You will see that our strategy is clear. It is to reorganise the functions of Government, to leave more to individual or to corporate effort, to make savings in Government expenditure, to provide room for greater incentives to men and women and to firms and businesses. Our strategy is to encourage them more and more to take their own decisions, to stand on their own feet, to accept responsibility for themselves and for their families.
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Some say our approach is really just more troops for the same strategy. In fact, we have a new strategy with a new mission: helping secure the population, especially in Baghdad. Our plan puts Iraqis in the lead.... Members of Congress have a right to express their views, and express them forcefully. But those who refuse to give this plan a chance to work have an obligation to offer an alternative that has a better chance for success. To oppose everything while proposing nothing is irresponsible.
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Now, this new law will obviously save people money, and it will also create jobs because consumers will have more of their paycheck to keep and to spend for goods that we produce. It's also going to save a lot of headaches next April, because 75 percent of all taxpayers will be able to take a standard deduction and compute their taxes on one side of one sheet of paper in one step. So, the multiple goals of economic strategy reinforce one another, they work together. The strategy is designed to cut unemployment to below 5 percent by 1981; to work with business and labor, together, to knock 2 percentage points off the inflation rate by the end of 1979; and by the higher revenues that growing employment will bring, to achieve a balanced budget in fiscal year 1981. Again, I want to stress two points about our economic policies because it's important for you and all Americans to understand. One point is that we aim to balance the budget in 1981 in a strong and healthy economy, with the revenues that come into the Government when people are employed and our industrial capacity is being used. It's not legitimate spending on human needs that causes Federal deficits. It's principally the inadequate revenues that come in from a sluggish economy that create those deficits. Understanding that is a very good move in the right direction. Cutting back programs that really help people is not the way to balance the budget. But even with adequate revenues, we'll still have to make some hard choices about how we spend the taxpayers' money. We can't afford to do everything. The other important point I want to make about the economy is that I'm inalterably opposed to fighting inflation by keeping unemployment high and factories idle. This has been done too much in the past. That approach has been proved in the last 8 years to be economically ineffective and morally bankrupt. If the economy should falter during the years ahead, I will not hesitate to propose the economic and budgetary measures needed to get the economy going again. And you can depend on that.
The new strategy for the seventies also requires a strategy for peace--and I pledge to you tonight that we will have an effective strategy for peace. Let me tell you what that strategy means and what it does not mean. It means maintaining defense forces strong enough to keep the peace, but not allowing wasteful expenditures to drain away resources we need for progress. It means limiting our commitments abroad to those we can prudently and realistically keep. It means helping other free nations maintain their own security, but not rushing in to do for them what they can and should do for themselves. It does not mean laying down our leadership. It does not mean abandoning our allies. It does mean forging a new structure of world stability in which the burdens as well as the benefits are fairly shared--a structure that does not rely on the strength of one nation but that draws strength from all nations. An effective strategy for peace abroad makes possible an effective strategy for meeting our domestic problems at home.
Corporate strategy is the pattern of major objectives, purposes, or goals and essential policies and plans for achieving those goals stated in such a way as to define what business the company is in or is to be in and the kind of company it is or is to be. In a changing world it is a way of expressing a persistent concept of the business so as to exclude some possible new activities and suggest entry into others.
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Most people don’t think more than one or two moves ahead. Those people are amateurs and flame out quickly in business. Effective strategy is about making a move and being prepared to launch another series of moves based on how the market or your competition reacts. You must think beyond your first strike to execute an effective strategy. When you start to get really good, you anticipate how others will react and can deploy a series of moves that are nearly impossible to counteract.
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