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Skriven 2005-01-15 23:33:12 av Whitehouse Press (1:3634/12.0)
Ärende: Press Release (050115) for Sat, 2005 Jan 15
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President's Radio Address
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For Immediate Release
January 15, 2005

President's Radio Address


˙˙˙˙˙Audio

RADIO ADDRESS BY THE PRESIDENT TO THE NATION

THE PRESIDENT: Good morning. This week, I met with some of our fellow
citizens from across the country to discuss one of the great
responsibilities of our nation: strengthening Social Security for our
children and grandchildren.

For 70 years, the Social Security system has fulfilled the promise made by
President Franklin Roosevelt, keeping our elderly citizens out of poverty,
while assuring younger Americans a more secure future. Along with
employer-funded pensions and personal savings, Social Security is for
millions of Americans a critical element to their plans for a stable
retirement. And for today's senior citizens and those nearing retirement,
the system is sound. But for younger workers, Social Security is on the
road to bankruptcy. And if we do not fix it now, the system will not be
able to pay the benefits promised to our children and grandchildren.

˙Radio Address
  ū 2004
  ū 2003
  ū 2002
  ū 2001
˙Radio Interviews
  ū 2004
When President Roosevelt signed the Social Security Act in 1935, the
average life expectancy was about 60 years, which meant that most Americans
would not live to become eligible for benefits, then set at age 65.

Today, most Americans enjoy longer lives and longer retirements. And that
presents a looming challenge. Because Social Security was created as a
pay-as-you-go system, current retirees are supported by the taxes paid by
current workers. Unfortunately, the ratio of workers to retirees is falling
steadily. In the 1950s, there were about 16 workers paying in for each
person drawing out. Today, it's about three workers for every beneficiary.
And by the time today's workers in their mid 20s begin to retire, there
will be just over two.

What this means is that in the year 2018, the system will go into the red
-- paying out more in benefits each year than it receives in payroll taxes.
After that, the shortfalls will grow larger until 2042, when the whole
system will be bankrupt. The total projected shortfall is $10.4 trillion.
To put that number in perspective, $10.4 trillion is nearly twice the
combined wages of every single working American in 2004.

Every year we put off the coming crisis, the higher the price our children
and grandchildren will have to pay. According to the Social Security
trustees, waiting just one year adds $600 billion to the cost of fixing
Social Security. If we do not act now, government will eventually be left
with two choices: dramatically reduce benefits, or impose a massive
economically ruinous tax increase. Leaving our children with such a mess
would be a generational betrayal.

We owe it to the American worker to fix Social Security now. And our
reforms begin with three essential commitments. First, if you're receiving
your Social Security check, or nearing retirement, nothing will change for
you. Your benefits are secure. Second, we must not increase payroll taxes
on American workers because raising taxes will slow economic growth. Third,
we must give younger workers -- on a voluntary basis -- the option to save
some of their payroll taxes in a personal retirement account.

Unlike Social Security benefits, which can be taken away by politicians,
the money in a personal account would be yours. And unlike the money you
put into Social Security today, the money in personal accounts would grow.
A child born today can expect less than a 2 percent return after inflation
on the money they pay into Social Security. A conservative mix of bonds and
stocks would over time produce a larger return. Personal accounts would
give every younger worker, regardless of income, the chance to save a nest
egg for their later years and pass something on to their children.

Saving Social Security is an economic challenge. But it is also a profound
moral obligation. Today's young Americans deserve the same security their
parents and grandparents enjoyed. Because the system is broken and promises
are being made that Social Security cannot keep, we need to act now to
strengthen and preserve Social Security.

I look forward to working with members of Congress from both parties to
keep the promise of Social Security.

Thank you for listening.
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