Text 667, 982 rader
Skriven 2005-03-18 23:33:26 av Whitehouse Press (1:3634/12.0)
Ärende: Press Release (0503185) for Fri, 2005 Mar 18
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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
March 18, 2005

Remarks by the President in a Conversation on Strengthening Social Security



REMARKS BY THE PRESIDENT

IN A CONVERSATION ON STRENGTHENING SOCIAL SECURITY

Pensacola Junior College

Pensacola, Florida

9:01 A.M. CST

THE PRESIDENT: Thank you, Governor. Please be seated. Thanks for coming. I
am glad to be back, under better circumstances. It was my honor to come and
represent our government during what was a terrible tragedy, and that was
Hurricane Ivan. I want to thank the mayors of the communities here; I want
to thank the base commanders; I want to thank people responsible for
helping people get their lives back in order.

I still saw a lot of blue roofs flying in. So I know there's still a lot of
work to do. But I -- it was such an honor to work with Jeb and Congressman
Miller and members of the delegation and the mayors to try to do our duty
to get resources to people who need help. And so I want to congratulate the
stalwart citizens of this part of the world. I was struck by the
devastation; I was pleased by the sense of spirit when we came down here, a
spirit that has been manifested in what is obviously an ongoing recovery.
But we're still paying attention to you. And, again, I want to thank you
for your courage. (Applause.)

Before I talk about a big issue, I've got some other things to say. They
used to say, well, you know, he's got his daddy's eyes, but his mother's
mouth. (Laughter.) Which means I'm about to talk a lot. No -- (laughter.) I
do want to thank our panelists, including my mother. What a great honor
that Mom is here. (Applause.) We're going on from here to Orlando; I'm
going on to Crawford, and Mom is headed over to work with Jeb on raising
money for literacy. And it's -- (applause.) I'm sorry Laura is not with me.

AUDIENCE: Awww --

THE PRESIDENT: Yes, I know. I used to oftentimes -- all the time -- say she
was the country's greatest First Lady. (Applause.) Wait a minute. At least
make it a tie. (Laughter.) I love her dearly. She's a fabulous mom, great
wife, and she really is a spectacular First Lady. She sends her best and
love to Mom and to the great Governor of the great state of Florida, Jeb --
(applause)

-- and to you all. She's sorry she couldn't be here.

Speaking about brothers and great governors, he's doing a fabulous job for
Florida. (Applause.) He's straightforward, he's plainspoken, he does what
he says he's going to do. And I think that's important, and it's a good
lesson for people who are paying attention to public servants, people who
are wondering whether or not it makes sense to run for office. He came into
office with his integrity, and he's going to leave with his integrity.
(Applause.)

I appreciate Gerald McKenzie and David Sam, from Pensacola Junior College.
We call them community colleges in Florida and Texas. I can't tell you how
important the community college system is to make sure that workers, both
old and young, gain the skills necessary to fill the jobs of the 21st
century. I am a big supporter of community colleges, as is Jeb, because we
understand the community college system is available, it is affordable, and
it is flexible. If there needs to be a curriculum change to help people,
help employers find workers, help hospitals find nurses, community colleges
are able to do so.

I want to thank the members of Congress for making sure that my community
college initiative is funded, not for only the sake of community colleges,
but more importantly, for the sake of people who need a skill set to fill
the jobs of the 21st century. So I want to thank the Pensacola Junior
College folks for being so generous in the hospitality. (Applause.)

I'm traveling with some pretty good company. Besides Mother and Jeb,
Senator Mel Martinez is with us today. Senator, thank you. (Applause.) I
mentioned him once, I get to mention him twice, since this is his district
-- Congressman Jeb Miller, doing a fine job, thanks for being here.
(Applause.) And then we've got some folks down from the central part of the
state, starting with Congressman Tom Feeney. Congressman, I'm proud you're
coming. Thanks for being here. (Applause.) Congressman Adam Putnam --
(applause) -- last time I was with Adam was in the middle of an orange
grove after one of the other hurricanes hit. As you can see, that orange
grove did something to the color of his hair. (Laughter.)

And finally, we're here with Congressman Rick -- Rick Keller. Appreciate
you coming, Congressman. (Applause.) You don't know this, but you're about
to find out that he is marrying Dee Dee Michel tomorrow. Congratulations
and good luck on the wedding. (Applause.) I'm a little surprised you're
here with us. (Laughter.) But we won't tell Dee Dee. We'll tell her you're
planning for the wedding.

I want to thank -- oh, Congressman Dave Weldon is with us. Dave thanks for
coming, a great man -- Dr. Dave Weldon. Appreciate you coming, Dave.
(Applause.)

I am proud to be here with the Pensacola Mayor, John Fogg. Mr. Mayor, thank
you, sir. (Applause.) A lot of the state and local officials -- I'm working
my way through a list here.

