Text 1020, 803 rader
Skriven 2005-05-24 23:33:04 av Whitehouse Press (1:3634/12.0)
Ärende: Press Release (0505246) for Tue, 2005 May 24
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Remarks by the President in a Conversation on Strengthening Social Security
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For Immediate Release
Office of the Press Secretary
May 24, 2005

Remarks by the President in a Conversation on Strengthening Social Security



REMARKS BY THE PRESIDENT IN A CONVERSATION ON STRENGTHENING SOCIAL SECURITY

Athena Performing Arts Center At Greece Athena Middle and High School

Greece, New York

10:48 A.M. EDT

THE PRESIDENT: Thank you all. Go ahead and be seated. Be seated, thank you.
We've got to get to work. Thank you all for coming. Please be seated.
(Applause.) Thanks for coming. Thanks for the warm welcome, and thanks for
caring about the future of our country, because that's what we're here to
discuss. Before I get to the Social Security issue, I do want to thank some
people.

First I want to thank the Greece Athena Middle and High Schools for letting
us use this fantastic facility. It really is beautiful, yes. (Applause.) A
fantastic place, isn't it? Yes. I want to thank Helen Wahl and Dick Snyder
-- Helen is the principal of the high school; Dick Snyder is the principal
of the middle school. I want to thank all the teachers. I want to thank the
superintendent. I want to thank all the folks who care a lot about making
sure the kids get educated here in this part of the world. (Applause.)

I'm sorry Laura is not here. Yes, you'd probably rather have her here than
me, wouldn't you? Anyway -- (laughter.)

Q We didn't say that.

THE PRESIDENT: Well, no, but you thought it. You didn't say it, but I could
tell you thought it. You're not the only person here who feels that way, I
want you to know. She's doing great. She is on a trip promoting the freedom
agenda. She's made it very clear to people in the Middle East, you can't
have a complete society unless women participate fully in the society in
the Middle East. (Applause.) I'm really proud of her. I'm a fortunate man
that she said yes when I asked her to marry me back in Midland, Texas.
She's a great First Lady. I'm looking forward to having her come home
tonight, back to the White House. (Applause.)

I thank Congressman Tom Reynolds. He's an effective United States
Congressman who cares a lot about this district. (Applause.) I'm proud to
call him friend. I'm proud to call Congressman Sherry Boehlert friend, as
well. Sherry is from the district next door; I've known him for a long
time. He's a good, thoughtful man. He's a fine United States congressman.
(Applause.) Congressman Jim Walsh is with us today. He, too, is a fine
United States congressman. (Applause.) And I was proud to be traveling with
Congressman Randy Kuhl -- he's a freshman member of the House of
Representatives, doing a great job. Thank you all for coming. (Applause.)

They want to ride on Air Force One. (Laughter.) Proud to make room for
them. They want to ride back on Air Force One. (Laughter.) And they
probably want a meal on Air Force One. Save up your appetite, fellows, you
got a good meal coming.

I want to thank all the state and local officials who have joined us today.
I'm proud you're here. There's two athletes in the audience I want to pay
recognition to. First of all, a person you all know well, really a fine
member of the community, member of the NFL Hall of Fame -- Jim Kelly. Thank
you for coming. Good to see you again, Jim. (Applause.) And at the other
age of the -- at the other end of the age spectrum is a fine athlete from
this part of the world. I just met her. As you know I'm a baseball person.
I love baseball. The fact that somebody would pitch a perfect game at any
level of baseball is amazing. The fact that a person would pitch a perfect
game and strike out every batter is even more amazing. So welcome a
fantastic pitcher in the -- representing the Dodgers baseball team, from
Little League Baseball, Katie Brownwell. (Applause.) Thanks for coming.

And finally, one other person, before I get to the topic at hand, I'd like
to introduce, is a woman named George-Ann Schauffele. George-Ann is a
volunteer. And the reason I bring up people who volunteer is I want to
remind you that the true strength of this country lies in the hearts and
souls of our citizens; that if you want to be a participant in America, and
in the future America, volunteer to make somebody's life better. Feed the
hungry, help find shelter for the homeless. George-Ann is involved with the
Literacy Volunteers of Rochester Program, helping somebody learn to read. I
can't think of a better way to pass on a gift from one generation to the
next than to mentor somebody, particularly somebody who needs to learn to
read.

