Text 601, 752 rader
Skriven 2005-03-04 23:36:46 av Whitehouse Press (1:3634/12.0)
Ärende: Press Release (050304f) for Fri, 2005 Mar 4
===================================================
===========================================================================
President Participates in Social Security Conversation in Indiana
===========================================================================

For Immediate Release
Office of the Press Secretary
March 4, 2005

President Participates in Social Security Conversation in Indiana
Joyce Center
University of Notre Dame
Notre Dame, Indiana



4:25 P.M. EST

THE PRESIDENT: Thank you all. Please be seated. Thanks for coming.
(Laughter.) More importantly, thanks for letting me come. We're here to --
(applause.) We're here to have a dialogue with some of our fellow citizens
about Social Security. But I've got some things I want to share with you
before we get there.

First, this is a serious conversation, and it's an important conversation
-- a conversation about the future of the country. And I want to thank
Father Malloy and Father Jenkins for letting us come to this fantastic --
letting me come back to this fantastic university. I come back as a
graduate -- well, kind of a graduate. I got a degree -- (laughter) --
honorary degree. (Laughter.) For all you C students out there, it's amazing
what can happen to you if you keep working hard. (Laughter and applause.)

It's such an honor to be with Father Hesburgh, as well. What a great
American. I'm proud to be in your presence, sir. (Applause.) I'm glad to be
here with my man, Mitch. (Applause.) Governor, we miss you. He was a solid
member of my Cabinet, and he's a solid buddy.

Laura sends her best, by the way. She is -- (applause.) She's doing great.
Believe it or not, she's in Death Valley, California, looking at
wildflowers. (Laughter.) She loves flowers -- and I love her. (Applause.)

I appreciate Congressman Chris Chocola. He is a strong leader. See, I've
been up there long enough to be able to determine who knows how to lead and
who's just up there holding office. You've got a leader in Chris, and I
appreciate your leadership. (Applause.)

Congressman Mark Souder is with us. Mark, thanks for coming; appreciate
working with you, as well. (Applause.) I know the Attorney General is here
-- Attorney General Steve Carter. Thank you for being here, General.
(Applause.) Mayor Luecke is with us. Mr. Mayor, I'm honored you're here.
Thanks for -- you tell those firefighters and policemen how grateful I am
for them having to stand out in the cold to deal with my entourage. But
thanks very much. (Applause.) Mayor Jeff Rea, good to see you, Jeff. Thanks
a lot. (Applause.)

Most of all, thank you all for sharing your time and paying attention to
crucial issues. First, I do want to talk a little foreign policy. You know,
I believe deep in everybody's soul is the desire to live in freedom. I told
a lot of people around the country that freedom is not America's gift to
the world; freedom is the Almighty's gift to each person in this world. And
that's what I believe. (Applause.)

And I know we've got some students here -- and you're living in an amazing
-- we're all living in amazing times, when you think about what has taken
place in a brief period of time. I mean, millions vote in Afghanistan to
elected a President. That country has gone from darkness to light because
of freedom. The Palestinians have elected a new leader who is showing
courage. I believe someday soon there will be a Palestinian state living
side by side with Israel in peace. (Applause.)

The Iraqis defied the terrorists and went to the polls by the millions
because they want to live in a free society. (Applause.) The desire for
people to self-govern and to live in a free world is catching on in parts
of the Middle East. In Beirut, Lebanon, thousands of people took to the
streets in peaceful protests because they're saying, we want to live in
freedom, as well. And now it's time for Syria to end its occupation of that
good democracy. They need to remove all their troops, all their secret
services. They need to listen to the voices of not only the United States
and France and other European countries, but the voices of people like
Crown Prince Abdallah from Saudi Arabia. The leader of Syria must
understand the world is speaking with one voice: Lebanon must be free.
(Applause.)

And the reason that's important is because free societies will help keep
the peace -- the peace we all want; the peace for generations to come, so
young and old can grow up in a peaceful world regardless of your home
country. I believe this world is becoming more peaceful. And when it
becomes more peaceful all of us who've been involved in public policy and
all who've served our country can know we have done our duty for
generations to come.

