 Thank you, and welcome to the White House. I want you to know that Nancy and I are as happy as anyone could be living here with 100 MX's in the basement. It's such a pleasure to play host to old friends, especially those who over the years have made it their responsibility to contribute so much to resources and personal effort to conservative causes. So let me just offer you a heartfelt thank you for all that you've done to support our common ideals. Thank you as also for your efforts since I got to this current job, whether it was for reducing the growth of federal spending or cutting the tax rates or rebuilding the national defense, you've kept the home fires burning. Burning right under the feet of the undecided votes up on Capitol Hill. And it made a difference. I have often said it isn't always necessary to make them see the light, just make them feel the heat. Washington establishment, and if I ever think that means us instead of them, I'll have been here too long. Well, they have yet to come to grips with just how important the conservative movement has been to the shift in political power as represented by our administration. Non-party political organizations and political action committees play an indispensable role in mobilizing public opinion on critical issues. And this isn't to say that the PACs and other philosophically motivated groups have a perfect record, but at times I get a feeling there's a double standard applied to conservative political action committees. And it reminds me of how generous contributors and to conservative causes are always labeled fat cats, while big liberal contributors are called public-spirited philanthropists. Working together, we, the Republican Party, the conservative movement, the PACs, and the conservative-issued lobbies have come a long way. The foundation for even greater achievement is in place. How many of you, for example, can remember when it was almost impossible to find a conservative to speak with authority on an issue? Well, today, there are a host of vibrant new leaders out in the departments and agencies who are not only doing a fine job there, but who are also developing expertise in everything from defense to social welfare to education. Morton Blackwell, who's here on the White House staff, calls it the credentialing of the right. And it will reap benefits in decades to come. Hardworking men and women of this administration, and I'm proud of every one of them, have shifted the political center of gravity and turned around the national debate. Today, we're debating how much power should be returned to the states. We're debating how to strengthen our national defense, the right of school prayer, and the need for tuition tax credits. It wasn't too long ago that the only debate found us on the side of trying to fight a rearguard action against more and more social engineering and government spending and increasing size and power of government. Perhaps no one better exemplifies the change that has taken place here than our United Nations Ambassador, Jean Kirkpatrick. And I am grateful to have her on the team and proud. I see you have kept aware of what's going on. The first time in years that we've had someone aggressively, with no apologies, representing the United States and the cause of freedom at the United Nations, she sent a little series of identical letters around the shop after there had been some intemperate remarks made about us, and she got 27 letters of apology. But after a long period of vacillation and despair, we've again rekindled the torch of liberty, reclaimed America's legitimate leadership role in international affairs. And we're finally on ideological offense against tyranny. Remember how appalled we all were in past years when representatives of the United States appeared apologetic in the face of some of those vicious diatribes? Well, believe me, those days are past. Jean and our other representatives aren't sitting back silently and taking that verbal abuse anymore, as I just said. Today, our representatives speak the truth, loudly, clearly, and with pride. We must and we will have peace with the nations, with whom we have fundamental differences. But today, our adversaries understand that we will not hesitate to promote precious ideals that are the basis of our free system. We're also taking the offensive domestically in many areas of longstanding concern to all of us here today. Thomas Jefferson said to compel a man to furnish contributions of money for the propagation of opinions which he disbelieves and abhors is sinful and tyrannical. Well, it's no secret that for some time now, the government has turned a blind eye to the misuse of federal funds for blatant political forces. And we're now taking steps to ensure the federal grants and contracts will not be used to finance political advocacy. So those engaged in political clauses can do it with their own money, not the taxpayers' money. As you know, two years ago, we promised the American people we'd make America strong again. But we have put in place a program of tax rate cuts, spending controls, and deregulation that is just now coming to bear on the long-term problems that we inherited. I'm happy to tell you that I remain unabashedly confident and with good reason, America is on the mend. And now that situation has begun to turn around, I hope you'll remember and remind all your friends and neighbors about the politicians who wanted us to go back to the tax and tax and spend and spend inflate and inflate policies of the past, even before our program had a chance to work. And when you're talking to friends, I hope you'll also explain to them just why we had to maintain a strong national defense. You understand or you wouldn't be here today. But you know, many people, including conservatives today, have heard this drumbeat about that's the place where the money is going in the wrong direction. So much that a great many Americans aren't fully aware that we're making up for decades of neglect to the security needs for today. And today, just as it's always been, strength, not weakness, is the greatest guarantee of peace. And in our country, peace and freedom depend on understanding and the support of the people. You and the organizations you support, whether it be Americans for Change or the Fund for the Conservative Majority or the National Conservative Political Action Committee, you've done so much over the years to inform the American people about the chance, the choices that we face. And I have a last request, don't let up. There's still