Text 404, 380 rader
Skriven 2005-02-03 23:33:44 av Whitehouse Press (1:3634/12.0)
Ärende: Press Release (0502033) for Thu, 2005 Feb 3
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Press Gaggle by Scott McClellan
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For Immediate Release
Office of the Press Secretary
February 3, 2005

Press Gaggle by Scott McClellan
Aboard Air Force One
En route Fargo, North Dakota



11:15 A.M. EST

MR. McCLELLAN: Good morning to everybody. Let me run through the day first,
then I'll get to questions.

The President spoke with Prime Minister Koizumi this morning. This was a
call the President initiated. They talked about the successful election in
Iraq and the way forward. They also talked about the importance of moving
forward on the six-party talks with North Korea. And they talked about ways
to build upon what is already a strong relationship between the United
States and Japan.

And then following that, the President had his usual briefings. And he went
to the Prayer Breakfast, as you all are aware.

When we land in Fargo, the Freedom Corps greeter is Fran Rickers, who has
volunteered since 1977 at the Fargo Veterans Affairs Medical Center. Then
the President will participate in a conversation on Social Security. And
the conversation participants -- we'll get you the list -- but will include
a university finance professor, and it'll include some individuals who are
concerned about the problems facing Social Security. It'll include a couple
of younger workers and parents and a mother, I know, of some children who
are, I believe, in their 20s now. And we'll get you that information.

And then following that, at the next stop in Great Falls, Montana, the
President will be greeted by Char and Roy Brady, they have volunteered with
Cascade County Retired Senior Volunteer Program -- RSVP is the acronym. And
they both have volunteered with that organization for a number of years.
And then in the conversation there in Montana, again, a university finance
professor will be present, as well as some -- several citizens who are
concerned about the state of Social Security.

And let's see if there is any -- well, we'll get you the list. That will
include a grandmother, as well -- no, a grandfather, as well, who has a
number of grandchildren -- 25, according to what I have. So obviously
looking at this from a context of what we can do to make sure the system is
better for our children and grandchildren.

Let's see. Oh, in that conversation, too -- at the end of that
conversation, after he participates in it with those individuals, I expect
that he'll be -- similar to like he did in some events last year, where
he'll take some questions from the audience, as well, in that one. Then
we're overnighting in Omaha.

A couple of other things. On Tuesday, the President will make remarks at
the Detroit Economic Club. I just want to update that to the schedule.
Today, I think at 11:30 a.m., we have a conference call -- it's going on at
11:30 a.m. eastern, so we won't be on it, but everybody on the ground will
be able to participate -- on some of the new initiatives the President
outlined last night.

And, finally, there is a story in The Washington Post this morning, which
we will put some paper out correcting the record about that story.

Q What story --

MR. McCLELLAN: It was the story that said that individuals investing in
personal accounts will have to return money to the government, the money
that they invest in those personal accounts. The story is wrong.
Individuals get to keep everything they set aside in personal accounts,
plus the increased rate of return they'll realize on their investment. So
to suggest otherwise is wrong. It is the individual's account and the
government cannot touch it -- and the article suggested otherwise.

Q -- that reporter's report?

MR. McCLELLAN: I just wanted to mention that, because it was wrong and
there is some comments from people in the article suggesting that our plan
was something that it is not.

Q Which lawmakers are on the plane? And does the President feel as if he
has persuaded any Democrats with his speech last night?

MR. DECKARD: Senator Conrad and Senator Burns. I don't believe there is any
House members, but I'll double-check on that.

MR. McCLELLAN: We'll get you the list off the schedule in just a second.

Q Does the President feel as if he's able to persuade Democrats last night
with his speech?

MR. McCLELLAN: Some Democrats I don't think necessarily needed persuading
about the need to strengthen Social Security. You have people like
Congressman Boyd, who I've talked about recently, who has already signed on
to legislation to address Social Security's -- the insolvency facing Social
Security.

Q He's the only one in all of Congress, right? The only Democrat?

MR. McCLELLAN: I don't know that I would describe it that way.

Q But --

MR. McCLELLAN: It's early in the process, first of all. But the President
today is going to continue to talk about the serious problem facing Social
Security for future generations. He'll talk about how the system is going
insolvent. And he'll hear from these individuals about why they believe
it's important to act now to fix that problem. And the President is
directly -- speaking directly with the American people about the need to
act this year to strengthen Social Security, because it gets worse over
time.

And the President made it very clear last night in his remarks that we have
to have an open and candid discussion about the serious problem facing
Social Security, and that he welcomes all ideas in this discussion. And we
should be focusing on solutions and ways we can work together to address
this problem and make Social Security permanently sound.

Q Scott, will the President be talking about solutions today, or is this
still about hearing from people to define the problem?

MR. McCLELLAN: I think you'll hear both. I expect you'll hear both. I mean,
he talked about some ideas for making Social Security permanently sound and
strengthening it for younger workers, so that they can realize something
close to what Social Security is now promising, but cannot deliver.