We got some good news today about the economy. The economy added 262,000
new jobs last month. (Applause.) The entrepreneurial spirit is strong in
America. We need to keep it strong. These jobs were added because -- I
think -- of good policy, which said, how can we stimulate small business
growth? What can we do to make sure the entrepreneur is doing well, not
only in Indiana, but around the country? And the fundamental question is,
what do we do now?

I believe firmly that the scales of justice are not balanced in America. We
need legal reform. We got a good class-action bill to my desk. Republicans
and Democrats supported it. We now need to get asbestos reform so people
won't get driven out of work. And I'll tell you another reform we need in
the halls of Congress; we need medical liability reform, so good doctors
aren't run out of practice. (Applause.)

Laura told me, she said, make sure when you get up there, remember, you've
got some panelists, so don't do all the talking. But I've got a lot to say.
(Laughter.) We're doing great in Washington. We're working hard to make
sure that there's a new spirit, where people decide to set aside politics
and work on problems -- and one of the biggest problems we face is Social
Security.

Let me first start off by saying something really important, and we'll talk
about this as the discussion goes on. If you're relying upon Social
Security today, nothing will change. I don't care what the ads say, what
the politicians say. You're going to get your check. That's just the way it
is. That is a fact. The problem for Social Security is not for those who
now depend upon it. Listen, Social Security has been a great safety net.
It's been a vital part of our country. But we're getting some holes in the
safety net, particularly for younger generations of Americans.

And you're probably wondering why somebody who has been in politics is
talking about Social Security. After all, it's been called the third rail
of American politics. You grab ahold of it, and you get electrified. I'm
talking about it because I see a problem, and I believe I have a duty as
the President of the United States to bring problems forward for public
discussion. (Applause.) So I'm traveling our country, which I like to do,
by the way, talking about the problem and reassuring seniors that you don't
have anything to worry about -- unless you're worried about your grandkids,
like most seniors are.

Here is the problem: Baby boomers, like me, are getting ready to retire.
Starting in the year 2008, a lot of us turn the age of 62 years old. We're
the -- that where the leading edge of the baby boomers are -- that would be
me. Is that you, Mitch? Almost, yes. (Laughter.) You don't look it. We've
got a lot of us. See, there's a bulge of retirees getting ready to retire.
And we're living longer than the generation before us. You've got a lot of
people getting ready to retire who are living long years. And, yet, the
government has promised us benefits that are much greater than the previous
generation's. So you're beginning to get a sense for the math: a lot of
people living longer, being promised greater benefits.

And the problem is, as you can see on this chart, that the number of
workers paying into the system is shrinking dramatically. In the '50s, it
was 16 to one, 16 workers paying into the system for every retiree -- so
that if you took the average compensation today for Social Security
retirees, $14,200 -- that would be each worker would pay $900 to make sure
that one person got the benefits. Today, it's 3.3 to one and soon it's
going to be two to one. More people, living longer, getting greater
benefits with fewer people paying into the system. The math just doesn't
work any more.

Now, this is a pay-as-you-go system. Checks come in, and the checks go out.
Some of you probably think when you think about the Social Security trust,
that there is a bank account with your name on it, that the government is
dutifully collecting your money so that it will accumulate over time and
pay it out. That's not how it works -- that's not the way it works. Money
is coming and the money is going out. And if there's extra money above and
beyond the promises made to Social Security retirees, that money is going
to pay for other government programs. I hate to tell you, that's just the
way it's working. And what has happened is you got a bunch of paper
accumulating in the form of IOUs. But this is a pay-as-you-go system. It is
not a savings system.

Now, when you get more people retiring who are getting greater benefits and
are living longer, with fewer people paying in, at some point in time the
system starts to go into the red. Right now, on that chart you can see,
there's more money coming in than going out. But in 2018, there's more
money going out than coming in. That's the beginning of the -- of the trust
beginning to become depleted. I mean, it's the beginning of the IOUs being
dissipated.

