I very firmly believe that what unites America today is infinitely more important than those things which divide us. We are united Americans — North,… - Richard Nixon

Whether our values are maintained depends ultimately not on government, but on people. A nation can only be as great as the people want it to be. A nation can only be as free as its people insist that it be. A nation's laws are only as strong as the people's will to see them enforced. A nation's freedoms are only as secure as the people's determination to see them maintained. And a nation's values are only as lasting as the ability of each generation to pass them on to the next. We often have a tendency to turn away from the familiar because it is familiar, and turn to the new because it is new. To those intoxicated with the romance of violent revolution, the continuing revolution of democracy may sometimes seem quite unexciting. But no system has ever liberated the spirits of so many so fully. Nothing has ever "turned on" man's energies, his imagination, his unfettered creativity, the way the ideal of freedom has. We can be proud that we have that legacy and that we celebrate it today. Now there are some who see America's vast wealth and protest that this has made us materialistic. But we should not be apologetic about our abundance. We should not fall into the easy trap of confusing the production of things with the worship of things. We produce abundantly, but our values turn not on what we have but on what we believe. And what we believe very simply is this: We believe in liberty, in decency, and the process of freedom. On these beliefs we rest our pride as a nation. In these beliefs we rest our hopes for the future. And by our fidelity to the process of freedom we can assure to ourselves and our posterity the blessings of freedom.

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.

Listen to Professor Peter Drucker analyze the problem of government today: "There is mounting evidence that government is big rather than strong; that it is fat and flabby rather than powerful; that it costs a great deal but does not achieve much .... Indeed, government is sick--and just at the time when we need a strong, healthy, and vigorous government." The problem has not been a lack of good intentions, and not merely a lack of money. Methods inherited from the thirties proved to be out of date in the sixties. Structures put together in the thirties broke down under the load of the sixties. Overcentralized, over-bureaucratized, the Federal Government became unresponsive as well as inefficient. In their struggle to keep up, States and localities found the going increasingly difficult. In the space of only 10 years, State and local expenditures rose by two and a half times---from $44 billion in 1958 to $108 billion in 1968. States alone have had to seek more than 200 tax increases in the past 8 years. You know--you as Governors--and I know, that simply piling tax on tax is not the long range solution to the problems we face together. We have to devise a new way to make our revenue system meet the needs of the seventies. We have to put the money where the problems are, and we have to get a dollar's worth of return for a dollar spent. Our new strategy for the seventies begins with the reform of government: overhauling its structure; pruning out those programs that have failed or that have outlived their time; ensuring that its delivery systems actually deliver the intended services to the intended beneficiaries; gearing its programs to the concept of social investment; focusing its activities not only on tomorrow, but on the day after tomorrow. This must be a cooperative venture among governments at all levels, because it centers on what I have called the "New Federalism"--in which power, funds, and authority are channeled increasingly to those governments that are closest to the people. The essence of the New Federalism is to help regain control of our national destiny by returning a greater share of control to State and local governments and to the people. This in turn requires constant attention to raising the quality of government at all levels.