Q How open and candid will this actually be? How many participants oppose
what the President is doing? Is it every single participant --

MR. McCLELLAN: I'm sorry?

Q Is every single person, both in the audience and on the panel, are they
all supporters of the President's plan?

MR. McCLELLAN: I don't know. There are several -- at the first event I
think there are a few thousand that will be there. I imagine the second
event is also --

Q The first event, the people that are speaking --

MR. McCLELLAN: -- a number of people. But these are events like we do other
places --

Q -- all support him?

MR. McCLELLAN: They're ticketed events; people distribute tickets to
individuals in the community. So I'm sure you'll have people from the
community. But I don't think you could describe it that way.

Q But those on the panel that are speaking at the first event -- do all of
them support the President's plan?

MR. McCLELLAN: You'd have to ask those individuals. Do they support the
President's plan? I think they -- I think that these are individuals that
understand that there is a real problem facing Social Security. That's what
we're trying to highlight in these events, is the problem facing Social
Security and the need to act to address it this year.

Q When will the President start talking about how to address the funding
shortfall? He's talked a lot about private accounts --

MR. McCLELLAN: He talked about some ideas that he feels -- that he believes
should be on the table and that we should discuss. I think, again, if you
go back and look at the first term, we were able to accomplish many big
things. This is a big thing, too -- taking on and strengthening Social
Security. And the President recognizes that it is a difficult task, and
that's why he believes it's important to approach this in a bipartisan way,
and that's the message he sent last night in his State of the Union
remarks.

He believes it's important to look at all ideas that can address this
growing problem, that it is only getting worse over time. He talked about
how in 2018, the system will be paying out more than it's taking in. And he
talked about how Social Security has not kept up with changing times. It
was designed for another era, and it served an important purpose, and he
wants it to continue to serve an important purpose for all Americans. The
problem is that -- it's fine for those at or near retirement today; it's
working fine. But it's for our younger workers that it faces serious
challenges, and we shouldn't be passing on the problem to them and letting
it get worse, because the options become much fewer if you let it grow over
time.

Q In terms of how the plan is structured, if personal accounts are part of
the solution, an important part of the solution, why wait until 2009 to
begin phasing them in?

MR. McCLELLAN: For the reasons the President stated last night, and that
we've stated previously, so that younger workers can prepare for the day
when they will be able to, if they so choose, invest their payroll taxes,
part of their payroll taxes in personal retirement accounts. The President
believes that's the best way to proceed forward for addressing this issue,
and do so in a fiscally responsible way.

Q Haven't you said that's irresponsible? Haven't you said that every year
that we wait, it costs an extra $600 billion to fix the system?

MR. McCLELLAN: That's why we need to act this year. Yes, every year --

Q -- this year, so it looks a little rosier on the budget side?

MR. McCLELLAN: -- because personal accounts are part of a comprehensive
solution for strengthening Social Security. But it takes more than just
personal accounts to find a comprehensive solution that makes Social
Security sound, permanently sound, as the President described last night.
And that's why he wants to act this year.

But the full, comprehensive plan has not been agreed to at this point. The
President is very much reaching out and saying, I welcome ideas. There are
a number of ideas that have been proposed by people on both sides of the
aisle. He highlighted some of those ideas last night. He said, these are on
the table, let's discuss these ideas and try to find a solution that is
bipartisan and that permanently fixes the system.

Q Was the President upset last night --

MR. McCLELLAN: One second. But you are correct, as we pointed out, that
each year we wait to act, it's going to, according to the Social Security
trustees, add $600 billion to the cost, and each year after that, starting
next year, and then each year after that, it's another $600 billion or
more.

Q Doesn't this also allow you guys, by starting in 2009, and then phasing
it in, to then use a 10-year budget number that really masks the true cost
of it?

MR. McCLELLAN: That's the personal account -- that's the personal accounts
that we're talking about.

Q Personal accounts, isolating on that. If you go beyond that 10-year time
frame, the budget frame, by phasing it in. You guys lower the cost of this,
just the personal accounts. That next 10 years, when this thing is fully
phased in, isn't that where we're going to see a humongous surge in the
cost of the transition costs?

MR. McCLELLAN: It's interesting, because there were some that -- I think
the best way to describe it is -- a couple things, I'm going to come to
that. But first of all, we have to keep in mind the choices facing us to
address Social Security. We can stay with the status quo, and younger
workers are going to face massive tax increases or massive benefit cuts, or
we can fix the problem, and help younger workers realize a greater rate of
return on their own payroll taxes, and give them some ownership in it.
That's what the President believes we ought to do, because he believes we
were elected to solve these problems, and not pass them on.

Now, in terms of the cost issue relating to personal accounts, personal
accounts don't add any additional cost to the system, because the
obligation for the government goes away. But it does allow younger workers
to realize a greater rate of return.

