Harry S Truman
State of the Union Address
January 4, 1950
Mr. President, Mr. Speaker, Members of the Congress:
A year ago I reported to this Congress that the state of the Union was
good. I am happy to be able to report to you today that the state of the
Union continues to be good. Our Republic continues to increase in the enjoyment
of freedom within its borders, and to offer strength and encouragement
to all those who love freedom throughout the world.
During the past year we have made notable progress in strengthening
the foundations of peace and freedom, abroad and at home.
We have taken important steps in securing the North Atlantic community
against aggression. We have continued our successful support of European
recovery. We have returned to our established policy of expanding international
trade through reciprocal agreement. We have strengthened our support of
the United Nations.
While great problems still confront us, the greatest danger has receded--the
possibility which faced us 3 years ago that most of Europe and the Mediterranean
area might collapse under totalitarian pressure. Today, the free peoples
of the world have new vigor and new hope for the cause of peace.
In our domestic affairs, we have made notable advances toward broader
opportunity and a better life for all our citizens.
We have met and reversed the first significant downturn in economic
activity since the war. In accomplishing this, Government programs for
maintaining employment and purchasing power have been of tremendous benefit.
As the result of these programs, and the wisdom and good judgment of our
businessmen and workers, major readjustments have been made without widespread
During the past year, we have also made a good start in providing housing
for low-income groups; we have raised minimum wages; we have gone forward
with the development of our natural resources; we have given a greater
assurance of stability to the farmer; and we have improved the organization
and efficiency of our Government.
Today, by the grace of God, we stand a free and prosperous nation with
greater possibilities for the future than any people ever had before in
the history of the world.
We are now, in this year of 1950, nearing the midpoint of the 20th
The first half of this century will be known as the most turbulent and
eventful period in recorded history. The swift pace of events promises
to make the next 50 years decisive in the history of man on this planet.
The scientific and industrial revolution which began two centuries ago
has, in the last 50 years, caught up the peoples of the globe in a common
destiny. Two worldshattering wars have proved that no corner of the earth
can be isolated from the affairs of mankind.
The human race has reached a turning point. Man has opened the secrets
of nature and mastered new powers. If he uses them wisely, he can reach
new heights of civilization. If he uses them foolishly, they may destroy
Man must create the moral and legal framework for the world which will
insure that his new powers are used for good and not for evil. In shaping
the outcome, the people of the United States will play a leading role.
Among all the great changes that have occurred in the last 50 years,
none is more important than the change in the position of the United States
in world affairs. Fifty years ago we were a country devoted largely to
our own internal affairs. Our industry was growing, and we had new interests
in the Far East and in the Caribbean, but we were primarily concerned with
the development of vast areas of our own continental territory.
Today, our population has doubled. Our national production has risen
from about $50 billion, in terms of today's prices, to the staggering figure
of $255 billion a year. We have a more productive economic system and a
greater industrial potential than any other nation on the globe. Our standard
of living is an inspiration for all other peoples. Even the slightest changes
in our economic and social life have their effect on other countries all
around the world.
Our tremendous strength has brought with it tremendous responsibilities.
We have moved from the outer edge to the center of world affairs. Other
nations look to us for a wise exercise of our economic and military strength,
and for vigorous support of the ideals of representative government and
a free society. We will not fail them.
Our objective in the world is peace. Our country has joined with others
in the task of achieving peace. We know now that this is not an easy task,
or a short one. But we are determined to see it through. Both of our great
political parties are committed to working together--and I am sure they
will continue to work together--to achieve this end. We are prepared to
devote our energy and our resources to this task, because we know that
our own security and the future of mankind are at stake.
Right here, I want to say that no one appreciates more than I the bipartisan
cooperation in foreign affairs which has been enjoyed by this administration.
Our success in working with other nations to achieve peace depends largely
on what we do at home. We must preserve our national strength. Strength
is not simply a matter of arms and force. It is a matter of economic growth,
and social health, and vigorous institutions, public and private. We can
achieve peace only if we maintain our productive energy, our democratic
institutions, and our firm belief in individual freedom.
Our surest guide in the days that lie ahead will be the spirit in which
this great Republic was rounded. We must make our decisions in the conviction
that all men are created equal, that they are equally entitled to life,
liberty, and the pursuit of happiness, and that the duty of government
is to serve these ends.
