You know not long ago a News television reporter asked Jimmy Carter What kind of a report card that he would give on his economic policies and mr. Carter responded by saying a quote under the circumstances. I think about Abby the actual results may be a c. Well, I've been traveling back and forth across tumeric for almost a year now and I have yet to find anyone who isn't prepared to give him an F. I'm going to talk a little bit about these policies, but I'm not only talking to all of you and you might be interested to know that outside is a crowd almost this big that couldn't get in and they're hearing it out there and I'm grateful to them for being here as well as for you. But let's take a look at those policies just this morning. I read that meat prices are going to Surge in 81 two days ago. I saw an announcement from the US Department of Agriculture that all food prices will go up 15% of more next year. Let me make something playing being something of a farmer myself. This does not necessarily mean that the farmers are going to be better off than they are right now. The prime interest rate is back up to 14% many personal loans or anywhere from 16 to 17% Mortgage rate. Mortgage rates are back up to 14% of the Housing Industry is devastating Domestic Auto Sales were reported down 22% from this time last year and tens of thousands of Auto Workers are reeling from The Carter failures. My Friends by any measure those are failing grades are there the grades of a man whose policies have pushed down millions of Americans either end of the tragedy of unemployment or it what daily struggle for existence against the most rampant peacetime inflation in our history? I want a report to you briefly on what I've seen as I've traveled a great industrial centers over the of the United States over the past few days. I've seen an old and proud neighborhood in Connecticut which survives almost only on tradition the closing down of factories and plants have led to widespread job losses. I've talked to people who wonder whether their own government is a friend or an adversary and just this morning. I tore Damascus steel facility Youngstown, Ohio that look like a ghost town Twisted pieces of rusted metal line around surrounded by weeds and empty of the people of noises that would mean a booming economy. As a matter of fact, they told us that we drove slowly through the between the various buildings on this lot were this great steel planted was or had been just a few years ago. Just be bought the time when Carter was being inaugurated you could have driven through that you couldn't have driven through that plant because of the activity and the numbers of employees. That would have been there everywhere. I go I find economic hard times and men and women yearning for New Hope and New leadership. I find they're angry that Jimmy Carter is violated his pledge to the working people of this country the one he made in 1976 that he would have 4% inflation and 4% unemployment and a really I think a time is referred to what is 3% people are looking for the kind of leaders. The people Wisconsin came to know like Vince Lombardi fighting Bob LaFollette from Lombardy. We can gain their sense of never giving up. I've always excelling of driving hard toward achievement of high goal from LaFollette. We can learn about principal and high purpose of fighting great odds for your beliefs. I know one thing Vince Lombardi in Robert La Follette would never have given us a temp. Excuses about amylase among our people will find blame for unemployment in the actions of OPEC or point the finger at others when things go bad. They would have given us the one thing that is so lacking in the Oval Office today strong leadership. And that's that's one of the reasons why. That's one of those others are reasons why I'm here soliciting your support and your help and running for the presidency. I've found as I say all across this land a longing among our people for hope this election concerns. What is already been done to the American people? And what would continue if we're given four more years of disaster for the first time in the history of our country. We Face three grave crises at the same time each one of which is capable of destroying us. Our economy is deteriorating. Our energy needs are not being met and our military preparedness has been weakened to the point of immediate Danger. The Carter record is a Litany of despair of broken promises of sacred trust abandoned and forgotten 8 million out of work inflation running as I said at 12.2 Black employment unemployment in America higher than it has ever been since we started keeping separate records in Detroit. When I was there. I was going to figure on that alone at 56% generally blonde employment 18% in the city for straight major deficits run up by Carter and his friends in the Congress productivity falling for six straight quarters among the most productive people in history. We were promised that there wouldn't be an increase in taxes for the low and middle-income people the workers of America we have had imposed on American families the largest single tax increase in history. I've talked. Do some of the unemployed in those other cities where the rates are as I said 18% of Detroit. 