There's one other fellow I wanted to introduce you to. His name is Bob
Woodard. Bob, stand up for a minute, please. You don't know, Bob -- some of
you don't -- but he was at the base of Air Force One when I landed, because
every time I come to a community, I like to herald a soldier in the army of
compassion, a volunteer, somebody who has taken time out of his or her life
to make somebody else's life better. He is doing something which I think is
an important contribution to the future of our country. He is a mentor. He
is one of those souls who says -- puts his arm around somebody who hurts,
somebody who needs love, somebody who needs comfort and says, I love you,
and what can I do to help you.

I want to thank you for your contribution to the country. I want to remind
you, if you want to serve America, feed the hungry, find shelter for the
homeless, find somebody whose heart is broken, and help them with the love
that God has given you. Thank you for -- thank you for what you do.
(Applause.)

Before we get to Social Security, I want to say a couple of other points. I
want to thank the members of the United States military and those who
support the military for not only -- (applause) -- for not only making this
country more secure in the short-term, but helping make this country secure
for generations to come. You see, the more free the world becomes, the more
peaceful the world becomes for our children and our grandchildren. And we
took some tough decisions in order to protect this country. And by doing
so, we have laid the foundation for freedom.

You know, I hope it heartens those who have served, and the families of
those who have served, to have seen the millions of people vote in
Afghanistan. Think about what has happened -- (applause) -- think about
what's happened in that society in a brief period of time. Young girls
couldn't go to school under the Taliban because these people were so
backward and so barbaric that their view of the vision of the world was dim
and dark. We acted in our own self-interest, admittedly. We said, If you
harbor a terrorist, you're equally as guilty as the terrorist. When the
President says something, he better mean it. I meant it. Our military
responded; the Taliban is out. But as importantly, the people of
Afghanistan are free.

I just talked to Condoleezza Rice on the phone. She just came back from a
-- she was in Afghanistan, I think, yesterday. She said, you're not going
to believe it, Mr. President. You're not going to believe how hopeful this
free society is. You're not going to believe the optimism that these people
have, all because they're free. A free Afghanistan is in the interest of
the United States of America.

A free Lebanon is in the interest of the United States of America.
(Applause.) It's a good sign when millions are -- feel comfortable going to
the street without government reprisal to express their opinion. In order
for there to be a free Lebanon, Syria must remove all the troops and all
the intelligence services -- (applause) -- in order to let these people
vote in free society, in freedom, without fear. (Applause.)

I believe there will be a Palestinian state based upon democratic
institutions, and I know it's in Israel's interest and in the Palestinians'
interest for there to be two states, two democracies, living side-by-side
in peace.

And then, of course, one of the most amazing events -- at least as far as I
was concerned, from my perspective -- is when over 8 million Iraqis, in
complete defiance of people who were trying to prevent them from going to
the polls by creating incredible fear -- they said, you're not going to
stop us, we long to be free. And they went to the polls sending a clear
signal, not only the terrorists in Iraq, but to freedom-lovers around the
world, that freedom is a powerful force, and when unleashed, it will
continue its march.

Over the next four years, this administration will work to free people --
will work with our friends and allies to promote freedom, because I
understand free societies will be peaceful societies, and the more free the
world is, the more peaceful the world will become. And people will look
back at this moment of history and say, this generation, those of us given
the honor of service will have done our duty to spread freedom and peace
around the world. Freedom is on the march, and I want to thank the military
folks and their families for helping make it happen. (Applause.)

Our economy is recovering, it's doing well. I'm proud of the fact that the
great state of Florida has got a 4.3 percent unemployment rate. It says
something about your Governor. (Applause.) No, he's right -- he just -- he
just waved me off, kind of like trying to hit a carrier. (Laughter.) He's
right. Not because of him, not because of me; because of the entrepreneurs
of Florida, people who are willing to take risk, be wise about spending
capital and employing people. (Applause.)

No, the economy is fine. There are some dark clouds on the horizon that
we've got to address. We got too many lawsuits. I want to thank Congress
for getting a class-action bill to my suit -- my desk. We need to get
medical liability done in the United States Congress in order to keep good
doctors practicing medicine. (Applause.)

There's a lot of things we can do, and will do. I'm looking forward to
getting a final budget to my desk that's wise about how we spend your
money, that's also wise about making sure you got money in your pocket. And
you're going to need it, because, unfortunately, energy prices are going
up. And I know you're concerned about it. And I'm concerned about it, too.
I was concerned about it in 2001, when we put together a strategy, an
energy strategy, part of which required action by the United States
Congress that would encourage conservation, encourage the use of renewable
sources of energy like ethanol and biodiesel, that encouraged research and
development to figure out better ways to use energy in the long run --
because one of these days we're going to have to change the nature of the
automobile by driving hydrogen-powered automobiles, to become less
dependent on sources of energy. In other words, there's a lot of things we
need to be doing now.

I know we need to be building LNG -- liquified natural gas terminals. We
need to do more on nuclear power. Congress needs to get an energy bill.
We've been debating whether or not there ought to be an energy bill to my
desk now for four years. And that's too much talk, given the fact that
consumers are beginning to hurt; too much talk given the fact that the --
we're too dependent on foreign sources of energy. I'm concerned about the
energy, and Congress needs to be concerned. These members are concerned. I
talked to them on Air Force One about it. I can be a plainspoken fellow if
I need to be. (Laughter.) And they're good listeners; they're ready to go.
(Applause.) But Congress needs to get a bill to my desk so we can start
becoming less dependent on foreign sources of energy. (Applause.)