This country of ours has experienced many blessings, but none greater
than its dedication to these principles. At every point in our history,
these ideals have served to correct our failures and shortcomings, to spur
us on to greater efforts, and to keep clearly before us the primary purpose
of our existence as a nation. They have enshrined for us, a principle of
government, the moral imperative to do justice, and the divine command
to men to love one another.
These principles give meaning to all that we do.
In foreign policy, they mean that we can never be tolerant of oppression
or tyranny. They mean that we must throw our weight on the side of greater
freedom and a better life for all peoples. These principles confirm us
in carrying out the specific programs for peace which we have already begun.
We shall continue to give our wholehearted support to the United Nations.
We believe that this organization can ultimately provide the framework
of international law and morality without which mankind cannot survive.
It has already set up new standards for the conduct of nations in the Declaration
of Human Rights and the Convention on Genocide. It is moving ahead to give
meaning to the concept of world brotherhood through a wide variety of cultural,
economic, and technical activities.
The events of the past year again showed the value of the United Nations
in bringing about the peaceful adjustment of tense international controversies.
In Indonesia and in Palestine the efforts of the United Nations have put
a stop to bloodshed and paved the way to peaceful settlements.
We are working toward the time when the United Nations will control
weapons of mass destruction and will have the forces to preserve international
law and order. While the world remains unsettled, however, and as long
as our own security and the security of the free world require, we will
maintain a strong and well-balanced defense organization. The Selective
Service System is an essential part of our defense plans, and it must be
Under the principles of the United Nations Charter we must continue
to share in the common defense of free nations against aggression. At the
last session this Congress laid the basis for this joint effort. We now
must put into effect the common defense plans that are being worked out.
We shall continue our efforts for world economic recovery, because world
prosperity is the only sure foundation of a permanent peace.
As an immediate means to this end we must continue our support of the
European recovery program. This program has achieved great success in the
first 2 years of its operation, but it has not yet been completed. If we
were to stop this program now, or cripple it, just because it is succeeding,
we should be doing exactly what the enemies of democracy want us to do.
We should be just as foolish as a man who, for reasons of false economy,
failed to put a roof on his house after building the foundation and the
World prosperity also requires that we do all we can to expand world
trade. As a major step in this direction we should promptly join the International
Trade Organization. The purpose of this organization, which the United
States has been foremost in creating, is to establish a code of fair practice,
and an international authority for adjusting differences in international
commercial relations. It is an effort to prevent the kind of anarchy and
irresponsibility in world trade which did so much to bring about the world
depression of the 1930's. An expanding world economy requires the improvement
of living standards and the development of resources in areas where human
poverty and misery now prevail. Without such improvement the recovery of
Europe and the future of our own economy will not be secure. I urge that
the Congress adopt the legislation now before it to provide for increasing
the flow of technical assistance and capital investment in underdeveloped
It is more essential now than ever, if the ideals of freedom and representative
government are to prevail in these areas, and particularly in the Far East,
that their peoples experience, in their own lives, the benefits of scientific
and economic advances. This program will require the movement of large
amounts of capital from the industrial nations, and particularly from the
United States, to productive uses in the underdeveloped areas of the world.
Recent world events make prompt action imperative.
This program is in the interest of all peoples-and has nothing in common
with either the old imperialism of the last century or the new imperialism
of the Communists.
Our aim for a peaceful, democratic world of free peoples will be achieved
in the long run, not by force of arms, but by an appeal to the minds and
hearts of men. If the peace policy of the democratic nations is to be successful,
they must demonstrate that the benefits of their way of life can be increased
and extended to all nations and all races.
In the world today we are confronted with the danger that the rising
demand of people everywhere for freedom and a better life may be corrupted
and betrayed by the false promises of communism. In its ruthless struggle
for power, communism seizes upon our imperfections, and takes advantage
of the delays and setbacks which the democratic nations experience in their
effort to secure a better life for their citizens. This challenge to us
is more than a military challenge. It is a challenge to the honesty of
our profession of the democratic faith; it is a challenge to the efficiency
and stability of our economic system; it is a challenge to the willingness
to work with other peoples for world peace and for world prosperity.
For my part I welcome that challenge. I believe that our country, at
this crucial point in world history, will meet that challenge successfully.
I believe that, in cooperation with the other free nations of the world,
we shall extend the full benefits of the democratic way of life to millions
who do not now enjoy them, and preserve mankind from dictatorship and tyranny.
I believe that we shall succeed in our struggle for this peace, because
I have seen the success we have had in our own country in following the
principles of freedom. Over the last 50 years, the ideals of liberty and
equal opportunity to which this Nation is dedicated have been increasingly
realized in the lives of our people.
