My own ultimate goal is to eliminate the use or threat of nuclear weapons altogether. And I personally have been pleased in the last few months, at least since the summer, at the constructive attitude of the Soviet Union. We have to be very careful on technicalities and on major strategic elements of the negotiations to protect our own interests. We've got to be sure that we do have an equal or dominant position on all aspects of strategic deterrent. And I believe that we have that posture now, and I want to be sure to maintain it. We've tried to open up a new relationship with Africa. We've been successful, I think, so far. We've got a very good relationship with Latin America. I think that could possibly be wiped out overnight if the Senate fails to ratify the Panama Canal treaties, but I hope and believe that the Senate will ratify these treaties. We've got a good relationship, perhaps better than at any time in recent history, with Canada; strong, constant negotiations on a variety of items with Mexico. And we've, I think, restrengthened our position in Europe. We consult almost constantly with European Community nations and also with our NATO allies on military affairs. Harold Brown has just come back from there--well, I think he's on the way back now. The other aspect of our foreign policy, of course, extends to the Western Pacific. We are now in hard negotiations with the Japanese on trade matters, and I hope that we can resolve those differences. Japan has a very high positive trade balance. We have a very high negative trade balance. The obstacles to selling our goods in Japan are quite difficult to overcome. But Prime Minister Fukuda, I think, is negotiating in good faith. Perhaps we can have some success there. I'll be leaving Washington on the 21st, going down to Plains until the day after Christmas, and then I'll come back and leave almost immediately for a trip, beginning in Poland, that would encompass a visit to Brussels, to France, to Iran, Saudi Arabia, and India. And then I'11 come back home after about a 10-day trip. Perhaps you have some questions. I just briefly sketched a few points to arouse your interest.
president of the United States from 1977 to 1981 (1924–2024)
James Earl Carter, Jr. (October 1, 1924 – December 29, 2024) was an American politician and member of the Democratic Party who served as the 39th president of the United States from 1977 to 1981. In 1982 he established the Carter Center, as a base for promoting human rights, democracy, finding peaceful solutions to international conflicts, and advancing economic and social development, for which he was awarded the Nobel Peace Prize in 2002. He was a key figure in the Habitat for Humanity project, and has been noted for his criticism of Israel's role in the Israeli–Palestinian conflict.
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In closing, I want to ask you to do one more thing, and that is that since you've bound yourselves together in a common purpose, understanding one another and overcoming the differences that exist among you, that now you try to understand the special needs of the nonhandicapped, to understand the needs of other handicapped people. It's not a time for hatred or lashing out or recrimination or condemnation of the nonhandicapped for the long delays in meeting your needs, because many people who are not handicapped can't understand those special needs. So, it's a time of education both ways, and for a realization that only when we work together--the handicapped who are leaders, the handicapped who will always be dependent, the potentially handicapped child who wants to have that prevented and the nonhandicapped adult leader--when we work together, we can continue to make even greater progress.
Yes. I met Monday with the Secretary of Interior, Secretary of Agriculture, Secretary of Army, and the head of the Corps of Engineers. We have 9,000 high-risk dams in this country which are not Federal dams. These are nonfederal dams. We will commence very shortly an inspection of all those dams. My present intention is to distribute, within the next few days, certain guidelines to be worked out with individual States so that the Corps of Engineers personnel, perhaps assisted by some from the Department of Interior, would begin to inspect the dams that we consider of most danger, about 2,000 the first year. It costs about $7,500 per dam to inspect them, on the average. We've allotted $15 million for this purpose. In that process, we will train the State personnel who will continue the inspection process after this original inspection is made. We would then continue this for 2 or 3 additional years until all the 9,000 dams have been inspected. This program then would be taken over primarily by the States because the Federal Government has no direct responsibility for these nonfederal dams. In the meantime, of course, dams that have been built by and are controlled by the Corps of Engineers and the Department of Interior are being inspected, I think adequately, by the personnel in those departments because they are Federal dams.