My point is this: Serve your community and serve your country by taking
time out of your busy lives to volunteer to make somebody's life better; to
answer that universal call to love a neighbor just like you'd like to be
loved yourself. (Applause.) I don't know where George-Ann is. Where are
you, George-Ann. Thanks for coming. Thanks for being a great role model.
(Applause.)

We got a lot to do in Washington, D.C. One of the big issues, of course, is
Social Security -- although yesterday there was some progress made. I'm
pleased that the Senate is moving forward on my judicial nominees who were
previously being blocked. These nominees have been waiting years for an up
or down vote on the Senate floor, and now they'll get one. It's about time
we're making some progress. (Applause.)

It's important for this nation to address issues. I believe the job of the
President is to confront problems, not to pass them on to future Presidents
or future generations. I believe my job in representing everyone who lives
in this country is that when I see a problem, is to say to the United
States Congress, let's work together to solve the problem. And, folks,
we've got a problem when it comes to Social Security.

First, let me start by saying that Franklin Roosevelt did a good thing when
he created the Social Security system. Social Security has been an
important part of a lot of people's lives in America. The Social Security
system created by Franklin Roosevelt provided a safety net for people in
their retirement. And it worked. There are a lot of people still in this
country counting on their Social Security check. And, therefore, I want to
start by saying to people who are getting their check, people who were born
prior to 1950, the system will not change when it comes to you. The system
has got plenty of money in it to make sure you get your check.

The reason I have to say that is because I understand how the Social
Security issues has worked in the past -- somebody like me talks about it,
and then somebody comes in behind by telling seniors, "really what he's
saying is he's going to take away your check." That's old-style, scare
politics, but it is a part of the American system. And so people have got
to understand when we start talking about Social Security, to strengthen
the Social Security system for generations to come, to deal with the
problem I'm about to describe to you, that if you're a senior in Greece,
New York, you're going to get your check. It's the folks coming up that you
need to worry about. See, if you're a grandmother, you're going to get your
check. You need to worry about your grandson.

We're about to talk to a generation of folks from this part of the world
about Social Security. Now, here's the reason I even have to bring it up,
that the pay-as-you-go system in Social Security is confronting some
serious demographic difficulties.

Now, the system is pay-as-you-go -- that means when you pay in, we go ahead
and pay out. Your payroll tax goes into a -- not into a trust that we hold
for your account; your payroll tax goes into an account and we pay out the
money for the retirees and with any money left over, we spend it on general
government. It's important for people to understand that aspect of Social
Security. In other words, it's not a trust. In other words, we're not
taking your money and holding it for you and then giving it back to you
when you retire. We're taking your money, we're spending it on current
retirees, and in that more money is coming in that needs to go out for the
retirees, we're spending on other programs. And all that's left behind in
Social Security is a group of file cabinets with IOUs in it. That's the way
the system works. It's called pay-as-you-go.

Now, what's going to change from today in terms of the pay-as-you-go system
is that there's a lot of people getting ready to retire. I happen to be one
of them. (Laughter.) At least I reach retirement age in 2008 -- I like to
remind people, that's a convenient date for me. (Laughter.) Particularly
the end of 2008. (Applause.) And there are a lot of people like me. We're
called the baby boomers. I'm looking at some baby boomers out there. As a
matter of fact, by the time the baby boomers fully retire there's going to
be over 70 million of us getting paid by younger workers who are paying
through payroll -- paying our retirement through payroll taxes. Today
there's about 40 million retirees. So, you see, a lot more people are going
to be -- having to be taken care of in the retirement system through the
pay-as-you-go system.

And not only that; we're going to live longer than the previous generation.
And not only that; our benefits are going to rise faster -- at least the
promised benefits will rise faster than a previous generation. So you've
got a lot of people who will be living longer, getting paid greater
benefits, with fewer people paying into the system.

In 1950, there were some 16-to-one workers paying into the system for each
beneficiary. Today there's 3.3 workers for every beneficiary. Soon there's
going to be 2 workers for every beneficiary. So I think you're beginning to
get a sense of the math. A lot of us are going to get greater benefits,
we're going to live longer with fewer of the young people paying in the
system to take care of us.

