natural gas in
order to stimulate extensive exploration for new gas supplies.
In the future he will be looking at other types of Federal
economic, as well as health and safety, regulation in order
to propose elimination of government activity which is
harmful to the national welfare.
Many newly elected officeholders such as Governors Brown
of California, Dukakis of Massachusetts, Boren of Oklahoma,
and former Governor Ronald Reagan have achieved significant
popularity by attacking the evils of bloated and inefficient
government. The President's record certainly exceeds the
rhetoric of these governors and he ought to take credit for
his performance in his State of the Union Address. He should
explain as well that the President cannot succeed in this
fight alone. Powerful and highly organized pressure groups
are already arrayed against him. These pressure groups
control large elements of the Executive Branch bureaucracy
as well as the relevant congressional committees who must
act if reform is to succeed.
While others talk during campaign '76, the President must
lead. He must also clearly identify the opposition and
attack it. Attached is some proposed draft language for
the President's Address. We would appreciate your views
on the tone and the direction of the Address.
FORD is 070839 LIBRARY
Governmental Reform Theme
for the
State of the Union Address
Some years ago President Eisenhower eloquently warned
Americans of the potential dangers inherent in the
growth of the military industrial complex. Today I
would warn of a different and more significant threat--
the degree to which government has come to interfere in
our lives and reduce our individual freedom. Just as
in the troubled times of our Nation's birth, our
freedom is again being actively and seriously threatened.
Today, however, the threat to individual liberty is much
more complex than it was in 1776. It is being endangered
by a swollen Federal government whose concerns are often
remote from those of the average American. For the
last year and a half, my Administration has been working
to wage a new revolution against the tyranny of an
entrenched and distant bureaucracy.
Starting even before 1776, the American way was to rely
on individual initiative and freedom as a way of providing
for our economic needs. Over the last several decades,
however, we have departed from this trust in individual
initiative and consumer choice. For good reasons and bad,
we have expanded government's role and the scope and
detail of government controls. We have created a
2
governmental system which is more and more rigid and less
able to respond to changing conditions. In an increasingly
complex society, government's role should be to assist
in the search for solutions to our problems. But
government as we now know it has gone too far. Useless
government activities have expanded geometrically at all
levels. The privacy of individuals and organizations is
invaded by a host of new government inquisitions and
questionnaires. Incursions on our civil liberties by
excessive government snooping have reached an all-time
high. Our economy staggers under a variety of senseless
and outmoded rules and restraints imposed by government.
This government expansionism began in the Depression era.
In those crisis times, we as a people lost faith in the
individual--turning instead to "Uncle Sam" to provide
the answers. As a result, vast impersonal bureaucracies
were created to resolve a myriad of economic and social
problems. New government agencies were created to help
reduce unemployment. New laws helped stabilize
financial markets. New regulations helped protect
failing businesses. At the time, these were practical
solutions to very critical and immediate problems. Over
time, some of these programs disappeared as the need for
3
their existance waned. However, many others are still
on the books. But more important than these individual
policies and programs, this era produced a philosophy of
government activism which persists today.
In our compassion to solve urgent human problems, we have
designed over the years a governmental structure which
has undermined individual choice and initiative. The
creative and innovative talents of the American people--
long the hallmarks of our free society--have been ensnarled
in a web of government programs and controls which no
longer achieve their intended social and economic goals.
We have set up complex and highly administered systems
designed not merely to complement or supplement individual
choice and initiative but to supplant it.
Government is omnipresent--regulating, subsidizing, allo-
cating. It is highly susceptible to manipulation by
highly organized interest groups seeking to use govern-
ment for their own ends. In order to stop the growth
of government by special interest, individual citizens must
understand their system of government, and must know its
costs as well as its benefits.
