 Chicago ladies and gentlemen the president of the United States and the first lady Mrs. Nancy Reagan Mr. Adams to the teachers here at this school and to all of you students I can't quite describe what a pleasure this is for us we're here because we heard about this school we heard what beginning with one man to save a school has developed into an educational institution of which you all must be very proud because there aren't too many educational institutions in the country that can match your record and we had to see this for ourselves not just to see it for ourselves but also because we hope that we can spread the word and maybe I can illustrate what I'm trying to say was when I was governor of California every year they used to bring to the capital a group of students who'd come from other countries and who on an exchange student basis would spend a year in our schools usually in high school and every year I had the same question for them I would say tell me these students from all over Europe and every place else I'd say tell me how do our schools compare are they tougher than yours the work harder and then I'd have to wait till they stopped laughing that was their assessment of the difference and I'm talking about schools that weren't like yours I wish we could get some of them in here I don't think they'd laugh because I think they'd find out that you met the same educational levels they do the other day yesterday about a hundred miles south of here at the little college I attended I spoke to the graduation down there and I used that occasion to talk to them about something that's very close to my heart and I'm sure must be to yours that is our intention to engage the Soviet Union in negotiations to reduce the nuclear weapons that are threatening the world and to reduce all of our military power on both sides and then get down to where we can begin to exchange ideas and convince them that the world doesn't mean them harm and that we can get along in the world together because there have been four wars in my lifetime one dream I have and I can do one thing with this job it is to see that no other generation of young Americans will ever have to go out and bleed their lives into somebody's battlefield and I hope that we can bring that piece about but I'm not going to go on talking other than to tell you that you have every reason to be proud and I'm going to see that a lot of people find out about you and are proud themselves of what you've done you have reason to be proud of your teachers who obviously are ready to double in brass and do whatever has to be done in order to keep this school going but I think we'll be much better off with a dialogue instead of a continued monologue from me so I know that you have some questions and I know there are microphones for that and let's begin Mr. President my name is Todd Johnson my question is what actions is the US government planning to take in the war between Argentina and Great Britain and why did you choose to choose size for Great Britain I've had I don't whether it's the speaker or not I think that I think the loudspeakers point that way I had trouble hearing you question is question is why the United States side with Great Britain that's your question and what are the planets what is the planet what are they gonna what is the plan they gonna I asked a question over what are the planets of the United States what are the what is the US government planet planets plans in the war between Great Britain Argentina oh what are our plans out well from the very first this is the Falkland dispute down there and the thing that is going on over that little island with about 2,000 people on it or less it's been there for so many years and the dispute goes clear back hundreds of years to win once it was claimed by Spain and then it was claimed by Great Britain and when the Argentines had a revolution and freed themselves from Spain then about 150 years ago they started saying well that should have included that those islands what we've been trying to do from even before the Argentines invaded the island I was on the phone for quite a long time with President Galtieri of Argentina begging him to turn that task force around that was headed to the islands and let us try to settle this issue peacefully well they did land in the islands and now we have something we cannot ignore in the world today and that is someone by aggression by armed force taking over a territory was claimed or belong to someone else that must not be allowed to succeed at the same time there are there is some legitimacy in the part of their claims as well as Great Britain's so we have been trying to be a broker and a range of peace between them so far we have not been able to do that and now blood has been shed on both sides we're hoping there won't be any more of that and the principal issue is the rights of the 2,000 the people that live on the island and so far one country in the dispute has been willing to take into consideration what they want Argentina has not yet given into that and the issue of difference now is will Argentina withdraw and then let the peacekeeping force from the United Nations or even from our own country we volunteered anyone to go down while they then continue to act to negotiate a settlement of whose flag should fly over those islands and we're continuing that and we're still in those negotiations and still involved and we now have the help of the president of Peru who is also joined in and that's what we're hoping will take place thank thank you Mr. President my name is shonda parks Mr. President you've been president for a year and a half now and since that time inflation has come under control but unemployment is up greatly or promptly nine point four percent nationally and double that among blacks so Mr. President what can you do what can Congress do what can businesses do what can citizens do to alleviate the problem of unemployment I wish I had a simple and easy answer for that or let me say a quick answer the there's no question about that being the greatest tragedy of what we call a recession it is true we have brought inflation down from twelve point four percent that means that every year your dollar was worth twelve point four percent less than was at the beginning of the year we brought that down to where for the last six months it has been averaging about three point two percent and last month inflation