I have often spoken of the purpose of this Administration to serve the national interest of 170 million people.  The national interest must take precedence over temporary advantages which may be secured by particular groups at the expense of all the people.

In this regard I call on leaders in business and in labor to think well on their responsibility to the American people.  With all elements of our society, they owe the Nation a vigilant guard against the inflationary tendencies that are always at work in a dynamic economy operating at today’s high levels.  They can powerfully help counteract or accentuate such tendencies by their wage and price policies.

Business in its pricing policies should avoid unnecessary price increases especially at a time like the present when demand in so many areas presses hard on short supplies.  A reasonable profit is essential to the new investments that provide more jobs in an expanding economy.  But business leaders must, in the national interest, studiously avoid those price rises that are possible only because of vital or unusual needs of the whole nation.

If our economy is to remain healthy, increases in wages and other labor benefits, negotiated by labor and management, must be reasonably related to improvements in productivity.  Such increases are beneficial, for they provide wage earners with greater purchasing power.  Except where necessary to correct obvious injustices, wage increases that outrun productivity, however, are an inflationary factor.  They make for higher prices for the public generally and impose a particular hardship on those whose welfare depends on the purchasing power of retirement income and savings.  Wage negotiations should also take cognizance of the right of the public generally to share in the benefits of improvements in technology.

Freedom has been defined as the opportunity for self-discipline.  This definition has a special application to the areas of wage and price policy in a free economy.  Should we persistently fail to discipline ourselves, eventually there will be increasing pressure on government to redress the failure.  By that process freedom will step by step disappear.  No subject on the domestic scene should more attract the concern of the friends of American working men and women and of free business enterprise than the forces that threaten a steady depreciation of the value of our money.

Concerning developments in another vital sector of our economy—­agriculture—­I am gratified that the long slide in farm income has been halted and that further improvement is in prospect.  This is heartening progress.  Three tools that we have developed—­improved surplus disposal, improved price support laws, and the soil bank—­are working to reduce price-depressing government stocks of farm products.  Our concern for the well-being of farm families demands that we constantly search for new ways by which they can share more fully in our unprecedented prosperity.  Legislative recommendations in the field of agriculture are contained in the Budget Message.