Now, what ends up happening under that type of system is that, in 2017, the
system starts to go into the red -- more money going out than coming in on
Social Security benefits, for Social Security benefits relative to the
payroll taxes. And it gets worse every year. In 2027, it's projected to be
-- it will be $200 billion in the hole, $200 billion more benefits going
out than payroll taxes coming in; every year worse after that, until 2041,
all those -- the paper in the file cabinets in West Virginia are just eaten
up, bankrupt. The system is bust.

What we're asking youngsters to do is to contribute money through payroll
taxes into a system that will be broke in 2041 -- unless we do something
about it. And so that's the problem. And it's a real problem. My friend,
Tim Penny, former congressman from Minnesota, is going to describe the
problem to you in further detail.

Now, I have a duty not only to describe the problem, I believe I have a
duty to come forth and say, let's do something about it and here's some
ideas to the United States Congress. I did it. I stood up in front of the
Congress at my State of the Union, I said, here's a problem; by the way,
here's some ideas; all ideas are on the table -- except running up the
payroll tax rate, which I think would hurt the economy -- all ideas are on
the table, bring them forward. And then I further refined that by talking
about some of these ideas. And the reason I'm doing it is because I
understand if we wait, it costs $600 billion a year more every we wait.
See, if we don't do anything, if we don't come up with a solution to
permanently solve this problem, it is conceivable a younger generation of
Americans will have to pay an 18-percent payroll tax, or benefits will have
to be cut by 30 percent, or the rest of government will have to cut
substantially in order to make sure that the promises that have been made
are pr

And so here are some ideas Congress needs to consider. First of all, that a
future generation should receive benefits equal to or greater than the
benefits enjoyed by today's seniors. That seems like a reasonable principle
as we go forward. Secondly, that the Social Security system should be
designed such -- the future Social Security -- by the way, if you were born
prior to 1950, nothing changes. What I'm talking about here doesn't pertain
to you. You're going to get your check. The system is going to be exactly
the way it is. There's plenty of money in it to take care of you. It's the
younger folks that need to be paying attention to what I'm talking about.

And so I think a second principle ought to be this: if you've worked all
your life, that you should not retire in poverty. That's a principle that
makes sense. We can design a system that supports that concept. And here's
the way you do it: It's called progressive indexing. That's a Washington
kind of thing, you know. (Laughter.) It says that if you're in the -- for
example, a guy named Pozen, who Tim knows well, came up with this concept.
It said that if you're a -- poorest 30 percent of the workers, nothing will
change in terms of how your benefits increase.

Right now the benefits, by the way, increases are tied to wages. If you're
the top 1 percent of workers in terms of income, your benefits would
increase by the rate of inflation, not by the rate of wage. Your benefits
increase, but not as fast as the folks at the bottom end of the spectrum.
And if you're in between, depending upon your income, your benefits will
increase somewhere between the rate of wage and the rate of price.

Now, incredibly enough, structuring the system this way when it comes to
benefit increases will get about -- a significant portion of the problem
permanently solved. I think it makes sense for Congress to consider this
idea. It says you'll get a benefit equal to or greater than the previous
generation; that, at the very minimum, your benefit will grow at the rate
of inflation -- if you're poor, your benefit will grow at the rate of wage
increases, and that you won't retire into poverty.

And there are other things we can do to permanently solve the problem
completely. I say, permanently solve it, because you might remember 1983.
Were you in the Congress then, Tim? Yes, first term in the Congress. Tim
came together with others -- Ronald Reagan was the President, Tip O'Neill
was the Speaker. We had a problem in Social Security. They came together
and put together what they called a 75-year fix. Here we are 22 years
later. The 75-year fix didn't stick for 75 years. It's time to fix this
deal once and for all.

And there are some good ideas I put on the table. Let me tell you one other
good idea that I want people to think about before we get to our panelists
here, folks we're going to be discussing this issue with, and that is that
I think that as we permanently solve the system, that we ought to make it a
better deal for younger workers by allowing younger workers to take some of
their own payroll taxes and set it aside in what is called a voluntary
personal savings account. (Applause.)

Notice I said "voluntary." In other words, the government should say to a
younger worker, if you want to, you can put some of your own money aside.
You don't have to. If you're uncomfortable with watching your money grow
with a conservative mix of bonds and stocks, you don't have to do that. You
can keep it the way -- into the system. And you'll get your check. If
you're in the bottom 30 percent, your benefits over time will grow at
wages. If you're in the top 1 percent, they'll grow with inflation. And if
you're somewhere in between, they'll grow depending upon your income, but
greater than the rate of inflation. Secondly, it's called a personal
account. That means you own it. It's an account the government cannot take
away. (Applause.)