4
The time has come for all of us to insist on the develop-
ment of a responsible system of government to ensure that
decisions are made in the public interest. But fundamental
change is a slow and difficult process. Once certain groups
learn how to manipulate the system and benefit from it, they
will resist
any attempts at reform. Their cries vehemently resist
any change, drowning the protest of individual Americans
whose taxes pay for those benefits. Benefits that would
result from reform of this system are so diffused through
the population that it is hard for any identifiable group
to achieve needed reforms. All too often individual
taxpayers are generally aware of the problem but they
hope that their neighbor will make the effort to do
something about it.
Even the most visibly wasteful and inequitable public
programs survive as a result of a powerful allegiance
formed by the congressional committees that authorized
and fund a program or agency, the bureaucrat who
administers it, and the interest groups who are its
beneficiaries.
Considering the resources that are usually mobilized in
opposition to specific reforms, it is little wonder that
progress is so slow. The opposition forces are generally
5
small in number, extremely well organized, and able to
bring pressure
to bear on decisionmakers in a
forceful manner.
* * *
Faced with the challenge of bringing about
fundamental change, my Administration has established
a wide-ranging program to reduce the size of government
and its intervention in every aspect of our daily lives.
First, I have announced my intention to reduce the level
of Federal expenditures. Federal, State and local
spending in the past decade has raged largely out of
control. It was only 12 years ago that President Johnson
was engaged in a struggle to hold Federal spending below
the $100 billion level. Today, my Administration is
attempting to keep spending below $400 billion.
I have set in motion a fundamental examination and
reform of our system of government regulation. The basic
objective of this program is to eliminate
govern-
ment regulation which is anticompetitive, antisocial or
contrary to the public interest. The beneficiaries of
this program will be the economy and the society as a
whole. To accomplish this, I have already submitted a
number of legislative proposals.
6
In the energy field, I have proposed legislation to
deregulate the price of natural gas to provide incentive
for more abundant supplies.
I have also forwarded bills to the Congress seeking major
changes in the regulatory system governing our railroad,
airline and trucking industries. These bills will
promote greater competition in these industries, and
result in lower fares and a wider variety of services.
In the banking and financial fields, I have proposed
legislation to ensure that competitive interest rates
are paid to small depositors or investors and more
diversified services are provided to all customers.
Recently, I signed into law a bill which repeals State
Fair Trade laws so that consumers can take advantage of
discount pricing on "brand name" merchandise. The
cooperation between the Congress and the Administration
on this bill should serve as an example for all regulatory
reform legislation.
In addition, I have proposed legislation to sharpen the
legal tools and resources of the antitrust activities
of the Justice Department. This will serve to protect
the public from that small minority of the business
community that might attempt to profit from
deregulation by engaging in illegalbusiness practices
at the expense of the consumer.
7
I have also signed legislation that establishes a commission
to reduce the extraordinary burden of Federal paperwork.
Finally, I have directed the Executive Branch agencies
to conduct inflation impact analysis of major activities
and legislative proposals they support.
(OTHER EXAMPLES OF ADMINISTRATION ACTIONS
TO REDUCE GOVERNMENTe a., changes in
housing policy, Federal personnel reductions
etc.)
These measures constitute important first steps. They
represent some fundamental changes in the roles of
government and private enterprise. I intend to work
closely with the Congress to see that this legislation
is passed and I will continue to hold a public dialogue
on additional areas needing reform. I also intend to
develop reform proposals for other areas of government
regulation is inappropriate or excessive.
In many cases, there will be strong resistance to these
initiatives by special interests who argue that regulatory reform
is good
in other industries but that change in their industry
will be disruptive. We must overcome this reaction and
continue to advocate changes which will have a
positive impact on the Nation as a whole.
8
While i intend to exert every effort to modify anti-
competitive economic regulation, I also believe that we
must begin to review the vast apparatus of Federal
social regulations that has been set up in the last
two decades in pursuit of the purest of motives.
I intend, therefore, to review Federal safety and
health regulations in order to assess their effectiveness
in accomplishing their goals without imposing excessive
costs on consumers. It is my belief that there are often
more efficient, less expensive ways to accomplish these
objectives.
