"The central race in the world today is neither an arms race nor a space race. It is the race between man and change. The central question is whether we are to be the master of events, or the pawn of events. If we are to win this race, our first need is to make government governable. When the new administration took office last January, we confronted a set of hard and unpleasant facts. I cite these facts not in a partisan way; they are not the fault of any one administration or of any one party. Rather, they are part of our common experience as a people, the result of an accumulating failure of government over the years to come to grips with a future that soon overtook it. We confronted a legacy of Federal deficits that has added $58 billion to the burden of public debt in the past 10 years. We confronted the fact that State and local governments were being crushed in a fiscal vise, squeezed by rising costs, rising demands for services, exhaustion of revenue sources. We confronted the fact that in the past 5 years the Federal Government alone has spent more than a quarter of a trillion dollars on social programs--over $250 billion. Yet far from solving our problems, these expenditures had reaped a harvest of dissatisfaction, frustration, and bitter division. Never in human history has so much been spent by so many for such a negative result. The cost of the lesson has been high, but we have learned that it is not only what we spend that matters, but how we spend it."