a long way to go. Our greatest accomplishments lie ahead. I thank you again for being here, but having said that, I realize that there isn't any possible way that I can have the time to mingle and to talk with each one of you as I would like very much to do. I found that's one of the drawbacks in this job. They've also always got something scheduled right after something. But I would like to take, and it could only be for a few minutes, but I'd like to take a few minutes and maybe we could have in one sense a dialogue here, even though I can't get down and mingle the way I'd like, but I'm sure that there must have been times, particularly if you read the same papers I read when you have said to yourself, boy, if I had a chance, would I ask him? Well, ask me, yes. I'm going, no, I'm not reaffirming the Monroe Doctrine, but in my speech on foreign policy, which will be, well, as a matter of fact, I made it already, not soon. I made it this morning. Yes, to the American Legion Convention, National Convention. And I did outline what our strategy is in contrast to those who say we haven't got one. We've got a pretty busy one. And I took care of Latin America very well and emphasized its importance to us and the fact that we are not going to abandon those democracies down there that are being invaded by imported subversion sponsored by the Soviet Union and Cuba. And we're going to keep on doing everything we can to help. But I'm going to take your question in just a second, but I have to tell you, if you haven't heard it, it's a terrible story. It's a deathbed story. But when Brezhnev was leaving the world and he asked Yuri and dropped off to bend down and he said, Yuri, make sure the people follow you. And Yuri said, lay on it. If they don't follow me, they'll follow you. Yes. Yes. Well, at times with all of this talk about their job bills and what they want with those, I'd like to point out that the decline in unemployment that took place in the month of January would have required a $5 billion jobs bill to have the same effect. And we got it without spending anything. Now, we've got what we think are some legitimate things. And that is, in our budget for 1984, there are many departments and agencies that have asked for funds for necessary maintenance, repair, construction, and so forth. And we've conceived of the idea and proposed. And I must say that the leadership and the democratic side has listened and is giving full consideration to simply moving up some of those projects and doing them starting now in this year in which they will directly and indirectly create additional jobs. And it doesn't mean that we're adding spending to a budget. We'll simply move it up and spend it a little earlier, get the job done, and get some people back to work. Incidentally, on your question before about the Monroe Doctrine, I think you should know that it isn't our opponents or adversaries. It is our own allies and friends in Latin America who found themselves chafing under the Monroe Doctrine. And they do not want it reapplied. They felt it had a kind of a sense of big brother taking care of them. So big brother's just going to be a big friend. I have to say, I think it is too early to say that one, no, first you would either be then accused if you said one thing of doing everything for political reasons, or if you said the other thing, you'd automatically be a dead duck. I have said, though, that I think the people let you know whether you should or not. And I want you to know I will remember your reaction. I have to say that I can't give an opinion on it yet because we're going to look at that. We're going to study. We all of us believe here that one of the things is not only the amount of the tax, but there's no question our tax system has become so complicated that simplification is really called for. I think many people's resentment is not to the amount of their tax. It's to the difficulty of computing it anymore. It's the only time in your entire economic life when you owe a bill and they don't send you a bill, they tell you that you've got to figure out how much you own. If you make a mistake, they'll find you. But it's very true that that will be one of the things that we're going to be studying and looking at. As you do look and start to study, you find there are some drawbacks as well as some advantages. But we're going to give that full consideration. There was a lady back here and then I'll come over. Oh, well a lady here and then a lady there. Yes. If I understand you correctly, were you asking about and why we have not gotten more circulation on our private initiatives and the thing that the people are doing voluntarily? I wish I knew. I really do because I'll tell you, the thing that has struck me is the constant drumbeat of gloom that is on particularly TV news. The other night when they were talking about the drop in unemployment, they then followed it with finding a couple someplace that had to sell their car and their furniture because they were unemployed and all this. We have had for a year and they finished their task now at a private initiatives task force, volunteers, all of them and they have gathered up all over from this country what people are doing at their community level, the state level, private level, to meet many of the problems that over the years we've come to think of belong to government, that they should solve them. And we now have a computer bank here in the executive branch with a team there that has over 2,500 programs that are either partnerships between the private and the public sector or completely private solving everything from school dropouts to food programs, to programs for the elderly, every kind of program you could imagine. And now any community, any group that has a problem and wants to find out can call us and incidentally we've put out a great many brochures nationwide advertising this where we can put them in touch directly with the people that have solved these problems at their level, at their community level. Things like Midland, Texas where they have Christmas in April, you've probably never heard of that. Well Christmas in April is every April, all year long they have been collecting the information on people's homes, needy people, elderly people, handicapped people that need repairs, refurbishing of some kind and in April, volunteers, business people, lawyers, doctors are out there with paint brushes, hammers and nail saws, they put on roofs, they repair plumbing and electrical work, rewire homes, they paint homes and so forth for