    [Public Papers of the Presidents of the United States: George W. Bush (2005, Book I)]
    [May 19, 2005]
    [Pages 823-834]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks in a Discussion on Strengthening Social Security in Milwaukee,
    Wisconsin
    May 19, 2005

        The President. Thank you all very much. Pleased be seated. Thanks
    for coming. Thanks for the warm welcome. Dennis, thank you very much. I'm so honored that the MMAC
    would host this reception--or this conversation. Thanks for coming. And
    I appreciate Tim Sheehy as well, the
    president. I thank the members who are here for allowing me to come by
    and have a conversation with some of your fellow citizens about an
    incredibly important topic, and that is the Social Security system.
        But before I get there, I've got some other things I want to say, if
    you don't mind. [Laughter] First, I'm sorry Laura
    is not traveling with me today. She is--you probably think she's home
    preparing a few one-liners. [Laughter] She's not; she's home packing her
    bags. She is off to Jordan and Egypt and Israel to represent our
    country. I can't think of a better representative than Laura Bush. She's
    going to help advance the freedom agenda, which is really the peace
    agenda. The more freedom there is in the world, the more this world will
    be a peaceful world.
        It's been an incredible time. It's been an amazing time, hasn't it,
    to watch and to see these people around the world demanding their
    freedom. And it's such an honor to be a part of helping people realize
    the great potential of a free society. It was an amazing moment to stand
    in Georgia--Tbilisi, Georgia, in front of over 150,000 people that were
    so thrilled to see a representative of the United States, and they

    [[Page 824]]

    were thrilled to see us there because we stand for freedom and human
    dignity and the belief that everybody counts and that you ought to be
    able to worship freely. I hope you take great pride in what America
    stands for and know that, as we spread not American values but God-given
    values around the world, this world is a better place.
        I want to thank Congressman Paul Ryan. He's
    one of the bright lights in the United States Congress, a very sharp
    guy. He jumped on Air Force One--easy ride home, right, Ryan? [Laughter]
    Are you going back? Oh, he is going back. Good. But we spent a lot of
    time talking about this issue. He's a smart guy and cares a lot about
    the Social Security issue. I really appreciate you taking time out to
    come and hear this discussion.
        I want to thank Andrew Ziegler, the
    president of the Milwaukee Art Museum, and David Gordon for letting us come by. What a fantastic building. I
    mean, it's really--I know you're incredibly proud of this fantastic
    facility, and I know the citizens of Milwaukee support it strongly, as
    you should. So thanks for letting us come by and use this facility. It's
    a--look at it this way, it's a chance to show it off for the world, to
    the extent the world is watching C-SPAN.
        I had an amazing experience. I stopped by a business here called
    OnMilwaukee.com--[applause]--a little bit of a following. Things are
    catching on. I rode over here with Jeff Sherman
    and Andy Tarnoff, two young guys, Milwaukee
    citizens who started this company, entrepreneurs who took risk and have
    put out a product people obviously want. It's a fast-growing little
    business. I met our participants over there to talk about what we're
    going to do here, but also, I love to see entrepreneurs. You know, part
    of the role of Government is to create an environment in which people
    are willing to take risk and--which means low taxes, reasonable
    regulation. We've got to get rid of all these junk lawsuits that are
    threatening small businesses, the job creators. But I want to thank Andy
    and Jeff and their employees or associates for welcoming me there. And
    it was--thanks for putting me on the front page of today's addition.
    [Laughter]
        I also want to welcome Jack Voight, the
    State treasurer, and the State Senate majority leader, Dale
    Schultz. Hey, Dale, tell your wife hello. We traveled on a bus together.
        Let me start off on Social Security by saying this: Franklin
    Roosevelt did a smart thing in setting up a safety net for people who,
    when they retired, would know they would be able to more likely live in
    dignity upon retirement. He did a smart thing. And it worked. Social
    Security worked for a long time. As a matter of fact, I fully understand
    that right here in the State of Wisconsin, a lot of people are counting
    on the Social Security check. In other words, Social Security is really
    important for a lot of people's lives. In my home State of Texas, a lot
    of people rely solely on their Social Security check.
        And as we discuss Social Security, it's important for the people of
    Milwaukee to understand and Wisconsin to understand that this discussion
    we're having really is not about you, but it's about your children and
    your grandchildren, because I can look in the camera and say with
    absolute certainty, ``If you're on Social Security today, nothing will
    change. You will get your check.'' The system is solvent enough--the
    system is solvent for people born before 1950.
        The reason I have to say that is because many of you are aware of
    what takes place in politics. People say the darndest things to try to
    change people's opinions. They might say, ``If old so-and-so gets
    elected, you're not going to get your Social Security check.'' In other
    words, people have been using Social Security to scare seniors to vote
    one way or the other for a long period of time. And so therefore, when
    I'm talking about the reform, I want you to recognize,

