In our government, it is a myth that we must choose between compassion and competence.  Together, we build the foundation for a government that works, and works for people.

In our relations with our potential adversaries, it is a myth that we must choose between confrontation and capitulation.  Together, we build the foundation for a stable world of both diversity and peace.

Together, we’ve already begun to build the foundation for confidence in our economic system.  During the last 2 years, in bringing our economy out of the deepest recession since the 1930’s, we’ve created 7,100,000 new jobs.  The unemployment rate has gone down 25 percent.  And now we must redouble our fight against the persistent inflation that has wracked our country for more than a decade.  That’s our important domestic issue, and we must do it together.

We know that inflation is a burden for all Americans, but it’s a disaster for the poor, the sick, and the old.  No American family should be forced to choose among food, warmth, health care, or decent housing because the cost of any of these basic necessities has climbed out of reach.

Three months ago, I outlined to the Nation a balanced anti-inflation program that couples responsible government restraint with responsible wage and price restraint.  It’s based upon my knowledge that there is a more powerful force than government compulsion—­the force created by the cooperative efforts of millions of Americans working toward a common goal.

Business and labor have been increasingly supportive.  It’s imperative that we in government do our part.  We must stop excessive government growth, and we must control government spending habits.

I’ve sent to this Congress a stringent but a fair budget, one that, since I ran for President in 1976, will have cut the Federal deficit in half.  And as a percentage of our gross national product, the deficit will have dropped by almost 75 percent.

This Congress had a good record last year, and I now ask the 96th Congress to continue this partnership in holding the line on excess Federal spending.  It will not be easy.  But we must be strong, and we must be persistent.

This budget is a clear message that, with the help of you and the American people, I am determined, as President, to bring inflation under control.

The 1980 budget provides enough spending restraint to begin unwinding inflation, but enough support for our country to keep American workers productive and to encourage the investments that provide new jobs.  We will continue to mobilize our Nation’s resources to reduce our trade deficit substantially this year and to maintain the strength of the American dollar.

We’ve demonstrated in this restrained budget that we can build on the gains of the past 2 years to provide additional support to educate disadvantaged children, to care for the elderly, to provide nutrition and legal services for the poor, and to strengthen the economic base of our urban communities and, also, our rural areas.