In many ways, our economy last year was good. The inflation rate went down, and wages, profits, production, housing starts, real income, investment a… - Jimmy Carter

This war has been motivated by pride or arrogance, by a desire to control oil wealth, by a desire to implant our programs.

As you know, President Eisenhower also had a chief of staff, Sherman Adams, who ran things almost like a secondary President. But I've substituted for that an unprecedented use of the Vice President. He and I are close, personal friends. We have a harmonious partnership. I've grown to respect and like him more every day I've known him. And he has authority and responsibility in foreign and domestic affairs and also in helping to manage the White House staff that no Vice President has ever dreamed of having. And it takes a great deal of the burden off my shoulders. Formerly, Vice Presidents were over in the Executive Office Building across the street. I asked Fritz specifically to move over and occupy an office right down the hall from me. And so, in effect, he is the one who coordinates the staff work in the White House. He's thoroughly familiar with the Congress. He's been there for 12 years himself. He was on the Finance Committee and also the Budget Committee. So he's familiar with that. When I have budget hearings 2 1/2, 3 hours here in the afternoon--3 1/2 hours yesterday on defense--Fritz is there at my side. And I've incorporated him in this strategic military chain of command. No other Vice President has ever occupied those positions. And if something should happen to me, he would be thoroughly familiar with all the controversies, all of the foreign affairs considerations, all of the defense considerations, and be ready to act in a proper way. So, there are some different ways of management that I have brought into the White House that quite often have not been understood, but which I've very carefully evolved and of which I'm quite proud.

Our national energy plan is based on 10 fundamental principles. The first principle is that we can have an effective and comprehensive energy policy only if the Government takes responsibility for it and if the people understand the seriousness of the challenge and are willing to make sacrifices. The second principle is that healthy economic growth must continue. Only by saving energy can we maintain our standard of living and keep our people at work. An effective conservation program will create hundreds of thousands of new jobs. The third principle is that we must protect the environment. Our energy problems have the same cause as our environmental problems-wasteful use of resources. Conservation helps us solve both problems at once. The fourth principle is that we must reduce our vulnerability to potentially devastating embargoes. We can protect ourselves from uncertain supplies by reducing our demand for oil, by making the most of our abundant resources such as coal, and by developing a strategic petroleum reserve. The fifth principle is that we must be fair. Our solutions must ask equal sacrifices from every region, every class of people, and every interest group. Industry will have to do its part to conserve just as consumers will. The energy. producers deserve fair treatment, but we will not let the oil companies profiteer. The sixth principle, and the cornerstone of our policy, is to reduce demand through conservation. Our emphasis on conservation is a clear difference between this plan and others which merely encouraged crash production efforts. Conservation is the quickest, cheapest, most practical source of energy. Conservation is the only way that we can buy a barrel of oil for about $2. It costs about $13 to waste it. The seventh principle is that prices should generally reflect the true replacement cost of energy. We are only cheating ourselves if we make energy artificially cheap and use more than we can really afford. The eighth principle is that Government policies must be predictable and certain. Both consumers and producers need policies they can count on so they can plan ahead. This is one reason that I'm working with the Congress to create a new Department of Energy to replace more than 50 different agencies that now have some control over energy. The ninth principle is that we must conserve the fuels that are scarcest and make the most of those that are plentiful. We can't continue to use oil and gas for 75 percent of our consumption, as we do now, when they only make up 7 percent of our domestic reserves. We need to shift to plentiful coal, while taking care to protect the environment, and to apply stricter safety standards to nuclear energy. The tenth and last principle is that we must start now to develop the new, unconventional sources of energy that we will rely on in the next century. Now, these 10 principles have guided the development of the policy that I will describe to you and the Congress on Wednesday night.