 Thank you very much. You've done that already. Thank you. Thank you all very much and Good morning to you all Don Kendall. I have a hunch you knew exactly what you were doing first the patriotic music and Then you're I found inspiring speech And I understand that you've a great film and what do you know? We've all caught that Pepsi spirit Incidentally, I think you Feel as I do about this magnificent group behind me here sometime I'm going to come out in one of these occasions stand up and make the audience happy by saying I'm canceling the speech And they're going to do a concert Don Kendall is a powerful spokesman for free enterprise and I think as a chairman. He's a 10 Well, this is a happy day, and I'm honored to be with you You've earned the great respect of Individuals and organizations all across this country and may I say a warm spot in my heart The chamber is celebrating an important milestone this week. You're 70th anniversary. I Remember the day you started but like good wine you've grown better not older The membership of the Chamber of Commerce of the United States is the only thing that's grown faster than the federal government Thank heaven Great organizations don't just happen. They're built by strong leaders with vision and determination to reach a greater good Back in 1975 such a leader arrived at the national chamber He came with a sense of history and understanding of the economy a belief in America and her future and with his new staff working out your statement of mission To advance human progress through an economic political and social system based on individual freedom incentive initiative opportunity and responsibility No one ever summed up better those values and goals. We share and you're president Dick Lesher seven years ago and No organization works harder to advance human progress and freedom than the US chamber under his leadership Together with your state and local chambers Thank you all For all you're doing our administration deeply appreciates your decisive contributions to helping us as we try to get this country back on track Someone else deserves special recognition today For 31 years. He's been with you a rock of stability and integrity for the chamber He's lived the meaning of Abe Lincoln's words Important principles may and must be inflexible Bill van meter, I know you will be retiring soon as senior vice president and I know you're out there somewhere Would you and dick please stand up so we can salute you both? Some may wonder what does an organization do for an encore after it increases its membership five fold in seven years? Creates an army of grassroots support sets up its own magazine newspaper and radio and television shows Well, if I could make a suggestion our administration has a few unfinished small problems about four hundred billion dollars worth on Capitol Hill We'd love to have your help on I Think you will help us just like you did before Accepting important challenges of the chambers stock in trade and a new one begins today How about the first business satellite television network system in the world a system that can reach every community in this country to promote and Strengthen our enterprise system My staff said this would be the first speech carried over business Forgive me. I I just had to ask them. You really think the chamber is ready for another inaugural address already Well what you're doing here the tremendous growth that you've recently enjoyed All underscores a truth too often ignored in Washington The most powerful force for progress in this world doesn't come from government elites Public programs are even precious resources like oil or gold True wealth comes from the heart from the treasure of ideas and spirit from the investments of millions of brave people with hope for the future Trust in their fellow men and faith in God the American dream of human progress through freedom and equality of opportunity and competitive enterprise is Still the most revolutionary idea in the world today It's also the most successful Entrepreneurs are heroes of modern times. They rarely receive the credit they deserve Treasury secretary Don Regan recently reminded the student body of Bucknell University That it was under capitalism that mankind brought light where before there was darkness Heat where once there was only cold Medicines where there was sickness and disease food where there was scarcity and wealth where humanity was living in squalor And much of what he was talking about came into being in the lifetime of many of us here in this room I've already lived about 20 years longer than my life expectancy at the time. I was born That's a source of annoyance to a great many people But the societies which achieved the most spectacular progress in the shortest period of time are not the most tightly controlled The biggest in size or the wealthiest and material resources They are societies that reward initiative and believe in the magic of the marketplace Trust the people That's the secret weapon only when people are free to worship create and build only when they can decide their Destiny and benefit from their own risks Only then do societies become dynamic, prosperous, progressive and free America has always done well when we had the courage to believe in ourselves our values and our capacity to perform great deeds We got into trouble when we listened to those who insisted that making government bigger would make America bigger Big government. They told us was the wave of the future and anyone who stood in their way was a reactionary Not long ago senator Ted Kennedy paid tribute to former governor and Ambassador Averell Harriman