work. Today that unfortunate group is not 2 million-it is less than even a half a million. Our economy has created 7 million new jobs during the past 5 years, and 4 million new jobs during the last 2 years. These have been better jobs. They are betterpaying jobs. They are steadier jobs.

And that is not all. Corporation profits after taxes have doubled. Dividends are up 55 percent. Income per farm has risen 48 percent. Our families have increased their savings and financial assets by nearly $1 trillion-a trillion dollars-over the past 5 years. Every now and then you hear someone say that the cost of living is wiping out these gains. Well, that simply is not so. The cost of living has gone up. But the earnings have gone up, too. The average family, even after all the price increases we have had as a result of better wages and better profits, is earning the equivalent of 11 paychecks each year, extra paychecks.

The average family here in Indiana, after price increases, is now spending $1,600 more a year for goods and services than they did 5 years ago.

Now let me repeat that: The average family in the State of Indiana, after price increases, is spending $1,600 more a year for goods and services than they were spending 5 years ago. Since the end of 1963 alone, when I became President, that same family has increased its buying power by nearly $1,000 per family.

The most important fact is this: If business, labor, and Government each go their own way, if each looks after its own narrow, selfish interests, if each ignores the interests of the others and the interest of the country as a whole, then the gloom and doom, disturbed, troubled, and fearful prophets could be right.

But if we work together, if we quit calling each other names, if we put the national in

terest above our own interest, there just simply is no end to progress in America.

This administration has not shirked its own responsibility in the fight against inflation. But Government, I would remind you leaders here today, cannot do it all. We must have from labor, we must have from business, all the restraint and all the responsibility that they advocate and expect from Government.

American labor knows that what happens to them when hourly wages advance much faster than the output of each man-hour is that the advance in living costs then eats up these extra gains.

Last Wednesday the British Government had to ask for legislation freezing all British wages and prices. Wage rates in England have moved up in recent months at an average of 8 or 9 percent a year. In the past several years, despite repeated and urgent appeals for restraint, they have increased at the rate of 5 or 6 percent a year. And that is more than twice the increase in productivity. The result is severe crisis.

Since 1960, American hourly wages and fringe benefits have averaged about 4 percent a year. This is not far from the average advance in our real productivity. That is why the American worker's standard of living has improved far faster than that of his British laboring friend.

Between 1960 and 1965, American wholesale prices of manufactured goods other than food rose three-tenths of one percent. In England they rose 22/10 percent. I do not cite these figures out of complacency. I cite them because all modern democracies, including our own, must learn and must remember this lesson: Rapid growth in freedom requires steady self-discipline and steady restraint.

American businessmen know that if they advance prices when costs are stable, these

work. Today that unfortunate group is not 2 million—it is less than even a half a million. Our economy has created 7 million new jobs during the past 5 years, and 4 million new jobs during the last 2 years. These have been better jobs. They are betterpaying jobs. They are steadier jobs. And that is not all. Corporation profits after taxes have doubled. Dividends are up 55 percent. Income per farm has risen 48 percent. Our families have increased their savings and financial assets by nearly $1 trillion—a trillion dollars-over the past 5 years. Every now and then you hear someone say that the cost of living is wiping out these gains. Well, that simply is not so. The cost of living has gone up. But the earnings have gone up, too. The average family, even after all the price increases we have had as a result of better wages and better profits, is earning the equivalent of 11 paychecks each year, extra paychecks.

The average family here in Indiana, after price increases, is now spending $1,600 more a year for goods and services than they did 5 years ago.

Now let me repeat that: The average family in the State of Indiana, after price increases, is spending $1,600 more a year for goods and services than they were spending 5 years ago. Since the end of 1963 alone, when I became President, that same family has increased its buying power by nearly $1,000 per family.

The most important fact is this: If business, labor, and Government each go their own way, if each looks after its own narrow, selfish interests, if each ignores the interests of the others and the interest of the country as a whole, then the gloom and doom, disturbed, troubled, and fearful prophets could be right.

