On January 20, 1981, Reagan began his first presidential inauguration address by thanking Carter for his “gracious cooperation in the transition process”.

Reagan notes “one of the worst sustained inflations in our national history. It distorts our economic decisions, penalizes thrift, and crushes the struggling young and the fixed-income elderly alike.” “In this present crisis, government is not the solution to our problem; government is the problem.”

“For decades we have piled deficit upon deficit, mortgaging our future and our children's future for the temporary convenience of the present.” “It is my intention to curb the size and influence of the Federal establishment and to demand recognition of the distinction between the powers granted to the Federal Government and those reserved to the States or to the people.”

“If we look to the answer as to why for so many years we achieved so much, prospered as no other people on Earth, it was because here in this land we unleashed the energy and individual genius of man to a greater extent than has ever been done before.” “It is time to reawaken this industrial giant, to get government back within its means, and to lighten our punitive tax burden.”

“As for the enemies of freedom, … [w]e will maintain sufficient strength to prevail if need be, knowing that if we do so we have the best chance of never having to use that strength.”

“[T]ogether with God's help we can and will resolve the problems which now confront us. And after all, why shouldn't we believe that? We are Americans. God bless you, and thank you.”

Audio recording courtesy of the Ronald Reagan Presidential Library.