Celebrating I believe it was his 90th birthday and the senator said of Ambassador Harriman's age that he was only half as old as Ronald Reagan's ideas But do you know something he's absolutely right The United States Constitution is almost 200 years old And I found that that Constitution is a good place to get ideas Thomas Jefferson was no reactionary. He was a true progressive When he warned the only safe Depository of the ultimate powers of society are with the people themselves The tenth amendment tells us the federal government will do only those things called for in the Constitution and all others Shall remain with the states or with the people We've strayed much too far from that noble beginning The whole purpose of our revolution personal freedom equality of opportunity and keeping government close to the people is Threatened by a federal spending machine that takes too much money from the people too much authority from state and local governments And too much liberty with our Constitution We must preserve those first principles that made America strong and will keep her free That doesn't mean turning back the clock Retreating from government's responsibility to help those who can't help themselves We're meeting our commitment to the needy even if that hasn't been the subject of a network documentary We devote one of the largest shares of the federal budget in our history to assisting low-income Americans The growth policies of low spending and taxes of the mid 60s were much better friends to the poor than the big Government madness that followed in which created so much misery Speaking of misery that cruelest tax of all inflation with all the suffering that it brings to the poor and the elderly is Being controlled last month as you know the consumer price index fell three tenths of one percent the first time in Almost 17 years for half a year now. It's been averaging around 3.2 percent If inflation had kept running at the double-digit rate it was in 1980 and January of 1981 a Family of four on a fixed income of fifteen thousand dollars would be over one thousand dollars poorer in purchasing power than they are today We're the most generous people on earth. I don't think any of us lack compassion for the needy But isn't it time that we also had compassion for those unsung heroes who work and pay their bills while they struggle to make ends meet They're the heart and soul of the free enterprise system. They need some help, too Winston Churchill Said that some see private enterprise as a predatory target to be shot Others as a cow to be milked, but few see it as the sturdy horse pulling the wagon Well, this administration believes the workers savers investors and entrepreneurs of America have been milked and shot at long enough With your help, we're ending a long night of government blundering and making an historic new beginning Yes, we are in a painful recession The unemployed are living a tragedy I want nothing more to see them working again, and I'm convinced the course we've embarked on offers the best hope I Certainly won't accept the idea that a program which began after the recession was already underway is somehow responsible for that recession. I Hope we can reach a fair and bipartisan budget compromise and I'll go an extra mile to reach an understanding with members of the Congress on Both sides of the aisle as long as there is a commitment to three essential priorities as maintained Continued rebuilding of our national defense continued commitment to tax incentives and a long-term effort to reduce the federal government's share of the gross national product This means getting this budget under control once and for all Those who are participating in the budget discussions will be meeting again early this week. I Hope they'll continue to put aside partisan advantage and strive for what is necessary and what is right a Fair and bipartisan budget package agreed to by Speaker O'Neill majority leader Baker and I will help speed our economic recovery And I think we should get on with it Now if there are those If there are those who shun reasonable compromise, I must speak plainly We cannot go back to the glory days of big nevermind the cost government the best view of The best view of that kind of government is in a rear-view mirror as we leave it behind And we can no longer listen to those who say if it's commerce regulated if it's income tax it If it's a budget bust it given their way they'd make everything that isn't prohibited compulsory Well a better rule is if it ain't broke don't fix it Our task is to restrain spending Create incentives provide hope opportunities and help our economy grow again Our loyalty will always be to little taxpayers and never to big tax spenders Our administration promised a program of tax incentives so industry could retool and families could save again for their future We've kept that promise with the first decent tax reduction in nearly 20 years to say that To say that those those who say our tax cut will significantly increase projected deficits Let me point out our tax cut first has to offset the tax increases already built into the system Including the tax Social security tax increases the largest single tax increase in our history Americans now shoulder the highest tax burden in peacetime history and there are a couple of more increases in that social security payroll tax yet to be applied if Higher taxes are the key to reducing deficits Why did a 300 billion dollar tax increase between 1976 and 1981? Leave us with 318 billion dollars in deficits. I think you know why we didn't pile up a trillion dollar debt because we're not taxed Enough