Text 614, 560 rader
Skriven 2005-03-10 23:33:22 av Whitehouse Press (1:3634/12.0)
Ärende: Press Release (0503105) for Thu, 2005 Mar 10
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President Discusses Strengthening Social Security in Kentucky
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For Immediate Release
Office of the Press Secretary
March 10, 2005

President Discusses Strengthening Social Security in Kentucky
The Kentucky Center for the Performing Arts
Louisville, Kentucky


˙˙˙˙˙In Focus: Social Security

12:07 P.M. EST

THE PRESIDENT: Thanks for coming. It's great to be back in Louisville,
thank you all. (Applause.) Thanks for being here today. I think you're
going to find this to be an interesting dialogue about an important
subject.

But before we get to Social Security, I've got some other things I want to
say. First, I'm really proud of the job Anne Northup is doing as the
Congresswoman from this state. (Applause.) She is smart, she is capable,
she wants to confront problems now, before they become worse. She loves her
family. She loves Louisville, Kentucky. (Applause.) Woody married well.
(Laughter.) So did I, by the way. Laura sends her best, she's doing great.
(Applause.)

So, Anne, thanks. Thanks for introducing me. It's good to see you with your
boys there. Boys, listen to your mother. (Laughter.) I'm still listening to
mine. (Laughter and applause.) Most of the time. (Laughter.)

Anyway, it's good to be here with Governor Ernie Fletcher. Governor, thanks
for coming. I appreciate you being here. (Applause.) Lieutenant Governor
Steve Pence. Thanks for coming, Steve. (Applause.) The Secretary of State,
Trey Grayson. I appreciate you being here, Trey. Thank you all. (Applause.)
Thanks for coming over today. It's good to see you all. I want to thank all
the state and local officials who are here. I'm honored you would take time
out of your schedule to come and listen to this dialogue.

Before I start on some public policy, I do want to say thanks to Monica
Hardin for coming. (Applause.) Got a pretty good following -- very good,
Monica. You know why I want you to thank her? Because she is a volunteer;
she is a soldier in the army of compassion. She represents the true
strength of America, which is the hearts and souls of the American people.
She is representing -- representative of the millions across this country
who volunteer their time to make America a better place.

Monica works for Kentucky Harvest, an organization that provides meals to
people in need. If you want to serve our country, if you want to serve your
state, if you want to serve your city: feed the hungry, find shelter for
the homeless, put your arm around somebody who hurts and tell them you love
them. America is a better place because of people like Monica. Thank you
for your service. (Applause.)

We're living in amazing times. I have this firm belief that deep in
everybody's soul is the desire to live in freedom. You know where I learned
that? I learned that right here in America. That's what we believe. We also
understand freedom is not America's gift to anywhere, freedom is divined
from the Almighty. In every soul is the desire to be free. (Applause.) And
you're seeing a world in which people are demanding to be free.

Think about what's happened. I particularly want the younger folks here to
make sure you remember this period of history. In Afghanistan, millions of
people went to the polls. It wasn't all that long ago that the country was
run by the Taliban, one of the -- one of the most brutal regimes in the
history of mankind. The country got liberated because we were acting in our
self-interest, of course. But it was liberated. And then they went to the
polls, and they voted. And you know who came to the Oval Office yesterday?
A minister, a woman minister who actually ran for President -- came in
second, I think, to Karzai. President Karzai wisely put her in the
government. She came and she said to me, Mr. President, I couldn't wait to
see you and look you in the eye so I could tell you and the American people
thanks for giving us a chance to be free. (Applause.)

People want to be free. People want a chance to live in a free society. I
believe there will be a democratic Palestinian state. That's what I
believe. (Applause.) That's the only hope for peace in the Middle East is
for there to be a democracy evolved on the borders of our friend, Israel.
Free people don't attack each other. Free people want to live in peace.

