A good moment to reflect on history again.
Voldemort wrote:Good evening my fellow Americans:
As you know, I returned last Sunday night from a trip around the world--a trip that took me to eight countries in 9 days.
The purpose of this trip was to help lay the basis for a lasting peace, once the war in Vietnam is ended. In the course of it, I also saw once again the vigorous efforts so many new nations are making to leap the centuries into the modern world.
Every time I return to the United States after such a trip, I realize how fortunate we are to live in this rich land. We have the world's most advanced industrial economy, the greatest wealth ever known to man, the fullest measure of freedom ever enjoyed by any people, anywhere.
Yet we, too, have an urgent need to modernize our institutions--and our need is no less than theirs.
We face an urban crisis, a social crisis-and at the same time, a crisis of confidence in the capacity of government to do its job.
A third of a century of centralizing power and responsibility in Washington has produced a bureaucratic monstrosity, cumbersome, unresponsive, ineffective.
A third of a century of social experiment has left us a legacy of entrenched programs that have outlived their time or outgrown their purposes.
A third of a century of unprecedented growth and change has strained our institutions, and raised serious questions about whether they are still adequate to the times.
It is no accident, therefore, that we find increasing skepticism--and not only among our young people, but among citizens everywhere--about the continuing capacity of government to master the challenges we face.
Nowhere has the failure of government been more tragically apparent than in its efforts to help the poor and especially in its system of public welfare.
TARGET: REFORMS
Since taking office, one of my first priorities has been to repair the machinery of government, to put it in shape for the 1970's. I have made many changes designed to improve the functioning of the executive branch. And I have asked Congress for a number of important structural reforms; among others, a wide-ranging postal reform, a comprehensive reform of the draft, a reform of unemployment insurance, a reform of our hunger programs, a reform of the present confusing hodge-podge of Federal grants-in-aid.
Last April 21, I sent Congress a message asking for a package of major tax reforms, including both the closing of loopholes and the removal of more than 2 million low-income families from the tax rolls altogether. I am glad that Congress is now acting on tax reform, and I hope the Congress will begin to act on the other reforms that I have requested.
The purpose of all these reforms is to eliminate unfairness; to make government more effective as well as more efficient; and to bring an end to its chronic failure to deliver the service that it promises.
My purpose tonight, however, is not to review the past record, but to present a new set of reforms--a new set of proposals--a new and drastically different approach to the way in which government cares for those in need, and to the way the responsibilities are shared between the State and the Federal Government.
I have chosen to do so in a direct report to the people because these proposals call for public decisions of the first importance; because they represent a fundamental change in the Nation's approach to one of its most pressing social problems; and because, quite deliberately, they also represent the first major reversal of the trend toward ever more centralization of government in Washington, D.C. After a third of a century of power flowing from the people and the States to Washington it is time for a New Federalism in which power, funds, and responsibility will flow from Washington to the States and to the people.
During last year's election campaign, I often made a point that touched a responsive chord wherever I traveled.
I said that this Nation became great not because of what government did for people, but because of what people did for themselves.
This new approach aims at helping the American people do more for themselves. It aims at getting everyone able to work off welfare rolls and onto payrolls.
It aims at ending the unfairness in a system that has become unfair to the welfare recipient, unfair to the working poor, and unfair to the taxpayer.
This new approach aims to make it possible for people--wherever in America they live--to receive their fair share of opportunity. It aims to ensure that people receiving aid, and who are able to work, contribute their fair share of productivity.
This new approach is embodied in a package of four measures: First, a complete replacement of the present welfare system; second, a comprehensive new job training and placement program; third, a revamping of the Office of Economic Opportunity; and fourth, a start on the sharing of Federal tax revenues with the States.
Next week in three messages to the Congress and one statement--I will spell out in detail what these measures contain. Tonight I want to explain what they mean, what they are intended to achieve, and how they are related.
WELFARE
Whether measured by the anguish of the poor themselves, or by the drastically mounting burden on the taxpayer, the present welfare system has to be judged a colossal failure.
Our States and cities find themselves sinking in a welfare quagmire, as caseloads increase, as costs escalate, and as the welfare system stagnates enterprise and perpetuates dependency.
What began on a small scale in the depression 30's has become a huge monster in the prosperous 60's. And the tragedy is not only that it is bringing States and cities to the brink of financial disaster, but also that it is failing to meet the elementary human, social, and financial needs of the poor.
It breaks up homes. It often penalizes work. It robs recipients of dignity. And it grows.
Benefit levels are grossly unequal--for a mother with three children, they range from an average of $263 a month in one State, down to an average of only $39 in another State. Now such an inequality as this is wrong; no child is "worth" more in one State than in another State. One result of this inequality is to lure thousands more into already overcrowded inner cities, as unprepared for city life as they are for city jobs.