The ideal of equal opportunity no longer means simply the opportunity
which a man has to advance beyond his fellows. Some of our citizens do
achieve greater success than others as a reward for individual merit and
effort, and this is as it should be. At the same time our country must
be more than a land of opportunity for a select few. It must be a land
of opportunity for all of us. In such a land we can grow and prosper together.
The simple truth that we can all go forward together is often questioned
by selfish or shortsighted persons. It is strange that this is so, for
this proposition is so clearly demonstrated by our national history. During
the last 50 years, for example, our Nation has grown enormously in material
well-being. This growth has come about, not by concentrating the benefits
of our progress in the hands of a few, but by increasing the wealth of
the great body of our Nation and our citizens.
In the last 50 years the income of the average family has increased
so greatly that its buying power has doubled. The average hours of work
have declined from 60 to 40 a week, the whole hourly production of the
average worker has tripled. Average wages, allowing for price changes,
have increased from about 45 cents an hour to $1.40 an hour.
We have accomplished what to earlier ages of mankind would have been
a miracle--we work shorter hours, we produce more, and we live better.
Increasing freedom from poverty and drudgery has given a fuller meaning
to American life. Our people are better educated; we have more opportunities
for travel and recreation and enjoyment of the arts. We enjoy more personal
liberty in the United States today than ever before.
If we can continue in the spirit of cooperative adventure which has
marked the recent years of our progress, we can expect further scientific
advances, further increases in our standard of living, and a still wider
enjoyment of democratic freedom.
No one, of course, can foretell the future exactly. However, if we assume
that we shall grow as fast in the future as we have grown in the past,
we can get a good idea of how much our country should grow in the next
At present our total national production is $255 billion a year. Our
working population and our output per worker are increasing. If our productive
power continues to increase at the same rate as it has increased over the
past 50 years, our total national production 50 years from now will be
nearly four times as much as it is today. Allowing for the expected growth
in population, this would mean that the real income of the average family
in the year 2000 A.D. would be about three times what it is today.
These are estimates of what we can do in the future, but we can reach
these heights only if we follow the right policies. We have learned by
bitter experience that progress is not automatic--that wrong policies lead
to depression and disaster. We cannot achieve these gains unless we have
a stable economy and avoid the catastrophes of boom and bust that have
set us back in the past.
These gains cannot be achieved unless our businessmen maintain their
spirit of initiative and enterprise and operate in a competitive economy.
They cannot be achieved unless our workingmen and women and their unions
help to increase productivity and obtain for labor a fair share of the
benefits of our economic system. They cannot be achieved unless we have
a stable and prosperous agriculture. They cannot be achieved unless we
conserve and develop our natural resources in the public interest. Our
system will not work unless our people are healthy, well-educated, and
confident of the future. It will not work unless all citizens can participate
fully in our national life.
In achieving these gains the Government has a special responsibility
to help create and maintain the conditions which will permit the growth
we know is possible. Foremost among these conditions is the need for a
fair distribution of our increasing prosperity among all the great groups
of our population who help to bring it about-labor, business, agriculture.
Businessmen must continue to have the incentives necessary for investment
and for the development of new lines of enterprise. In the future growth
of this country, lie possibilities for hundreds of thousands of new and
independent businesses. As our national production increases, as it doubles
and redoubles in the next 50 years, the number of independent and competing
enterprises should also increase. If the number does not increase, our
constantly growing economy will fall under the control of a few dominant
economic groups whose powers will be so great that they will be a challenge
to democratic institutions.
To avoid this danger, we must curb monopoly and provide aids to independent
business so that it may have the credit and capital to compete in a system
of free enterprise. I recommend that the Congress complete action at this
session on the pending bill to close the loopholes in the Clayton Act which
now permit monopolistic mergers. I also hope before this session is over
to transmit to the Congress a series of proposals to strengthen the antimonopoly
laws, to assist small business, and to encourage the growth of new enterprises.
In the case of labor, free collective bargaining must be protected and
encouraged. Collective bargaining is not only a fundamental economic freedom
for labor. It is also a strengthening and stabilizing influence for our
The Federal statute now governing labor relations is punitive in purpose
and one-sided in operation. This statute is, and always has been, inconsistent
with the practice of true and effective collective bargaining. It should
be repealed and replaced by a law that is fair to all and in harmony with
our democratic ideals.