we have that debt because government spends too much and what specifics can be given to support the repeated charge That our tax cut favors the wealthy 74% of the tax savings goes to the lower and middle class who presently pays 72% of the tax May I just say in the quest for economic literacy high tax rates don't soak the rich They only create more tax shelters or an outright capital drain Reducing high tax rates provides incentives to get more people paying taxes again Just as important we preserve one of the few systems left on earth Where people at the bottom of the ladder can still get rich That's what America should be all about From now on more of what people earn belongs to them Now it's true that our program just six months old has not solved all the economic problems. We inherited As Don Kendall pointed out our administration did not have the luxury of starting out with about 6% interest rates Such as we had back in 1977 we were left with interest rates of 21 and a half percent the highest in more than a century an Inflation in 77 was only about half what it was running in January of 81 It's a bit ironic to hear those who insisted the tax program be administered in drops Now saying the medicine didn't work Well the medicine will work when the patient finally begins to get it The first real dose begins with that 10% tax cut in July and the additional 10% cut in July of 1983 Now some in the media have been telling us here in the trenches that the business community questions the wisdom of our program I'm sure you can understand how hard this is on our morale Since the Chamber represents a great cross-section of the business community. I wondered if I might ask you a few questions number one Federal spending tripled in the last decade alone and shot up by 17 percent in 1980 Would you agree that by trying to hold down runaway spending by trying to control those so-called budget items? We've been told are uncontrollable that we are doing the right thing and should stick with it Thank you. Now taxes on the people doubled between 76 and 81 and would have increased another $300 billion between 81 and 84 without our program By trying to help families keep their heads above water Refusing to tax them like millionaires are we doing the right thing and should we stick with it? Now our program began as I said after the recession was underway Now with growth in spending cut nearly in half regulation growth cut by a third Inflation down by almost two-thirds the prime rate down five percentage points still too high But headed lower and strong new incentives to save just beginning Are we on the right road to a lasting recovery and should we stick with? You get an A-plus And I just have one more question Will you mobilize your 240,000 members and tell the Congress what you just told me? The Sun just came out Every time personal tax rates go higher it becomes more difficult for firms to compete in world markets It now cost $1.70 just to compensate a worker for each dollar increase in the cost of living Instead of workers and management trying to solve this problem by opposing each other Why not join forces and help us get government off your backs? So you can get on with the task of saving American jobs Rebuilding our economy and raising the standard of living of all our people With your personal initiative ingenuity and industry and responsibility we can make America work again You know we can but as we rebuild this blessed land We'll need that extra dimension of faith friendship and brotherhood that makes us good neighbors good people and Makes America a great country. I Believe standing up for America also means standing up for the God who has so blessed this land We've strayed so far it may be later than we think There's a hunger in our land to see traditional values reflected in public policy again To those who cite the first amendment as reason for excluding God from more and more of our institutions in everyday life May I just point out the first amendment of the Constitution was not written to protect the people of this country from religious values It was written to protect religious values from government tyranny One of America's greatest strengths is our tradition of neighbor caring for neighbor in times of trouble We've launched a nationwide campaign to encourage citizens to join with us to determine where need exists and then organize community volunteer groups to meet those needs a Great challenge and all the more reason to have as chairman of our task force on private sector initiatives an Individual we both know as an outstanding leader Bill Verity your own chairman a year ago Bill and I aren't asking you to take over the social welfare system We're just asking that you give generously of your time your know-how and your imagination to help Americans help themselves Many of you already do When we say chamber of commerce what comes to mind? community leadership and economic development job creation Education medical care and special assistance to the elderly the disabled in the blind American business does care and is involved Just keep doing what you do best and ask more of those around you to pitch in and help a Different kind of volunteer initiative is being taken by a group of banks in Ohio and by the first national bank and trust of Plainfield, Indiana They recently lowered the interest rates on new car loans, which were between 16 and 18 percent to between 12 and 3 quarters and 13 percent and Committed between the millions of dollars to these programs in the first few weeks the sale of new cars increased to several times What had been the monthly average the bankers involved