The present system creates an incentive for desertion. In most States a family is denied welfare payments if a father is present--even though he is unable to support his family. Now, in practice, this is what often happens: A father is unable to find a job at all or one that will support his children. And so, to make the children eligible for welfare, he leaves home--and the children are denied the authority, the discipline, the love that come with having a father in the home. This is wrong.
The present system often makes it possible to receive more money on welfare than on a low-paying job. This creates an incentive not to work, and it also is unfair to the working poor. It is morally wrong for a family that is working to try to make ends meet to receive less than a family across the street on welfare. This has been bitterly resented by the man who works, and rightly so--the rewards are just the opposite of what they should be. Its effect is to draw people off payrolls and onto welfare rolls--just the opposite of what government should be doing. To put it bluntly and simply--any system which makes it more profitable for a man not to work than to work, or which encourages a man to desert his family rather than to stay with his family, is wrong and indefensible.
We cannot simply ignore the failures of welfare, or expect them to go away. In the past 8 years, 3 million more people have been added to the welfare rolls--and this in a period of low unemployment. If the present trend continues, another 4 million will join the welfare rolls by 1975. The financial cost will be crushing; and the human cost will be suffocating.
That is why tonight I, therefore, propose that we will abolish the present welfare system and that we adopt in its place a new family assistance system. Initially, this new system will cost more than welfare. But, unlike welfare, it is designed to correct the condition it deals with and, thus, to lessen the long-range burden and cost.
Under this plan, the so-called "adult categories" of aid--aid to the aged, the blind, the disabled--would be continued, and a national minimum standard for benefits would be set, with the Federal Government contributing to its cost and also sharing the cost of additional State payments above that amount.
But the program now called "Aid to Families with Dependent Children"--the program we all normally think of when we think of "welfare"--would be done away with completely. The new family assistance system I propose in its place rests essentially on these three principles: equality of treatment across the Nation, a work requirement, and a work incentive.
Its benefits would go to the working poor, as well as the nonworking; to families with dependent children headed by a father, as well as to those headed by a mother; and a basic Federal minimum would be provided, the same in every State.
What I am proposing is that the Federal Government build a foundation under the income of every American family with dependent children that cannot care for itself--and wherever in America that family may live.
For a family of four now on welfare, with no outside income, the basic Federal payment would be $1,600 a year. States could add to that amount and most States would add to it. In no case would anyone's present level of benefits be lowered. At the same time, this foundation would be one on which the family itself could build. Outside earnings would be encouraged, not discouraged. The new worker could keep the first $60 a month of outside earnings with no reduction in his benefits; and beyond that, his benefits would be reduced by only 50 cents for each dollar earned.
By the same token, a family head already employed at low wages could get a family assistance supplement; those who work would no longer be discriminated against. For example, a family of five in which the father earns $2,000 a year-which is the hard fact of life for many families in America today--would get family assistance payments of $1,260, so that they would have a total income of $3,260. A family of seven earning $3,000 a year would have its income raised to $4,360.
Thus, for the first time, the government would recognize that it has no less an obligation to the working poor than to the nonworking poor; and for the first time, benefits would be scaled in such a way that it would always pay to work.
With such incentives, most recipients who can work will want to work. This is part of the American character.
But what of the others--those who can work but choose not to?
Well, the answer is very simple. Under this proposal, everyone who accepts benefits must also accept work or training provided suitable jobs are available either locally or at some distance if transportation is provided. The only exceptions would be those unable to work and mothers of preschool children.
Even mothers of preschool children, however, would have the opportunity to work, because I am also proposing along with this a major expansion of day-care centers to make it possible for mothers to take jobs by which they can support themselves and their children.
This national floor under incomes for working or dependent families is not a "guaranteed income." Under the guaranteed income proposal, everyone would be assured a minimum income, regardless of how much he was capable of earning, regardless of what his need was, regardless of whether or not he was willing to work.
Now, during the presidential campaign last year, I opposed such a plan. I oppose it now and I will continue to oppose it, and this is the reason: A guaranteed income would undermine the incentive to work; the family assistance plan that I propose increases the incentive to work.
A guaranteed income establishes a right without any responsibilities; family assistance recognizes a need and establishes a responsibility. It provides help to those in need and, in turn, requires that those who receive help work to the extent of their capabilities. There is no reason why one person should be taxed so that another can choose to live idly.
In States that now have benefit levels above the Federal floor, family assistance would help ease the State's financial burdens. But in 20 States--those in which poverty is most widespread--the new Federal floor would be above present average benefits and would mean a leap upward for many thousands of families that cannot care for themselves.