Ukrainians elected a new President. The most amazing election besides
Afghanistan, in my mind, however, was the election that took place in Iraq.
The people -- over 8 million people defied the terrorists. (Applause.)
Think about the courage. Think about how strong that desire to vote was for
the people that went to the polls. They lined up, in spite of the fact that
there were still those who had just taken innocent life to promote an
ideology that's backward and dark. But they refused to be intimidated. Over
8 million people voted. And what's important is for the people here to
understand that when our world is more free, the world becomes more
peaceful. We all want peace, and we want to leave behind a better world for
generations to come. And the more freedom advances, the more peace will
advance. These are amazing times. And my pledge to you is I will continue
to use the influence of the United States of America to advance freedom
around the world. (Applause.)

Last month, we added 262,000 new jobs -- 262,000 new jobs; the national
unemployment rate is 5.4 percent. Kentucky's unemployment rate is 4.9
percent. (Applause.) Thank you all.

And the question is, what do we do to continue the progress; what do we do
to make sure that people can find work. Yesterday I went to Ohio. I
expressed the concerns of many Americans when I talked about high energy
prices, high gasoline prices. When I first got into Washington, I said to
the United States Congress, here is a comprehensive energy strategy to make
us less dependent on foreign sources of energy, to make sure we conserve
better, to make sure we develop renewable sources of energy like ethanol
and biodiesel. Here's a way to spend taxpayer's money to help us develop
new ways to better use energy. And I said we need to make sure the
electricity grid is reliable.

Congress has been debating that issue now for four years. Gasoline prices
are still going up. It is time for Congress to act. They need to pass an
energy plan that'll make us less dependent. (Applause.)

There's a lot of issues we could talk about, but I'm here to talk about
Social Security. People are probably saying, why would he want to bring
that up? It used to be called the third rail of American politic. You grab
a hold of it, and you get politically executed. (Laughter.) You know,
people would talk about Social Security and then they'd run ads saying,
well, he wants to take your check away. Or he'd say, we might have a Social
Security problem in the '80s, and they'd run ads saying, well, yes, sure,
you elect this fellow, you're not going to ever get your Social Security
check at all. That's the way it used to be. And, therefore, people would
shy away from talking about the issue. But I campaigned on the issue. I
said if you elect me, I promise to work with people from both political
parties to make sure we have a modern system for our children and our
grandchildren.

We're here today to talk to some citizens. Interesting enough, we're going
to talk to some granddads and granddaughters about Social Security. And
this is an important dialogue because there are many people across the
country who have retired who understand that when the government says
you're going to get your check, we mean it. In other words, there's a lot
of people who've heard that, well, if they talk about reform, they're not
going to get their check. But we're changing that dynamic because the truth
is nothing changes for people who have retired or are nearly retired --
nothing changes. And more and more citizens understand that, and therefore,
more and more grandfathers are asking the President, how about my
granddaughter? I understand I'm safe; what are you going to do about her?

And here's the reason why the system needs to be addressed, and people are
now beginning to understand this. First of all, I do want to applaud
Franklin Roosevelt. I thought he did a good thing with Social Security.
It's a very important system. It made a lot of sense to have a safety net
for people when they retired. But the dynamics of Social Security have
changed. People are living longer. People are having less children. There
is a baby boomer generation getting ready to retire. I'm pretty aware of
that. (Laughter.) I am one. As a matter of fact, I think I'm the first year
of the baby boomers, 1946. And we begin to retire in 2008 -- in my case,
it's 2009, but, anyway. (Laughter and applause.)

There's a lot of us. See, there's a bulge. And we're living longer and
we've been promised greater benefits than the previous generation. You've
got a lot of people getting ready to retire, who are living longer, who've
been promised greater benefits. And the payers into the system are
declining relative to each beneficiary. In the 1950s, there was 16 to one,
16 payers for every beneficiary, so that if a person were to receive
$14,200, like we do today, each worker would be paying $900 into the system
so that we could take care of that soul.

Today, it's 3.3 workers per beneficiary. Soon it will be two workers per
beneficiary. More people, living longer, getting paid more money and fewer
people paying for it. That math says, we've got a problem. Now, first, you
know, I'm sure some folks think that the Social Security trust is actually
a system where the government has taken your payroll taxes, kept it for
you, and then is going to give it back to you. This is a pay-as-you-go
system. There's no such thing as a trust. The money that has come in has
been spent. So the money to payroll taxes coming in are now paying for
those who've been promised benefits, and everything is fine because the
payroll taxes exceed the amount of money that needs to go out. But in 2018,
that changes, because baby boomers like me are retiring and living longer
and have been promised greater benefits.

