America has a window of opportunity to extend and secure our present peace by promoting a distinctly American internationalism. We will work with our allies and friends to be a force for good and a champion of freedom. We will work for free markets, free trade and freedom from oppression. Nations making progress toward freedom will find America is their friend. We will promote our values. We will promote the peace. And we need a strong military to keep the peace.
But our military was shaped to confront the challenges of the past. So I’ve asked the Secretary of Defense to review America’s Armed Forces and prepare to transform them to meet emerging threats. My budget makes a down payment on the research and development that will be required. Yet, in our broader transformation effort, we must put strategy first, then spending. Our defense vision will drive our defense budget, not the other way around. (Applause.)
Our nation also needs a clear strategy to confront the threats of the 21st century -- threats that are more widespread and less certain. They range from terrorists who threaten with bombs to tyrants in rogue nations intent upon developing weapons of mass destruction. To protect our own people, our allies and friends, we must develop and we must deploy effective missile defenses. (Applause.)
And as we transform our military, we can discard Cold War relics, and reduce our own nuclear forces to reflect today’s needs. (Applause.) A strong America is the world’s best hope for peace and freedom.
Yet the cause of freedom rests on more than our ability to defend ourselves and our allies. Freedom is exported every day, as we ship goods and products that improve the lives of millions of people. Free trade brings greater political and personal freedom. Each of the previous five Presidents has had the ability to negotiate far reaching trade agreements. Tonight I ask you to give me the strong hand of presidential trade promotion authority, and to do so quickly. (Applause.)
As we meet tonight, many citizens are struggling with the high cost of energy. We have a serious energy problem that demands a national energy policy. (Applause.) The West is confronting a major energy shortage that has resulted in high prices and uncertainty. I’ve asked federal agencies to work with California officials to help speed construction of new energy sources, and I have direct Vice President Cheney, Commerce Secretary Evans, Energy Secretary Abraham and other senior members in my administration to develop a national energy policy. (Applause.)
Our energy demand outstrips our supply. We can produce more energy at home while protecting our environment, and we must. (Applause.) We can produce more electricity to meet demand, and we must. (Applause.) We can promote alternative energy sources and conservation, and we must. (Applause.) America must become more energy-independent, and we will. (Applause.)
Perhaps the biggest test of our foresight and courage will be reforming Medicare and Social Security. Medicare’s finances are strained and its coverage is outdated. Ninety-nine percent of employer-provided health plans offer some form of prescription drug coverage; Medicare does not. The framework for reform has been developed by Senators Frist and Breaux and Congressman Thomas, and now is the time to act. (Applause.)
Medicare must be modernized, and we must make sure that every senior on Medicare can choose a health care plan that offers prescription drugs. (Applause.)
Seven years from now, the baby boom generation will begin to claim Social Security benefits. Every one in this chamber knows that Social Security is not prepared to fully fund their retirement. And we only have a couple of years to get prepared. Without reform, this country will one day awaken to a stark choice: either a drastic rise in payroll taxes or a radical cut in retirement benefits.