I know, of course, being President, that government actions and legislation can be very important. That's why I've worked hard to put my campaign promises into law — and I have to admit, with just mixed success. But after listening to the American people I have been reminded again that all the legislation in the world can't fix what's wrong with America. So, I want to speak to you first tonight about a subject even more serious than energy or inflation. I want to talk to you right now about a fundamental threat to American democracy. I do not mean our political and civil liberties. They will endure. And I do not refer to the outward strength of America, a nation that is at peace tonight everywhere in the world, with unmatched economic power and military might. The threat is nearly invisible in ordinary ways. It is a crisis of confidence. It is a crisis that strikes at the very heart and soul and spirit of our national will. We can see this crisis in the growing doubt about the meaning of our own lives and in the loss of a unity of purpose for our Nation. The erosion of our confidence in the future is threatening to destroy the social and the political fabric of America. The confidence that we have always had as a people is not simply some romantic dream or a proverb in a dusty book that we read just on the Fourth of July. It is the idea which founded our Nation and has guided our development as a people. Confidence in the future has supported everything else — public institutions and private enterprise, our own families, and the very Constitution of the United States. Confidence has defined our course and has served as a link between generations. We've always believed in something called progress. We've always had a faith that the days of our children would be better than our own. Our people are losing that faith, not only in government itself but in the ability as citizens to serve as the ultimate rulers and shapers of our democracy. As a people we know our past and we are proud of it. Our progress has been part of the living history of America, even the world. We always believed that we were part of a great movement of humanity itself called democracy, involved in the search for freedom, and that belief has always strengthened us in our purpose. But just as we are losing our confidence in the future, we are also beginning to close the door on our past.
Acknowledging the physical realities of our planet does not mean a dismal future of endless sacrifice. In fact, acknowledging these realities is the first step in dealing with them. We can meet the resource problems of the world — water, food, minerals, farmlands, forests, overpopulation, pollution — if we tackle them with courage and foresight.
Well, one of the major Considerations in evolving the tax reform package is obviously to provide adequate incentive for business expansion. And I believe that when the tax reform package is made public, that there will be a sigh of relief and also a removal of the inevitable uncertainty about what the terms of the tax proposal might encompass. Also, of course, through long weeks of House and Senate hearings, any possible improvements on the tax reform package would be explored. We have met with many leaders--I have personally--representing small businesses, large businesses, the professions, labor, consumers, tax experts, in trying to evolve a good package. And I think it will be good. We hope that there will be equity. We hope that there will be a reduction in tax rates. We hope that there will be simplicity, and we hope that we can provide an adequate assurance of improved venture capital in the future. And we hope that there will be substantial tax reductions. Those are about five factors that I hope will be in the tax reform package and which I can predict to you with great assurance will be in the tax package.
We've let those standards of prevention emphasis deteriorate over the last few decades. Recently, Joe Califano, who is the new head of the Health, Education, and Welfare Department, was talking about this. And we decided to increase the emphasis placed on the health care for children. In the past, the Federal Government has paid 50 percent of the cost of identifying young children who need health care, and we had very slight response. So, we decided in this next budget to increase that to 75 percent, hoping that in this way, within the school environment, within the outpatient clinics, within the county health centers, that we could identify children who perhaps have not had the good fortune that many of your children and my child has had, and might have potential problems observed and corrected before they reach their formative years of life. This tremendous new Children's Hospital is designed to do several things. One is to treat those children who have severe health problems, particularly cardiac patients at a young age, below 18 or so. Ninety percent of those kinds of patients in the whole metropolitan area are likely to be treated here. And one-third of all the children in the metropolitan area of Washington will be treated here.
I'll never forget what Florida did for me in 1976. As I told a small group a few minutes ago, we came to your State, our neighbors, when I didn't have any friends in this country, very few people knew who I was or had ever heard of me. And we went from one courthouse to another and one small radio station to another, one of your homes to another, met with just a few friends, visited in your churches, in your Lion's Clubs, in your schools, talked to you, and learned and listened. I went in one direction; my wife went in another. And that was the basis for my success later on in 1976. The contest here in your primary, I think, was the turning point in the entire election. It focused attention not only on you Floridians and your judgment but also on the fact that my campaign did have some strength. It made a great impact on the rest of the Nation. 1976 in the primary was a very gratifying gift that Florida people made to me. Later it was generally assumed that Florida, because of some of your past voting mistakes, might go Republican in November. But when the returns came in, the Florida electors went to Jimmy Carter and to Fritz Mondale. That was in '76 in November.
