There is no question in my mind that the Government, acting on behalf of all the people, must assume the ultimate responsibility for the economic health of the Nation.  There is no other agency that can.  No other organization has the scope or the authority, nor is any other agency accountable, to all the people.  This does not mean that the Government has the sole responsibility, nor that it can do the job alone, nor that it can do the job directly.

All of the policies of the Federal Government must be geared to the objective of sustained full production and full employment-to raise consumer purchasing power and to encourage business investment.  The programs we adopt this year and from now on will determine our ability to achieve our objectives.  We must continue to pay particular attention to our fiscal, monetary, and tax policy, programs to aid business—­especially small business—­and transportation, labor-management relations and wage-price policy, social security and health, education, the farm program, public works, housing and resource development, and economic foreign policy.

For example, the kinds of tax measures we have at different times—­whether we raise our revenue in a way to encourage consumer spending and business investment or to discourage it—­have a vital bearing on this question.  It is affected also by regulations on consumer credit and by the money market, which is strongly influenced by the rate of interest on Government securities.  It is affected by almost every step we take.

In short, the way we handle the proper functions of government, the way we time the exercise of our traditional and legitimate governmental functions, has a vital bearing on the economic health of the Nation.

These policies are discussed in greater detail in the accompanying Fifth Quarterly Report of the Director of War Mobilization and Reconversion.

3.  Legislation heretofore recommended

AND STILL PENDING

To attain some of these objectives and to meet the other needs of the United States in the reconversion and postwar period, I have from time to time made various recommendations to the Congress.

In making these recommendations I have indicated the reasons why I deemed them essential for progress at home and abroad.  A few—­a very few—­of these recommendations have been enacted into law by the Congress.  Most of them have not.  I here reiterate some of them, and discuss others later in this Message.  I urge upon the Congress early consideration of them.  Some are more urgent than others, but all are necessary.

(1) Legislation to authorize the President to create fact-finding boards for the prevention of stoppages of work in Nationwide industries after collective bargaining and conciliation and voluntary arbitration have failed—­as recommended by me on December 3, 1945.