A full understanding of the problems of modern labor relations is of
such importance that I recommend the establishment of a labor extension
service to encourage educational activities in this field.
Another essential for our continued growth is a stable and prosperous
agriculture. For many years we have been building a program to give the
farmer a reasonable measure of protection against the special hazards to
which he is exposed. That program was improved at the last session of the
Congress. However, our farm legislation is still not adequate.
Although the Congress has properly declared as a matter of national
policy that safeguards must be maintained against slumps in farm prices,
there are serious shortcomings in the methods now available for carrying
out this policy. Mandatory price supports should be provided for the commodities
not now covered which are major sources of farm income.
Moreover, we should provide a method of supporting farm income at fair
levels which will, at the same time, avoid piling up unmanageable surpluses
and allow consumers to obtain the full benefit of our abundant agricultural
production. A system of production payments gives the greatest promise
of accomplishing this purpose. I recommend that the use of such a system
One of the most important factors in our continued growth is the construction
of more good, up-to-date housing. In a country such as ours there is no
reason why decent homes should not be within the reach of all. With the
help of various Government programs we have made great progress in the
last few years in increasing the number of homes.
Despite this increase, there is still an acute shortage of housing for
the lower and middle-income groups, especially in large metropolitan areas.
We have laid the groundwork for relieving the plight of lower-income families
in the Housing Act of 1949. To aid the middle-income families, I recommend
that the Congress enact new legislation authorizing a vigorous program
to help cooperatives and other nonprofit groups build housing which these
families can afford.
Rent control has done a great deal to prevent the housing shortage from
having had worse effects during this postwar period of adjustment. Rent
control is still necessary to prevent widespread hardship and sharp curtailment
of the buying power of millions of consumers in metropolitan areas. I recommend,
therefore, that rent control be continued for another year.
If we are to achieve a better life for all, the natural resources of
the country must be regarded as a public trust. We must use our precious
assets of soil, water, and forest, and grassland in such a way that they
become constantly more productive and more valuable. Government investment
in the conservation and development of our resources is necessary to the
future economic expansion of the country.
We need to enlarge the production and transmission of public power.
That is true not only in those regions which have already received great
benefits from Federal power projects, but also in regions such as New England
where the benefits of large-scale public power development have not yet
In our hydroelectric and irrigation undertakings, as well as in our
other resource programs, we must continue policies to assure that their
benefits will be spread among the many and not restricted to the favored
Important resource legislation which should be passed at this session
includes the authorization of the St. Lawrence seaway and power project
and the establishment of the Columbia Valley Administration--the establishment
of the Columbia Valley Administration, I don't want you to miss that.
Through wise Government policies and Government expenditures for the
conservation and development of our natural resources, we can be sure of
transmitting to our children and our children's children a country far
richer and more productive than the one we know today.
The value of our natural resources is constantly being increased by
the progress of science. Research is finding new ways of using such natural
assets as minerals, sea water, and plant life. In the peaceful development
of atomic energy, particularly, we stand on the threshold of new wonders.
The first experimental machines for producing useful power from atomic
energy are now under construction. We have made only the first beginnings
in this field, but in the perspective of history they may loom larger than
the first airplane, or even the first tools that started man on the road
To take full advantage of the increasing possibilities of nature we
must equip ourselves with increasing knowledge. Government has a responsibility
to see that our country maintains its position in the advance of science.
As a step toward this end, the Congress should complete action on the measure
to create a National Science Foundation.
Another duty of the Government is to promote the economic security,
the health, and the education of its citizens. By so doing, we strengthen
both our economy and the structure of our society. In a nation as rich
as ours, all citizens should be able to live in decency and health.
Our Social Security System should be developed into the main reliance
of our people for basic protection against the economic hazards of old-age,
unemployment, and illness. I earnestly hope that the Congress will complete
action at this session on legislation to increase the benefits and extend
the coverage of old-age and survivors' insurance. The widespread movement
to provide pensions in private industry dramatizes the need for improvements
in the public insurance system.
I also urge that the Congress strengthen our unemployment compensation
law to meet present-day needs more adequately. The economic downturn of
the past year was the first real test that our system of unemployment insurance
has had to meet. That test has proved the wisdom of the system, but it
has also made strikingly apparent the need for improving its operation
and increasing its coverage and its benefits.
In the field of health there are immense opportunities to extend to
more of our people the benefits of the amazing advances in medical science.