I'm trying to approach the Government as a business manager and also as a small businessman who knows the defects in the Government. Our family has been brought very close together. We've had substantial success in the developing nations of the world in being reaccepted as a part of the world community who had some concern about them and who treated them with equality and mutual respect. I believe we've had a blessing in that we've not had a serious military threat. This, obviously, is something that I hope to maintain throughout my term in office. I hope that we've taken at least a small step forward in restoring the confidence of the American people in the integrity of the Government and the competence of Government. This is going to be a slow process. It's something that can't come in a year, or even 2 years, because with the horrible shocks of Vietnam and Watergate and the CIA revelations, the American people had lost confidence that there was something here in Washington that they could trust and admire. I think the most pleasant surprise to me has been the worldwide impact of our reemphasis on human rights. I really felt when I came into .office that something needed to be done just to raise a banner for the American people to admire and of which they could be proud again. I think that the emphasis on human personal freedom and democratic principles is very important for us to espouse. And although a year ago, I think, very few national leaders anywhere in the world paid much attention to human rights, I don't believe there's a single one out of the roughly 150 that now doesn't consider, "Before we take action, what is the world going to think about me, the way I'm dealing with political prisoners or out-migration or the reunification of families or the persecution of human beings?" I think the human rights issue has been a great escalation. We've also made a major move toward nonproliferation of nuclear explosives. And again, I think a year ago there was great despair in the world about whether anybody could ever put the nuclear genie back in the bottle. I think there's a reconfirmation now of effort on the part of even countries that have sold reprocessing plants, like Germany and France, all the rest of us, to try to stop the spread of nuclear explosives and not let it go into nations that haven't had them in the past. Those are a few things that come to mind.
Also, we need tax reduction and tax reform. They go together. They add up to $25 billion in net cuts in the income taxes Americans have to pay, and they are also designed to create an additional 1 million new jobs. Seventeen billion dollars of this tax cut will be for working families in our country, personal income tax reductions, and the rest in corporate tax reductions. Corporations will also receive higher tax credits for investing in the sort of new plants, new equipment that will make New England and the rest of the Nation competitive with aggressive foreign exports. But we can't have these cuts in taxes unless we help pay for them by eliminating some of our unnecessary and unwarranted income tax subsidies. Two of these are the deferral subsidy and the DISC subsidies. Both have a particularly bad effect in New England, where competition from abroad has had such a terrible effect on businessmen and on workers alike. The deferral subsidy sets a situation in effect where multilateral corporations pay lower taxes on foreign profits than they pay on their U.S. profits. This amounts to subsidizing corporations to export jobs overseas. The so-called DISC subsidies are just as bad. They let U.S. corporations set up dummy corporations to handle foreign exports, so as to keep from paying U.S. taxes on half their profits. Both these giveaways go overwhelmingly to a few of the largest multinational corporations, and both mean that the average taxpayer has to pay the bill, more taxes, just to take up the slack caused by these subsidies. And both cost America, and particularly New England, jobs. Both loopholes should be closed. As for the famous three-martini lunch, I don't care how many martinis anyone has with lunch, but I am concerned about who picks up the check. I don't think a relatively small minority has some sort of divine right to have expensive meals, free theater tickets, country club dues, sporting events tickets paid for by heavier taxes on everybody else. If the Congress will help me by getting rid of these tax loopholes and by enacting the entire economic program, we can have a good start on correcting unemployment and inflation. The economy won't turn around overnight, of course, any more than an ocean liner can turn around on a dime. The job will require slow, careful planning, not dramatic master strokes. It will require small corrections, of course, that we adhere to very patiently. It will require careful planning, careful adjustment, careful tuning and cooperation. The machinery of the American economy is sound. We have a lot to be thankful for. It's worked well despite severe shocks, but it can work better, and that's our major goal in this country this year.
Now I want to discuss something that's important to you and me both--our social security system. This is a problem for all Western democracies. Social security, which is probably the greatest legacy left over for us from the New Deal, has served us now for 40 years. But since 1975, social security has been paying out more than it's been taking in. Unless we take action now, the Disability Insurance Fund's reserves will be gone in 2 years, and the retirement reserves will be gone 4 years from then. Some have proposed a simple solution for this: to tax the American worker to the hilt. Well, we are not going to do that. Too many people are already paying more payroll taxes than they do income taxes, and we are not going to go this route to save the social security system. And we are not going to let social security go broke. We're going to keep faith with the 33 million Americans who already enjoy social security benefits and with the 104 million of us, who are paying into the social security system with the expectation that we will receive benefits when we retire, or when we become disabled, or those that are necessary to take care of our families if something happens to us. Now, there's no easy answer, but the changes that I have already submitted to the Congress will make social security financially sound for the rest of the century and will correct most of the problems for the next 75 years--and without a higher tax rate than already scheduled by law for the average wage earner. I'm going to need your help in Congress to get this bill passed, and I hope you'll help me with it.