    [[Page 825]]

    one, Social Security is important, and two, if you're a senior, you have
    nothing to worry about. You will get your check.
        But if you've got a grandchild, you've got plenty to worry about if
    you care about your children and your grandchildren. And here's why--
    here's why. There's a lot of us getting ready to retire. We're called
    baby boomers. I'm one. As a matter of fact, my retirement age is in
    2008. [Laughter] I turn 62 in 2008; it's kind of convenient. [Laughter]
    And there's a lot of us. As a matter of fact, by the time the baby
    boomers fully retire, there's going to be over 70 million of us. That's
    compared to 40-some odd million today. So the number of retirees that
    the system will have to take care of is increasing dramatically, and
    we're living longer.
        A lot of baby boomers have been working out and taking care of our
    bodies, making good choices, and medicine is better, and we're living
    longer. It's just a fact. We're living longer than the previous
    generation, and we've been promised greater benefits. People were
    running for office saying, ``Vote for me. I'm going to give you more
    benefits when it comes to Social Security.'' And sure enough, they got
    elected, and they kept their promise. And so you've got a lot of people
    getting ready to retire who are living longer who are getting greater
    benefits, and fewer people paying into the system.
        In 1950, there was, like, 15 workers to one beneficiary. In other
    words, you had a lot of workers relative to the number of beneficiaries.
    Today, there's 3.3 workers per beneficiary. Relatively quickly, it will
    be two workers per beneficiary--fewer people paying greater benefits to
    a greater number of people who are living longer.
        Now, secondly, Social Security is not a savings account. In my
    travels around the country, I hear people say, ``Why don't you just give
    us the money back we put in?'' But that's not the way Social Security
    works. It's a pay-as-you-go system. You pay; we go ahead and spend.
    [Laughter] You pay through payroll taxes. We spend on paying for the
    beneficiaries, the retirees for that year. But if we've got any money
    left over, we didn't save it for you. We spent it on Government. That's
    the way it works. It's a pay-as-you-go. And then there's--all that's
    left over is a file cabinet full of IOUs. I have seen the file cabinet
    in West Virginia firsthand, and I saw all the IOUs. But the system is
    not the kind of system where we're holding the money for you. That's not
    the way it works. We're spending your money and left behind some paper
    that can only be good if the Government decides to redeem the paper.
    That's a pay-as-you-go system.
        The pay-as-you-go system starts to go in the red, because it's going
    to pay out more in benefits than it collects in taxes, in 2017. That's
    12 years from now. If you've got a 6-year-old child, that will be about
    the time your child starts to drive, if the driving age is 18 here in
    Wisconsin. In 2027--and by the way, the situation gets worse every year,
    fewer people paying in for more beneficiaries. In 2017, the system will
    be $200 billion for that year in the red. I don't know where they're
    going to get the money. Every year it gets worse. In 2032, it's like
    $300 billion in the red. In 2041, it's bust.
        Now, if you're a senior, you have nothing to worry about because
    it's got plenty of money for you. But if you're a young worker, a young
    entrepreneur, a young mom paying into the system, you're paying into a
    bankrupt system unless the United States Congress decides to act.
        Now, I see a problem. I fully recognize that some in Washington
    don't see a problem. They'd rather kind of sweep this issue under the
    rug. But that's not the job of the President. The job of the President
    is to confront problems and not pass those problems on to another
    President or another Congress or another generation. And I realize if we
    don't act, it's going to cost $600 billion a year because of inaction.
    And I realize if we don't act, we're liable to

