    [Public Papers of the Presidents of the United States: George W. Bush (2005, Book I)]
    [June 2, 2005]
    [Pages 915-928]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks in a Discussion on Strengthening Social Security in
    Hopkinsville, Kentucky
    June 2, 2005

        The President. Thanks for the warm welcome. Glad I brought a little
    rain with me. [Laughter] I'm honored to be here. I've got some friends--
    just met them--but some folks from the community here who want to
    discuss Social Security with me and with you. It's a vital subject. But
    before I get there, I do want to say a couple of things.
        First, it's such an honor to land at Fort Campbell, Kentucky. I say
    ``honor'' because that base houses some of the finest men and women our
    country have ever known, men and women and their families who are making
    incredible sacrifices on behalf of the American people. They're doing
    some hard work to protect the country, and as they do that hard work,
    they're helping free people. We are laying the foundations for peace,
    because more people are free in the world. And I want to thank those of
    you who support the base.
        Freedom is on the march. I was proud to see that Laura had a great trip overseas. She was advancing the
    freedom agenda, making it clear that free societies are societies that
    honor women and welcome women into the daily lives of government and
    business. She sends her best. She's become quite the comedienne over the
    last couple of weeks. [Laughter] I love her dearly. She's a great First
    Lady and a wonderful wife.
        I appreciate knowing your Governor. I want to thank Governor
    Fletcher for doing a fine job for the people
    of Kentucky. I know Congressman Ed Whitfield is traveling, but I think he sent his mom and dad here. Mr. and Mrs.
    Whitfield, thank you all for coming. There you are. Great to see you
    all. Tell Ed I was asking about him. [Laughter]
        I want to thank all the State and local officials who have joined us
    today. I'm honored that you're here. I want to thank Mayor Liebe for being here. I want to thank those of you who
    serve in the city councils and county commissions, if that's what you
    call them here in Kentucky. Thanks for serving.
        I want to tell you somebody else I met who's serving in an
    incredibly important way, and that is a fellow named Dr. John
    Cotthoff. [Applause] A couple of people have
    heard of him. [Laughter] He came out to the--to meet me at Air Force
    One. Every time I stop at a place, I ask somebody who has volunteered in
    the community to come out so I can herald voluntarism, so I can thank
    this one person in this case for his kindness. He's a doc. He
    established a clinic in 1991, the St. Luke Free Clinic. He volunteers
    his time. He helps 4,000 working uninsured people get health care. He's
    a soldier in the army of compassion. He's one of the millions of
    citizens in this country who have heard the universal call to love a
    neighbor just like you'd like to be loved yourself and are helping this
    country, one person at a time.
        If you're a member of the army of compassion, I want to thank you
    for joining John. If you want to serve our
    country, feed the hungry, find shelter for the homeless, love somebody,
    teach somebody to read, and you'll be making a huge contribution to
    America just like Dr. John Cotthoff

    [[Page 916]]