Let me talk about Social Security. Jeb is right, we don't need to talk
about it. Some people say you shouldn't have talked about it. I think the
job of a President is to confront problems and not pass them on to future
Presidents. (Applause.) And I'm pleased to report members from the United
States Congress that are traveling with me agree that Congress needs to
confront problems and not pass them on to future Congresses. (Applause.)

And we got a problem in Social Security. Let me first tell you, Franklin
Roosevelt did a good thing by setting up a safety net for seniors. And I
applaud him for that. And a lot of seniors who are now getting their checks
understand why I'm applauding him, because the Social Security check you
receive is really important for you. And -- but things have changed since
Franklin Roosevelt was the President.

Before I tell you what's changed, I'm going to say this once, I may say it
five times before this is over: If you're getting a check, nothing is going
to change. I don't care what the propaganda says; I don't care about the
political rhetoric; you're going to get your check. For those of you born
prior to 1950, you're going to get your check. The government -- nothing
will change in the system. We're here to talk about not you -- we're here
to talk about your children and your grandchildren. That's who we're here
to talk about.

And I'll tell you why we've got a problem. First of all, Social Security is
a pay-as-you-go system, money comes in and it goes out. Now, some of you
might think that Social Security is a trust -- in other words, the
government takes your government and holds it for you, and then when it
comes time to retire, you get your money back. That's not the way it works.
The government takes your payroll taxes and pays out to the people who have
now retired; and if they got any money left over, it goes to pay other
parts of government. And all that's left is an IOU from one -- from one
part of government to the next. In other words, it's pay-as-you-go.

And that system works well when you got a bunch of workers paying for a few
beneficiaries. That's the way it was when Franklin Roosevelt designed the
system. In 1950, there were 16 workers paying into the system for every
beneficiary. So obviously, the load per worker is pretty light. What's
changed is there is a bulge of people fixing to retire called the baby
boomers. Both of us are --

GOVERNOR BUSH: That's us.

THE PRESIDENT: Yes. (Laughter.) We are baby boomers. I happen to be turning
eligible at -- obviously, at 62 in 2008. It's quite convenient. (Laughter
and applause.) You plan it that way? Well, thank you. And there's a lot of
us. There is a bulge in the population. And not only there's a lot of us,
we're living longer than during the time when Social Security was first
fixed. And we're living longer than the generation preceding us. So you got
a lot of people getting ready to retire who will be living longer, and not
only that, we've been promised more benefits than the previous generation;
people have run for office saying, vote for me, I'm going to make sure the
benefits increase. And so you've got a lot of people living longer, getting
greater benefits, and yet, we're not having as many children in this
society. In other words, you got fewer people paying into the system. The
math doesn't work.

It works for those who've retired. Second time I've said it; If you're
getting your check, you have nothing to worry about it. It doesn't work for
people who are going to have to pay for the baby boomers like me who will
be living longer, getting more money. And so the fundamental question is:
If you see that problem, what are you going to do about it? And so the
first thing I want to tell you is, we have got a problem.

And the extent of the problem can be seen on this chart. In 2018, there's
more money going out than coming in. Right now, because the baby boomers
haven't started retiring -- who will be living longer, receiving more money
-- there's more money coming in than going out, which is being spent.
Pretty soon, there's going to be more money coming out than going in. In
the year 2027, there will be $200 billion beyond the payroll taxes
necessary to pay for the promises the government has made. It increases
every year, see. In 2018, it starts going negative -- increases, increases,
increases -- to give you an extent -- by how much -- by 2027, it's $200
billion; greater than $200 billion the next year; greater than the next --
you know.

And so it starts to accumulate, which says to me that we have a problem
that we need to address now. Because if you wait later, a younger worker is
either going to have pay massive payroll taxes in order to make sure the
government pays the benefits; they're going to have to cut my benefits;
they're going to have do -- borrow a ton of money. In other words, now is
the time to act. We do -- have no problem for those of you who are
receiving your check. We have a problem for your children and your
grandchildren. And the problem is right there in the cash deficits in a
pay-as-you-go system.

And so I've taken it on. I think this is my 16th state. I'm traveling all
around the country, which I like to do -- it's a convenient excuse to get
out of the Nation's Capital --(laughter and applause) -- and I'm explaining
to people, you're going to get your check, and we've got a problem.

And I think there's some logic to the strategy -- strategy, because, listen
to this: If you're a member of Congress, and all of a sudden the
constituents start to say, we've got a problem, Mr. Congressman, or Madam
Congressman, the next thing they're going to say is, what you going to do
about it? And once we can convince the seniors they have nothing to worry
about -- which they don't -- the fundamental question for them becomes--
from a lot of younger Americans, I'm glad you're taking care of my
grandparents, or my dad, or my mom, but what are you going to do for me?
And that's the dynamic that's going to get people coming to the table.

