More than anything else, it is these new tasks of the future--not the distant future, but the immediate future--that give urgency to the need to reform government today. We can command the future only if we can manage the present. The reforms I have proposed are designed to make this possible. Only if we clean out the unnecessary can we focus on the necessary. Only if we stop fighting the battles of the thirties can we take on the battles of the seventies. These reforms represent a New Federalism, a new humanism, and, I suggest also, a new realism. They are based not on theoretical abstractions, but on the hard experience of the past third of a century. They are addressed to the real problems of real people in a real world--and to the needs of the next third of a century. They represent not an end but a beginning-the beginning of a new era in which we confound the prophets of doom, and make government an instrument for casting the future in the image of our hopes. That task requires the best efforts of all of us together. It requires the best thinking of all of us together, as we choose our goals and devise the means of their achievement. But the future that beckons us also holds greater promise than any man has ever known. These reforms are steps in the direction of that promise--and as we take them, let us do so confident in the strength of America, firm in our faith that we can chart our destiny to the abundant spirit of a great and resourceful people. This spirit has been our strength. Marshaled in a new Spirit of '76, giving force to our purposes and direction to our efforts, it can be our salvation.

the more fundamental problem with the big government explanation is that by most measures (all spending, or spending on the welfare state in real per capita terms, or spending as a fraction of GDP; number of government employees) the size of government lagged behind the I-we-I curve by several decades. Federal government spending and the number of employees rose steadily in tandem with the I-we-I curve from 1900 to 1970 and kept rising until they leveled off after the 1980s.

Now, I don't have all the answers, but I do know the old ways don't work. Trickledown economics has sure failed. And big bureaucracies, both private and public, they've failed too. That's why we need a new approach to government, a government that offers more empowerment and less entitlement. More choices for young people in the schools they attend- in the public schools they attend. And more choices for the elderly and for people with disabilities and the long-term care they receive. A government that is leaner, not meaner; a government that expands opportunity, not bureaucracy; a government that understands that jobs must come from growth in a vibrant and vital system of free enterprise.

I accuse the present Administration of being the greatest spending Administration in peacetime in all American history — one which piled bureau on bureau, commission on commission, and has failed to anticipate the dire needs or reduced earning power of the people. Bureaus and bureaucrats have been retained at the expense of the taxpayer. We are spending altogether too much money for government services which are neither practical nor necessary. In addition to this, we are attempting too many functions and we need a simplification of what the Federal government is giving the people."

Now I would like for all of us to look at these measures in a larger framework. Exactly 4 months from today, we will enter the decade of the seventies. And as we look ahead toward that 200th anniversary of American independence in 1976, we have a target to shoot for. What kind of a nation we will be on that momentous anniversary is ours to determine by what we do or fail to do now. As conditions are changing, so we must change. The reforms I have proposed in these legislative recommendations are not partisan changes. They are positive changes. They have no special constituency of region or class or interest group. Their constituency is tomorrow. It already is painfully clear that many hard choices will have to be made. Dreams of unlimited billions of dollars being released once the war in Vietnam ends are just that--dreams. True, there will be additional money, but the claims on it already are enormous. There should be no illusion that what some call the "peace and growth dividend" will automatically solve our national problems, or release us from the need to establish priorities. There are hard budget and tax decisions ahead. These involve your interests as Governors; they involve the interests of all of us as citizens. In order to find the money for new programs, we are going to have to trim it out of old ones. This is one reason why I regard the reforms I have proposed as essential. We can no longer afford the luxury of inefficiency in Government. We cannot count on good money to bail us out of bad ideas. Equally important, continued improvement of governments at the State and local levels is essential to make these new concepts work. If the delegation of funds and authority to the State and local governments under the Comprehensive Manpower Act is successful, this can then be a model for more delegations in the future. But we can only toss the ball; the States and localities have to catch it and they have to carry it. I am confident that you can.

Without doubt, the reason for increasing demands on the Federal Government is that the States have not discharged their full duties. Some have done better and some worse, but as a whole they have not done all they should. So demand has grown up for a greater concentration of powers in the Federal Government. If we will fairly consider it, we must conclude that the remedy would be worse than the disease. What we need is not more Federal government but better local government. Yet many people who would agree to this have large responsibility for the lapses of local authority.