My Administration will make appropriate administrative
changes and propose new legislation to reduce the size
of the Federal government and the emphasis on enforcement
of mandatory standards.
9
*
Our overall goal must be the restoration of individual
choice and individual initiative as the guiding principles
of our Federal system.
We must reexamine our government to discover
why we have allowed our individual freedoms to
become
restricted. We must ask the fundamental
questions - Why have we permitted a remote Federal bureau-
cracy largely to determine not only what our social and
economic objectives will be but also
specific, detailed means by which thev will be achieved?
achieved. To what extent can we counter this trend
toward bureaucratic domination with increased competition,
more information to consumers and increased individual
participation in policy decisions?
We must also look more critically at the way we are
attempting to fulfill certain necessary and desirable
social gaols improved quality of the environment and
the health and safety of workers and consumers. It is
my belief that there are often more efficient, less
expensive ways of accomplishing these objectives. By
creating a new coalition of informed consumers,
10
responsible businessmen
public-minded Congressmen and
a concerned Administration, I believe we can reduce the
Nation's dependence upon ponderous, expensive, and often
ineffective government.
The State of the Union Address
Economic Regulation
Traditionally, this country has relied on individual
initiative and competition as the basis of our economic
system. Over the years, however, we have increasingly
come to rely on government to solve our economic and
social problems. The Federal Government has exploded
through adoption of programs promoted by organized
interest groups. The increased costs of these programs,
both direct and indirect, must be borne by the already
overburdened American taxpayer.
Government activities have expanded geometrically
at all levels. We have built a governmental structure
which has undermined individual choice and initiative.
The creative talents of American businessmen and consumers--
long the hallmarks of our free society--have become entangled
in a web of government programs and controls which no
longer achieve their intended purposes. In many areas,
outdated legislation gives government agencies the power
to make critical economic decisions affecting the lives
of all our citizens. Rather than supplementing competitive
markets, government regulators and bureaucratic decision-
makers have supplanted competition with controls.
My Administration has established a program to free
our economy from costly, inefficient, and outmoded govern-
ment policies and regulations. The beneficiaries of this
program will not be just business and the regulated
industries as some critics allege; the real beneficiaries
will be the consumers and taxpayers of this country who
will enjoy lower costs and better services as a result
of my program. I want to ensure that the greatest variety
of goods and services are available at the lowest possible
prices. To accomplish this, three legislative proposals
have been signed into law and I have submitted a number
of other proposals to the Congress:
Last June, I signed the Securities Act Amendments
which restored competition to the securities
markets after nearly two hundred years of fixed
fees.
2
I have also signed legislation that establishes
a commission to reduce the extraordinary burden
of Federal paperwork. Finally, I have directed
the Executive Branch agencies to conduct inflation
impact analysis of major activities and legislation
proposals they support.
Recently, I signed into law a bill which repeals
State Fair Trade laws SO that consumers could
benefit from discount pricing on "brand name"
merchandise. The cooperation between the Congress
and the Administration on this bill should serve
as an example for all regulatory reform legislation.
In transportation, the Omnibus Rail Bill signed
into law on
carries out the most
significant reform in rate setting by the rail-
road industry in fifty years. From now on,
competition will, in large part, govern freight
rates, and collusive rate fixing will not be
condoned by ICC regulation.
I have also forwarded bills to the Congress to
reform regulation governing the airline and truck-
ing industries. If enacted, these would promote
greater competition in these industries, resulting
in lower fares and a greater variety of service.
In the financial field, I have proposed legislation
to ensure that competitive interest rates are paid
to small depositors or investors and more diversi-
fied services are provided to all customers.
In the energy field, I have proposed legislation
to deregulate the price of natural gas to provide
incentive for more abundant supplies. The present
shortages of
percent of total demands
should be eliminated in five years, putting an
end to shortage-caused disruptions in production.