    [[Page 826]]

    saddle a younger generation of Americans with an 18-percent payroll tax
    to make good for the promises that you've made for me. And that's not
    fair, and that's not right.
        And so I went in front of the Congress and said, ``We got a
    problem.'' I said it at the State of the Union. I also told the
    leadership that I plan on campaigning on this issue, in other words
    traveling the country doing exactly what we're doing here, making it
    perfectly clear to the American people we have a problem. Guess what.
    They now know we got a problem. And that's bad news for people in
    Washington, DC, who would rather do nothing, because once the people
    figure out we got a problem, the next question they're going to say to
    Members of the United States Congress is, ``What do you intend to do
    about it?''
        Now, I have an obligation to do more than just say we got a problem.
    I've got an obligation to say, ``Here's some ideas that we got to work
    on.'' First, anything we do, we got to make sure that future generations
    receive benefits equal to or greater than benefits enjoyed by today's
    seniors. I think that's a reasonable principle.
        Secondly, I believe that--I know we can solve a lot of the issue by
    embracing what's called progressive indexing of benefits. It's a long
    word, fancy words for this. Here's what happens: The promises Congress
    has made says that your benefits will raise--rise based upon wage
    increases. If you were to say to the upper income folks, ``Your benefits
    will raise--rise based upon inflation,'' you've gone a long way to
    solving the solvency problem. It sounds simple, but it basically means
    that poor people won't have to retire into poverty, and the wealthier
    people in America will get benefits that increase with the rate of
    inflation--for people born prior to 1950--I mean, after 1950.
        That progressive indexing plan does a couple of things. One, I think
    it is an important principle to say to somebody who has been working all
    their life in a hard job that you're not going to retire into poverty.
    America can make that promise, and it's a promise we ought to make for
    people. It makes sense. We want our people retiring with dignity. That's
    one way to make the Social Security system better.
        But it also makes sense to say to somebody who doesn't think they're
    going to see any benefits anyway, ``You're going to get benefits.
    They're just not going to grow quite as fast. They'll grow. They're
    going to be bigger--equal to or bigger than their previous generation.
    They're just not going to be quite as big as the Government promised
    you--that politicians promised you. They'll be bigger, but for the sake
    of solvency and permanency, if we don't do this, you're going to be
    saddled with a $200-billion-a-year bill in 2027.'' In other words,
    there's a reasonable approach that I'm confident that Congress, if it
    takes a look at, will see it is reasonable.
        Now, we've got to come together and solve other problems to make
    sure we permanently solve the issue. I keep saying ``permanently''
    because I remember in 1983 when President Reagan and Speaker O'Neill, in
    the spirit of bipartisanship, said, ``We got a problem with Social
    Security,'' and they came together and said, ``We're going to put out a
    75-year fix.'' The problem is, we're now 22 years later, and that 75-
    year fix didn't stick. In other words, if we're going to sit down at the
    table, let's get it done forever. Let's say to a younger generation of
    Americans, we're going to permanently solve the Social Security issue so
    you can grow up with peace of mind.
        I'm almost through. I think as we permanently fix the system,
    there's an opportunity--I know there's an opportunity to make the system
    a better deal for younger workers. And so I've asked Congress to
    consider this idea: Younger workers ought to be allowed to take some of
    their own payroll taxes, if they so choose, and set up a personal
    savings account. Some of the taxes will be in a--that they pay; after
    all,

    [[Page 827]]

    it's their money that they're paying--they ought to be allowed to take
    some of their money and set up a personal savings account.
        Here are the benefits for doing that. One, the Government does a
    lousy job on getting a good rate of return on your money. As a matter of
    fact, people calculate that in the Social Security system you earn about
    1.8 percent on your money. That's not a very good deal. You see, if you
    have a personal savings account, you could do a lot better than 1.8
    percent. A conservative mix of bonds and stocks, you can get up to 7 or
    8 percent. Four percent--if you're only in T-bills, you do better than
    1.8 percent. And it's that difference in interest that, over time,
    compounds that means a lot.
        In other words, if you start setting aside money, with a decent rate
    of return, it grows over time; it compounds. And it's that power of
    compound interest which younger workers ought to be allowed to take
    advantage of. But the system today doesn't let them take advantage of
    that.
        So let me give you an example. If you're a 20-year-old mom earning
    $8 an hour over the career and you're allowed to take a third of your
    payroll taxes and put it in a conservative mix of bonds and stocks, by
    the time that person retires, she would have a $100,000 nest egg. See,
    that's the power of compound interest.
        Here's another interesting example for you. Say you've got a child
    and that child decides to become a police force [policeman] *, marries a
    nurse. They're in the workplace in 2011, and they work their entire
    careers. They set aside money based upon the average salary of a
    policeman and nurse. By the time they retired at 65, they would have a
    $669,000 nest egg.
    ---------------------------------------------------------------------------
        * White House correction.
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        That's what money does when it grows. That's what happens, and
    people ought to be allowed to take advantage of that, if they choose.
    The Government is not saying, ``You have to set up a personal
    retirement.'' I fully understand some people might not feel comfortable
    about putting their money in bonds and stocks. I know that. That's why
    this is a personal savings account, a voluntary personal account.
    Government is not saying, ``You must do this.'' They're saying, ``If you
    so choose, you should be allowed to make that decision.''
        And a lot of people are going to make that decision. You know why?
    The world has changed when it comes to investors. We're about to talk to
    some young investors. I can assure you, when I was their age, I wasn't
    spending much time thinking about 401(k)s. They didn't exist. There
    wasn't a lot of talk about people running--you know, ``How's your IRA
    doing?'' They didn't exist. The whole notion of people being--entrusting
    people with their money and watching it grow is changing. The culture is
    changing. The investor class is no longer confined to just a few people.
    The investor class is varied, and we ought to have policies in place
    that encourage every American to become an owner and investor and watch
    their assets grow.
        Laura said, ``Don't get too long-winded,''
    but it's not working. [Laughter] A couple of other points I want to
    make, the system is inherently unfair to some. If you and your spouse
    are working and both of you contributing in the Social Security system
    and one of you die early, when you turn 62, you get a choice to make.
    You can either take the benefits accrued in the Social Security system
    to you or to your husband but not both.
        Think about that. Somebody has worked all their life, contributed to
    the system, dies early, and the money just disappears. That doesn't seem
    fair to me. That doesn't seem fair to me that fellow Americans working
    all his or her life, contributing in the system, and then dies early,
    and the surviving spouse gets a burial benefit and, at 62, gets the
    greater of the benefit structure but not both. It's not fair. If you
    allow a younger worker to set aside money and