The central race in the world today is neither an arms race nor a space race. It is the race between man and change. The central question is whether we are to be the master of events, or the pawn of events. If we are to win this race, our first need is to make government governable. When the new administration took office last January, we confronted a set of hard and unpleasant facts. I cite these facts not in a partisan way; they are not the fault of any one administration or of any one party. Rather, they are part of our common experience as a people, the result of an accumulating failure of government over the years to come to grips with a future that soon overtook it. We confronted a legacy of Federal deficits that has added $58 billion to the burden of public debt in the past 10 years. We confronted the fact that State and local governments were being crushed in a fiscal vise, squeezed by rising costs, rising demands for services, exhaustion of revenue sources. We confronted the fact that in the past 5 years the Federal Government alone has spent more than a quarter of a trillion dollars on social programs--over $250 billion. Yet far from solving our problems, these expenditures had reaped a harvest of dissatisfaction, frustration, and bitter division. Never in human history has so much been spent by so many for such a negative result. The cost of the lesson has been high, but we have learned that it is not only what we spend that matters, but how we spend it.

The federal government was smaller—4.3 percent of GDP in 1931—and narrower. About 70 percent of the spending went for three things: Defense, veterans’ benefits, and interest payments on the national debt. “The federal budget was not then, as it later became, a machine constantly generating new programs and expansions of old ones,” Herbert Stein wrote.

"If that was the American system, then drastic changes would be necessary in it. For Congressional Government, which Wilson described fearlessly and faithfully in his book, was intolerably bad government. Wilson never doubted that for good government there must be a strong Executive. If the office of President had fallen irrevocably from that "first estate of dignity"[9] which it had among the Founding Fathers, then the remedy for the radical defect of the system would lie in making a strong executive out of a responsible cabinet."

The solution to these problems does not rest on a massive program in Washington, nor can it rely solely on the strained resources of local authority. They require us to create new concepts of cooperation, a creative federalism, between the National Capital and the leaders of local communities. Woodrow Wilson once wrote: "Every man sent out from his university should be a man of his Nation as well as a man of his time." Within your lifetime powerful forces, already loosed, will take us toward a way of life beyond the realm of our experience, almost beyond the bounds of our imagination.

Conscious of a strength which removes us from either fear or truculence, satisfied with dominions and resources which free us from lust of territory or empire, we see that our highest interest will be promoted by the prosperity and progress of our neighbors. We recognize that what has been accomplished here has largely been due to the capacity of our people for efficient cooperation. We shall continue prosperous at home and helpful abroad, about as we shall maintain and continually adapt to changing conditions the system under which we have come thus far. I mean our Federal system, distributing powers and responsibilities between the States and the National Government. For that is the greatest American contribution to the organization of government over great populations and wide areas. It is the essence of practical administration for a nation placed as ours is. It has become so commonplace to us, and a pattern by so many other peoples, that we do not always realize how great an innovation it was when first formulated, or how great the practical problems which its operation involves. Because of my conviction that some of these problems are at this time in need of deeper consideration, I shall take this occasion to try to turn the public mind in that direction.

Government works less efficiently when it begins to grow out of control and takes on more and more of the responsibilities that belong to the citizens.

I will propose a Highway Safety Act of 1966 to seek an end to this mounting tragedy. We must also act to prevent the deception of the American consumer—requiring all packages to state clearly and truthfully their contents—all interest and credit charges to be fully revealed—and keeping harmful drugs and cosmetics away from our stores. It is the genius of our Constitution that under its shelter of enduring institutions and rooted principles there is ample room for the rich fertility of American political invention. We must change to master change. I propose to take steps to modernize and streamline the executive branch, to modernize the relations between city and state and nation. A new Department of Transportation is needed to bring together our transportation activities. The present structure—35 government agencies, spending $5 billion yearly—makes it almost impossible to serve either the growing demands of this great nation or the needs of the industry, or the right of the taxpayer to full efficiency and real frugality. I will propose in addition a program to construct and to flight-test a new supersonic transport airplane that will fly three times the speed of sound—in excess of 2,000 miles per hour. I propose to examine our federal system-the relation between city, state, nation, and the citizens themselves. We need a commission of the most distinguished scholars and men of public affairs to do this job. I will ask them to move on to develop a creative federalism to best use the wonderful diversity of our institutions and our people to solve the problems and to fulfill the dreams of the American people. As the process of election becomes more complex and more costly, we must make it possible for those without personal wealth to enter public life without being obligated to a few large contributors. Therefore, I will submit legislation to revise the present unrealistic restriction on contributions—to prohibit the endless proliferation of committees, bringing local and state committees under the act—to attach strong teeth and severe penalties to the requirement of full disclosure of contributions—and to broaden the participation of the people, through added tax incentives, to stimulate small contributions to the party and to the candidate of their choice.

Our federal government, which was intended to operate as a very limited constitutional republic, has instead become a virtually socialist leviathan that redistributes trillions of dollars. We can hardly be surprised when countless special interests fight for the money. The only true solution to the campaign money problem is a return to a proper constitutional government that does not control the economy. Big government and big campaign money go hand-in-hand.