19 and a half in Kokomo, Indiana. I know that it is a way above the national average here in your own State, you know, when they talk about that national average of unemployment. That's a little bit like the fella that tried to Wade across a river and drowned it hurt its average depth was 3 ft. But getting those industrial areas get in Youngstown, Ohio and space those people with their families hear them and see the eagerness for Hope for someone to tell them that something can be done about this. And as a result of some of these meetings I referred to what we're in today as a depression. I was talking to in terms of human misery. And before the day was over the president had rushed to the press to show that why Reagan doesn't know anyting look at their recalled this a depression. It's a recession Economist say it is well, maybe you like to know a little of the history about that word recession and depression. We used to call things like this and you can on a crisis and it was in the Great Depression back in the thirties that someone said that has two pessimistic a sound and let's go in another word for it. So they called it a depression and you know, just a depression little Hollow in the road that doesn't sound as bad as a crisis, but then the depression got so bad that now it means so much to so many people to remember that they decided what recession that's a better word. Well anyway, I was talking as I say a human misery in the president was hiding behind a dictionary. It was the definition it once I'll give him one a recession is when your neighbor loses his job, but depression is when you lose yours. and And Recovery is when Jimmy Carter loses his. 1976 they said ministration brand new promise to do something about inflation and it did it increased it from 4.8% to 12.2% in January was 18% now he calls for a new economic program. This is his fifth in three and a half years. And this one's the one that he says is going to solve all the problems. You know, he talks as if someone else has been in charge for these last three and a half years. Is v e conomic program? And he's so confident that it will solve all the problems that he's not going to introduce at the Congress until next year. But that program is based on a couple of well-kept Secrets. They're better at keeping these secrets and they are keeping the secrets about National Security. He's pointed to a program projected down the road for the next five years. And this is the way they do it and Senator you're going to find that out. When you get there that Senate budget committee. They have a projection for the growth of the economy and all that's going to happen for the next five years his hides the fact. That he has a built-in tax increase in our system today. That will be taking 86 billion dollars more out of your pockets next year. Then we're taking this year and that tax increase goes on with the growth of the economy in the future. So that in five years from now. It is projected the bat increase the increase alone will total more than 500 billion more dollars also built into his program that he doesn't tell us about is that he needs all that money because he in his program are a number of spending proposals. So he's going to one more money to cover those. Do you really believe we need any more Federal programs on our back? Now that is why as a matter of fact, but some of the problems that we talked about the energy crisis things of that kind. I don't think government has the answer to them of this Administration. This Administration is the problem and the crisis. I have offered an economic plan myself, and I didn't just dream it up or write it down in the back of a an envelope, but I have discussed and work for weeks with some of the best Economist in this country some of the leading business figures and financial people and we took to be conservative and to be practical. We took the Senate budget committee proposals and we fixed our plan to them to see where we would come out now. Our plan is based on what I think is necessary to resolve the problems we face today. It calls for for one thing stabilizing the money supply stopping this roller coaster of printing greenbacks and then shutting them off. So the interest rates go up. Then it calls for two things starting immediately. One of them is a tax cut for the people of this country and the other is a cut in the cost and size of the federal government reduce that break Behemoth inside. Now here again. We're not just talkin and abs and terms. I have a task force headed by Camp Weinberger who was you know was in Washington himself as a matter of fact he cut spending to the point in the Office of Management and budget. They called him Captain knife. Well cap Weinberger was my finance director when I first got it out as governor in California. He is heading up a task force of expert people to plan ahead for where we can find the Savings in government. We're proposing 2% in 1981. That's just two cents out of every dollar in 1980 to add another $0.02 to a that'll make it 4% cut in government spending then one one and one in the next three years so that by the end of the 50-year you have cut the cost of the federal government by 7% Now we have been deliberately conservative. We didn't want anyone to be able to suggest in any way. We were Reckless. I happen to be more optimistic and believe The buy five years that cut can be 10% and even at the 7% this calls for balancing the budget by 1983 and I think we can maybe even beat that drowned. Now for the tax cut for