In order to help them come to the table, in my State of the Union address,
I said, I really want people to bring ideas forward. Please bring your
ideas forward. There will be no political retribution if you bring good
ideas forward, because I understand this is going to require Republicans
and Democrats coming to the table -- precisely what the American people
want, by the way. They want people to fix it, not to play politics with it.
(Applause.)

So all options are on the table. The other day, I was with a former
Democrat Congressman named Tim Penny -- Tim Penny, who had some interesting
ideas. My predecessor, President Clinton, recognized we had a problem; he
put some ideas on the table. And so I'm looking forward to people from both
parties coming up and saying, Mr. President, here are some of my ideas. And
my answer will be, welcome; thanks for bringing them forward. Let's just
see if we can't work together to get something done.

I've got some ideas, and I want to share one of them with you, which I
think -- I hope you find interesting. And, first of all, by the way, as
Congress brings ideas, I'm not interested in a temporary fix, and neither
should you be. I want you to remember 1983 -- it was a -- President Ronald
Reagan and Leader Dole and Speaker Tip O'Neill realized we had a problem,
got Republicans and Democrats together and came together and said, we'll
put together a temporary fix. This is the so-called 75-year option. And I
like the spirit of people coming together; I like the idea of people
saying, we've got a problem, why don't we fix it in a bipartisan way. The
only problem is, the 75-year option wasn't exactly right, because today is
a lot less than 75 years from 1983. And so when you hear the word, don't
worry, we'll just fix it for 75 years, the way the demographics are, the
math just won't let that happen. So now is the time to have a permanent
solution.

And as they do the permanent solution, we also have got to work, in my
judgment, to make sure individual workers get a better deal from Social
Security. And the better deal would be allowing -- in my judgment, again --
to allow younger workers to take part of their own money. So when you hear
payroll taxes, that kind of sounds like it's the government's money. It's
not, it's your money. And I want you to know I understand that -- that you
ought to take some of your own money and be able to save it in bonds and
stocks.

And the reason why I think you ought to be able to do that is because a mix
of conservative bonds and stocks will get you a better rate of return on
your money than that which you're going to get inside the government. And
that's important, because if you're a young worker, interest compounds --
or an old worker -- interest compounds. But the longer you hold money,
compounding, the more you'll end up with. It grows. And the greater return
you get on your money, the more you'll have when it comes time to retire.

So the idea is, as a part of a Social Security system, allow you to take
some of your money so you can build a nest egg of your own. I like the idea
of people building nest eggs. I think if you own something, you're likely
to have a more vital stake in the future of the country. One of the most
heartening statistics, I think, in today's world is more and more people
are owning their own home. More minority families own a home today than
ever before. That's heartening, I think. I tell people, I love the idea of
somebody opening up the door and say, welcome to my home, thank you for
coming to my piece of property.

I think the fact that more and more people are owning their own small
business is helpful. I know it's going to be helpful to have more people
owning a piece of their own retirement account and managing it.

Now, a couple of things about personal accounts. One, I've told you about
the compounding rate of return. Just to give you an example: If a person
were allowed to take 4 percent of their payroll taxes, or a third of the
payroll taxes, and set it aside in a personal account, starting at age 21,
and that person earned $35,000 over her -- his or her lifetime, that by the
time she can retire, that money set aside would be worth $250,000 as a nest
egg. In other words, that compounding rate of interest will do that.
Obviously, if you make $70,000 over your lifetime, it's double that. Then
you have a half-a-million dollars that you can call your own.

So what can you do with that? Well, first, I know some people get nervous
about investments. We're going to talk about investments here. You can't
take your money and put it in the lottery, let me put it to you that way.
In other words, a personal account doesn't give you latitude to -- you
know, you still got Jai-Lai here? Yes. Okay, you can't go a Jai-Lai deal.
(Laughter.) You've got to invest it in a conservative mix of bonds and
stocks, just like federal employees do now.

Any federal employees understand what I'm talking about -- the thrift
savings plan? It works. We're going to talk to somebody who's got a piece
of the thrift savings plan. This is -- this is happening. This isn't -- I
didn't sit here and invent this. This is taking place already at the
federal level. People who work for the federal government get to take some
of their own money and set it aside in a conservative mix of bonds and
stocks because the government realizes you get a better rate of return on
your money. If it's good enough for federal employees, it seems like to me
it ought to be good enough for people who are working, you know, who aren't
working for the federal government. (Laughter and applause.) That was not a
cheap shot at people like me working at the federal government. (Laughter.)

Secondly, you will get the check from the federal government in the Social
Security system if you're a younger worker. I just can't guarantee how big
it's going to be. You know, there's not enough money to pay the promises,
I'll just tell you that. I think that's part of the -- part of the dialogue
is to make sure everybody understands. It's not a trust, and we're not
going to be able to keep the promises unless we're willing to have
extraordinarily high taxes on the people coming up, or significant benefit
cuts.

And so one way to help you do a better job of coming closer to what the
government has promised is to allow you to earn this money, and then use it
as a part of a retirement plan. In other words, the government is going to
get you a check, and then you're also going to be able to take money out of
your own personal account to help you when you retire. That's important for
you to know.