As a matter of fact, the money going out in 2018 is greater than the money
coming in and it accelerates every year thereafter. To show you the extent
of the problem -- and that chart shows that right there -- cash deficits.
That means more money going out than coming in. In 2027, $200 billion a
year is going to be required -- more than the payroll taxes -- just to make
good on the promises. And every year thereafter, it gets worse. That's why
that line is very steep on that chart.

So we've got to do something. And a lot of grandfathers understand we've
got to do something. I look forward to the wisdom of our seniors. I look
forward to their input as to what ought to be done to make sure this system
works. There's a safety net for retirees. There's a hole in the safety net
for a younger generation coming up. And that's why I've asked Congress to
discuss the issue. I guess it's just my nature. I believe when you see a
problem, you've got to deal with it and not pass it on to future Presidents
and future Congresses. (Applause.)

In my State of the Union, I said to the United States Congress, all ideas
are on the table. First, we've got a problem. Secondly, seniors must not
worry about getting their checks -- as a matter of fact, we want to hear
from them as to help solve the problem. And, thirdly, let's work together
to solve it. And so all ideas are on the table. I quoted President
Clinton's ideas. I quoted Congressman Tim Penny, former Congressman from
Minnesota, Democrat; Daniel Patrick Moynihan, former Democrat Senator from
New York. I quoted a lot of interesting ideas and said, they're all on the
table, now come to the table.

If you see a problem, member of Congress, regardless of your party, you
have an obligation to come to the table. You've got an obligation to sit
down and come up with a permanent solution. We don't need a band-aid
solution for Social Security. (Applause.) We need to solve this issue now
and forever. The longer we wait, the worse it gets to solve it. And when we
sit at the table, let's make sure we do our duty to fix it forever.

You might remember 1983, they solved the Social Security problem -- they
said it's a 75-year fix. Well, here we are, 22 years later, looking at a
system that's going to go into the red in 2018. You know, it's one thing to
tell the people that you're going to fix it; but this time we are,
permanently. We're going to make sure that this issue -- a safety net
exists for younger generations coming up.

So I want to talk about some ideas with Congress, and I have. I've been
meeting with them -- met with a group of members of the House today. I'm
traveling a lot. I'm going to Alabama and Louisiana and Tennessee this
week. I'll be going next week to Florida -- check in on the brother.
(Laughter.) I'll be heading out west to Colorado and New Mexico and
Arizona. I'm going to go out and I'm going to talk and talk about this
issue. I'm going to tell the American people we have a problem, seniors do
not need to worry and they should demand that their elected representatives
-- both Republicans and Democrats -- come to the table and do our duty as
elected officials. (Applause.)

You don't have to worry about the Congresswoman. She's not only at the
table, she's got some fabulous ideas. (Applause.) Here's one idea that I
want Congress to consider. I want Congress to think about allowing younger
workers to set aside some of their own payroll taxes to set up a personal
savings account. That's what I want Congress to consider, and I'll tell you
why. (Applause.) There's a couple of reasons why. First, there's something
called the compounding rate of interest. You set aside money early and it
grows exponentially over time. As a matter of fact, it accelerates in
growth the longer you hold it, and that's important. And the reason why it
is important with Social Security is because the money in the Social
Security trust will earn substantially less than that in a mix of
conservative stocks and bonds. In other words, by allowing you to set aside
your own money, you'll be able to take advantage of higher interest rates,
higher compounding rates of interest, which will accumulate mo

Let me give you -- see if I can give you a math example of this. A worker,
making $35,000 over his or her lifetime, if allowed to set aside 4 percent
of the payroll taxes into a personal account, over time by the time he or
she retires will have earned $250,000 as part of the retirement system.
Now, that's her money. That's money that she will be using for retirement.