More than
jobs are in jeopardy because
of regulation-induced shortages of gas.
3
Concomitant with these substantive measures, I
proposed legislation to sharpen the legal tools
and resources of the antitrust activities of the
Justice Department. This will serve to protect
the public from that small minority of the business
community that might attempt to take advantage of
deregulation to engage in illegal business practices
at the expense of the consumer.
These measures constitute important first steps. They
represent a fundamental change in the relationship of
government and business. I intend to work closely with
the Congress to see that this legislation is passed and
I will continue to hold a public dialogue on additional
areas needing reform. I also intend to develop specific
proposals for other areas where government regulation is
inappropriate or excessive.
4:25 p.m.
THE WHITE HOUSE
WASHINGTON
January 9, 1976
Jack:
I spoke with Bob Hartmann
went through the
explanation behind the requested insertion of the
Agency Task Force Group on Indians in the SOTU.
Bob agrees completely. Have passed word of
prospective success to Ted. Latter very pleased.
RUSS
Note: Paul O'Neill has no objection to the above.
Have given language to Hartmann.
Russ
THE WHITE HOUSE
WASHINGTON
January 9, 1976
MEMORANDUM TO:
PAUL O'NEILL
JIM CAVANAUGH
FROM:
RUSS ROURKE
The attached is a proposed insert in the SOTU. It has been suggested
that the Interdepartmental Task Force referred to herein will cost
very little, and will be staffed principally with detailees.
We are quite anxious to get this proposed language to Bob Hartmann
early this afternoon in Williamsburg, and would, therefore, appreciate
a rapid response on your reaction.
Many thanks.
CC: JMarsh
GERALA FORD
It is my intent to establish an Interdepartmental Task Force to
work with Indian people during the Bicentennial year - to insure equity
for Indians in the specific areas of health, education, housing and
government -- as well as to attain economic and cultural security.
This Task Force will provide continuity and coordination by insuring
that the Federal departments handling Indian matters work together
in the implementation of the policy of self-determination.
In recognition of the essentiality of Indian participation, there will
be Indian members included in the Task Force. There will also be
an advisory body made up of members chosen by elements of the Indian
community in a manner determined by them.
Additionally, I am asking each Cabinet member to review his depart-
mental authority in order to insure that the First Americans receive
the benefits to which they are entitled under the law. I am also asking
Congress to insure action on legislation concerning Indians.
REVISION - 1/9/76
It is my intent to establish an Interdepartmental Task Force to
work with Indian people during the Bicentennial year - to insure equity
for Indians in the specific areas of health, education, housing and govern-
ment - as well as to attain economic and cultural security. This
Task Force will provide continuity and coordination by insuring that
the Federal departments handling Indian matters work together in the
implementation of the policy of self-determination.
In recognition of the essentiality of Indian participation, there will be
included increasing
Indian members of the Task Force. There will also be an advisory body
made up of members chosen by elements of the Indian community in
a manner determined by them.
seview
Additionally, I am asking each Cabinet member to reconsider his
Days
departmental authority in order to insure that the First Americans 1
receivity benefits to which they are entitled under law,
be last to receive benefits for which they are qualified and entitled under
action on legidation
I am also asking Congress to insure a bipartisan effort in considering
Indian related legislation.
concerning Indians
FORD : LIBRARY GERALD
December 31, 1975
INPUT FOR STATE OF THE UNION MESSAGE
Indian relationships to the United States Government are unique and
complex. They revolve around a responsibility for resources, funds and
personal well-being of what is now estimated as one million people of whom
five hundred thousand are on reservations. This is based on trust, treaty,
law, Presidential edict, responsibility, tradition and expectation. The
most significant recent commitment was to "self-determination without
termination." Minus the bareque, this means responsiveness to Indian
tribes which are willing and able to manage their own affairs in a given area.