So why would we do this? Why would we think of this idea? Well, first of
all, with your money in your payroll taxes -- after all it's your money --
is earning about a 1.8 percent rate of return over time in the Social
Security system. You can do better than that. You can do better than that
with T-bills, which have very little risk to them, if any at all. You can
do a lot better than that in a conservative mix of bonds and stocks. They
say that over time you should be able to average at least 4.6 percent.

Now, over a lifetime that is a significant amount of money relative to the
1.8 percent, because money compounds, money grows. For example, if you're
making $8 an hour and you put your money -- and you're allowed to set aside
a third of your payroll taxes -- $8 an hour over your life, and you're
allowed to set a third of your payroll taxes aside in a personal savings
account, and you earn the 4.5 percent rate of return, which is definitely
achievable, particularly when you look at the history of a conservative mix
of investments, by the time it comes -- you reach retirement age, you'll
have earned $100,000 in your nest egg. That will be a part of your Social
Security retirement system. See, you'll get benefits out of the current
system, out of the system that's reformed, plus you get $100,000 that you
call your own.

If you're -- say, you're a police officer and a nurse, and enter the work
force in 2011; you set aside money, you make the average salary those folks
make over time, and you set aside a third of your payroll taxes -- both of
you do -- by the time both retire, they have about $669,000 in a personal
savings account. Money grows over time. The higher the rate of return, the
more -- the faster your money grows, and the more you end up with.

A lot of people are able to understand that. You know why? Because we're
into a 401(k) culture. When Penny and I were growing up, we didn't have
401(k)s. The other day I was in an automobile manufacturing plant in
Mississippi, I'm sitting with a lot of line workers. I said, how many of
you have got 401(k)s? A lot of hands went up. A lot of people from
different walks of life, different backgrounds, now understand what it
means to watch your money grow. This isn't a new concept that's in American
society, this is something that's taking place throughout all of society.
And I think it makes sense to understand the investor class doesn't belong
to a privileged few, but the investor class ought to be extended to
everybody who lives in America if that's what you want, if that's what you
choose. (Applause.)

I like the idea of somebody saying, here's your asset and you can leave it
to whomever you want. And the more people are able to do that in our
society, the better off society is. See, I think government ought to
promote an ownership society. We ought to encourage more people to own
their own home, encourage entrepreneurs to be able to take risk and own
their own business -- and in this case, encourage Americans from all walks
of life, if they so choose, to manage their own retirement account. And I
say, manage it -- you know it's your money; you're going to have some
choices to make when it comes to a personal savings account. You can't take
it to the lottery, by the way. You notice I've been stressing conservative
mix of bonds and stocks, because we want this account to grow and be a part
of a modern safety net for you in your retirement. And so there will be
some guidelines.

And I can predict to you that it works because a lot of other people have
watched their money grow in the same kind of accounts, including people who
work for the federal government. See, we have got in Washington what's
called a Thrift Savings Plan. And members of the United States Senate, for
example, can choose, if they so desire, to set aside some of their own
money in a personal savings account, a voluntary personal savings account.
And a lot of people like it.

I think -- I was doing one of these events with Senator McCain, who told me
that his rate of return on his money was, like, 7 percent over the last 20
years. That's a lot better than the 1.8 percent we now get for you in the
Social Security system. And so my attitude about this issue on thrift
savings plans when I speak to members of the Congress is pretty simple --
if the idea of taking some of your own money and setting it aside in a
conservative mix of bonds and stocks is good enough for you, Mr. Senator,
it is good enough for workers all across the United States of America.
(Applause.) You'll be happy to hear Senator McCain agrees with me, because
he's seen his money grow.

Now, a personal savings account would be a part of a Social Security
retirement system. It would be a part of what you would have to retire when
you reach retirement age. As you -- as I mentioned to you earlier, we're
going to redesign the current system. If you've retired, you don't have
anything to worry about -- third time I've said that. (Laughter.) I'll
probably say it three more times. See, in my line of work you got to keep
repeating things over and over and over again for the truth to sink in, to
kind of catapult the propaganda. (Applause.)