    [[Page 828]]

    watch that asset base grow, you're really saying, ``If something bad
    happens to you, you can pass that asset on to your surviving spouse.'' I
    like the idea of having--giving the capacity to a lot of people to be
    able to transfer assets from one generation to the next. That's what
    America is about.
        Before we get to our panel, a couple of other points. One, you can't
    take your money and put it in the lottery. In other words, this isn't
    one of these deals where it's a--you can take it and put it in high-
    flyers. This is a retirement fund. This is a safety net. Therefore,
    there's going to be a conservative mix of bonds and stocks available for
    you to choose from. You can mix it up between bonds and stocks and T-
    bills any way you want, but you cannot take your money to the track. In
    other words, it's a safety net. There will be guidelines.
        Secondly, there will be fee structures that are reasonable. Wall
    Street can't rip you off in this deal. I'm sure you've heard people say,
    ``Oh, Bush's plan, it's going to give Wall Street a windfall.'' Wait a
    minute. There are all kinds of public retirement funds that exist around
    the country where the fee structures are reasonable managed. You'll be
    treated fairly.
        Speaking about that, all kinds of retirement systems around, I don't
    know if you know this or not, but the United States Congress took a look
    at this idea in what's called the Thrift Savings Plan. That's the
    Federal savings plan. And they thought about maybe giving somebody the
    option of putting their money in a conservative mix of bonds and stocks
    because they--the people who vote on that must have recognized the power
    of compound interest. And guess what happened. They adopted a plan that
    says Members of the United States Congress, if they so choose, can take
    some of their own money and set it aside in a conservative portfolio of
    bonds and stocks. Here's my attitude about that--and it should be the
    attitude of the American people--if setting aside money so it can grow
    better in a conservative mix of bonds and stocks is okay for United
    States Senators, it ought to be okay for workers all across America.
        Ready to go? I think we're going to get something done. I really do.
    I think the American people understand we've got a problem. I think
    seniors are now beginning to understand all the scare tactics, all the
    propaganda, is just that. And they're going to get their checks. And
    finally, the final part of this equation is, there's a lot of young
    Americans who are beginning to pay attention to this issue and say,
    ``Wait a minute. I'm not contributing hard-earned money into a system
    that's going broke, and I don't like what I hear, and I expect members
    of both political parties to set aside their parties and focus on the
    good of the United States of America.''
        I want to thank you all for coming. First, we're going to start off
    with Jeff Brown. Jeff is what we call an
    expert--right?
        Jeffrey R. Brown. I'll take that
    description.
        The President. That's right. Tell us what you do. This isn't the
    first time we've been together, by the way. He's a fine lad.
        Dr. Brown. Thank you, Mr. President.
    I'm a professor--I don't know if I should admit it here, but I'm at the
    University of Illinois. And--[laughter].
        The President. He's sensitive.
    [Laughter]

    [At this point, Dr. Brown, assistant professor, Department of Finance,
    University of Illinois at Urbana-Champaign, Champaign, IL, made further
    remarks.]

