In the 1982 State of the Union address on January 26, 1982, Reagan invokes his self-deprecating humor and calls for "a new spirit of partnership between this Congress and this administration". Reagan cites the "stagflation" of the 1970s: double digit inflation, interest rates over 21%, and over 8 million unemployed. Reagan notes economic improvement and calls for reduced federal spending, further tax reductions, and fewer regulations, saying our economic problems "are the inheritance of decades of tax and tax and spend and spend." Reagan calls for dismantling the Departments of Energy and Education but keeping a reliable safety net for those in need by rooting out waste and fraud in the food stamp, Medicare, and Medicaid programs. Reagan decries the growth in federal grant programs to state and local governments and calls for major reforms. A short paragraph was lost at 23:15 of the Ronald Reagan presidential library recording. The missing words can be seen in the text version. In meetings with foreign leaders, Reagan "spoke of the strength of the free marketplace system and how that system could help them realize their aspirations for economic development and political freedom." Reagan endorses sanctions against the Soviet Union for its actions in Poland and Afghanistan, and urges "that we rebuild our defenses." Reagan concludes with a call to work together to preserve "the sacred flame of liberty -- this last, best hope of man on Earth." This address followed the assassination attempt and the applause at the start and end was extensive.