We have made a good beginning in expanding our hospitals, but we must also
go on to remedy the shortages of doctors, nurses, and public health services,
and to establish a system of medical insurance which will enable all Americans
to afford good medical care.
We must take immediate steps to strengthen our educational system. In
many parts of our country, young people are being handicapped for life
because of a poor education. The rapidly increasing number of children
of school age, coupled with the shortage of qualified teachers, makes this
problem more critical each year. I believe that the Congress should no
longer delay in providing Federal assistance to the States so that they
can maintain adequate schools.
As we go forward in achieving greater economic security and greater
opportunity for all our people, we should make every effort to extend the
benefits of our democratic institutions to every citizen. The religious
ideals which we profess, and the heritage of freedom which we have received
from the past, clearly place that duty upon us. I again urge the Congress
to enact the civil rights proposals I made in February 1948. These proposals
are for the enactment of Federal statutes which will protect all our people
in the exercise of their democratic rights and their search for economic
opportunity, grant statehood to Alaska and Hawaii, provide a greater measure
of self-government for our island possessions, and accord home rule to
the District of Columbia. Some of those proposals have been before the
Congress for a long time. Those who oppose them, as well as those who favor
them, should recognize that it is the duty of the elected representatives
of the people to let these proposals come to a vote.
Our democratic ideals, as well as our best interests, require that we
do our fair share in providing homes for the unfortunate victims of war
and tyranny. In so doing, we shall add strength to our democracy through
the abilities and skills which these men and women will bring here. I urge
the prompt enactment by the Congress of the legislation now before it to
extend and broaden the existing displaced persons law and remove its discriminatory
The measures I am recommending to the Congress concerning both our foreign
and our domestic policies represent a carefully considered program to meet
our national needs. It is a program which necessarily requires large expenditures
of funds. More than 70 percent of the Government's expenditures are required
to meet the costs of past wars and to work for world peace. This is the
dominant factor in our fiscal policy. At the same time, the Government
must make substantial expenditures which are necessary to the growth and
expansion of the domestic economy.
At present, largely because of the ill-considered tax reduction of the
Both Congress, the Government is not receiving enough revenue to meet its
To meet this situation, I am proposing that Federal expenditures be
held to the lowest levels consistent with our international requirements
and the essential needs of economic growth, and the well-being of our people.
I think I had better read that over; you interrupted me in the middle.
To meet this situation, I am proposing that Federal expenditures be
held to the lowest levels consistent with our international requirements
and the essential needs of economic growth, and the well-being of our people.
Don't forget that last phrase. At the same time, we must guard against
the folly of attempting budget slashes which would impair our prospects
for peace or cripple the programs essential to our national strength.
The budget recommendations I shall shortly transmit to the Congress
show that we can expect a substantial improvement in our fiscal position
over the next few years, as the cost of some of our extraordinary postwar
programs declines, and as the Government revenue rises as a result of growth
in employment and national income. To further improve our fiscal outlook,
we should make some changes in our tax system which will reduce present
inequities, stimulate business activity, and yield a moderate amount of
additional revenue. I expect to transmit specific recommendations to the
Congress on this subject at a very early date.
The fiscal policy I am recommending is the quickest and safest way of
achieving a balanced budget.
As we move forward into the second half of the 20th century, we must
always bear in mind the central purpose of our national life. We do not
seek material prosperity for ourselves because we love luxury; we do not
aid other nations because we wish to increase our power. We have not devised
programs for the security and well-being of our people because we are afraid
or unwilling to take risks. This is not the meaning of our past history
or our present course.
We work for a better life for all, so that all men may put to good use
the great gifts with which they have been endowed by their Creator. We
seek to establish those material conditions of life in which, without exception,
men may live in dignity, perform useful work, serve their communities,
and worship God as they see fit.
These may seem simple goals, but they are not little ones. They are
worth a great deal more than all the empires and conquests of history.
They are not to be achieved by military aggression or political fanaticism.
They are to be achieved by humbler means-by hard work, by a spirit of self-restraint
in our dealings with one another, and by a deep devotion to the principles
of justice and equality.
It should make us truly thankful, as we look back to the beginnings
of this country, that we have come so far along the road to a better life
for all. It should make us humble to think, as we look ahead, how much
farther we have to go to accomplish, at home and abroad, the objectives
that were set out for us at the founding of this great Nation.
As we approach the halfway mark of the 20th century, we should ask for
continued strength and guidance from that Almighty Power who has placed
before us such great opportunities for the good of mankind in the years