        The President. Are students paying attention to the issue?
        Dr. Brown. They certainly are after
    they get done with my classes. [Laughter]
        The President. Thanks, Jeff. Thanks for
    coming.
        I like to remind people, he's a Ph.D.,
    and I was a C student. [Laughter] I want you to take note of who's the
    President and who's the adviser. [Laughter]

    [[Page 829]]

        Right, Bobby? Bobby Kraft. Welcome,
    Bobby.
        Robert Kraft. Thank you, Mr. President.
        The President. What do you do?
        Mr. Kraft. I'm president and CEO of a
    printing and a mailing services company here in Milwaukee, First Edge
    Solutions.
        The President. Started it?
        Mr. Kraft. Yes, 2 years ago.
        The President. Congratulations. Entrepreneurial spirit is strong.
        Mr. Kraft. Thank you. I learned that
    from my chairman over there, my dad. He--his company opened first; there
    are 450 employees.
        The President. Great, fantastic. You and your dad have got the same
    hairstyle, I notice. [Laughter]
        Mr. Kraft. Absolutely.
        The President. Yes. Sorry, Bobby.
        Mr. Kraft. It's been tough. It's been
    real tough.
        The President. Yes, yes. [Laughter] Anyway, how many employees you
    got?
        Mr. Kraft. We have 20 full-time
    employees.
        The President. Good. Add any last year?
        Mr. Kraft. Yes, we did.
        The President. Do you realize--it's a little off the subject, but 70
    percent of new jobs in America are created by small-business
    entrepreneurs. And I want to thank you, Bobby, for being a small-business entrepreneur.
        Mr. Kraft. Thank you, Mr. President.
        The President. I asked the same question to--OnMilwaukee.com. They
    added some employees last year too. It's a good sign, young
    entrepreneurs taking risks, building businesses, and employing people.
        Now, Bobby, tell me--you're here on
    Social Security.
        Mr. Kraft. Correct.
        The President. Why? Besides the fact you got invited, and you wanted
    to see the art museum. [Laughter]
        Mr. Kraft. Before I got into printing, I
    did have a short stint as an investment adviser. And the first thing I
    learned getting into the industry and studying all the financial books
    is that don't count on Social Security to be there. We take that same
    level of education, and we teach our employees that they need to take
    advantage of the 401(k) we put in place for them because of the fact,
    the way the Social Security system is set up, we cannot count on that to
    be here.
        The President. Yes, let me stop you. Young guy sitting here in Milwaukee, Wisconsin, in front of the
    President, ``Don't count on Social Security to be there.'' A lot of
    people feeling that way here in America. What I'm telling you is, if we
    can get the United States Congress to listen to you, we can put a plan
    in place to make sure Social Security is there.
        Keep going, Bobby.
        Mr. Kraft. Keep going?
        The President. It's got to be a little depressing to be paying
    small-business rates, small-business payroll taxes into a system where
    you say, ``It's not going to be there.'' That's not good Government--ask
    people to work hard, pay a payroll tax, and have people think--a lot of
    people think it's not going to be around. That's the problem. That's the
    issue. If you're a senior, you're going to get your check. Bobby is a little worried about his.
        Keep going.

    [Mr. Kraft made further remarks.]

        The President. I appreciate that. So Bobby just said he's setting up a plan that says to his workers,
    you can watch your money grow. In other words, we want you to have a
    retirement system called a 401(k). Appreciate you setting it up.
        But part of what we're talking about is an educational process. I
    understand that. You know, Bobby said some
    people going around the water cooler aren't so sure they want to take
    risks with the money. It's managed risk. It's certainly not an
    overwhelming risk. And my attitude about that is, if you're nervous
    about it, stay in the system. Stay in the system as is. If not,

    [[Page 830]]