business and industry the kind of industry that I saw and the lack of Industry now in Youngstown Ohio accelerated depreciation rates for business and industry and him to some of the punitive policies tax policies that have kept American Business from being able to install the modern plant and Equipment. They need to compete on equal terms with the other industrial Nations. And this can be done to allow them to have the capital that they will need for this modernization. When I asked this steel plant that I stood there amid the resting ruins and I said why what happened and they told about the cost that they didn't have that it would take to modernize and bring it up to date. and fix it up, but then they talked on top of that the demands of some 90 billion or million dollars of expenditures by the Environmental Protection Agency, which they couldn't meet and so there it is closed and the people are unemployed and then for the individuals There is a need for a reduction of the tax rates across the board and I propose a 10% cut of the income tax next year 10% in 1982 and 10% in 1983. Now again, this is benzoyl. How can you do this and All the Troubles that we have? But remember I'm actually only reducing the amount of increase that 30% cut will still not be enough to wipe out the increase that has been built into the tax policy. And that is why we hope that that we go on beyond that point. There are other things that we can do. For example, I have a dream of my own there are people in this audience who are members of an endangered species. Those with family-owned businesses are family-owned Farms. You know that there is a tax in existence and has been for some time that makes you an endangered species that if death comes in the family, you have to sell the family-owned business of the family-owned farm in order to pay the estate tax to the federal government. I would like to see that tax eliminated phased out as quickly as we can do it. Now the president has said that I am a responsible with this proposal and you know something I will admit to being irresponsible if he'll admit to being responsible. He says that a tax cut in these times is inflationary when I started when I was in school and I have an economic question for him. I would like to know why it is inflationary. If you retain more of your earnings and spend them or invest them the way you want to and it isn't inflationary if he takes them away from you and spends than the way he wants to. Ladies and gentlemen, let me seriously assure you this proposal that I have made I have taken to the leading Economist. I've taken it to a broad range of them. They had an opportunity to study it with giving them our backup figures our computations and these gentlemen of learning say yes with the projections for our economy for the several years ahead. There is nothing wild or Visionary about this plan. It is a solid workable economic plan where it differs from the philosophy of the party that is in power today in Washington and certainly in the administration is that it is a plan that is based on a belief in the free enterprise system and the people of this country and does not believe as they still do that the government must interfere and over regulate and intervene in every facet of the economy if not every fast. tomorrow in private and personal lives and I just reminded myself. I left out one little phase in this plan. It also calls from the very first day that a new Administration would be in Washington and I hope a reagan-bush Administration that we will start whittling away at the tens of thousands of unnecessary regulations that have dropped a blizzard of paperwork on the backs of the American people and that are restricting all of us in our business and I was right Incidentally I said that this problem for balancing the budget there is one other thing that is provided in the planet again. This has been okayed. It is time for us to increase our defense spending to the point that this country can preserve the peace because it will have the strength to preserve the peace. You know, we have a registration for the draft. Now I happen to disagree with that president said he was The president said he was sending a message to the Russians. Well some message they have to register for the draft and go by way of the post office. But I think there's a better message. I believe the volunteer military will work but it is not going to work when 70% of them retire or leave after the first enlistment term and a great percentage of them. Don't complete the first term and a great percentage of those men and women in uniform are eligible for food stamps or half the Moonlight and hold a second job that young men are out on carriers taking care of 25 million dollar airplanes working a hundred hours a week and they could be working at a minimum wage for 40 hours a week at home or I should say at the minimum. I don't know that is necessarily the minimum wage what in minimum employment and be making more and better money than they're making their isn't it about time that it we're going to have a voluntary military. We recognize the common sense calls for putting them on a pay scale that is commensurate with a sacrifice. We're asking them to make I know that I'm here asking YouTube. Elect me to the Chief Executive Officer of the United States. I know that my opponent set three and a half years or so little