Meeting the resultant Federal responsibilities is complicated by the
involvement of multiple Departments and Agencies, intra-departmental
priorities and the number and variety of Indian governments,
Also, it must be kept in mind that there are marked differences in
educational status, culture, resources, polities, economy, motivation
and readiness for self management as you move from one tribe to another.
One must also be conscious of the fact that we are dealing with a situation
which has been changing with increasing rapidity during the past ten years.
There have been important advances and there is strength and urge to grow,
but there is a marked lag behind national levels in many social and economic
aspects of life.
Finally, continuous land disputes and resource rights are being brought
to a head by the priorities of natural energy interests and sensitivities to
the traditional and legal rights of Indian people.
FORD & CTUBS LIBRARY
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- 2 -
Based on these factors, E 11 is my intent to establish an interdepart-
mental task force to work with Indian people during the Bicentennial year -
to insure equity for Indians in the specific areas of health, education,
housing and government - as well as to attain economic and cultural
security. This task force will provide continuity and coordination by
insuring that the Federal departments handling Indian matters work together
in the implementation of the policy of self-determination.
In recognition of the essentiality of Indian participation, there will be
Indian members of the tack force. There will also be an advisory body
made up of members chosen by elements of the Indian community in a
manner determined by them.
Additionally, I am asking each Cabinet member to reconsider his
the
departmental authority in order to insure that First Americans not be
last to receive benefits for which they are qualified and entitled under
law. I am also asking Congress to insure a bipartisen effort in considering
Indian related legislation.
In this spirit we can move toward the ultimate objective of self
F
sufficiency for all Indian people. As a first step, I ask Congress to again
consider passing a concurrent resolution which would repeal the termination
policy established by the 83rd Congress in House Concurrent Resolution 108.
Rues's Cextra copy
THE WHITE HOUSE
WASHINGTON
January 9, 1976
MEMORANDUM TO:
PAUL O'NEILL
JIM CAVANAUGH
FROM:
RUSS ROURKE Rui
The attached is a proposed insert in the SOTU. It has been suggested
that the Interdepartmental Task Force referred to herein will cost
very little, and will be staffed principally with detailees.
We are quite anxious to get this proposed language to Bob Hartmann
early this afternoon in Williamsburg, and would, therefore, appreciate
a rapid response on your reaction.
Many thanks.
cc: JMarsh
FORD & LIBRARY 071 35
revised again
It is my intent to establish an Interdepartmental Task Force to
work with our American Indians during the Bicentennial year - to
insure equity for Indians in the specific areas of health, education,
housing and government - - as well as to attain economic and cultural
security.
It is my intent to establish an Interdepartmental Task Force to
american Indians
work with Indian people during the Bicentennial year - to insure equity
for Indians in the specific areas of health, education, housing and
government -- as well as to attain economic and cultural security.
This Task Force will provide continuity and coordination by insuring
that the Federal departments handling Indian matters work together
in the implementation of the policy of self-determination.
In recognition of the essentiality of Indian participation, there will
be Indian members included in the Task Force. There will also be
an advisory body made up of members chosen by elements of the Indian
community in a manner determined by them.
Additionally, I am asking each Cabinet member to review his depart-
mental authority in order to insure that the First Americans eceive
the benefits to which they are entitled under the law. I am also asring
Congress to insure action on legislation concerning Indians.
FORD
REVISION - 1/9/76
DRAFT: M.D.
1/15/76 (SOTU - Intelligence)
Just as the preservation of the powers of the Presidency
is not a partisan issue, the preservation of an effective
United States foreign intelligence capability must transcend
party politics. As your President, I will do everything in
my Constitutional power to prevent the dismantling of our
intelligence capability, which is essential if we are to
preserve the security of the United States.
I have consistently pursued two fundamental goals in
dealing with foreign intelligence matters over the past year:
First, the United States must have a strong and effective capa-
bility to gather and evaluate foreign intelligence and conduct
necessary covert operations. Second, this capability must never
be directed at our own citizens.
We must be as vigilant in protecting the Nation as we are
in protecting the individual rights of each American.