The system is not fair for people, oftentimes. Somebody -- somebody dies
early, been working 30 years, dies at 55 years old, money goes in the
system, the spouse doesn't get a dime until he or she turns 62. That
doesn't seem fair to me; does it to you? And a personal account, if you had
one of those, and your assets were growing, and you passed away, you could
leave it to whomever you want. There would be some comfort for the spouse.
Two people working, a husband and a spouse, husband predeceases the spouse,
she continues to work -- she's either going to get, at 62 years old, her
own Social Security check or survivor benefits, which is ever larger, but
not both. That doesn't seem fair, does it? Somebody is working all their
life, the money they put inside Social Security is not available for
somebody he or she loves. If you have your personal account, it grows. You
die, your wife or your husband is going to get your personal account -- or
your children.

I like the idea of encouraging savings. For those of you who studied
macroeconomics -- it's a fancy word for how to make sure the economy grows
-- the more you save the more capital there is; the more capital there is,
the more money is available for small business expansion so people can
work.

So that we need to encourage savings. I like the idea. I'm telling you, I
like the idea. I'm going to talk a lot about it. I'm going to talk to
others about the idea, too. It needs to be a part of the dialogue. And it's
interesting, you know, we're not talking about a big cultural shift here.
When I was coming up, I don't remember my mother telling me to be careful
about my 401(k) plan. They didn't exist, I don't think. There wasn't a lot
of focus on encouraging people to manage their own money. Today, that has
changed. There's a lot of young Americans, Americans from all walks of
life, Americans from all income levels, Americans from all neighborhoods
who understand what it means to have a 401(k), an IRA, a defined
contribution plan. And they like it, and they're used to it, and they're
comfortable with it.

And so I want Congress to consider making this same kind of culture
available for workers to the Social Security system, to strengthen the
system; to say to younger workers, it's a better deal for you; to be able
to assure grandparents that when it comes to their grandchildren, the
safety net that was available for them will be available for the new
generation coming up.

And so now I'm going to talk with some other people about it, starting with
my mother. I promise not to tell you her age, but she's eligible for Social
Security. (Laughter.)

MRS. BUSH: How old are you? (Laughter.)

THE PRESIDENT: Fifty-eight. How about that?

MRS. BUSH: Add 22 years. (Laughter.)

THE PRESIDENT: Yes.

MRS. BUSH: You're supposed to ask me why I'm here.

THE PRESIDENT: Okay. First of all, I now know why I'm getting white hair.
(Laughter.)

MRS. BUSH: I'm here because when else can I see my two oldest boys?
(Laughter and applause.)

THE PRESIDENT: How about a little better answer than that, will you?

MRS. BUSH: That's reason number one.

THE PRESIDENT: Now, wait, it's not, how can I see my two better boys, it's
how can I tell my two better boys in person what to do, is what you're
really trying to say. (Laughter.)

MRS. BUSH: Right, right. If you would listen, I'd tell you more. (Laughter
and applause.) But that's really not why I'm here. I'm here because your
father and I have 17 grandchildren, all born after -- we're doing our part,
incidentally, on the labor -- (laughter) -- but all born after 1950. And we
want to know, is someone going to do something about it. That's the whole
reason -- other than seeing my boys.

THE PRESIDENT: Well, I'm glad you're here, Mom. And, yes, I hope you can
tell -- I think you will be able to tell -- and I think others like Mom,
who are worried about whether or not government even cares about taking on
a tough enough issue to address the issue for grandchildren, whether or not
-- whether or not there's a will. You'll see. I think you'll see by the
time this over that there is an interest and a desire, a willingness to
take on a tough issue, just like you taught me. Not to shirk my duty, but
to step up and lead and to do -- do the hard work.

And it is. Listen, I concede, Mom, that members of Congress, some would
rather not be talking about it. (Applause.) But we're going to talk about
it, and I'm going to assure you -- I've got your stubbornness -- that I'm
going to -- in a good way -- I'm going to -- I'm going to keep talking
about it until something gets done. I'm going to keep traveling the country
saying to people, we've got a problem; if you're a senior, you're going to
get your check; and I'm willing to work with Congress.

And I'm going to tell you, I -- the people of this country are tired of
partisan bickering on big issues. They don't want people -- (applause) --
they just want the problem solved.

We've got Lee Abdnor with us. She is -- she's from Boulder, Colorado. Is
that true still?

MS. ABDNOR: Yes, sir.

THE PRESIDENT: Listen, I want you to know, I formed a committee in 2001 of
Republicans and Democrats to look at Social Security. And Patrick Moynihan,
a former Senator from New York, headed it. Isn't that right?

MS. ABDNOR: That's right.

THE PRESIDENT: And Lee's on it. Okay, let her go. She studied this.

* * * * *

THE PRESIDENT: Thanks for coming, Lee. Thanks for serving. It was --

MS. ABDNOR: My pleasure.

THE PRESIDENT: Let me ask you. I think it's important for you to understand
that those who served on the committee were good thinkers, all walks of
life, and represented both political parties, and they came together with
some ideas. I think there was a couple of ideas that I think are very
interesting. We've sent them up to Congress, of course. One of the
interesting points that came out of there -- and it's very important for
people to understand -- is that you can design a system to make sure that
low-income Americans -- that the system is progressive, which is a good
idea. Posen is the man that you served with, I think.