Let me tell you how bad it will be if we don't do anything. In the year
2027, the government will need to raise $200 billion more than the payroll
taxes just to make good on the promises. And it gets worse the next year,
and the next year, and the next year. It's up to about $300 billion by 2030
something. And in 2042, the system is flat broke. All the IOUs have been
gone.

So we have a problem. I don't care how you look at it, it is a problem. It
is a problem that I think needs to be addressed. The longer you wait, the
harder it is to come up with a solution. Imagine if this government of ours
does nothing at this point in Social Security, and you've got a
five-year-old child. When that child turns 18, the system goes into the
red. When that child turns 28, it requires billions of dollars to make good
on the promises to people like me. When that child -- in the year 2027,
that child and other workers are going to be confronted with at least a
$200 billion deficit per year to make good on the promise. So my first
mission is to travel around this country saying to folks, we've got a
problem, and to remind seniors that nothing will change, that you'll get
your check.

And if I'm successful at doing that, then all of a sudden you can imagine
where the debate will go. The American people will start saying --
particularly the younger Americans who are going to have to pay for this --
will start saying, what you going to do about it? If you see a problem, Mr.
President, and Congress and Senate, what do you intend to do about it in
order to make sure there's a retirement system and safety net for future
generations of Americans? And I understand that.

And that's why at my State of the Union, I stood up and said, bring your
ideas forward. This is no longer the third rail of American politics. I
don't care if it's a Republican idea or a Democrat idea, I'm interested in
knowing what's on your mind as to how to permanently fix, permanently solve
this problem. And I mentioned that President Clinton and Senator Moynihan
and many Democrats who've come up with interesting ways, interesting ideas,
a variety of options to fix the -- to fix the situation. Now, I realize
I've got a duty to participate, as well. First thing I'm going to do is
keep traveling the country over and over and over again, making the point
we got a problem and now is the time to act. (Applause.)

But I want to share with you an interesting idea, an idea that I think will
make America a better place, and that is I believe that as part of a Social
Security reform package, younger workers ought to be allowed to take some
of their own money -- remember, when you pay in payroll taxes, it's your
money; not the government's money, it's your money -- you ought to be
allowed to take some of your own money and set it aside in a personal
savings account that you call your own. And here are the benefits --
(applause.) And here's the benefits as I see them. First, there's something
called the compounding rate of interest. In other words, if you set aside
dollars over time, they will grow with interest. And it compounds. It gets
bigger, bigger and bigger.

Now, you say, well, why can't that happen with my own money now? Well, it
can. But it is a paltry rate of return compared to conservative stocks and
bonds. If you put your money in a conservative mix of stocks and bonds, the
rate of return you'll get on your money is significantly greater than that
which the government is getting for you. That's important.

Take for example, the idea I've suggested to Congress that a worker ought
to be able to take 4 percent of the payroll taxes and set it aside in a
personal account. And if you average $35,000 over your life as a worker and
set aside that money in a personal savings account, over time, the money
you've set aside will grow to $250,000. That's on a worker earning $35,000.
That's your money, $250,000. Now, what would that be used for? That would
be in addition to that which the government can afford to pay you. In other
words, a personal account is on top of the check you're going to get. The
government can't possibly pay the promises we have made, as you've seen
from the charts. It's just impossible to do so. So my idea is to let you
take some of your own money, set it aside, let it earn interest over time,
let it grow, let it compound with interest, so that the money you end up
having for retirement is closer to the promise the government has made.

Second benefit: It's your money, and when you pass on, you can leave it to
whomever you want. That's not the way the system works today. The system
works today -- (applause.) It will help a family who -- where a wage-earner
has died suddenly because that money is now available to be spent for that
family. We'll talk to somebody who went -- had an issue along these lines.

I'll tell you another thing I like about it. I like the fact that people
can own money. There is a myth in America that only certain people can be
an investor, the investor class. You've heard that discussed before. I
guess that's kind of the pin-stripe, Wall Street types. That's not what I
think about America. I think everybody in this country has got the capacity
to manage a personal account. I think everybody should be allowed to be
able to take his or her own money and watch it grow over time.

Now, you can't put it in the lottery. You can't take the money and shoot
dice with it. There will be guidelines. There will be a conservative mix of
investments. And guess -- guess what -- guess where you can find a go-by
for this type of system. Federal employees are allowed to do just this, in
the Federal Employee Thrift Benefit Plan. That's exactly what happens at
the federal government right now. They say if you're working for the
government, you can set aside some of your money, and you can invest in a
conservative mix of stocks and bonds so that you can get a better rate of
return.

Fourth, I think it makes sense to have people open up a quarterly statement
and watch how their wealth is growing. It certainly would cause people to
pay attention to what's happening in Washington, D.C. It will make people
wonder what the policies are -- are the policies that are being articulated
good enough to continue to make sure our economy continues to grow. In
other words, when you own something, you have a stake in the future of the
country.

So I think this is an idea worth discussing. And I put it out there for
people to debate and listen to and argue about. But one thing is for
certain that Congress needs to know, that we have a problem that needs to
be addressed. If somebody has got some better ideas, I'm looking forward to
hearing them. I'm looking forward to the people around our country saying
to the elected members of this Congress of ours, we've got a problem; now
we expect you as an elected leader to come to the table and solve it now,
before it is too late. And that's what I want to discuss here. (Applause.)

By the way, I'm really excited about the opportunity to fix Social
Security. That's why we run for office. Someone said, it's a steep hill to
climb, Mr. President. Well, my attitude is, the steeper, the better --
because when you get up top, you realize you have left a significant
contribution behind. And that's the spirit in which I go into this dialogue
with members of both political parties. (Applause.)

A couple of other points on the accounts. One, you can't take out all your
money when you retire. In other words, the account is there to add on to
that which the Social Security system has given you. It's in addition to.
Secondly, it's a -- there is a way to make sure that when you come closer
to retirement, you can alter the mix of stocks and bonds or T bills, or
whatever it might be so that you're able to better control the investment
portfolio. In other words, there's flexibility within the guidelines that
the government has set, just like the Thrift Savings Plan of federal
employees.

We've got some citizens here who have agreed to lend some of -- some of
your expertise to the subject. After all, you're dependent on Social
Security and I'm not. You're an expert on it. First I want to bring in Jeff
Brown.

What do you do, Jeff? That's a leading question, I already knew the answer,
of course. (Laughter.)

DR. BROWN: I'm a Ph.D. in economics and I'm a professor at one of the other
great Midwestern universities.

THE PRESIDENT: Ph.D. in economics. It's an interesting lesson, isn't it?
He's the advisor and the Ph.D. I'm the President and a fair student.
(Laughter and applause.)

All right, Doc. You're an expert on Social Security.

DR. BROWN: That's right. I've been studying it for about a decade now, and
the good news is, it doesn't really require a Ph.D. to understand that the
program is in trouble.

THE PRESIDENT: Give people your thoughts, seriously.

* * * * *

THE PRESIDENT: You know what's interesting about this subject? I was just
looking at Dr. Brown, he's a young-looking guy -- and I was thinking about
when I was his age, I don't remember much discussion about Social Security
being in trouble. I think we all took it for granted -- precisely because
the math was fine. And what he's telling you is, is that there has been a
demographic shift. People are living longer, people are having fewer
babies. And you might remember the old campaigns

-- they'd say, vote for me, I'm going to make sure you get greater Social
Security benefits. Well, that's what happened, they'd promise more and more
and more. And so my generation has been promised benefits that the
government just can't pay for -- unless graduates from Notre Dame
University are willing to pay a significant chunk of their earnings to
support me. And I'm not so sure they're going to be willing to do so when
it comes time.

* * * * *

THE PRESIDENT: What he also is saying is that when you save more, when
there's more savings, it encourages capital investment. Capital investment
means the economy is more likely to be strong. And that's important. There
is a direct correlation between savings and investment, and investment
means jobs and productivity, and eventually, higher wages. And so this will
not only have a good -- be good for our fellow workers and fellow
Americans, it will be good for the economy.

Well, good. Glad you're here, Jeff, thanks for coming.

Listen, we've got Mark and Betty Batterbee. Isn't that right? Where do you
live?

MRS. BATTERBEE: We live in Edwardsburg, Michigan.

THE PRESIDENT: Welcome. I'm glad the people of Indiana let you in.
(Laughter.)

MRS. BATTERBEE: Yes, they did. (Laughter.) We're from Michiana.

THE PRESIDENT: Yes, from Michiana, all right. You've got some children?

MRS. BATTERBEE: Yes, we do. Together, Mark and I have 11 children. We have
a very large family, which seven of them are here today. (Applause.)

THE PRESIDENT: Seven are here? Good. There they are. Make sure you listen
to your mother. (Laughter.)

MRS. BATTERBEE: We have 35 grandchildren. (Applause.) And we have six
great-grandchildren. But, first, Mr. President, I think it's an honor to be
here. I'm so delighted.

THE PRESIDENT: Well, thanks for coming, Betty. I appreciate you saying
that.

MRS. BATTERBEE: And I have a message that I would like you to take to
Laura. We think she is a gracious and adorable First Lady, and we're so
proud she's our First Lady. (Applause.)

THE PRESIDENT: Thank you. I'm proud of her. Thank you, Betty. Social
Security. (Laughter.)

* * * * *

THE PRESIDENT: Yes, let's stop here, this is an important point. Her
husband had paid into the system; she's too young for survivor benefits,
and therefore, the money they paid just went away. There was nothing. Here
was a man who had worked, supported his family, paid payroll taxes, passed
away earlier, and she had zero. I don't think that's a fair system. If we
had personal accounts there would have been an asset that this family had
earned. (Applause.)

You're doing great. Keep going on.

MRS. BATTERBEE: I'll let Mark talk.

THE PRESIDENT: You want to introduce Mark?

MRS. BATTERBEE: This is my husband. (Laughter.)

THE PRESIDENT: I was wondering who he was sitting there, you know?
(Laughter.) Very good job.

Mark, thank you. Tell everybody what you did.

MR. BATTERBEE: My name is Mark Batterbee, and this is my very gracious
wife, Betty. I served as a pastor in the missionary church for over 40
years in Michigan and in the Michiana area. I retired just about three
years ago. I have to say something, Mr. President -- how much I appreciate
and I believe how much we appreciate the strong leadership that you have
provided in the office of President of the United States. (Applause.)

THE PRESIDENT: I appreciate that, thank you. (Applause.) Thank you all.
(Applause.) Okay. They got to go back to work here. Thank you. Thanks.

MR. BATTERBEE: Also I want to say that as a -- maybe I shouldn't -- as a
"evangelical" myself, I want to say how much I have appreciated the moral
and -- leadership that he has provided for all of us, and the fact that he
has been an example for the youth of America and for everyone.

THE PRESIDENT: Well, thank you. (Applause.)

MR. BATTERBEE: Now to business. (Laughter.)

THE PRESIDENT: Yes, now we get the preacher over with, let's head toward
the pocketbook. (Laughter.)

* * * * *

THE PRESIDENT: Let me ask you something, Mark. Sorry to interrupt. You
getting Social Security now. Does it matter?

MR. BATTERBEE: Yes. Today Betty and I -- Social Security provides a great
part of our day-to-day expenses. And we appreciate that very much. However,
I have a number of children. You've already seen them out here -- children,
grandchildren, and great grandchildren -- that when their time comes to
receive Social Security, apparently there will be none.

* * * * *

THE PRESIDENT: Yes, I appreciate that, Mark. This is a generational issue,
when you think about it. See, this good couple counts on their Social
Security check. And there's a lot of people that really do rely upon their
check. It's important for people to know we know that. I know it. And we
would never put anything in place that would cause this couple not to get
their check, not to have the government promise fulfilled. That's really
important for people to hear. But this is a generational issue beyond that.
This is -- you're hearing -- how many grandkids, 34?

MRS. BATTERBEE: -- 35, yes.

THE PRESIDENT: Thirty-five. It keeps growing. Either that or I didn't hear
you right. (Laughter.) And a lot of people are saying, once I'm confident
that I'm going to get my check, older Americans should be saying to members
of Congress, what about my grandkids? Because we have a significant problem
for our grandkids coming up, and for kids.

And I want to thank you all for joining us. I -- we were talking earlier,
and one of the things that made me feel great was when they both said, I
don't worry about my check being taken away from me. That's important for
me to hear. When you launch a dialogue like this, you -- one of the things
that a President must be mindful of is creating uncertainty amongst people
who depend upon their check. So I'm going to spend a lot of time assuring
our fellow citizens that when you talk about reform, you're not talking
about making sure that you don't get the promise.

So I want to thank you all for sharing that with me. Thanks for having all
those kids, too. (Laughter.)

Anyway, Fran Martinez. Fran, thanks for coming. What do you do?

* * * * *

THE PRESIDENT: Let me stop you right there. Everybody know what a 401(k)
is? I don't think we'd have known that when we were coming up, Mitch. A
401(k) means manage your own money, see it grow.

MR. MARTINEZ: Exactly.

THE PRESIDENT: Does that make you --

MR. MARTINEZ: It's a sense of ownership. And I think the idea of personal
retirement accounts, as you're proposing in these reforms, I'm very
encouraged as a taxpayer to know that that could be a reality one day for
us.

THE PRESIDENT: Some people say, well, it's really hard to manage your own
money. For some people it's a foreign concept. Is that the case for you, I
mean, your 401(k) --

MR. MARTINEZ: No, that's -- you know what, you look at it all the time, you
get a quarterly statement once every quarter, every three months, and you
see your money grow, this money that you're putting in every week continues
to grow. And I believe that we should have a part of that in our system
today that we have, and we don't have that.

THE PRESIDENT: Long-term investments take out swings in markets, and a
conservative mix takes them out even further. So when you hear people say,
oh, if you put your money in the market you'll lose it all -- that's just
not the way it works. We're talking about people holding money over a long
period of time with a conservative mix in stocks and bonds.

I hear people say, well, I can't do that, or certain people can't manage
their own money. But you've got to understand life is changing,
particularly for younger generations of Americans. Here you're looking at a
36-year-old man who has got a 401K, it's a fine contribution plan. He's
watching his money grow. My attitude is, why shouldn't we apply that very
same concept to his other source of money, his payroll taxes, and setting
up his own account?

Now, let me ask you something. Your children -- obviously, you're in the
business of making sure they're educated, but I presume you're trying to
build up an asset base for them.

MR. MARTINEZ: Absolutely. Part of our responsibility as parents is to set
aside money for them, for their education and for down the road. And that's
a very important part of our family.

THE PRESIDENT: So he builds up -- Fran sets aside money, it grows, it
grows, it grows from his personal account; he passes on and the kids can do
with the money whatever they want to do with it. It's not their retirement
account, it is their money to live on, it's their money to invest. It is a
nest egg, it is a part of their wealth and their worth. Seems like to me
that a concept that we ought to spread to every family in America. This
idea of, only a certain number of people should be allowed to invest is
something I totally reject and I think it's wrong. There will be plenty of
help for people to learn how to watch a stock and bonds grow, to be able to
pick and choose the risk and reward that the government says is available
for you. There's plenty of people who have got the capacity to do that.

And I want to thank you for thinking that way, Fran. It's an important
concept.

Debbie Johnson. You don't need to tell your age. (Laughter.)

MS. JOHNSON: Thank you, Mr. President. (Laughter.)

THE PRESIDENT: But you do have the hardest job in America, which is being a
single mom.

* * * * *

THE PRESIDENT: I mean, a single mom who is really busy, sitting on the
stage with the President talking about Social Security -- why?

MS. JOHNSON: And I forgot to say I'm also a part-time student at Bethel
College.

* * * * *

THE PRESIDENT: Let me stop you. Do you hear what she said? I do not believe
-- members of Congress need to hear -- I do not believe that Social
Security will be around when it comes time to retire.

MS. JOHNSON: No, I don't.

THE PRESIDENT: I don't blame you. (Laughter.)

* * * * *

THE PRESIDENT: Yes, this is a very important part of the dialogue. We got
folks saying I'm comfortable when I get my check. And we got taxpayers
saying, I don't think I'm ever going to see one. As a matter of fact,
somebody told me one time, a poll -- I didn't see the poll, generally don't
pay attention to them, but nevertheless, it said that young people think
it's more likely they're going to see a UFO than get a Social Security
check. (Laughter and applause.) Were you in that poll?

The fundamental question facing our society and facing our Congress is, are
we willing to worry about taxpayers that have yet to come close to
retirement. That's really what we're talking about. I campaigned on this
issue. I said, vote for me, and I'm going to bring forth interesting ideas
to make the Social Security system sound. I believe people appreciate that
candid approach to issues and want people to work together to solve
problems. And if I were a younger American, I'd be asking loud and clear,
what are you going to do about this train wreck that's headed my way?
Again, retirees, people like me who are fixing to retire, we're fine. The
system is in pretty good shape. But it's the people paying into the system
to make sure the baby boomer generation is given what we've been told that
is really going to have a heavy, heavy burden to bear.

Speaking about young Americans -- good job, by the way -- Jon Paul Surma.
Jon Paul, how old are you?

MR. SURMA: I'm 24.

THE PRESIDENT: Anybody here from Notre Dame, that's not much older than
you, so you need to be paying attention to this.

MR. SURMA: I'm 24. I'm from Rolling Prairie, Indiana, about 20 miles from
here.

THE PRESIDENT: Rolling Prairie?

MR. SURMA: Yes, 500 people.

THE PRESIDENT: Yes?

MR. SURMA: Yes.

THE PRESIDENT: About the size of Crawford.

MR. SURMA: Yes. (Laughter.) I'm part owner of a small business, Pyramid
Equipment. We're in the waste industry. We sell and service waste
equipment, or garbage trucks. (Laughter.) I'm proud of what I do, so --
(applause.)

THE PRESIDENT: I'm proud you're an entrepreneur.

MR. SURMA: Yes. I have 18 employees, 16 of them full-time.

THE PRESIDENT: Good.

MR. SURMA: I pay 100 percent of their insurance, and then I also
implemented a simple IRA for them where I'll match 3 percent of what they
put in.

THE PRESIDENT: That's good. So that's an individual personal account, by
the way?

MR. SURMA: Yes.

THE PRESIDENT: A different kind of personal account.

* * * * *

THE PRESIDENT: So what do you like about the personal accounts?

MR. SURMA: What do I like about the personal accounts? Right now I don't
feel any ownership because I feel like you guys are going to take my money
and I'm not going to get any of it back.

THE PRESIDENT: Plain way of saying it. (Laughter.)

MR. SURMA: Yes. And I have the worst luck in the world. I'll probably die
before I ever get that --

THE PRESIDENT: Wait a minute. (Laughter.)

MR. SURMA: No, no, serious.

THE PRESIDENT: You need to seek help right here at Notre Dame. (Laughter.)

MR. SURMA: So I'm afraid that I'll die and then you guys will take more of
my money, and then I wish my nieces and nephews -- being single, I don't
have any kids, and I probably will never have kids.

THE PRESIDENT: Don't give up. Wait a minute. (Laughter.) I thought you were
an entrepreneur. Entrepreneurs need to be optimistic. How can you start you
own business unless you see a better future?

MR. SURMA: I'm married to my job.

THE PRESIDENT: Yes, okay, well -- (laughter.) You got plenty of time. Don't
worry about it. Any other 20-year-olders talking about the issue? Any other
20-year-old people talking about the issue? Do 20-year-olders care?

MR. SURMA: Yes.

THE PRESIDENT: They do? (Applause.) That's good.

MR. SURMA: That's good.

THE PRESIDENT: You should care. You're not after -- you're kind of one of
these lonely heart things trying to find a -- (Laughter.)

MR. SURMA: I'm not going to lie. I was looking out in the crowd. (Laughter
and applause.)

THE PRESIDENT: Social Security.

MR. SURMA: Okay, there you go. (Laughter.) Like I was saying, if something
happens to me, I want my nieces and nephews to get the money I paid in. My
biggest problem is being self-employed, I have to pay the whole percent. I
have to pay the employee side and the employer side of mine. And I feel
like it's a tax burden.

THE PRESIDENT: Yes. (Applause.) You think it's high now, if we don't do
anything, it's really going to be high.

MR. SURMA: And I'm afraid that the first person you guys come to is me if
there's going to be problems.

THE PRESIDENT: You're successful --

MR. SURMA: Yes. So in the future, if we don't do anything we're either
going to have to cut benefits, which you say we're not going to do, or
we're going to have to take the money from another part of the sector.

THE PRESIDENT: Well, I said we weren't going to -- the benefits will be the
same for those who've retired.

MR. SURMA: Okay.

THE PRESIDENT: I have said we can't afford the benefits that have been
promised. That's important to hear. And the best way to make sure we come
closest to the benefits that you've been promised -- come closest to them
-- is to allow people to take and have that money compounded. That's how we
get closest to the promises. But benefits will not be changed for seniors.
But beyond that, from 1950 and before, people who have been born from 1950
on, there is a serious problem. Let me make that clear.

MR. SURMA: But my thing is if we don't do anything, we're going to have to
probably then raise taxes. And a 35-percent tax bracket is already too high
as it is in my opinion. And it's hurting the economic development and
spurns investment. (Applause.)

THE PRESIDENT: Good job.

I want to thank you all for joining me on this. I do want to say one other
thing. When I landed, I met Lucy Kuminecz. She was at the foot of Air Force
One. She is a volunteer here in this part of the world with the Busy Hands
program. It's an interesting way for somebody to contribute to somebody's
-- to help somebody have kind of a bright spot in their life. She makes
little dolls for children in hospitals and passes them out. She's chosen to
do this because she's heard a call to love a neighbor like you'd like to be
loved yourself.

We talk a lot about the strength of America being our great influence in
this world, or our economic engine, and hopefully we'll solve Social
Security so that that economic engine continues. But the true strength of
America is in the hearts and souls of our fellow citizens.

I remember coming to Notre Dame, in my graduation speech, I talked about
the call to service, the need for people to realize that a contribution to
your country can be made in all kinds of ways, particularly contributions
that come to help those who hurt, those who wonder whether or not the
American experience is meant for them.

Lucy, I love to -- where is Lucy? She's somewhere around here, I know. Oh,
Lucy, thank you for coming. I appreciate you being here. She volunteers --
(applause) -- she volunteers with the retired and senior volunteer program.
She is a soldier in the army of compassion. And for those of you who are
interested in how you can serve our country -- feed the hungry, provide
shelter for the homeless, put your arm around a brother and sister who
hurts, and say, I love you. Mentor a child, teach somebody to read. Take
time out of your busy life to help somebody who hurts. And this country
will be able to realize its full promise for every single citizen.

I'm honored you all came. I hope you've enjoyed this as much as I have. May
God bless you all, and may God continue to bless our country. (Applause.)

END 5:14 P.M. EST
===========================================================================
Return to this article at:
http://www.whitehouse.gov/news/releases/2005/03/20050304-15.html

 * Origin: (1:3634/12)