As you know, when initial allegations of abuses in the
intelligence agencies was brought to the Nation's attention,
I moved quickly to establish independent investigation within
the Executive Branch, and I hayordened that all the agencies
FORD
EVALD
2
cooperate fully and with unprecendented candor and openness ]e
with the appropriate Congressional committees.
I have issued clear orders to stop these abuses and to ensure
that they do not reoccur, as long as I am President.
After an intensive and comprehensive review of the entire
Intelligence Community, I have reached A conclusion that I
must make significant changes to make these agencies, and the
public servants that run them, more accountable to my objectives.
The changes I am making, exercising Presidential powers, will
enable the American people to know that the intelligence agencies
acting
are and will continue to act within proper legal and moral
bounds. These changes will also make the Intelligence Community
stronger. The quality of intelligence should improve, and we
will be able to better utilize every tax dollar spent for foreign
intelligence purposes.
There are/two specific issues I wish to address directly:
covert operations and the role of Congress in the foreign intelli-
gence area.
This Nation is free and strong because we have been willing
to deal with real-world problems forthrightly and with realistically.
For America, the real world is not benign and safe. We have
FORD
enemies, as we have friends.
3
It is the avowed policy of the Soviet Union to export its
Communist ideology by a variety of means, including subversion
do addition, there are
and military intervention. h New threats to peace include terrorism
and economic warfare.
My intention is to seek resolution of the problems these
threats pose through negotiation and diplomatic means. However,
if we effectively deny ourselves the ability to conduct covert
operations, we will do so at an unacceptable cost to the national
security. We will have limited our ability to respond to Soviet
we
expansionism, terrorism and other threats. in a manner which
have
may force us ultimately to choose between drastic military action
or capitulation. Just as our range of military options must
include conventional as well as nuclear response, so, too, must
we have other alternatives to deal with problems abroad, such
as covert operations. I recognize the great sensitivity of
operating abroad covertly and conducting other foreign intelligence
over
activities. Congressional sight is not only Constitutionally
required, but I welcome it,as Congress should be a willing
partner with me to strengthen and control this activity. How-
events of
have ressed serwn problems concerning now
ever, / the past year hAs demonstrated that the Congress cannot
handles intelligence secrets
operate effectively in this area. Unilateral publication of
highly classified information and leaks from Congressional
sources have taken a severe toll by damaging our foreign intelli-
gence capability and our efforts to achieve foreign policy
objectives. I will actively seek repeal of the so-called
4
Hughes-Ryan Amendment which requires briefings to six
committees of the Congress in a "timely fashion" concerning
covert operations. This has given, to many members of the
Congress, a one-man veto over the actions of the United States.
All a person has to do is leak information concerning the
operation, and that effectively destroys its usefulness. This
is a dangerous perversion of the Constitution which was carefully
structured to balance the powers of the individual, the President,
separate branch
against the Congress as a whole. Only by two-thirds vote of
the Congress can actions of the President be overruled under
the Constitution. However, a whisper to one unauthorized source
by one member of Congress can effectively stop covert operations.
and this must be changed.
Although I will exercise my duties and responsibilities
under Article II of the Constitution to strengthen and control
the foreign intelligence agencies, I must have a constructive
partnership with the Congress in the area of Congressional over-
sight. Shortly after I announce my comprehensive changes
seek
in the Intelligence Community, I will spaak to consult with
the Leaders in an effort to seek bipartisan support for effective
and responsive Congressional oversight of the Intelligence Community.
[conclusion - Church Changhill quote and "revelations have
disconcerted our friends and delighted our enemies"
quote]
THE WHITE HOUSE
WASHINGTON
Jack
\
A pon effort,
but mine own.
Ray
VORD
[1/15/76]
STATE OF THE UNION
I. Introduction
A. There is historic importance and symbolism in the journey
of the President to the capitol to speak to the State of the
Union, an event I have witnessed many times.