    you'll get some Social Security benefits, but you're also going to get
    the benefit of owning your own money and watching it grow. And then when
    you retire, you'll have a nest egg--by the way, a nest egg that doesn't
    end up in a file cabinet in West Virginia, a nest egg you call your own
    that the United States Government cannot take away from you.
        Keep going, Bobby.
        Mr. Kraft. Okay, thank you. You know,
    really the disheartening thing for us as employers is talking to our
    employees who are working paycheck to paycheck at times and telling them
    that the percentage of tax that's being yanked from their check every
    time is going really to nowhere, and they're not able to grow it at all.
    And that's not fun to tell one of your employees that, that you can't
    count on that. Because we prefer to work on an optimistic basis, growing
    a company, being entrepreneurial, you take risks and you understand how
    to mitigate them. But at the same time, when you know that part of your
    employees' checks are going to be just going really to something that
    you can't count on, there's not a lot of confidence out there.
        The President. I appreciate you. That's the problem. That's the
    issue. It's the issue confronting people in the Democrat Party, issue
    confronting people in the Republican Party. And the fundamental question
    in Washington, DC, is, is there the political will to do what's right,
    to answer the question Bobby just brought
    up, and that is, how can you look a worker in the eye and say, ``You're
    working hard. You're contributing in a system that's going bankrupt.''
    Now is the time to get after it and solve this problem once and for all.
        Bobby, thanks for coming. Very
    articulate. Good luck in your business. Glad you're here.
        Mr. Kraft. Thank you, Mr. President.
        The President. Christy Paavola.
        Christy Paavola. Yes.
        The President. College senior.
        Ms. Paavola. Yes, I am, at Concordia
    University, Wisconsin.
        The President. Yes, actually, I've been there.
        Ms. Paavola. Yes?
        The President. Yes. It's a great place.
        Ms. Paavola. We think so.
        The President. Beautiful campus. So when will you graduate?
        Ms. Paavola. May 2006.
        The President. Got another year to go.
        Ms. Paavola. Yes.
        The President. Are you out of school now?
        Ms. Paavola. What?
        The President. I mean, summer--a little summer break.
        Ms. Paavola. Yes. Yes, we just finished
    Friday.
        The President. Good. Well, congratulations. All A's?
        Ms. Paavola. Hopeful.
        The President. Yes--[laughter]--``None of your business, Mr.
    President.'' [Laughter] What would you like to do upon graduation?
        Ms. Paavola. I would like to teach in
    the Lutheran schools for the Lutheran Church, Missouri Synod.
        The President. Awesome. Yes, good. Wants to be a teacher.
        Ms. Paavola. Yes.
        The President. Thanks for teaching. By the way, anybody who's
    looking for a way to contribute to society: Teach. And you don't have to
    be a classroom--you want to be a classroom teacher?
        Ms. Paavola. Correct.
        The President. Yes. You can mentor a child, by the way. That's
    teaching. You can help save a child's life by teaching him or her how to
    read. So I hope you do. Thanks for setting a good example.
        Ms. Paavola. Thank you, Mr. President.
        The President. So here you are, senior in college, sitting right
    next to the President of the United States. [Laughter]
        Ms. Paavola. Yes. [Laughter]

    [[Page 831]]

        The President. You got any thoughts about Social Security?
        Ms. Paavola. Yes. I don't think it's
    going to be there when I retire, which is really scary.
        The President. Interesting, isn't it? They took a survey amongst
    youngsters. Somebody explained to me, I didn't actually watch--see the
    survey, but I heard what the person said. He said more people are--that
    are Christy's age think they're more likely
    to see a UFO than get a Social Security check. [Laughter] Pretty
    frightening when you think about the fact that a lot of young people are
    going to be putting a lot of money into a system that may not be around.
    So we're sitting here with a senior in college saying, ``I don't think
    the system is going to be around.''
        Got anything else you want to say?
        Ms. Paavola. I really like the idea of
    personal savings accounts. I like the fact that I have control over my
    money, and I have the assurance of knowing that that money will be there
    when I retire.
        The President. Yes, thanks. That's a pretty sophisticated point of
    view for a college senior. I appreciate it. I hope people your age are
    paying attention to the issue.
        Ms. Paavola. Hopefully. It's an
    important issue.
        The President. It's a huge issue. It's a huge issue when you think
    about working hard and putting payroll tax into a system that's going
    broke. Imagine that. Just say we just started anew, and I say, ``All of
    you who want to contribute hard-earned money to a system that will be
    broke within 20 years, please raise your hand.'' Not a lot of
    contributors. You don't have the choice. But we've got a choice in
    Washington to do something about it. That's what the choice is, and I
    intend--[applause].
        Now is your chance. All kinds of cameras. [Laughter]

    [Ms. Paavola made further remarks.]