actually went below zero to the point that instead of it just being a reduction in the inflation rate prices actually went down now I don't know that we can hold that that steady but we do have it under control the biggest thing that is causing unemployment today well there are three factors involved but the two principal ones out of the recession are or the one high interest rates high interest rates have people who normally buy automobiles buy them on time but they can't pay the high interest rate today to buy them on time people who bought build a house they build it by taking a mortgage they borrow money to build a house and they pay it back every month plus interest for say 20 30 years well they again can't afford 20 or 30 years of interest rates that while they have come down they were 21 and a half percent when we started they're down around 16 or 17 percent that's still too high we've got to get them down farther now what puts interest rates up one thing is inflation if a lender has money to lend and he's in an inflation time so that every year the money is getting worth less and less he has to charge enough interest rate to not only get some earnings on the money he lends but to also compensate for that loss of value he cannot afford 20 years later to be paid back in dollars that are worth less than half of the dollars that he loaned so this has added the height of the interest rates but today with interest down the only thing that is keeping the interest rates up is a lack of confidence out there in the money markets and in business that we're going to keep it down we've had seven recessions before this one since World War two and in every recession up until now the government has come in with what I call a quick fix the government has come in with artificial stimulating of the economy spending more money than we have deficit spending and so forth increasing the money supply and for a little while it's like taking a pill for a fever the fever seems to go down but then when the pill wears off the fever is right back and we're not doing that this time we've put in place a program to reduce the increasing cost of government and we have succeeded so far in cutting the increase in cost of government in half or better we have brought inflation down and interest rates somewhat I believe the quickest way to get the unemployed back to work and to get our economy moving again is for the Congress to pass the budget which we have proposed because I think this will send the signal to the money market that they can have confidence and lower the interest rates we've seen some of this happening from some bankers here and there in Indiana you know Ohio groups of bankers recently got together and decided to help particularly the automobile dealers so they took millions of dollars of bank money and they lowered the interest rate on it if it was for loans to buy cars and the result was almost an immediate upsurge in automobile buying once those interest rates are down now we're trying to spread the word of that too and I'll be talking to some bankers myself next week no it's this week already I'll be talking to the later this week and to see if we can't convince them that our program has shows the signs of working and will work and get them back to work in the meantime we do have a job training program that we have more confidence in that we have proposed in the budget than the past ones we've had in the great society programs a lot of job training programs that spent billions of dollars and yet unemployment kept growing worse this unemployment didn't just start now it's been coming on for several years a few years ago before the great society poverty was being reduced in this country and the very figure that you mentioned black unemployment was decreasing faster than white unemployment and then came the great society programs and strangely enough with all that government spending the poverty stopped being eliminated in fact started going up and so did the unemployment rate and particularly in the minority communities we think that our program and this budget that we've introduced is the quickest answer to turning that around the difference between our job training program this time is that all of the money is going to be spent on job training those other great society programs the biggest share of the money was spent hiring bureaucrats to manage the programs I vetoed one such program when I was governor it was going to put 17 people to work helping keep the parks clean in a little rural county in California but over half the budget was going for 11 administrators to see that the 17 got to work on time and I thought that was a little out of balance so I vetoed the program my name is Michelle Stubblefield recently government backlines have been cut out for students who plan to enter into the field of nursing my goal is to become a nurse and without the help of a government backline this is going to be very difficult first why was the field of nursing selected second will medical care suffer and third does this mean that in the future nursing will be limited to the wealthy bless you and I'm glad you asked that question about the college loans and so forth in the educational help much has been made of this and and it's been badly distorted in the reporting in our budget there is provision for seven million grants and loans the changes that we've made are actually aimed at making them more available to people who have greater need we have found for example that many of these loans and many of this much of this help was going to people whose family income was higher than it should have been they really should not have been eligible for this help and we're redirecting it to families of lower income where it is needed it is true that one set of grants called the Pell grants we did reduce in order to spread them farther from seventeen hundred and twenty dollars a grant to sixteen hundred a grant but as I say this was to try and spread and make the help available to more people but with only eleven million full-time college students in the United States seven million loans and grants indicates that the federal government's not getting out of that business and so we have not cut back and this is true of a great many of the other programs that they've suggested that they be cut the Department of Health and Human Services which handles the programs to help the needy to