MS. ABDNOR: Yes, he was one of the ones.

THE PRESIDENT: He floated a really interesting idea that I hope Congress
takes a look at, which is to make sure that the lower-income Americans are
treated in a way so that -- that when people retire they're as taken care
of as well as can be, that the safety net is truly a safety net. It makes
sense.

And so you can structure a system so that we're -- make sure that we're
taking care of the low-income people better. And my only point is Lee's
committee had a lot of really good ideas out there. I like the spirit of
how they met. They didn't show up and say, I'm not going to listen to your
idea. They showed up and said, bring your ideas forward. And as I said,
Senator Daniel Patrick Moynihan, who was a fine, fine United States senator
from New York, a Democrat, was able to coax good ideas out. So thanks for
the spirit.

MS. ABDNOR: Exactly, and, Mr. President, I think one of the things that was
most gratifying was that even in private, we never talked about politics --
not once in all of those months. All we talked about was policy, what's the
best way to go forward, how would certain people be helped, how would
certain people be harmed by different ideas, or by doing nothing.

THE PRESIDENT: Well, I appreciate you.

Andrew Brown is with us.

MR. BROWN: Yes, sir.

THE PRESIDENT: Where you from, Andrew?

MR. BROWN: I'm from Bay, Arkansas. It's a small town, about 2,000 people,
in northeast Arkansas.

THE PRESIDENT: That's three times more than Crawford. (Laughter.)

MR. BROWN: Yes, sir.

THE PRESIDENT: Good. Did you -- are you educated?

MR. BROWN: Well, I graduated from the Naval Academy last year, sir.

THE PRESIDENT: Awesome, yes. (Applause.) Figured that would get a nice
round of applause here in Pensacola.

MR. BROWN: Yes, sir, and I came down here last summer to begin flight
school at Pensacola.

THE PRESIDENT: Good, yes. How is it going?

MR. BROWN: It's going really well.

THE PRESIDENT: No crashes?

MR. BROWN: No crashes, yet. (Laughter.)

THE PRESIDENT: That's good. It sounds positive. (Laughter.)

MR. BROWN: Yes, sir. And I'm just really enjoying that, and looking forward
to getting my wings in a couple of months and getting out and doing it for
real.

THE PRESIDENT: Congratulations. Thanks for serving. (Applause.) Other than
making sure the Commander-in-Chief knows you're about to get your wings,
why are you here? (Laughter.)

MR. BROWN: Yes, sir. Social Security kind of concerns me a little bit. I
don't really foresee that it will be around for my generation.

THE PRESIDENT: Let me stop you. This is not -- this is not the first time I
have heard this, I don't think it's going to be around for my generation.
Congress needs to hear this.

MR. BROWN: Right. So I invest my money mostly in a Roth IRA. I think that's
a great way to invest money. And I applaud Congress for upping the limits
there, letting people do more with their money. And I also invest in a
thrift savings plan.

THE PRESIDENT: Explain to people what that means, invest in a thrift
savings plan. I think some out there listening may not be sure what a
thrift savings plan is. It sounds sophisticated. It sounds unmanageable.

* * * * *

THE PRESIDENT: Who decides where the money goes?

MR. BROWN: I decide where the money goes. The percentile breakdown, I
decide.

THE PRESIDENT: The people who are running the thrift savings say, here's
five different options for you, kind of a different mix and risk and
return, I guess.

MR. BROWN: Yes, sir, ranging from international --

THE PRESIDENT: Which one of them is not the lottery I want you to know.
(Laughter.)

MR. BROWN: Yes, sir. And so I've enjoyed being able to put more money aside
and grow tax-free through the thrift savings program that wouldn't be
covered under the Roth.

THE PRESIDENT: And how often do you get a statement?

MR. BROWN: I check on mine online, sir.

THE PRESIDENT: Oh, you do? (Laughter and applause.) Don't worry about
making the Commander-in-Chief look technologically incompetent. (Laughter
and applause.) Private. Anyway -- (Laughter.)

Think about this. I just want you to listen to what he said, he checks
about it online. He watches his money grow. Some people get monthly
statements. They watch their money. There's nothing better in a society
than to have people concerned about their assets. That's what ownership
does. It's yours. Nobody can take it away.

The other thing is that when you hold money over a long period of time,
there is a predictable rate of return depending upon the risks you take.
And there's ways to design programs so that the closer you get to
retirement, if the markets were to happen to go down, you're able to get
your money, see? That's what's important for people to understand. And
obviously, you feel comfortable doing it.

MR. BROWN: Yes, sir, I'm very pleased with the thrift savings plan.

THE PRESIDENT: Good. See, he's a Navy pilot, risk-taker, and manages his
own money. (Laughter.) Thanks for coming, Andrew. I appreciate your
concern.

MR. BROWN: Thank you, sir, it's an honor. (Applause.)

THE PRESIDENT: Thanks for serving. By the way, somebody one time told me
they saw a survey that said people like Andrew, people Andrew's age think
it's a lot more likely they'll see a UFO than to get a Social Security
check. (Laughter.) May be right.

With us is Dr. Ron Guy, age 58 years old.

DR. GUY: Yes, sir, same age.

THE PRESIDENT: Welcome.

DR. GUY: Thank you, sir.

THE PRESIDENT: Leading edge of baby boomers.

DR. GUY: Yes, sir.

THE PRESIDENT: What do you do?

DR. GUY: Presently, sir, I do financial strategies, working with a great
group of partners at Guernsey and Associates. There are 15 of us that help
people plan their life, from wherever they are to age 100. And we look very
closely, sir, at Social Security.

THE PRESIDENT: What happens if they're 101?

DR. GUY: Okay, we can do that, too, sir.

THE PRESIDENT: So give me -- this is his field, right? You understand
pay-as-you-go, you understand all the terms we're using, you understand
thrift savings plans, internal rate of returns -- let her go.

* * * * *

THE PRESIDENT: Thank you, sir. Appreciate you. (Applause.) One of the
interesting things about investing -- when you think of investors, you
think of a certain kind of person, and I don't view that -- I'm sure you
don't either. You work with people from all walks of life. I mean,
everybody has got a chance -- should have a chance to be an investor.
Investing is not limited to a certain class of person That doesn't make any
sense. And yet, I think the attitude of some, you know, we can't let
certain people maybe invest their own money. Maybe they don't know how to
do it.

I'm kind of leading you on here, but give me a sense for how hard it is for
people to figure out how to invest their money in a prescribed set of bonds
and stocks.

* * * * *

THE PRESIDENT: Well, good. See, financial literacy. By the way, one of the
interesting things we've done is we've encouraged the faith-based community
to take on the idea of educating people in financial literacy, so that we
can make sure financial literacy is able to permeate all neighborhoods in
our society. People will be comfortable with this. This is something that
is happening, by the way, already without government, of course. Defined
contribution plans exist throughout all society right now: thrift savings
accounts, IRAs, 401(k)s.

The reason I keep emphasizing that is when I talk about a savings plan for
individuals, it's happening. And the question is, do we have the wisdom to
extend this kind of savings plan to the Social Security system to allow
younger workers -- this isn't going to -- you don't have to worry about me
and -- we just don't have to worry about it. The system is fixed if you're
born before 1950. It's not going to change one iota. The question is, do we
listen to younger workers? Do we fit the plan in to meet the current
culture and do we give them a better deal? Do we try to make the system on
an individual basis?

I told the -- that these accounts do not permanently fix Social Security.
We're going to have to do other things. They are part of a Social Security
fix that will help the individual worker.

Now, I'm going to talk to Myrtle Campbell. Myrtle, put that mic up there.

MRS. CAMPBELL: Yes, Mr. President.

THE PRESIDENT: Thanks for coming. I came all the way to wish you a happy
birthday for your birthday next Sunday -- isn't that right? (Applause.)

MRS. CAMPBELL: Yes. Thank you, Mr. President.

THE PRESIDENT: Myrtle Campbell is here and she brought somebody with her.
Who did you bring with you?

MRS. CAMPBELL: I brought my granddaughter, Mary Beth Roberts.

THE PRESIDENT: Very good. Will start with you, if that's all right.

MRS. CAMPBELL: With me?

THE PRESIDENT: Yes. Do you receive a Social Security check?

MRS. CAMPBELL: Yes. And for 82 years, that amounts to a lot of checks. And
it has come in real handy, and I would hate to part with it. (Laughter.)

THE PRESIDENT: Yes, you count on it.

MRS. CAMPBELL: Yes.

THE PRESIDENT: I want you to know, Myrtle, I understand a lot of people
count on their Social Security check. I mean, it's a really important part
of a lot of people's lives. Some people count only on their Social Security
check, and therefore, one of the issues in talking about this is to make
sure we don't frighten you. Seriously. We don't want people to feel like
the government is fixing to make sure that the check she counts on is
diminished or goes away. And I understand that. I fully understand that.
And that's why I'm spending a lot of time talking about it, because I
understand that sometimes there's another message getting out there.

I can remember in 2000, they said, if old George W. gets elected, he's
going to take away your check. I got elected, so in the 2004 campaign it
didn't quite work because people did get their checks.

Keep going. Are you worried about it?

MRS. CAMPBELL: I'm not worried about it, no. I am concerned, however, for
my grandchildren and what's coming up for them and how their livelihood
will be, what's due for them.

THE PRESIDENT: How many have you got, how many grandchildren?

MRS. CAMPBELL: I have nine grandchildren, and I have a whole slew of
students throughout the United States that I'm concerned about, as well.

THE PRESIDENT: You're a teacher?

MRS. CAMPBELL: I'm a Bible teacher.

THE PRESIDENT: Great, thanks.

MRS. CAMPBELL: I'm a volunteer.

THE PRESIDENT: Volunteer, very good. (Applause.) That's fantastic.

MRS. CAMPBELL: I was concerned with children, like your mother. (Laughter.)

THE PRESIDENT: Yes.

