Careful budget policy should be supplemented by other measures designed to reduce inflation at lower cost in lost output and employment.  These other steps include measures to increase investment—­such as the tax proposals included in my 1982 budget—­and measures to increase competition and productivity in our economy.  Voluntary incomes policies can also directly influence wages and prices in the direction of moderation and thereby bring inflation down faster and at lower cost to the economy.  Through a tax-based incomes policy (tip) we could provide tax incentives for firms and workers to moderate their wage and price increases.  In the coming years, control of Federal expenditures can make possible periodic tax reductions.  The Congress should therefore begin now to evaluate the potentialities of a tip program so that when the next round of tax reductions is appropriate a tip program will be seriously considered.

EMPLOYMENT

During the last four years we have given top priority to meeting the needs of workers and providing additional job opportunities to those who seek work.  Since the end of 1976: 

Almost 9 million new jobs have been added to the nation’s economy total employment has reached 97 million.  More jobs than ever before are held by women, minorities and young people.  Employment over the past four years has increased by:  17% for adult women 11% for blacks, and 30% for Hispanics employment of black teenagers increased by more than 5%, reversing the decline that occurred in the previous eight years.

Major initiatives launched by this Administration helped bring about these accomplishments and have provided a solid foundation for employment and training policy in the 1980’s.  In 1977, as part of the comprehensive economic stimulus program: 

425,000 public service jobs were created A $1 billion youth employment initiative funded 200,000 jobs the doubling of the Job Corps to 44,000 slots began and 1 million summer youth jobs were approved—­a 25 percent increase.

In 1978: 

The Humphrey-Hawkins Full Employment Act became law the $400 million Private Sector Initiatives Program was begun a targeted jobs tax credit for disadvantaged youth and others with special employment barriers was enacted the Comprehensive Employment and Training Act was reauthorized for four years.

In 1979: 

A $6 billion welfare reform proposal was introduced with funding for 400,000 public service jobs welfare reform demonstration projects were launched in communities around the country the Vice President initiated a nationwide review of youth unemployment in this country.

In 1980: 

The findings of the Vice President’s Task Force revealed the major education and employment deficits that exist for poor and minority youngsters.  As a result a $2 billion youth education and jobs initiative was introduced to provide unemployed youth with the basic education and work experience they need to compete in the labor market of the 1980’s.  As part of the economic revitalization program several steps were proposed to aid workers in high unemployment communities: