The American people are making progress in energy conservation.  Last year we reduced overall petroleum consumption by 8 percent and gasoline consumption by 5 percent below what it was the year before.  Now we must do more.

After consultation with the Governors, we will set gasoline conservation goals for each of the 50 States, and I will make them mandatory if these goals are not met.

I’ve established an import ceiling for 1980 of 8.2 million barrels a day—­well below the level of foreign oil purchases in 1977.  I expect our imports to be much lower than this, but the ceiling will be enforced by an oil import fee if necessary.  I’m prepared to lower these imports still further if the other oil-consuming countries will join us in a fair and mutual reduction.  If we have a serious shortage, I will not hesitate to impose mandatory gasoline rationing immediately.

The single biggest factor in the inflation rate last year, the increase in the inflation rate last year, was from one cause:  the skyrocketing prices of OPEC oil.  We must take whatever actions are necessary to reduce our dependence on foreign oil—­and at the same time reduce inflation.

As individuals and as families, few of us can produce energy by ourselves.  But all of us can conserve energy—­every one of us, every day of our lives.  Tonight I call on you—­in fact, all the people of America—­to help our Nation.  Conserve energy.  Eliminate waste.  Make 1980 indeed a year of energy conservation.

Of course, we must take other actions to strengthen our Nation’s economy.

First, we will continue to reduce the deficit and then to balance the Federal budget.

Second, as we continue to work with business to hold down prices, we’ll build also on the historic national accord with organized labor to restrain pay increases in a fair fight against inflation.

Third, we will continue our successful efforts to cut paperwork and to dismantle unnecessary Government regulation.

Fourth, we will continue our progress in providing jobs for America, concentrating on a major new program to provide training and work for our young people, especially minority youth.  It has been said that “a mind is a terrible thing to waste.”  We will give our young people new hope for jobs and a better life in the 1980’s.

And fifth, we must use the decade of the 1980’s to attack the basic structural weaknesses and problems in our economy through measures to increase productivity, savings, and investment.

With these energy and economic policies, we will make America even stronger at home in this decade—­just as our foreign and defense policies will make us stronger and safer throughout the world.  We will never abandon our struggle for a just and a decent society here at home.  That’s the heart of America—­and it’s the source of our ability to inspire other people to defend their own rights abroad.