* * * * *

THE PRESIDENT: Well, I appreciate you. Thank you for sharing that with us,
Myrtle. And I -- I want you to introduce your granddaughter to us.

MS. CAMPBELL: Well, this is Mary Beth Roberts. She's the daughter -- one of
the daughters of my daughter.

THE PRESIDENT: One of the daughters of your daughter.

MS. CAMPBELL: Wanda Roberts.

THE PRESIDENT: That's good. Three daughters?

MS. CAMPBELL: Three.

MS. ROBERTS: They're over there.

MS. CAMPBELL: She has five.

THE PRESIDENT: You got all the sisters here?

MS. CAMPBELL: Yes.

THE PRESIDENT: Fantastic. Oh yes, I see them over there.

MS. ROBERTS: My little brother right there, too.

THE PRESIDENT: Brother? Fine-looking lad. (Laughter.) Boyfriend?

MS. ROBERTS: Right next to him.

THE PRESIDENT: Yes, got it. (Laughter.) I picked him out. Didn't mean to
embarrass you.

MS. ROBERTS: It's okay.

THE PRESIDENT: Although, Mary Beth, before we came on, said, make sure you
introduce my boyfriend. (Laughter.) Just kidding.

MS. ROBERTS: That's all right.

THE PRESIDENT: So what do you do?

MS. ROBERTS: I am currently a college student at the University of West
Florida majoring in public relations.

THE PRESIDENT: Fantastic. Good. Good. (Applause.) How's it going?

MS. ROBERTS: I'm sorry?

THE PRESIDENT: How's it going?

MS. ROBERTS: It's going wonderful. I'm having a great time.

THE PRESIDENT: Actually, you took some classes here, right?

MS. ROBERTS: I did. I attended Pensacola Junior College and got my general
education here.

THE PRESIDENT: Good. Good job.

MS. ROBERTS: Love it, too. (Applause.)

THE PRESIDENT: Major?

MS. ROBERTS: Public relations and advertising.

THE PRESIDENT: Here's your chance. (Laughter.)

MS. ROBERTS: Appreciate that.

THE PRESIDENT: Yes, no problem. (Laughter.) So your grandmother says she's
worried about her grandchildren -- a safety net for her grandchildren when
they retire. Do you share that same concern?

MS. ROBERTS: I am extremely concerned. I'm pretty young, I'm 21, and I have
a feeling that --

THE PRESIDENT: Pretty young? (Laughter.) You're really young. Younger and
younger every year. (Laughter.) Go ahead.

MS. ROBERTS: So by the time that I am a senior citizen, I'm sure Social
Security will have been long gone, so I'm very concerned.

THE PRESIDENT: Yes, it's important for 21-year-old people to pay attention
to this issue. If it doesn't get fixed, the bill is going to be huge.
That's what you've got to understand if you're 21 years old. You know, they
always say, 21-year-olders don't pay attention to politics or issues. I
don't know if that's the case.

MS. ROBERTS: I pay attention, Mr. President.

THE PRESIDENT: Good. (Laughter.) Give me a chance -- and by the way,
personal accounts are voluntary. In other words, I'm not going to say --
the government isn't going to say, you have to do this. I believe in saying
to somebody, if you choose to do this, you can do it. You don't have to do
it. If given that opportunity -- I'm maybe a little premature, but if
things go right, you may be given that opportunity pretty quickly.

MS. ROBERTS: I hope so. (Applause.)

THE PRESIDENT: So what would you -- do you have any sense for whether or
not you would opt to decide to take some of your money aside and put it
inside an account?

MS. ROBERTS: I would definitely take that option.

THE PRESIDENT: Really? It doesn't frighten you?

MS. ROBERTS: Not at all. It actually would be encouraging to know that I
will definitely get that when I do retire so I have something to count on.

THE PRESIDENT: Yes. A nest egg.

MS. ROBERTS: That's right.

THE PRESIDENT: The other thing I think is important is to be able to pass
-- for Mary Beth to be able to pass her money on to whomever she chooses. I
think that would be beneficial for society, to have more assets accumulate
and to be able to have kind of a generational transfer of assets. I think
it would be beneficial for people from all walks of life. I really do. I
think it's -- I think it's a concept that's an important concept, the idea
of passing property on to whomever you choose, the idea of accumulating
property.

If she starts, by the way, she's going to do quite well. It sounds like
she's going to make quite a good living and set aside money and put it
away, conservative bonds and stocks. And it grows. It compounds.

I want to repeat another point. The money she'll get in her account, the
return -- rate of return on a conservative mix of bonds and stocks will be
greater than her money will be earning in the federal government. And
that's an important difference, particularly for a 21-year-old investor,
over a period of 41 years. That money grows.

And so I'm glad you're interested.

MS. ROBERTS: Yes, sir.

THE PRESIDENT: My -- then my advice to you, everybody else, people
watching, is write your senators and write your congress people. Let them
know you're concerned, let them know you're interested, and people coming
together to solve this problem to save Social Security for generations to
come. (Applause.)

Thanks for coming, thanks for your interest. God bless. (Applause.)

END 9:55 A.M. CST
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