The people of Lawrence, unfortunately, have had long experience with large-scale unemployment. But I do not need to recite to you the long-standing economic difficulties of this community. For many years, even during periods of great national prosperity, the city of Lawrence has had high levels of unemployment and unused industrial capacity.
It is a hopeful sign that in recent months there has been evidence of an upturn. But the problems facing Lawrence existed before the current recession started and will continue after prosperity returns, unless some further action is taken to meet them.
It is quite clear that the economic problems facing this city are beyond the power of any community or state to solve alone. The resources of the Federal Government must be brought to bear if we are to insure a strong and prosperous economy.
The most heartening development in recent years in this direction has been the passage of the Area Redevelopment Act by the Senate. For several years now I have had a strong interest in this legislation, and I hope finally these efforts will end successfully.
This legislation would provide for Lawrence, and other areas like it, loans for industrial development, grants for the construction of public facilities and assistance in establishing vocational retraining programs.
Farsighted action of this kind can go a long way toward solving for once and for all the economic difficulties of this community and others throughout the nation.
It is one of those facts of economic life that the strong economy is the diversified economy. The areas of the country faring the best today are those built on a broad economic base. There is no reason why every part of our country should not share in the benefits of diversity.
What of the immediate problems though? What of the 5.2 million unemployed and the nation's productive capacity going unused? What can be done to meet these problems?
I would say that some things have already been done but that more remains to be done. The impact of the various public works programs already enacted or now under consideration will eventually be felt by the economy. It may be necessary, if conditions do not improve in the very near future, to consider a tax cut. At this moment, though, I would put the highest priority on yet another measure – a revision and modernization of our unemployment system.
We cannot sidestep our immediate obligation to those who have been deprived of their income. There are almost 2 million people out of work who were either not covered by unemployment insurance or have exhausted the benefits to which they are entitled. Those that are covered by the programs receive benefits that average less than one-third of their normal pay. Benefit periods are too short and coverage is not broad enough.
Our first order of business, then, is to get money into the hands of those who have none and at the same time to remove inequities in the law and provide meaningful standards across the whole country.
The unemployment compensation program was designed to stabilize the economy in periods just such as this. It cannot do that job unless it is brought into line with the realities of the modern world.
Our economy is essentially strong. It will not remain strong unless we act intelligently to keep it so. Well-meant advice to consumers and pious declarations of faith will not do the job. We must have faith, to be sure, but it must be faith built on works.
Economics is said to be "the dismal science." This is only true if the facts that economists record are dismal. We know enough in 1958 to say with confidence that those facts need not be dismal. We have it within our power to make them otherwise.
Source: Papers of John F. Kennedy. Pre-Presidential Papers. Senate Files, Box 901, "Luncheon, Lawrence, Massachusetts, 15 May 1958." John F. Kennedy Presidential Library.