1. As one travels through this city and throughout the country
one sees reminders that this is our Bicentennial - souvenir
shops will be selling mementos of that event this year.
2. In Washington perhaps more than any other city we live with
the monuments of our peoples' history - the great physical
monuments to Washington, Jefferson and Lincoln; the White
House and the Capitol Building.
3. The Bicentennial is more than a birthday party. It is the
celebration of the example that the United States can give
to the rest of the world.
4. In making this speech this evening, I asked myself what
could I add on such an historic opportunity? How could I,
a single individual brought to this place by an unpredictable
and improbable series of events discribe to you and to the
rest of the country my feelings for this great country.
B. My solution is to let the country and its people speak for
themselves.
1. Our history focuses both on the activities of prominent men
and women and also the achievements of common people.
2. In our first century, the United States was concerned with
building a new country, creating new institutions.
FORD
OFF:
2
a. The most important of the initial documents, the Declaration
of Independence, signified the first time in history that a
group of men representing the people through rational
processes declared their political bonds together and their
freedom from despotism.
b. The Revolutionary War was fought to defend that liberty
and freedom, a small country with limited resources against
one of the greatest powers on earth.
c. The Constitution then established the foundations for
the government of laws and not of men which has lasted now
for 200 years.
d. We must not forget that the great American experiment was
watched carefully by all observers. To de Tocqueville
it was it was " a great democratic revolution."
e. The first century ended climacticly with the Civil War
and the Emancipation Proclamation which forged a new
national identity while granting freedoms under law.
3. Our second century saw the unprecedented and still unparalleled
expansion of wealth, industry, standard of living and productivity.
a. The industrial revolution continued and spread westward pushing
back the frontiers.
b. The country was crisscrossed with canals, roads and railroads.
C. The United States came of age when it renounced its isolationism
in World War I and brought moral leadership to the creation
of man's first international parliment, the League of Nations.
FORD
it
d. Through the Depression and the New Deal, the instruments of
GERELO
government were turned toward solving the problems of the
needy and to rebuilding the country.
e. Then in the second World War many Americans died to preserve
freedom far away from their own shores because as in Jefferson's
words, this is a country where "every man, at the call of the laws,
would fly to the standard of the law, and would meet invasions of
the public order as his own personal concern. 11
3
f. With the great civil rights struggles of the '50s and '60s,
we established again the principle that each individual
is important no matter his race, color or creed.
g. Finally with the landing of the man on the moon, Americans
established once more that they are living at the frontiers
of modern civilization.
C. The simple truth is what the United States does matters in the
world.
1. In spite of our shortcomings, in spite of our failures, the
United States still exercises moral leadership.
2. The United States is still the most envied and most advanced
democracy in the world.
a. Since we live with the protections of the Bill of Rights
and particularly the First Amendment every day, we take
them for granted, and we can not conceive of other countries
where such freedoms are not known.
b. Our material wealth and our standard of living are available
on such an unprecedented scale that it is beyond the comprehension
of the world's less fortunate.
3. Our advantages and our history have brought us to the limits and
imposed their own responsibilities.
D. What are the challenges we will face in our third century?
1. We will develop the freedoms of the individual, given the
institutions of our first century and the material progress
of our second.
2. We will learn to reconcile the demands of progress with the
limits imposed by nature and the environment.
OF
FORD
4
3. We will learn to establish the equity and the humanity
which are the responsibilities of rich countries, at home and
abroad.
4. And finally, the answers we seek to the questions of what
a person does with his life and how his government interacts
with him will be watched closely as the rest of the world
examines our experience.
E. On the basis of my reading of this history it is clear that we must
use common sense when dealing with our problems and in defining
courses of action.
1. We must sort out our national issues, building on the structure
which has proven so adaptable and resilient.
2. We must be grateful that our institutions have triumphed.
In recent tragedies, such as Vietnam and in Watergate, with
as little damage to the fabric of the country, no matter how
great it seemed at the time.