But if we work together, if we quit calling each other names, if we put the national in

terest above our own interest, there just simply is no end to progress in America.

This administration has not shirked its own responsibility in the fight against inflation. But Government, I would remind you leaders here today, cannot do it all. We must have from labor, we must have from business, all the restraint and all the responsibility that they advocate and expect from Government.

American labor knows that what happens to them when hourly wages advance much faster than the output of each man-hour is that the advance in living costs then eats up these extra gains.

Last Wednesday the British Government had to ask for legislation freezing all British wages and prices. Wage rates in England have moved up in recent months at an average of 8 or 9 percent a year. In the past several years, despite repeated and urgent appeals for restraint, they have increased at the rate of 5 or 6 percent a year. And that is more than twice the increase in productivity. The result is severe crisis.

Since 1960, American hourly wages and fringe benefits have averaged about 4 percent a year. This is not far from the average advance in our real productivity. That is why the American worker's standard of living has improved far faster than that of his British laboring friend.

Between 1960 and 1965, American wholesale prices of manufactured goods other than food rose three-tenths of one percent. In England they rose 22/10 percent. I do not cite these figures out of complacency. I cite them because all modern democracies, including our own, must learn and must remember this lesson: Rapid growth in freedom requires steady self-discipline and steady restraint.

American businessmen know that if they advance prices when costs are stable, these

costs will move upward. Businessmen sell to each other as well as to the public. One man's price increase is another man's cost increase. When higher prices increase the consumer's cost of living, labor will ask for more. Costs will then move up. The gains of business will evaporate. Our ability to export will weaken.

The overwhelming majority of labor unions and businesses have taken these lessons to heart in this country. They have heard and they have generally answered this Nation's call. I hope now that the others will join, too.

We are engaged today in a fight against aggression, against force, aggression that seeks to envelop free people and gobble them up. During this emergency, when we have 400,000 men protecting liberty and freedom. in the world, we are asking the leaders of business and of labor to act with some extra caution and some extra concern in the national interest.

To business we say this: The right to profit carries the duty of prudence. Avoid reckless expansion. Order only the new plant and equipment that your business needs. Don't accumulate unnecessary inventories just to bring in unearned profits if prices jump sharply.

Most businessmen know that this administration jealously guards their opportunity to earn a fair profit and takes great pleasure and pride in seeing them do so. But this administration also believes that the freedom to set prices carries with it a responsibility to reduce prices when costs have fallen.

To labor in America today we say: The right to bargain collectively carries the duty. to bargain constructively. We call them to recognize that the real gain to labor cannot be more than the rise in the national productivity.

Most labor leaders know that this admin

istration strongly supports the freedom of organized labor to seek better working conditions, advancing incomes, shorter hours, security for its members, and increased benefits.

But this administration believes that this freedom also carries with it an obligation. This obligation is not to gain a compensation which, if all unions were to achieve it, would result in increased costs and force higher prices.

We have learned these lessons about economic freedom and responsibility. In these critical times, business, labor, and Government should be very careful not to forget them.

But all of our citizens also have a duty, as well as a right. The first is to keep the peace. A democratic society suffers when any of its citizens seek to change the course of events by violence. The alternative to self-discipline is tyranny itself.

A second duty is not only to abide by the decisions of Government, but to help shape those decisions. Both law and lawmakers are changed in a democratic society through peaceful means and not through violence.

Our third duty is to respect the opinions and interests of our fellow citizens. Men do not protest without cause. A just society will learn the cause and will act accordingly. That is what we are trying to do in this country. We have made great advances in the last 36 months.

Many citizens of this land are living in poverty, without jobs and in miserable housing conditions. They have seen those conditions improve. They have found employment. We are working on those problems that have been eating away at us for decades. They are a small minority of our population, we recognize. But their plight is a cause for national concern of all of us. We have been working to relieve that