    is. John, thank you for being here. I appreciate you coming. Thank you,
    sir.
        We've got a lot to do in Washington, DC, and there's too much
    politics up there--[laughter]--pure and simple. I'm calling on Congress
    to do a couple of important things. One of them is to make sure we're
    wise about how we spend your money. If the program doesn't work, we
    ought not to be spending money on it.
        I submitted a tough budget. Congress passed a tough budget, and now
    it's time for them to make sure they don't overspend when it comes time
    to appropriating your money. We've got a plan to cut our deficit in half
    in 5 years, and if they're wise stewards with your money, we will do
    that.
        Secondly, 4 years ago, I submitted a strategy to the United States
    Congress to make us less dependent on foreign sources of energy. And
    we've had 4 years of debate. This is the year where they've got to stop
    debating an energy bill and pass an energy bill that will encourage
    conservation and a bill that will modernize the electricity grid, a bill
    that will spend money on clean coal technology. We've got a lot of coal
    in America. We can use technology to make sure we burn it cleanly. We've
    got to explore for oil and gas in environmentally friendly ways. We've
    got to spend money to use ethanol--so we can use ethanol and biodiesel.
    We've got a plan that will make us less dependent on foreign sources of
    energy.
        Listen, I understand people are paying higher prices at the gas
    pump. I know that you're paying that tax--it's like a tax that goes--
    that money, and it's up because we're dependent. And the more dependent
    you are on somebody else's energy, the more likely it is you're going to
    pay a higher price for it. And so I put a plan up there to get us to
    diversify away from the old habits and the old ways. The bill passed the
    House. It passed the Senate committee. It's now on the floor of the
    United States Senate. For the sake of economic security and national
    security, the Senate has got to get that bill passed. The House and
    Senate have got to reconcile their differences and get me a bill I can
    sign by August of this year.
        I want to talk about Social Security. Franklin Roosevelt did a smart
    thing when he set up the Social Security system. There's a lot of people
    who depend upon their Social Security check. I suspect there's a lot of
    people in this part of the world that depend on that check. I want to
    start off by telling those of you in Kentucky who get a check now from
    Social Security, nothing is going to change for you. You're going to
    keep getting your check. I don't care what the politicians say. I don't
    care what the advertisers say. I don't care what the pamphleteers say.
    Nothing changes for you.
        When you hear us talking about the Social Security system being in
    trouble, people who are getting their check have got to understand
    you're in good shape. It's the youngsters coming up who have a problem
    with Social Security. And I'll tell you why--let me tell you why. A lot
    of us are getting ready to retire. We're called baby boomers. See, my
    retirement age happens to be in 2008. I reached retirement age in 2008,
    which is a convenient year for me to retire. [Laughter] And there's a
    lot of baby boomers, and we're living longer than the previous
    generation. So you're beginning to get a sense of the new math. Baby
    boomers--I think when we fully retire, it's going to be about 73 million
    of us that the younger people are going to have to pay for. Right now
    there's over--a little over 40 million retirees. So there's a whole lot
    of new retirees getting ready to retire soon who are living longer,
    which means younger folks are going to have to keep paying into--paying
    for us longer and longer. And we've been promised greater benefits.
        To complicate the problem for the younger generation of Americans,
    there are fewer people paying into the system for every retiree. In
    1950, there were about

    [[Page 917]]

    16 workers for every retiree. Think about that. So if the Government
    made a promise, there was 16 of you that were able to divide up the
    promise. Today, there are 3.3 workers per retiree. Pretty soon there
    will be two workers per retiree. You've got a lot of people getting
    ready to retire who will be living longer, drawing greater benefits,
    with fewer people paying in the system.
        And we're paying into what's called a pay-as-you-go system. Now,
    that means you pay through payroll taxes, and we go ahead and spend.
    [Laughter] We, of course, spend on retirement benefits. But that's not
    all that Congress has been spending your payroll tax on. See, a lot of
    people think they're sending their payroll taxes in and the Government
    holds the money for them, and when it comes time to retire, you get your
    money back. That's not how it works.
        People are paying their payroll taxes; the beneficiaries are
    receiving their benefits; and there's been money left over. And that
    money has gone to Government programs, and so all that's left in the
    Social Security trust is a file cabinet full of IOUs. And when those
    IOUs come due, somebody has to pay for them either through reduced
    benefits or greater taxes.
        The pay-as-you-go system is--really isn't fair, if you think about
    it. The Government has said, ``You're going to pay payroll taxes for
    your retirement,'' but they've gone ahead and spent your money on other
    Government programs. And as a result of the pay-as-you-go system, with
    more people retiring, in 2017, the system goes into the red. In other
    words, more benefits will be going out than payroll taxes coming in.
    That makes sense. If you got fewer people paying in and more people
    retired, pretty soon it's going to catch up with you. And it does in
    2017.
        That's not very far down the road. If you've got a 6-year-old child,
    that's--the system goes in the red when your child starts to drive. That
    is if you--you have driver's licenses at 18 here, Ernie? Yes, 18. It was harrowing experience when our daughters--16, well, that's
    interesting, yes. [Laughter] Yes, let me know when they're on the road.
    [Laughter]
        And every year thereafter the system gets worse, because more people
    are getting benefits, and they're living longer. In 2027, the amount of
    money coming in will be 200 billion less than the amount of money going
    out. Every year it gets worse from 2017 on. In 2032, I think it is, 300
    billion a year. In other words, we're piling up an unsustainable system
    for younger workers. You've got younger workers paying into a system
    that is going to go bankrupt in 2042, unless we do something about it.
        So I saw a problem. If you take an objective look at the math, you
    can't help but see a problem. It's no problem for people who are getting
    their check today. If you're getting your Social Security here in
    Kentucky, you don't have a problem. But if you've got a grandchild, you
    do have a problem, or at least that grandchild does. And so I decided to
    put the issue up for discussion in Washington. I'll tell you why I did.
    The job of the President is to confront problems, is to deal with
    problems, not pass them on to future Presidents or future Congresses.
    That's the job of the President of the United States.
        I suspect some in Washington wish I hadn't have brought it up,
    because some in Washington really don't want to deal with it. But every
    year we wait, we're saddling a younger generation with about $600
    billion in costs. I mean, it's conceivable, if we don't do anything,
    that the payroll tax will have to go to 18 percent in order to make--
    fulfill the promises for the baby boomers. And I don't think that's fair
    to a younger generation of Americans, to not have political courage and
    deal with the problem and pass on the problem to them. I just don't
    think it's right.
        And so I've been traveling the country, spending a lot of time
    trying to impress the folks with two things right off the bat. One, we
    have got a serious problem, and