But if you choose to have one of these accounts -- notice I keep saying "if
you choose" -- the government is not going to tell you, you have to do
this. I think the government ought to give you the opportunity to set up
one of these accounts. And the account becomes a part of your retirement
plan. It's your own asset. It's something you leave to somebody -- whomever
you choose. And it makes the system eminently more fair.

Now, with those thoughts in mind, we got a problem, and here's some ideas
on how to solve it. I've asked Congressman Tim Penny, right out of the
state of Minnesota, a person who's followed this issue a lot -- he happens
to be of a different political party than I am, but, nevertheless, we both
share the common goal of doing our duty as involved citizens to permanently
solve the problem of Social Security today.

Welcome, Congressman. Thanks for coming.

* * * * *

THE PRESIDENT: Well, thank you, Tim, good job. (Applause.) Articulate guy,
isn't he? One thing you don't have to worry about is me staying with this
effort. This is a vital issue. The American people expect those of us who
are fortunate enough to serve in Washington to solve problems. And I've
just begun. I like getting out of Washington to begin with -- (laughter) --
I like explaining the situation. But we're just beginning. If this were
easy, it would have been done a while ago. And I fully recognize some in
Washington don't particularly want to address this issue, it may be too
difficult. And I recognize some of them say, well, this is a partisan
thing, we don't want to make one party look good as opposed -- at the
expense of another.

But let me tell you what I think is going to happen. I think -- and Tim is
right -- I think more and more people recognize there's a problem, and
people are beginning to say, go do something about it. And those who
obstruct reform, no matter what party they're in, will pay a political
price, in my judgment. People expect us to go to Washington, D.C. to work
together. That's what they want to see, particularly when it comes to an
issue like Social Security. (Applause.)

We've got three members of a fine family here. We've got grandmother, mom,
and down there anchoring at the end is grandson or son, isn't that right?

MRS. CEGLINSKI: That's right.

THE PRESIDENT: You are Audrey Ceglinski.

MRS. CEGLINSKI: That's right. I'm a 70-year-old widow.

THE PRESIDENT: Don't ever say your age. (Laughter.)

MRS. CEGLINSKI: Oh, that's -- I have no problem. Don't ask me my weight,
though.

THE PRESIDENT: Okay. (Laughter and applause.) Reminds me of my mother.
(Laughter.)

MRS. CEGLINSKI: That's good. I was a teacher's aide for Williamsville South
High School for 25 years, and I retired from there -- a very enjoyable job.
I also wanted to mention I'm a volunteer for Meals on Wheels.

THE PRESIDENT: Oh, fantastic.

MRS. CEGLINSKI: Which I'm missing today. (Laughter.)

THE PRESIDENT: I hope somebody filled in --

MRS. CEGLINSKI: Oh, yes. We've got some great people there. It's a good
group.

THE PRESIDENT: Thanks for doing that.

MRS. CEGLINSKI: I like it a lot. My husband and I retired eight years ago.
Unfortunately, he passed on after only two years, so the money he had
invested in Social Security in a sense was gone. Had we had a personal
account, I would have had some money for Deborah, Jeremy, his brothers, to
pass on.

THE PRESIDENT: Let me stop you there, if you don't mind.

MRS. CEGLINSKI: That's fine. (Laughter.) You have my permission.

THE PRESIDENT: Here's the way the system works. Two folks work, they both
contribute to the Social Security system; if one dies early, the spouse,
the remaining spouse gets to choose her benefits or his benefits, which are
ever greater, but not both. Think about that system. Dad went and
contributed a lot into the system. He passed away. But the money he put in
-- most of the money he put in is gone. That's not fair. What kind of
system is that? It's not a fair system. It's not fair to the family. It's
not fair to the person who has worked all his life, in this case. Had he
been able to put money aside in a personal account, that account would have
gone to Audrey.

Isn't that right? Keep going. You're on a roll.

MRS. CEGLINSKI: Okay. (Laughter.) I have five children, seven
grandchildren, and that's my concern. I think you, making the young people
aware that there's a problem, is going to make them aware and encourage
them to save. And I think that's what we need to do.