help the disabled to help the poor their program will be eight percent higher their budget in eighty three than it is in eighty two and that's twenty billion dollars more money being spent and yet you don't hear that we haven't that's been a well-kept secret we have been able to get people to aware that the only cuts we've made are really cuts in the increase in spending so I can assure you that that help will be there those of you who will who will want to call on it thank you ma'am Mr. President my name is Sherry Wetherney and I'd like to know if you could tell us about the last major political decision made by you that didn't get the results that you expected the last major decision made by me and did it have the result that you weren't asking for any particular just the last one that didn't get the results you expected well the I think the there are a number of decisions we've made for example I have and I know you won't find this out of the ordinary I have announced that I'm going to ask Congress to re-institute prayer in schools I don't think God should ever have been expelled from the classroom but that has to be passed by Congress yet I've asked also for an amendment to balance the budget I'm trying to think of programs well the major program would be the economic program that reform program that we passed which did come in the budget sense of return reducing the increase in cost and the tax cuts to provide incentive to provide more work the last time anyone in this government ever tried that kind of a tax cut to help the economy was John F. Kennedy and the same people mainly that are criticizing me for wanting tax cuts criticized him and he wouldn't listen and he went forward with his tax cuts and the result was an immediate broadening of the base of the economy and increase in employment a decrease in unemployment and business was just fine and I think the same thing is going to happen so far we only went into effect with a 5% cut last October July 1st will be the first real cut and that will be the 10% cut in the income tax and then another one in 1983 I think we're going to see more improvement right now farm prices in spite of inflation going down have gone up and our farmers are getting a better price than they have been getting the inflation is the biggest single factor that's the biggest difference when we took off us the doom criers were telling us that it take at least 10 years to cure inflation must be a year and a half and last month it was zero or less I think our program is working and I think that those of economists who have watched the scene for a long time are the ones that tell us that it is the proper program to have in place so I didn't know whether you were asking about some specific decision or just what I say about decisions is I was asking you to tell us about the last decision you made that didn't get the results you expected oh wait a minute I have a but that I'd like to tell you about yes the I have I was under the impression and maybe I was wrong I didn't know there were any court cases pending but I was under the impression that the problem of segregated schools had been settled that we have desegregation but I was getting complaints and even before I got here as president I was getting complaints that some of the internal revenue agents the tax collectors that collect the income tax were harassing some schools even though they were desegregated but harassing them and threatening them with taking away their tax exemption which educational institutions have if they didn't oh set up scholarship programs or go out actively recruiting and take steps to try and increase their efforts at desegregation and I didn't think that this was the place of Treasury agents to be doing this so I told the Secretary of Treasury that I didn't think that I think as individuals we get harassed enough by the internal revenue collectors and I didn't know that there were a couple of legal cases pending and all I wanted was that these tax collectors stopped threatening schools that were obeying the law and as it developed this turned out that it was turned around and said that I was trying to provide tax exemptions for schools that still practiced segregation well I didn't know there were any and maybe I should have but I didn't and it was a total total turnaround of what I had intended with what I said to the Secretary of the Treasury so I said well if that's the case let's get some legislation up there and let the Congress pass it that makes sure that there are no desegregated schools or any segregated schools I mean and yes that one went wrong and this is the first time anyone's ever publicly asked me to try and explain what I was doing I'm happy for the chance. Mr. President my name is Levy Craig and I would like to know Desmond and say that Mike is pretty directional tilt that Mike up a little bit so you're right into it. Of all the high schools in the United States why exactly have you chosen Providence and Mail to visit? Why did I choose this one to visit? I only heard about it the week or two ago and I read about it and I saw some stories about it on television and I said this I have to see we have appointed a private initiatives task force this is a group nationwide to try and find where we can get volunteer help for worthwhile efforts for things that are going on that the people are doing for themselves not just waiting for government to do it and I just I just wanted to see this and I also wanted to come here very frankly and meet your principle because if ever there's an instance of what one person can bring into being and cause to happen he's made it happen here and I want to you must be aware that there are millions and millions of parents all over this country terribly dissatisfied with the education there's their children are getting in schools the lack of discipline and everything else and with that deterioration in so much of education you are such a shining light that as I said in the beginning I want to spread the word this is the way it should be done you're doing Mr. President my name is called as Phillips and I would like to know why does the United States have to have nuclear weapons and instead of just relying on conventional weapons this question is being asked I know a lot and this is why yesterday I made my speech about a reduction because nuclear weapons do exist and because the Soviet Union has built up such an