        The President. There you go. Well, I appreciate you coming.
        Ms. Paavola. Thank you very much.
        The President. You did a heck of a job. You deserve an ``A.'' You'll
    have to carry it over for next year, though.
        Ms. Paavola. Okay.
        The President. Good job. Thanks for coming.
        Ms. Paavola. Thank you.
        The President. Andrea Marton, welcome.
        Andrea Marton. Thank you. It's an honor to
    be here, Mr. President.
        The President. Andrea, just a little bit
    about yourself.
        Ms. Marton. Well, first of all, I'm
    assistant director at a preschool in Germantown, Rainbows End.
        The President. Good. Got a child?
        Ms. Marton. Yes, I do. He's three, and
    it's one of the hardest jobs I've ever had to do.
        The President. Yes. Listen, Andrea is a
    single mom. Being a single mom is the hardest job in America. And I want
    to thank you for being a good mom. So you go to work. How is it?
        Ms. Marton. I love it. I love being with
    kids. I love improving the future, and they are the future.
        The President. You bet.
        Ms. Marton. I come from a long line of
    teachers.
        The President. Do you really?
        Ms. Marton. Yes. Both my parents are
    teachers, and my grandfather was a teacher.
        The President. Are they here?
        Ms. Marton. Yes, they are--my parents.
    Yes, they are.
        The President. Right here in the audience?
        Ms. Marton. Yes, over there.
        Mr. Marton. You're doing great, Andrea!
        The President. What did he say?
        Ms. Marton. I'm doing great.
        The President. I'm not going to comment about your hair. [Laughter]
    Thanks for coming.

    [[Page 832]]

        So, tell me, the Social Security issue interests you?
        Ms. Marton. Yes. Well, being a single
    mother and part of the working poor, it's very important for me to have
    something to rely on. And with the current system in place, we look down
    the road and it's not going to be there. And if it is there, it's going
    to be real slim.
        The President. You paying payroll taxes?
        Ms. Marton. Oh, you better believe it.
    [Laughter]
        The President. Do you feel it?
        Ms. Marton. I don't see it.
        The President. But you feel it.
        Ms. Marton. Oh, yes.
        The President. Well, you see why--you see what would have been and
    what wasn't when you get your check stub, right?
        Ms. Marton. Right, right, right. So, for
    me, to have the option and the choice to put my money into something
    that I will see in the future, you know, is just great.
        The President. Yes, see, it's an interesting thought, isn't it? A
    single mom sitting here saying she wants to
    be--have the opportunity to take some of her payroll taxes--you called
    yourself the working poor?
        Ms. Marton. Yes, I did.
        The President. Well, I hope that doesn't stay that way. Keep
    working.
        Ms. Marton. I hope not either.
        The President. Yes. But the point is, is that this issue affects
    people from all walks of life, all income levels. But how about--I gave
    the example of a single mom working an $8 job all her life and is able
    to put aside a third of her payroll taxes and watch it grow in a
    reasonable rate of return. That person will end up with $100,000,
    coupled with a Social Security system that will have her benefits grow
    with wages.
        And see--and then all of a sudden, Andrea
    is sitting there with $100,000 as part of her retirement plan that she
    can do with whatever she wants. In other words, you can use it for your
    retirement or drop it on the little one.
        Ms. Marton. Exactly, and that's----
        The President. The little guy.
        Ms. Marton. Yes, Angelo is a big part of
    my life, and I want to make sure that not only my future is secure but
    his as well. And with this plan, I believe that it is a great option to
    put my money into a fund that will earn interest and will be there, and
    for the next 40 to 50 years that I work, I'm going to see it, because I
    deserve it.
        The President. There you go. I couldn't have said it better myself.
    Thanks for coming.
        Okay, finally, we've got Joel and Tonya
    Bruins.
        Tonya Bruins. Hello.
        The President. Fine, fine. Where do you all live?
        Joel Bruins. Are you going to do the talking
    or do you want me to? [Laughter]
        The President. It's like one of these couple talk show things, you
    know. [Laughter] What's your favorite color? Anyway--[laughter].
        Mr. Bruins. We live in Brandon, Wisconsin.
    I'm a dairy farmer. I'm a partner with both my brother, John, and my
    dad, Bill, which you met last year.
        The President. Yes.
        Mr. Bruins. And my uncle, Cal. And the name
    of the farm is Homeland Dairy. We milk about 500 cows. And----
        The President. What's your job?
        Mr. Bruins. I take care of the cows. I'm the
    herdsman.
        The President. Herdsman, good.
        Mr. Bruins. So any breeding and reproduction
    and calves and anything dealing with the cattle is what I take care of.
        The President. Good, good.
        Mr. Bruins. And personnel, I guess, I get
    into sometimes too. To all the 15 employees, they keep you on your toes.
        The President. That's good. It's a good-size operation?
        Mr. Bruins. Yes, very--it's a very good-size
    operation.
        The President. Great. Tonya, you work?