A couple of other things I want to share with you. One, you can't take your
money and set it aside for the lottery, or for casinos. There will be
guidelines in which you can invest your own money. These guidelines are
pretty well set in stone. You know why? Because the federal government
allows its employees to do just this. Do you realize federal workers are
able to set aside some of their own money and manage it in safe stocks and
bonds so it can get a better rate of return than that in their own
retirement systems -- the government retirement system. And they're able to
build up their own asset base. Federal employees have been doing this for
years. It's a good system. It means they're going to end up with more money
because of the compounding rate of interest.

And so there are guidelines as to what you can invest in. I was being
somewhat facetious on the lottery -- but really not. There's a proper risk
reward, a portfolio that will allow you as a younger worker to pick a mix
of stocks and bonds. Oh, I know they say certain people aren't capable of
investing, you know, the investor class. It kind of sounds like to me, you
know, a certain race of people living in a certain area. I believe
everybody's got the capability of being in the investor class. I believe
everybody should be allowed to watch their own assets grow, not just a few
people. (Applause.) I like the idea of somebody opening up their statement
on a quarterly basis and watching their asset base grow. It basically means
they're going to pay closer attention to the fiscal policy of the
government. I like the idea of somebody being able to build an asset base
and leaving it to whomever they choose. (Applause.)

Do you realize Social Security today -- do you realize the Social Security
system today, if you're a widow, before the death benefits come your way,
that there could be 10, 20 years, depending upon when your husband died,
that the money just -- that he put in the system just evaporates; it's not
there. I've met women, they sat on the stage here, telling me what it was
like to have their husband die before 62 years old and have nothing. The
money they put in the system just wasn't there for them. I think it makes
sense to have a retirement system, voluntary retirement system. You get to
choose whether or not you want to set aside some of your payroll taxes. You
can build up your own asset base, just in case your husband or wife
predeceases you, or you predecease your husband or wife, so they can have
an asset.

I think it makes sense for somebody to build up an asset base and say to a
child, I've worked all my life, I've set aside money, and I want you to be
able to better afford your life, and so this is for you when I pass away.
That's what these accounts offer people. They offer people a chance to
invest their own money in safe, conservative stocks and bonds. They can
watch it grow over time, to add on -- to complement Social Security. See,
this isn't to replace Social Security. This is to complement Social
Security. And so you'll be getting a check from the government, and you'll
be getting interest out of the Social Security -- out of your own personal
account. (Applause.) And so I want Congress to consider they very same
ideas they allow federal workers to do.

Now, I've asked Jeff Brown to join us today, Ph.D. Yes. I'm a C-student.
(Laughter.) He's the Ph.D. He's the advisor. I'm the President. What does
that tell you? It tells you there's hope for all you C-students out there.
(Laughter and applause.)

All right, Jeff. What do you do? What do you do?

* * * * *

THE PRESIDENT: What he's saying is, I'm a dad, I'm concerned about the
future of my kids; and if we don't do something, my little kids are going
to start being in the workplace when it's going to cost us $200 billion a
year more to pay for me, more than $200 billion -- the next year, $300
billion. And, eventually, the numbers just keep increasing. And so the
fundamental question is, are we going to address the generational issue?
That's the fundamental question facing the country right now. Do we have
the political will to stand up, come together, get rid of all the politics
in Washington, D.C., and focus on the next generation?

And that's what we're here to talk about, about generational politics.
We've got -- we've got two granddads and two granddaughters. And we're
going to start with Gerald Allen, grandfather.

MR. ALLEN: I'm Gerald Allen. I'm here with my granddaughter, Lindsey. I'm
71 years old, and I've been drawing Social Security since I was 62. And I
feel --

THE PRESIDENT: Pretty good. You haven't missed a check yet, have you?

MR. ALLEN: No, I haven't missed a check yet. (Laughter.) And I still feel
confident that I'm going to get them continually. (Applause.)

THE PRESIDENT: Yes. That's an important statement. He just said he's still
confident he's going to get his check. People who are counting on Social
Security need to understand you're going to get your check. And you need to
understand I know that a lot of people count on their Social Security check
a lot. There are a lot of folks in Kentucky, a lot of folks in Texas, a lot
of folks around the country where that check means everything to them. And
I know that.

Keep going. (Laughter.)