THE PRESIDENT: Well, I appreciate that. Younger people need to pay
attention to this issue. See, if nothing gets done in Congress, as
Congressman Penny pointed out, you're going to get to pay higher payroll
taxes -- and higher and higher and higher payroll taxes. And so you need to
pay attention. Actually, I believe younger people are beginning to pay
closer attention to this issue. We're beginning to get their attention.

First thing is, is there any doubt in your mind that you're going to get
your check?

MRS. CEGLINSKI: I'm getting my check, and it's wonderful.

THE PRESIDENT: They're still coming.

MRS. CEGLINSKI: It's still coming. And I'm planning on it for a while yet.
(Laughter.)

THE PRESIDENT: Well, you need to, yes. Heading toward 80.

MRS. CEGLINSKI: That's right.

THE PRESIDENT: Right around the corner. You look great.

MRS. CEGLINSKI: Thank you very much.

THE PRESIDENT: You look like 100 to me. That's where you're going to be.
Thirty more years?

MRS. CEGLINSKI: I'll remind you of that. (Laughter.)

THE PRESIDENT: All right, good. And she's going to want her check. On her
99th birthday, she's going to want her check. And you're going to get your
check. Okay, and so who did you bring with you?

MRS. CEGLINSKI: I brought my daughter, Deborah, the oldest of my five.

THE PRESIDENT: Debbie or Deborah?

MRS. CEGLINSKI: Debbie. We like to call her Debbie.

THE PRESIDENT: You called her Deborah.

MRS. CEGLINSKI: Yes.

THE PRESIDENT: Okay. (Laughter.)

MRS. CEGLINSKI: Only when she's in trouble. And Jeremy, her youngest son.

THE PRESIDENT: Fantastic. Debbie, welcome.

MRS. BROWN: Thank you.

THE PRESIDENT: Thanks for coming. Mom did a good job, didn't she?

MRS. BROWN: Yes, she did.

THE PRESIDENT: So what was it like growing up? Was Mom pretty tough, a
disciplinarian?

MRS. BROWN: Yes, she was. (Laughter.)

THE PRESIDENT: Well, then you and I share the same thing. (Laughter.)

MRS. BROWN: Yes, we do.

THE PRESIDENT: Tell me what's on your mind.

MRS. BROWN: Well, I appreciate the opportunity to be here. I was an at-home
mom. I was privileged that my husband, who is here today, was willing to
let me stay home and raise the kids, work part-time. But when you do that,
you don't get to pay into a retirement system anywhere. So I went, got my
masters degree. I have a job I'm very happy with now. But I will never be
able to build a good retirement in the amount of time I have until I
retire. So it's very appealing, the plans that you're talking about,
because I'll be quite dependent on Social Security.

THE PRESIDENT: Yes, set aside a little money, watch it grow at a better
rate than the current Social Security system.

MRS. BROWN: Exactly, so that -- certainly, for Jeremy and for my other
three sons, as you said, it would make me happy to know that they're taken
care of, too, and that they would have options.

THE PRESIDENT: Right. And how is old Jeremy doing?

MR. BROWN: I'm doing good. (Laughter.)

THE PRESIDENT: Tell them where you were born.

MR. BROWN: Tomball, Texas. (Laughter and applause.)

THE PRESIDENT: Tomball, Texas, right outside of Houston.

MR. BROWN: Yes.

THE PRESIDENT: So you've got grandmom here, you've got mom here.

MR. BROWN: I've got the brother out in the audience -- one of the three is
out in the audience, the other grandparents.

THE PRESIDENT: Good. First of all, what are you doing with yourself these
days?

MR. BROWN: Well, I'm 18; I'm a sophomore at Canisius College, in Buffalo.
(Applause.)

THE PRESIDENT: What's your major?

MR. BROWN: I'm dual-majoring in business marketing and business management.

THE PRESIDENT: Great. All A's?

MR. BROWN: Hopefully. (Laughter.)

THE PRESIDENT: Well, don't worry about it. That won't disqualify you from
being President. (Applause.)

All right, Jeremy, get going, will you?

MR. BROWN: Well, being the younger generation, I'm just starting to pay
into the system. I like the idea of having these personal accounts, getting
a better rate of return in the end, and compound interest and everything so
I build up something for myself that I could leave for my future kids and
everything. And I like the fact that I'll have something to show for it,
because people go and pay decades and decades into Social Security and when
it comes time for me to retire, if we don't change, I'll have nothing to
show for it.

