What can the average American do to help in the economic recovery President Ronald Reagan envisions?
The Washingtonian Magazine asked the President that question – and published his rather-detailed answer, which was reproduced in a recent issue of the Congressional Record.
Reagan called on the American People to support the program and go forward in 1982 ”with faith and determination” and in the “spirit that built America.”
The Washingtonian article was introduced into the record by Sen, Paul Laxalt R-Nev., who also appealed for citizen participation in achieving the Presidents goals of ”a rejuvenated private enterprise, and a smaller, leaner, more efficient government,” with ”wealth returned to the people and away from the government…”
Reagan told the people ”Our program will stand or fall. America will regain its economic health or fail to regain it, on what we as individuals collectively do. ‘
‘The most successful, dynamic economies in the world today are those based on faith in individuals who are given incentives to succeed; economies where it is understood that growth prosperity and ultimately human fulfillment itself are created from the people up, not the government down.”
Speaking of the “double-digit inflation, the highest interest rates since the Civil War, and a national debt ready to burst through the trillion-dollar barrier” which his administration inherited, Reagan identified three important ways in which people can help:
“1. Make Congress understand it must stop overspending.’
“2. Tell your representatives not to touch your tax cut.” Claiming some who never favored the cut are now trying to take it away, Reagan said the reduction will “barely offset the built-in Tax increases between now and 1984 approved by my predecessor.” Because of over-spending Congress has balanced the budget only once in the last 20 years he said.
”3. Take full advantage of the incentives in the new lax laws. They were designed to help you and to bring excitement, opportunity and growth back into our economy. The tax reductions now taking hold represent the greatest collection of incentives for the average family in the last 5o years. You, the members of working America will receive the lion’s share of the benefits.”
Urging families to take advantage of new savings opportunities Reagan asserted, ”The policies of tax, tax, spend and spend nearly wrecked our economy.
“It’s no wonder America has the lowest rates of personal savings of any major, industrialized country, and savings are the lifeblood of investment and economic growth. The key to recovery lies with more savings, more production, more investment.
“You can make them happen,” he told people. “More of every added dollar of earnings from your office, shop, stock or interest on your savings will be yours to keep.
“This is what we mean by incentives, and this is what will ignite the tremendous drive and creativity of our people…”
As a final point, the President declared, “If the average number of hours worked per week rises by just half an hour, the Gross National Product will rise by $25 billion. If the personal savings rate increases by just two percentage points, we can add at least $40 billion a year to the nations savings pool to finance new investments, new jobs and a new America.”