arsenal of nuclear weapons up until now the only deterrent that you have because there is no defense against that weapon so the only defense is that you have got to be able to threaten them that it can happen to them if they try to make it happen to someone else and as a matter of fact we've been kind of the umbrella of protection for our allies in Europe for Japan for other countries in having this arsenal and the Soviet Union have gone has gone beyond us what it's reached the point that there's just no reason in it and it is too dangerous to have these things pointed to the world in Europe for example the Russians had a rocket call a missile called the SS 20 a nuclear missile it was called an intermediate range because it couldn't come across the ocean and hit us but it was targeted on all the cities of Europe and Europe had nothing to counter it so our NATO allies asked us if a weapon that we have designed called the Pershing missile could be made and installed in Europe to counter this threat of the SS 20 so the Russians would know if they tried to use those the Europeans had something to use back and I challenged in November the Russians to join us in a total elimination of those weapons and right now we have a team in Geneva Switzerland negotiating with the Russians and we have put on the table a treaty calling for a total elimination of their SS 20s and no implanting of our Pershing missiles in all of Europe and so far the Russians their first offer was back they suggested that we freeze the weapons the way they were well now you can figure out what that means they wanted to freeze the weapons with 900 nuclear warheads aimed at Europe and Europe has none aimed at them I don't think that's a very fair freeze so we're trying to get those eliminated now we want to go into negotiations on all of them but it has to be we can't do it unilaterally can you imagine what would happen in the world if you left the Soviet Union with its pattern of aggression with the fact that what is doing in Afghanistan how it's shown that it wants to interfere in other countries if we did away with ours and left them with those thousands and thousands of missiles that in 28 minutes from the time someone pushes the button could be hitting the targets in our country so we have said to them all right let's both of us start reducing those weapons down keeping our segment and being equal and get them down to where they don't constitute the threat and of course the ultimate goal that we could all dream of is the same one that's in Geneva now getting rid of them forever and believe it or not you could be proud of your country under President Eisenhower number of years ago this country we had the weapon then and the Soviet Union was just beginning to try and build them but we had them and President Eisenhower offered to the Soviet and to the world to turn all such weapons over to an international body like the United Nations and take all of them away as a threat between nations and the Soviet Union refused so we're gonna try again it was Tony Duffy oh could I just finish with the three there then all right he tells me my time is up we'll take these three then I'm sorry and I would like to ask you about your feelings concerning gun control ask what what are your feelings concerning gun control oh feeling concerning gun control I would like to tell you something we didn't California than I think it's the only answer I don't believe that taking guns away from honest people is going to keep the criminals from getting them the there probably are no stricter gun controls in the world than those in Washington DC there are over 20,000 gun control laws in the United States today but the fellow that decided to use me for target practice a year ago last March there he was on the street at 2 o'clock in the afternoon in spite of all those laws against it and he had a gun what we did in California is what I recommend as the answer we passed a law when I was governor that said that anyone who commits a crime if he had in his possession a gun at the time he committed the crime whether he used the gun or not add 5 to 15 years to the prison sentence and no probation he had to go to prison and I think that might take some of the guns out of the pockets of the criminals to countries such as Argentina South Africa which are dictatorships what we're trying to do we've had in the past abandoning those countries saying we won't do any business or have any relations with them and it didn't accomplish anything and in many instances not those two particular countries but a number of other countries in the world emerging countries wound up with even more authoritarian governments than the dictatorships you name they ended up under the totalitarianism of Soviet inspired communism and Gola policed by Cuban troops that the Soviet is put there South Yemen Ethiopia countries of that kind my belief is that we can do better with what I have called quiet diplomacy that no we don't approve of the practices in some of those countries but let us befriend them and then let us quietly and behind the scenes try to persuade them that there is a better way to live in other words our democracy wants to a political leader that you say out in the paper and make a big charge and say you've got to do away with this or you got to change this you've made it almost impossible for him to do that being a politician he can't in the eyes of his own people give in to the demand of someone in another country but if you go to them and say hey look we like to do business with you and we'd like to have trade with you and so forth but it's kind of difficult there's some political problems in our own country in our democracy because of things that you're doing that aren't democratic but you say it to him quietly now let me give you an example of a president a few years ago who did that with the Soviet Union and the emigration of Jewish people they were not allowing them to leave the Soviet Union to go to move to Israel but I happened to know of a president who went to mr. Brezhnev and told him of some of our political problems here in this country and how they interfered with our trying to get along better with them and about a year later you woke up and realized that about 35 or 40,000 Jewish people a year were leaving Russia and going to to Israel and this is what we're practicing we're not just putting a blessing on those countries we're