THE PRESIDENT: You know what's interesting -- I say this a lot when I
travel around the country -- is that a lot of young people think it's more
likely they'll see a UFO than a Social Security check. (Laughter.) What do
you think, Jeremy?

MR. BROWN: I don't know. I'd rather see Social Security change. (Laughter.)

THE PRESIDENT: I didn't ask your preference. (Laughter.) But there's a lot
of young people who, when they listen to the debate and understand the
demographic shift that's going on, don't think they're going to see
anything. What kind of system is that where you got a young guy getting
ready to graduate from college paying into a -- paying a payroll tax, a
hefty payroll tax into a system where he doesn't think he's going to see
any benefits from it. It's a system that sounds like to me is screaming for
reform, so that somebody who contributes into the system not only knows
they're taking care of a baby boomer generation, or doing their part for
their retirement, but also will have something left over for his family in
this case.

What do you want to do when you get out of college?

MR. BROWN: Go into real estate.

THE PRESIDENT: Real estate, yes, good. Sounds like to me you can understand
finances pretty well, too, that money can grow over time.

MR. BROWN: Yes.

THE PRESIDENT: Anybody -- any other 18-year-olders that you know worried
about this issue, thinking about the issue?

MR. BROWN: They are now. I got them informed.

THE PRESIDENT: Yes, you do? That's good. (Laughter.) Good job. It's
important for people Jeremy's age to start listening to this discussion. As
Tim said, the longer we wait, the more difficult it's going to be for an up
and coming generation.

This is a generational issue, folks. See, the grandmoms and grandads around
America now understand they're going to get their check, and so once that
comfort level has been provided, the next logical question from many of the
grandmothers I've talked to is, what you going to do about my grandson?
You've said there's a problem, Mr. President, I expect you and the United
States Congress to make sure that my grandson has got a viable retirement
system. That's what a lot of people are beginning to say around America.

And that's why I can predict that once we get through on this issue, once I
finish traveling the country -- and I got a lot more to do -- people are
going to start demanding from their representatives and their senators a
solution. They don't want any Washington double-talk. What they want is a
solution, so a grandmother can then look at her son, her grandson, Jeremy,
and say, thankfully, people in Washington did their duty, and I can rest
easy knowing I'm going to get my check and Jeremy is going to get his, as
well. That's the issue. (Applause.)

Good job. You were great.

You two look alike. These are the Weitzel girls -- McKenna and Riley, isn't
that right? Okay. Which one is Riley? That makes you McKenna.

MS. McKENNA WEITZEL: That's true. (Laughter.)

THE PRESIDENT: They're twins. I'm the father of twins. I am a white-haired
father of twins. (Laughter.)

MS. RILEY WEITZEL: They can do that to you.

THE PRESIDENT: Did you do the same thing?

MS. RILEY WEITZEL: Yes.

THE PRESIDENT: Tell me what you all do.

MS. RILEY WEITZEL: Well, I'm a history teacher at Bread of Life Christian
Academy here in Rochester.

THE PRESIDENT: Fabulous. Thanks for teaching.

MS. RILEY WEITZEL: I teach history to the fourth through seventh grades
there. Hi, guys, I love you and I miss you. Be good.

THE PRESIDENT: Taking advantage of C-SPAN. (Laughter and applause.)

MS. RILEY WEITZEL: And I am getting married in the summer, in August. And
my fianc and I are just starting to think about retirement and about future
generations and, hopefully, if God blesses us with kids, our kids, and
something we can pass on down to them. We're really excited about your
plan, and that we can set up personal accounts and then watch compound
interest grow, and hopefully get a nest egg and be able to hand that down
to our kids.

THE PRESIDENT: Fantastic. I don't remember thinking about compound interest
growing when I was 23. There wasn't a lot of discussion about that type of
issue. There's a change, there's a cultural change in America when it comes
to investment. Because a lot of people are now getting used to the concept
of watching their own money grow, isn't that right.

So is fianc here?

MS. RILEY WEITZEL: Yes, he's right over there -- Ben.

THE PRESIDENT: Ben. Look at him, fine-looking lad.

MS. RILEY WEITZEL: Thanks. I think so, too. (Applause.)

THE PRESIDENT: August is the wedding?

MS. RILEY WEITZEL: August 6th. You're invited. (Laughter and applause.)