MR. ALLEN: Well, I feel like this private account would be great for our
grandchildren, because when they get up to the age of retirement, they'll
have a nest egg for them just like I've got myself.

THE PRESIDENT: Yes, it's an interesting -- obviously, you've got -- you
share concerns about whether or not Lindsey is going to have a Social
Security system. I mean that's -- that's getting out there, I hope. People
understand it. When you're sitting around the coffee shop, are they saying,
I'm okay, but my granddaughter is not?

MR. ALLEN: Right.

THE PRESIDENT: That's good to hear. Part of my job is to make sure people
understand the nature of the problem. See, if Congress doesn't think
there's a problem, nothing is going to happen. But when Congress realizes
people all over the country say, we've got a problem, then I pity the
politician who stands in the way of the solution. (Applause.)

Ready to go? Lindsey Mottley is a student at the University of Louisville.
Let me ask you something: Are you going to be in the library or at the
basketball game today?

MS. MOTTLEY: Definitely the basketball game. (Applause.)

THE PRESIDENT: Your granddad is here. He's worried about you. How about
you? What are you -- give me your view of Social Security.

MS. MOTTLEY: Well, I've worked since I was 16 years old, so I saw Social
Security come out of my tax since then, and it just kind of goes away and I
don't really know where it goes, because I don't think that I'll ever see
the benefits of it. So I think the personal accounts is a great idea,
because once that Social Security does come out, I will be able to see it
go into a personal account, which will build up for me to be able to
support myself later in life.

THE PRESIDENT: Yes, see, it's an interesting issue, isn't it? When I was
22, I don't remember anybody saying to me, you better worry about Social
Security. That's because there were a little less than 16 to 1 workers per
beneficiary, but the pay-as-you-go system still worked, because there was a
lot of workers paying in for the beneficiaries. Plus, the benefits hadn't
quite escalated as fast as the politicians promised. In other words, there
was still reasonable benefits, relative to the people paying in. And now
we've got a 21-year-old, excuse me -- is that right?

MS. MOTTLEY: That's right.

THE PRESIDENT: Nothing worse than an old guy getting an age wrong.
(Laughter.) Saying, Mr. President, I'm sitting here on stage, all the
cameras, a lot of people -- it's not an easy thing to do -- wants to talk
about whether or not there's going to be a Social Security system available
for her. It's an interesting dynamic, isn't it? Things have shifted. That's
why I said Social Security is no longer the third rail of American
politics. What is the third rail of American politics is a bunch of young
people saying, you're sticking me with a system that's not working, that's
broke, and you better do something before I have to pay all that money. We
have to change the whole way we employ people, for example, and so -- by
raising taxes. (Applause.)

There's different points of view on the issue. (Laughter and applause.) And
the fundamental question is, are people willing to sit down at the table in
a civil way and discuss how to solve the problem? That's what we're here to
talk about. Isn't that right? (Applause.) Are you giving or taking points?
(Laughter.) Don't answer that. That's a leading question.

MS. MOTTLEY: Okay. (Laughter.)

THE PRESIDENT: You know something else that's interesting? There's a
change. A lot of people have got what they call Defined Contribution Plans
now. You know what that is, 401(k). There's a group of people coming up in
the country who are used to managing their own assets. In other words,
there's a shift in investment culture, as well, that makes -- to me, it
makes the personal accounts a logical extension within the government
retirement plan.

We got Larry Dean and Bee Dean with us. Larry Dean, glad you're here.

MR. DEAN: Yes, sir.

THE PRESIDENT: Live right here in Louisville?

MR. DEAN: Yes, sir.

THE PRESIDENT: What do you do?

MR. DEAN: I sell antiquarian books online.

THE PRESIDENT: Do you really?

MR. DEAN: Yes, sir.

THE PRESIDENT: I'm glad you didn't get a hold of my wife. She loves those
kind of books. (Laughter.)

MR. DEAN: Well, maybe I can sell her a few. (Laughter.)

THE PRESIDENT: Well, a little short on money these days, you know?
(Laughter.) Government pay. (Laughter.) Tell me about yourself, besides
being an entrepreneur.