trying what we think is a more practical way to get the job done thank you my name is Kenneth Brian Hawkins mr. President and I'd like to ask you how do you plan to eliminate unnecessary government spending and reduce the federal deficit the budget that we've submitted is just a classic example of that that I've already talked about you see when a budget is passed and I know we use the term budget cuts we haven't cut any budget if cutting a budget would mean that we've asked for a budget next year that's smaller than this year's we haven't the budget next year is going to be considerably larger than this year's as this year's is larger than last year's the difference is when a budget is established and the Congress builds in some programs that they say okay these are ongoing programs and they're automatic the ones they call uncontrollable meaning that every year automatically without Congress doing anything the spending for these budget budget items goes up and the result was that the 1980 budget to 1981 that we inherited was a built-in increase of 17% a year well your tax revenues don't increase 17% a year and that's why you have deficits and we've been having them for 40 years now so what we have done is trim that expected increase and say it doesn't have to go up that high to get Congress to agree to set some controls on the so-called uncontrollables and the result has been that next year's budget if it is passed as we submitted it will be bigger but it by 6.9% but that's a lot different than 17% and the projected deficits for the next three years if we don't do anything are 182 billion dollars for 1983 233 billion for 1984 and a figure higher than that I forget the exact figure for 1985 well this means deficits getting bigger and bigger and already a hundred billion dollars of our annual budget is just for interest on the debt now if our budget is adopted next year's budget won't be a hundred or deficit won't be 182 it'll be a hundred and six billion the next year's budget won't be 233 it'll only be 69 and the third year's budget won't be more than 233 it will be 39 in other words the deficits will be coming down and you can see at that rate where a year or two beyond that they will be balanced and then we can begin whittling that debt and lowering that hundred billion dollars a year in in interest payments so this is what this is the way the only way to get at it now our opponents who are opposing us on this have said no the only answer is to raise taxes to eliminate the deficit but we raise taxes between 1976 and 1981 by 300 billion dollars and we had 318 billion dollars in deficits in those same five years so we think the taxes can't keep up with deficits you have to lower that increase in the government rate of spending I just want to say one thing to you because I can't take any more questions to all of you I've had to answer some of your questions with some figures what I claim are facts don't let me get away with it check me out make sure that what I told you checks out and is true but do that to everyone else who also comes before you and sings a song and tries to tell you don't be the sucker generation take a look at it and say it sounds good I'll find out for myself if it's true now that doesn't just mean finding someone of the opposite viewpoint who says everything he told you is wrong no really check it out find out if our budget is going to reduce those deficits the way we said it would and I know that all that information is available I'm could I just because I'm in the presence of a man that's a hero of mine could I I know that young people don't like to hear about war I think but could I tell a little story that I kind of like yes sir mr. president and I just think you know that reminds me when I was first in this job and some of those men in uniform would salute me as the commander-in-chief having been in the service I knew that you don't salute when you're not in uniform and it was bothering me I'd try to nod to them but they just stand there with that salute and finally one day I said to the commander to the commandant of the Marine Corps I said you know there ought to be a regulation that if the president's the commander-in-chief that he ought to be able to return those salutes and the general said well mr. president I think if you did it no one would say anything about it so I now return the salutes but the story that I want to tell you and I hope you'll appreciate it was in the Vietnamese war and a captain with a platoon of men and a typical American army platoon black brown white was in a warehouse stored with ammunition and they were unloading a new shipment of ammunition and one man dropped from way up on the top of a stacks of ammunition a crate of hand grenades and the crate smashed and they rolled all over the floor now only one of those and that whole warehouse was going to go up and the captain ordered everyone out they got out and they waited nothing happened and then the captain said to the platoon wait here and he went back in and he picked up a grenade and he'd taken some adhesive tape with him and he taped the pin down so that it couldn't go off and detonate and it worked and he then went outside and told his men what he had done and got them all tape and he said now we'll go in and pick up the grenades and he showed them how to tape I would say that in the traditions of an officer a man in command who has to make sometimes some unhappy decisions he had exemplified the highest standards of being an officer in that he went in and he took the risk and did not endanger his men until he had proved that it would work and I just thought that you might like to know that that captain was black and I think it exemplifies what so many of us dream today that what lingering separations there are what lingering divisions between our people and sure there are rednecks and bigots and there are people that are prejudiced on all sides and for every reason religion and everything else but I think there was an example of what real America can be and what I think the overwhelming majority of us regardless of our religion a race or our ethnic background want America to be and we must keep in mind at all times that all those other people are out there wanting the same thing and we continue to work for that Thank you Mr. President Mr. President before leaving we would like to give you a little gift gentlemen will you please come out