these people and it's done every April and they call it Christmas in April. And it's just a program they've found out to refurbish their community year after year. Now I know about High Frontier and I can assure you we are not evading or neglecting looking at that principle. We're looking at it very closely. I shall be very pleased to do that and I know that in about just three or four minutes I've got to leave but I will come by that way. Yes. Didn't, did I understand correctly? Did I say, am I aware of how many people pray for me? Well, I have to tell you, I believe in intercessionary prayer and I believe that without being told but many people have told me, I would know that they are and the only thing I do want to say to you if it's that sometime when you are praying for me if you get a busy signal, it's me in there ahead of you. I would be very, I would like to have, is there a return address on there? Huh? All right. I love letters and particularly, I love them from, I love the letters that I get from children. They're just, they're wonderful. Oh, and then I get to, all right. Where is it all going to end? A campaign on a balanced budget and now we have budget deficit bigger than ever and where is it going to end? If I can't do it, who could? Well, 50% of the present deficit is recession caused. The possibility by 1984, we could balance the budget. By the time the election took place and before we came here for inauguration, the economic conditions had so worsened, 21.5% interest rate, unemployment had continued, inflation continued for its second year, increasing double digit for two years in a row, back to back, well, all of those conditions that we had to alter again, our figures, but again, with the best projections that we could get and less optimistic than they had been earlier. No one foresaw and no one that we talked to or anyone else had projected that deeper slide. They call it a separate recession. We had a recession that started in 1979, went all the way through 80 and was continuing in 81 and then fell off the cliff in July. I'm interested when I hear a Senator from Massachusetts blame our economic plan for the recession. The first installment of our economic plan didn't even go into effect until October 1st. The recession, the big dip was in July, but it has changed that because for every one percentage point of increased unemployment, you have to count about another 30-odd billion dollars added to the deficit. That is an outgo for benefits to people that are now unemployed and in need and loss of tax revenue because they're no longer working and paying taxes. But the plan that we've submitted for the 84 budget, the Congress will pass the first time getting at what we call the entitlement programs. We have found that, you know, the President has to project for five years ahead and I do it with my fingers crossed because I don't think any economist in the world can project more than one year ahead with any degree of accuracy. But what we've done is the rate of spending increase was running at 17% a year when we came here. We have reduced that down to where for last year it was about 11%, 10 or 11% the rate of increase. In the 1984 budget, it will be down to 4% or 5% as a rate of increase. So what we can see now, if we have the cooperation that we want up on the hill, we can project two very sizable deficits, no question about it, 83 and 84, but then a declining pattern. Even with our modest projections, we deliberately have said we're going to project a rate of growth in this recovery that we think has started, in fact, we know has started. We're going to project a modest rate of growth and even with that we will have a declining pattern in which you then can look ahead and see where the two lines will cross the spending and the tax line and we're inclined to believe that the recovery is going to be a faster growth than we have anticipated which would bring that up even earlier than that. But I do think we can do it. But when I mentioned the entitlement programs, these were the programs that are actually spending is built in, the increase in it. And so the Congress didn't have to raise the spending bills. They just automatically increased. Well, these are what we're getting at, the things called the entitlement programs. Incidentally, with all of the criticism of defense spending, over the recent years while defense spending was declining by 20%, those programs I'm talking about were increasing by 122%. And this is where the runaway government, the uncontrollable feature of government, could be found. So. Those two are the messenger. They told me you've got time for only one more question. I thought they said vice president. I looked at them. All right. I think they're expecting you elsewhere. I'd promised this gentleman here, so this will be the one. I looked around and I'm sorry. My goodness. I want Texas to switch. Maybe Jen Ryder will switch there. Oh! Oh! Oh! Oh! Oh! I'm sorry. I think I do. I have to go. I can't take the rest of them here, and I wish I could. But I can't. And I'm very happy to leave you in the capable hands of George Bush, who came back from doing a magnificent job with regard to our disarmament proposal. And both of us only do well because we're backed by a couple of wonderful gals. Well, I thank you all for being here. And God bless you all. And I'll answer these letters. And George, I'm sorry. After you leave, I think there's a reception in the other room. No, we'll follow you out. But I think the reception down the other room. All right. I won't forget the names. Can I take one second and tell our story? You're a total. I said so many about economists and all. I have to tell you, this is a story, and I don't mean to be, well, frivolous about religion or anything. But three gentlemen, it is said, arrived at the pearly gates. And St. Peter told them there was only room for one. And he said, we've decided inside that the one who is practicing the trade or profession, which is the oldest, can come in. So a man stepped forward and said, I'm a doctor, a surgeon. And he said, we know that the Lord made Adam, and then made Eve from a rib of Adam's. That required surgery, so I guess I'm the one that goes in. But before he could move, one of the other two said, just a minute. He said, before God made Adam and Eve, the world was chaos. And he spent six days making the earth. So I guess he was an engineer, and I'm an engineer. He started to move. And the third one said, just a minute, I'm an economist. Where do you think they got all that chaos?