    [[Page 833]]

        Mrs. Bruins. Yes, I work at the National
    Bank of Waupan. I'm in the bookkeeping department there, and I also take
    care of all the ACH processing for the bank.
        The President. Good. So you're familiar with finances?
        Mrs. Bruins. Right.
        The President. Give me your thoughts on Social Security. Dairy
    farmer sitting there--I can presume dairy
    farmers think about Social Security.

    [Mr. Bruins made further remarks.]

        The President. We've got a farmer right
    here, with his wife, Tonya, set up an IRA. It's
    pretty interesting, isn't it? In other words, this notion about
    investing--people watching their money is pretty well filtering through
    most of society. ``Roth'' is kind of a fancy word for dealing with tax
    going in and coming out, right?
        Mr. Bruins. Right.
        The President. Anyway, so, you all watch your investments grow?
        Mr. Bruins. We watch them, yes, we do.
        The President. Make the decision?
        Mr. Bruins. Yes, we have made the decisions
    on it.
        The President. Tonya, do you want to say
    something?
        Mrs. Bruins. I'm also--my profit sharing
    plan at the bank allows me to control where I--what funds I want to put
    my----
        The President. So you've got choices? How does it work?
        Mrs. Bruins. Right, yes. We've got 15
    different funds we can choose to invest in. You know, if we want to keep
    it high risk or low risk, it's our decision.
        The President. Yes, see, it's an interesting idea, isn't it? The
    bank she works for, a little country bank,
    says, ``Wait a minute, we're going to trust our employees to be able to
    make a decision with their own money about what to put the money in, 15
    different options.'' Was it hard to learn about how to do that?
        Mrs. Bruins. They keep us very well-
    informed. They have people that come in every year and advisers we can
    talk to and learn from them.
        The President. Yes, we do--there are some pockets of financial
    illiteracy in our country, but there's nothing like solving financial
    illiteracy when you're watching--when you're making decisions for your
    own money. You start asking questions; there's advisers, there's people
    around to help you make a rational decision what to do with your own
    money. And a good way to learn is when you're watching your own money
    grow.
        And so you get, what, quarterly statements, monthly statements?
        Mrs. Bruins. Quarterly.
        The President. Quarterly statements?
        Mrs. Bruins. Yes.
        The President. Open it right up, sit down at the kitchen table and
    say, ``Look at the--look what's happening here.''
        Mrs. Bruins. Yes. We also have the option
    to change funds whenever we want to. We can check them online at any
    time as well.
        The President. Sure. Think about that, though. It sounds pretty
    simple, but isn't it--doesn't it make sense to have people from all
    walks of life opening up a quarterly statement to watch their assets? It
    certainly makes you pay attention to the decision Government makes. It
    is, to me, a healthy America when more people are able to say, ``I'm
    watching my own assets.'' I like it when more Americans are owning their
    own home, owning their own business, and managing their own retirement
    plans. It's good for this country to have that kind of--[applause].
        You've got the mic.

    [Mr. Bruins made further remarks.]

        The President. Yes, I appreciate that. By the way, one way to make
    sure families stay on the farm is to insist that the United States
    Congress get rid of the death tax forever.
        Listen, I hope you've enjoyed this as much as I. I want to thank you
    all for

    [[Page 834]]

    coming. Good job. I'm just beginning this debate. I'm going to spend
    whatever time it takes to continue traveling this country and make it
    absolutely clear to the people, we've got a problem.
        I will continue to reassure seniors who are counting on their Social
    Security check, you have nothing to worry about. You're going to get
    your check. I don't care what the mailers say, what the advertisements
    say. You will get your check. That's the pledge this Government has
    made, and it's a pledge we'll keep.
        And I'm going to continue reminding youngsters that they need to get
    involved in this issue because if the United States Congress does not
    act, we have saddled a young generation with an incredible burden. And I
    don't think that's right. I think now is the time for people in
    Washington, DC, to set aside partisanship and come together and solve
    this issue one time and for all, for the good of the United States of
    America.
        Thank you all for coming, and God bless.

    Note: The President spoke at 11:25 a.m. at the Milwaukee Art Museum. In
    his remarks, he referred to Dennis Kuester, chairman, and Tim Sheehy,
    president, Metropolitan Milwaukee Association of Commerce; David Gordon,
    director and chief executive officer, Milwaukee Art Museum; and Jeff
    Sherman, co-owner and president, and Andy Tarnoff, co-owner and
    publisher, OnMilwaukee.com.