more than that have experience in that same position. I don't have experience as having been a president of the United States and one of the reasons I am so confident of our economic proposals is because they worked in California when I became governor. When I became Governor California was almost as sick as the federal government. It was spending a million dollars a day more than it was taking in you come in the middle of the fiscal years the new governor and the first six months my predecessor and run up a 194 million dollar deficit under the California law unlike the federal law. I had to balance that in those six months remaining of the fiscal year. I had to ask for an increase in taxes. I have campaign in the belief that our taxes were already too high. But I asked for the taxes explained why and told the people to California that is quickly as we could and could get out of the trouble. We were in we give that money back and it wasn't much more than a year later and we had a hundred million dollar Surplus. We were in debt and we gave it back as a rebate on the state income tax to the people the hundred million dollars. The part of the reason was because we turned the people like yourselves we turn to the people of California and got some of the best in the most talented people to volunteer to serve on task forces based on their particular knowledge or expertise some 250 of them. They didn't charge the state anything. It was a volunteer effort. They spent a hundred and 17 days on the average going into 64 agencies and Departments of state government and coming back to us with more than 1,800 recommendations as to how modern business practices could be used to make government more efficient and more effective. We implemented more than 1,600 of those recommendations and is the eight years when I we cut the growth in government spending in California in half that line on the chart that have been going up that way began to level out that way. Now. I've heard some commercials that are being used in this campaign that suggests that I'm more than double the budget will no one is ever talking about going backward in government in a growing Nation or a state such as ours but we are talkin about is reducing the rate of growth so we can reduce the rate of increase in government cost in government taxing and we did this subsequently we passed another tax increase at the state level, but that tax increase was to enable us to return to the people of California reductions in their homeowners tax. Which have been taxing many people in an inflationary. Out of their homes. So we simply took upon ourselves the burden of underwriting tax reductions at the local level because that was a local text. But the result was that over the years we gave back to the people of California in tax rebates tax cuts and tax credits 5700000000 dollars. We held the growth of the bureaucracy and government to one-twentieth of what is the increase had been under the preceding eight years and yet we were still able if someone's wondering about can we increase defense spending we were able to do the things that the state is supposed to do. We increase state aid to education at the local level 20 times great at more than the increase in enrollment. We were able to give the needy people on welfare. We reformed welfare incidentally as a result of one of those task forces and took some 350,000 people off the roads and put 76,000 welfare recipients into jobs out there in the commercial world. What are the truly needy we raised their Grant's cave in the first cost of living since 1958. We raised there grants more than 40% We cut that property tax in the average price home 40% We went further for senior citizens on fixed incomes. We cut their property tax as much as 93% We became moved from 11th to 3rd among the states in the rehabilitation of the physically handicapped and the putting them into useful jobs. We spent more than eight years on mental retardation that have been spending the previous hundred and sixteen years of California's history. They were more thing. We added 145000 acres to the state parks 41 miles of State Beach along the ocean 275 miles of river and Lake Frontage to our Park system. All of these things were accomplished while we were getting money back for the people of California and a funny thing happened for the first time in California in a long time the rate of an inflated of inflation dropped to less than the national average it heretofore been higher than the national average. I submit these at reasons why the principles that we're annunciating and when I say we I mean the people that are up here and their candidates for your boat. Opposite from County on up through the state and to the Senate and of the White House and this is what we must have. I don't want to go up there alone. Send those other people to. This is why I have the courage to come and ask for your boat to ask for your support not because I think that I single-handedly can solve all the problems confronting this nation. But because I believe it is time to have faith in the people again, and that the people of this country can and I would like to exert the kind of leadership in Washington that would take government off the backs of the American people and Turn You Loose again to do the things that you have done so well for the last two hundred years. Thank you very much. Thank you.