MR. DEAN: I'm 66 years of age. I, like Gerald, have been drawing Social
Security since I was 62. Call me a Pollyanna, but I have no fear that I
will never be able to draw it. But I do have fears for my granddaughter,
and all of my grandchildren, and even my children, your age --

THE PRESIDENT: Yes.

MR. DEAN: -- some about your age, as a matter of fact.

THE PRESIDENT: I'm 58. (Laughter.)

MR. DEAN: I'm sorry. They're not quite that old. (Laughter.)

THE PRESIDENT: I was about to say, eight-year-old father, fantastic.
(Laughter.)

MR. DEAN: Well, I'm in Kentucky, you know? (Laughter and applause.)

THE PRESIDENT: All right. Back to the subject. (Laughter.)

MR. DEAN: I was going to say, on balance, I really feel that the Social
Security system proves that the government can do something right.

THE PRESIDENT: You're right.

* * * * *

THE PRESIDENT: Yes, I couldn't agree more about your statement about the
value and the worth of the Social Security system. It has worked. And the
question is, can we make it continue to work?

Everybody wants to strengthen the system, not dismantle the system. We want
to make it -- we want to take the same notion of having a safety net for
those who have retired and make it work better. And I appreciate your
thought on that.

And the math is simple: more people living longer, getting greater
benefits, and fewer people paying into the system. That's the math. And
that's why Larry has agreed to sit up here and talk about this issue and
bring Bee with him. Bee, welcome.

MS. DEAN: Thank you, sir.

THE PRESIDENT: Pretty good grandfather?

MS. DEAN: Yes, he does all right. (Laughter.)

THE PRESIDENT: That's good to hear.

MS. DEAN: He'd be in the hot seat if he didn't.

THE PRESIDENT: That's right. (Laughter.) What do you do?

MS. DEAN: I am a student at the University of Louisville, graduating in
May. (Applause.)

THE PRESIDENT: Congratulations.

MS. DEAN: Thank you.

THE PRESIDENT: Major?

MS. DEAN: In psychology.

THE PRESIDENT: Psychology?

MS. DEAN: Yes. So I'm sitting here thinking about everything you're saying.

THE PRESIDENT: That's right. (Laughter.)

* * * * *

THE PRESIDENT: That's good. See that? She's got the philosophy down. First
of all, it's her money. You notice, she said, take money out of my check.
(Applause.) If she wants to -- this is a voluntary program. If people say,
well, I don't think I want to try that; I'm not so sure it suits the way I
think. It's voluntary. The government has got to say, you have a choice to
taking some of your money and setting it up in an account. As I mentioned
earlier, Bee is not going to be able to take it to the gambling house.
There will be a set series of investment vehicles, safe investment
vehicles, that will grow over time. These aren't short-term investments.

If she was allowed to put some of her own money away now, the money will
grow; in about 10 years, I guess, doubled; then it begins to grow more. And
as she gets near retirement age, that money grows exponentially fast
because you've got a larger amount of money growing at a -- with a rate of
return that's bigger than you're getting out of the government. And that's
what important about this concept.

It's interesting, isn't it, that 22-year-old people or 21-year-old people
are saying, what are you going to do about my future? And a lot of people
say, well, the 22-year-olders could care less about politics. They're going
to start caring a lot when they realize in 2018, they're going to see the
money start -- that's going out is greater than coming in. They're really
going to care in years like 2027, when it's $200 billion a year more than
the payroll taxes are paying. And it gets greater every year. People are
beginning to pay attention to this issue. And Congress needs to pay
attention to what the people are paying attention to. (Applause.)

I want to thank you for giving us a chance to come here to the great city
of Louisville, Kentucky. I want to thank you for your interest in this
subject. I want to thank you for your recognition that you can help affect
public policy through your voice. I want to thank our panelists for
agreeing to sit up here and share their thoughts and talk about Social
Security.

I'm looking forward to this. I love to get out amongst the people and talk
about big issues. I like to work with members of Congress from both parties
to solve problems. I want it to be said that we came to Washington, D.C.,
saw a significant problem and left behind a better America. And thank you
for joining in this dialogue with us. God bless. (Applause.)

END 12:44 P.M. EST

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