3. We must take a more realistic view of our abilities and our
resources.
4. And finally, we must recognize that Americans for justifiable
reasons are losing confidence in their institutions, and particularly
in government.
a. Government fails and becomes part of the problem.
b. Government is perceived as deceitful and untrustworthy.
5
is
F. My experiences that people are realistic, tough minded and
just, as were the signers of the Declaration of Independence.
1. They are not swayed by out of date slogans or political
extremes, by labels "liberal or conservative".
2. They realize refuge is not to be found in well-meaning causes
or dreaming of the good old days.
3. They want above all government to quit kidding them
and to live by the common sense rule that honesty is
the best policy.
4. In January '75 I spoke of a new direction for the country.
Today I speak of America's desire for a new realism.
G. It is in this vein and with these lessons that we must now turn
to the examination of high priority federal programs and
problems with which this country must deal.
II. The Economic Situation.
6
III. Protecting the Lives and Personal Safety of Citizens.
IV. The State of the World in which we Live.
(These sections can be taken from the most recent draft
but should be roughly half of their present length.)
V. Conclusion.
A. It is now taken as an accepted fact that Americans are increasingly
alienated from all big institutions.
1. They are losing confidence, not just in big government,
but in big business, big labor, big education, and even big
churches.
2. Are we satisfied with this state of affairs? Can we take
steps individually and collectively to make these institutions
work?
3. These are questions we must ask in the years ahead.
a. I don't have all the answers, nor does the government, nor
does Washington.
b. Government must reach out to the people for answers.
C. We must enlist the private sector and the voluntary organizations
in seeking answers #
7
B. I propose a new partnership of common sense. A partnership
between levels of government certainly, but also between institutions
of government and citizens.
1. We must emphasize the function of governing; the United States
Government does not need to tell people what to do.
2. Government must be opened up to citizens of all walks of life
making it more accessible and more understandable.
3. It is the responsibility of the people to be skeptical
of government and their leaders; equally it is a responsibility
of government to overcome that skepticism by
its deeds and its good example.
C. As we begin our bicentennial year, let us not lose sight of the
historic nature and mission of the United States.
1. We are still the world's best hope.
2. If we do not succeed in "translating from despotism
to liberty" who else can if they do not enjoy our advantages
and resources?
3. We can not ignore the hard realities of the modern world
but our real effect in the world must be our example, not
our force of arms or our diplomacy.
4. It is my honor to fulfill the historic role of the President to
speak to the Congress to report on the State of the Union
as required by our Constitution. I have tried to convey
some of the importance and depth of feeling that accompanies
me and I hope will envigorate our third century.
FORD
RJW
15 Jan 76
QUOTATIONS
11 It is evident to all alike that a great democratic revolution is
going on among us, but all do not look at it in the same light.
To some it appears to be novel, but accidental, and,
as such, they hope it still may be checked; to others it
seems irresistible, because it is the most uniform, the most
ancient, and the most permanent tendency that is to be found
in history. II
Alexis de Tocqueville
Democracy in America Volume I Introduction
"But would the honest patriot, in the full tide of successful experiment,
abandon a government which has so far kept us free and firm, on the
theoretic and visionary fear that this government, the world's best
hope, may be possibility want energy to preserve itself? I trust not.
I believe this, on the contrary, the strongest government on earth.
I believe it is the only one where every man, at the call of the laws,
would fly to the standard of the law, and would meet invasions of the
public order as his own personal concern. 11
Thomas Jefferson
First Inaugural Address, 1801
" They (the institutions of the United States) represent an experiment
in the rule of the multitude, tried on a scale unprecedented vast,
and the results of which everyone is concerned to watch. And yet
they are something more than an experiment, for they are believed to
disclose and display the type of institutions toward which, as by a law
of fate, the rest of civilized mankind are forced to move, some with
swifter, others with slower, but all with unresting feet. 11
Lord James Bryce
The American Commonwealth, 1888
FORD