said the financial sector has to pitch in and help So we can get the economy moving again Your 70th annual meeting is living proof that democracy and freedom are alive and well in America But as you know America is more the exception than the rule around the globe Now some in this country say well freedom is fine for us, but we can't worry about it for everyone else Well freedom wasn't one here without the help of others It's diminished everywhere and freedom is never more than one generation away from extinction Francis Bacon wrote in this theater of man's life. It is reserved only for gods and angels to be lookers on America cannot afford to drift through the 1980s as a spectator We're deeply committed to seeking peaceful resolution of conflicts in the world World peace and our own interests continue to be threatened by regional conflicts Two such conflicts are now dramatically in the news Yesterday we witnessed the culmination of Israel's historic withdrawal from the Sinai peninsula In a region beset by doubt the Israeli withdrawal is an expression of a faith in a more peaceful future And a triumph for peaceful diplomacy with few historic parallels The vision of Israel in Egypt sets an example for all nations to follow My administration will continue to pursue peace within the Camp David framework Through renewed efforts to complete an agreement on autonomy for the Palestinians of the West Bank and Gaza That vital next step offers the best hope for maintaining the momentum the peace process a Process that can lead to a triumph of shared humanity over age-old hatred Over the weekend our attention has been focused also on the serious situation in the South Atlantic While the situation is increasingly difficult and time is surely running out We remain determined to do all we can to help Britain and Argentina resolve their differences without further conflict Working for peace is both a moral duty and a practical necessity We should have no illusions This task is immensely difficult and we can no more solve the world's problems than we can isolate ourselves from them But the search for peace is the surest way to preserve all that we cherish and avoid the nightmares that we fear Another very important way the United States can contribute to world peace is by helping stimulate international trade The assistance of the United States Chamber and your international division in developing new markets and more exports and Encouraging lower trade barriers will continue to be invaluable It would be wonderful if we could secure peace through trade alone, but you and I know we can We must restore the strength of our armed forces which have been neglected for too long The Soviet Union has deployed a military arsenal unequal in all history The American people will no longer tolerate a mere facade of security They expect our planes to fly our ships to sail and our helicopters to stay aloft There will be no retreat in the commitment of this administration to make sure that they do Defense we're also working for essential reduction of the weapons of mass destruction a Freeze in the arsenals of these weapons is not good enough We must have mutual and verifiable Reductions and this we shall strive for now having said this let me point out We're striving just as hard in the defense program to find savings and eliminate unnecessary spending as we are in every other department of government We believe such savings can be made without retreating from our effort to redress the imbalance that exists today I'm also willing to look at additional revenue sources so long as they are not Inconsistent with the tax incentive measures for individuals and business that were adopted last year And if there are alternative budget reductions to those we proposed in the 83 budget, I'd like to hear them The all-important thing is for all of us here in Washington to come to an agreement on how we're going to proceed toward a balanced budget and Then to stand together with no partisan difference dividing us and say here is the bipartisan solution. We offer to our economic problems Once this is done we can proceed to a balanced budget and then begin the reduction of our national debt Burning that mortgage is going to be the biggest fire since the burning of Rome This nation has no mission of mediocrity We were never meant to be second-best The spirit that built our country was bold not timid. It was a spirit of pride confidence and courage That we could do anything Well, we still can I don't believe for one minute that America's best days are behind her I don't believe any of you doubt that with the right tools and incentives to do the job American workers can and will be every bit as skilled dedicated and productive as our German and Japanese counterparts America's greater moments Greatest moments have always come when we dared to be great When we believed in ourselves and reached out to each other to do the impossible We've come so far Done so much and all in so short a time Let's not turn back now In his poem Columbus James Russell Lowell wrote of that momentous voyage across the Atlantic The crew had been told again and again. They would soon see land on the horizon. They saw only water They were tired hungry lonely desperate and ready to mutiny but as Lowell wrote Endurance is the crowning quality and patience all the passion of great hearts One day with life and heart is more than enough to find a world With your courage your help we can endure We can prevail We can find that world and bequeath peace and prosperity to our children and their children And I know we will Thank you for this wonderful morning and God bless you