THE PRESIDENT: That's a smart move. (Laughter.) She knows I won't come, but
I will send a gift. (Laughter and applause.) McKenna going to be in the
wedding?

MS. RILEY WEITZEL: McKenna is my maid of honor, of course.

THE PRESIDENT: Cool. McKenna, what do you do?

MS. McKENNA WEITZEL: I'm a hairdresser at the Scott Miller Salon in
Pittsford, New York.

THE PRESIDENT: Great, good.

MS. McKENNA WEITZEL: It's a wonderful place to work.

THE PRESIDENT: A lot of talk about Social Security?

MS. McKENNA WEITZEL: Not a whole lot there, but, honestly, I've been
thinking about it.

THE PRESIDENT: Have you? Good.

MS. McKENNA WEITZEL: Yes, definitely. I feel like there's definitely a
problem in the system right now and things need to change. And I want to
say that it's completely commendable of you to stand up and tackle this
issue.

THE PRESIDENT: Oh, thanks. Thank you. That's my job. (Laughter.) I
appreciate you saying that. There's a lot of others in Washington feel the
same way I feel, that there's -- they say, are you taking a risk? How can
you be taking a risk when you're doing what the people expect, solving
problems. I think the people who take the risk are those who won't come to
the table to discuss the issue in a way that will help solve the problem.
(Applause.)

So are you in agreement with Riley on personal accounts?

MS. McKENNA WEITZEL: I certainly do. I feel like being able to take more
ownership over your future and over your investments is very wise.

THE PRESIDENT: Yes. Don't you like the idea -- some of you have got 401(k)s
and you open up your statement on a quarterly basis -- it seems like to me
that would be a healthy thing for our country if more and more people are
opening a statement that says, this is what your worth, this is how your
worth has grown. It's a -- to me, it's a notion of getting people to
understand that they've got to pay attention to the future of the country,
when you, on a monthly basis, in some cases on a daily basis, if you want
to get on the Internet and look at your -- look at your asset base. Now,
you're contributing in to the -- both of you -- payroll tax, aren't you?

MS. McKENNA WEITZEL: Yes, we both currently are.

THE PRESIDENT: Pretty good-size chunk.

MS. RILEY WEITZEL: No, not really.

THE PRESIDENT: No, a pretty good-size chunk of your payroll tax.

MS. RILEY WEITZEL: Oh, of course.

MS. McKENNA WEITZEL: Yes, yes.

THE PRESIDENT: I think the interesting thing is that when you first talk to
people entering into the workplace their reaction when they first get their
checks, what -- their reaction to what it's like to not have quite as much
money as you expected. That happen to you?

MS. McKENNA WEITZEL: Yes, that was a shocker. (Laughter.)

THE PRESIDENT: Yes, in other words, government tends to take out a pretty
good chunk. And it seems like to me that a significant chunk that is being
taken out ought to at least be able to say to young kids, there's a reason
why, it's worthwhile for the money to go out, because it will help me in my
retirement age. That's kind of what we're talking about, isn't it?

Okay, now that you've got your kids watching, anything else you want to
say?

MS. RILEY WEITZEL: Just, be good today.

THE PRESIDENT: How about you -- how about you, McKenna? McKenna, you got
anything else you need to say?

MS. McKENNA WEITZEL: Well, I just also want to state that I feel like it's
just encouraging to know that we could collect money in the end, that we
aren't hoping that there will be money there, that it truly will be -- and
also just the responsibility of knowing that you're setting aside money,
and that you will be getting it.

THE PRESIDENT: See, it's a little lack of trust right now it sounds like to
me -- don't quite trust the government to have a Social Security system
available for my -- for the money I put in. This is a matter of trust. This
is a big issue.

I want to thank our panelists for coming to discuss this issue. (Applause.)
Very good job.

Washington has a duty to earn the trust of the people by making wise
decisions about how the people's money will be used. We have a chance --
both Republicans and Democrats have a chance to come together and to solve
the Social Security issue forever. And when we do -- and I believe we will,
because the people's voices are going to resonate on this issue -- and when
we do, all of us who are fortunate enough to serve this country can look
back and say, we did our duty for generations to come.

Listen, thank you all for coming. May God bless you all, and may God
continue to bless our country. (Applause.)

END 11:40 A.M. EDT
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