Q But --

MR. McCLELLAN: Well, moving some of those costs forward is what you're
referring to, because it will bring down the unfunded liability facing
Social Security, which the trustees put at nearly -- well, $10.4 trillion
to permanently fix it. But you have to look at the full, comprehensive plan
for permanently fixing Social Security to get into those details. And right
now, those are issues we're discussing with members of Congress about how
we go about doing that, because that will impact those projections, and
what those costs would be.

Q What about the transition costs that figure in that next 10 years, and
then the first 10 years --

MR. McCLELLAN: The cost of inaction is far greater when it comes to Social
Security. And like I said, you're bringing some of those costs forward.
It's not adding -- personal accounts do not add to the overall cost of
Social Security. And it brings some costs forward. It's not --

Q But I'm not talking -- in the short term, it's going to cost people more
in the form of higher deficits, especially in that next 10-year time frame.

MR. McCLELLAN: The unfunded liability is more than $10 trillion facing
Social Security right now. And that's why the President believes we need to
address this issue, and make it permanently sound, so you do away with that
unfunded liability. And that's what this is about, and making it work
better for younger workers, and letting younger workers realize the same
kind of returns that we're seeing at the federal level through the Thrift
Savings Plan which the President talked about last night.

Q The President said very little about --

MR. McCLELLAN: I'm sorry, one last thing on Jim's point that I wanted to
mention. You know, there is a lot of -- there is some partisan spin out
there saying that this plan was going to cost -- the President's plan on
personal accounts was going to cost $2 trillion over the next 10 years.
People were saying what they were against and opposing something before it
had even been announced. The President believes we ought to be working
together to find solutions and focusing on what we're for, and --

Q But what --

MR. McCLELLAN: Hang on, I'm coming -- no, no, hang on -- and putting
forward ideas for solving the problem. And that's the spirit in which the
President is working. This is early in the process, and we recognize
there's going to be a lot of posturing early in the process. We've seen
that on other issues -- other big issues that we've worked to tackle, as
well. And we've been able to accomplish great things through the
President's leadership. He's going to lead on this issue, and for people to
go out and suggest that -- again, try to suggest costs at this point beyond
that 10-year amount, it is just wrong, because --

Q But --

MR. McCLELLAN: Wait, no --

Q -- I'm saying, well, look at the Social Security Trustees report. You
look at 10 years and this thing wasn't phased in, those numbers that
everyone's talking about might actually look like, wow, they were dead on.

MR. McCLELLAN: No, the numbers they were talking about were, they cost --
no, no, let's be clear, were talking about that it would be $2 trillion
over 10 years. That was reported a lot, based on what people -- based on
what some people were saying. The $2 trillion number was used an awful lot,
and we worked on a plan that was going to be phased in. We felt that was
the best way to approach this and address it.

Q But it would be over a trillion dollars, yes or no?

MR. McCLELLAN: Can I finish?

Q You're saying --

MR. McCLELLAN: You have to look at what the overall, comprehensive solution
is for addressing the fiscal problems facing Social Security to get into
those assumptions. And we're still working with Congress on those matters.
But, no, answer my question, isn't that what people were saying? A few were
going out there and trying to use partisan spin to suggest that it was
going to be $2 trillion over the next 10 years, and that's just not the
case.

Q The President said very little about North Korea in his speech, and
people are contrasting that to three years ago when he said North Korea was
part of an "axis of evil." Is he more hopeful of restarting the talks now?
Is there any reason to be more hopeful? You mentioned the call he had with
Koizumi.

MR. McCLELLAN: We will see. That depends on -- in part, on North Korea's
willingness to come back to the six-party talks. All nations in the region
are sending a unified, clear message to North Korea that it needs to end
its nuclear weapons program, that -- all parties are saying that they want
a -- in the region are saying, we want a nuclear-free peninsula.

And so everybody is sending a clear message to North Korea. We put forward
a practical, detailed proposal for resolving the nuclear issue when it
comes to North Korea, at the last round of talks. North Korea has sent some
indications that they want to come back to the talks. We'll have to see how
serious they are by the actions they take. But I think all parties are
urging North Korea to come back to the talks, so that we can talk about how
we move forward in a substantive way on the proposal that we put forward at
the last round of talks.

Okay.

MR. DECKARD: Governor Hoeven, Senator Kent Conrad, Senator Burns and
Congressman Rehberg.

MR. McCLELLAN: The President has been visiting with them for most of the
flight.

Q Is Senator Conrad going to have any part in the formal program of the
first event?

MR. McCLELLAN: I don't think any of these have any formal role, I mean,
other than the President probably recognizing them.

Q He'll go to the first event, or he'll go to the --

MR. McCLELLAN: I think -- do you have the schedule there? He's scheduled to
go.

END 11:35 A.M. EST
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