State of the Union Address
25 January 1984
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,
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 risk-taking. All this was overlaid by an ever-growing 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
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
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,
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
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--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
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, Senator 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 downpayment.
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 the downpayment.
But a downpayment 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
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,
drug-pushers, 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
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,
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
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; insist--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
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
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
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
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.