    [[Page 918]]

    if we don't do anything about it, we're saddling a young generation with
    a huge problem. And two, if you get your check, nothing is going to
    change. I keep saying that because I understand the politics of Social
    Security. If you don't want to get anything done, all you've got to do
    is go around the country trying to scare seniors. And then the seniors
    will say to the Members of the Congress, ``Please don't do anything.''
    And so I'm going to spend a lot of time convincing seniors nothing
    changes and convincing folks there's a problem. Because once the people
    realize there's a problem, then the next question they ask to their
    elected Representative is, ``We've got a problem, and I've sent you up
    to Washington to solve problems, and so what are you going to do about
    it? See, instead of just sitting up there, why don't you work with the
    President to see if you can't come up with a solution?''
        I also have a duty to lay out some ideas, and so I have done so. I
    have suggested the following principles: One, that future generations
    should receive benefits equal to or greater than the benefits enjoyed by
    today's seniors. That makes sense to say to somebody who's paying in the
    payroll tax, ``If you're a youngster, you're paying in, the system ought
    to at least yield benefits equal to or greater than the baby boomers,
    for example.''
        Secondly, I believe the system--I know the system can be designed so
    that someone who works all their life does not retire into poverty. That
    seems to make sense. You've got a lot of people working hard in America,
    and they're contributing to the Social Security system, and when they
    retire, they retire into poverty. To me, that's a system that is a
    flawed system. And so therefore, I supported an idea, what's called
    progressive indexing. That's long Washington words for this: Right now
    benefits rise at the rate of wage increases. And so I proposed that the
    poor Americans, those at the lower end of the income scale, have their
    benefits continue to rise with wages and that the upper income folks
    have their benefits rise with inflation. In other words, all benefits go
    up, one set of benefits faster than others.
        And if we're able to implement that plan, that solves a significant
    portion of the solvency issue for Social Security. Just think about
    that. By slowing down the rate of benefit growth--benefits still grow
    but at a slower rate, a rate in which Government can now afford, a
    younger generation can afford to pay in, at a slower rate--we solve a
    lot of the Social Security problem.
        And so I put that on the table for people to consider. To me, it
    makes sense. To me, it's fair. Benefits go up; certain people's benefits
    will go up faster than others, depending upon their income level.
        And so, then there's other options on the table that Congress needs
    to come and talk about. In good faith, they need to come--set aside
    their political party and say, ``For the good of the country, why don't
    we come together and solve a significant problem.''
        I want to talk about one other idea that we're going to spend some
    time talking about today. In order to make Social Security a better deal
    for younger Americans--in other words, what I've just laid out is a way
    to permanently solve the issue. But I think we ought to make it--without
    raising taxes, by the way, without raising payroll taxes, which is
    important. I think we ought to let younger workers, if they decide--if
    they say, ``This is something I'd like to do''--is to take some of their
    own money that they're paying into the system through the payroll tax
    and set that money aside in a voluntary personal savings account.
        Let me tell you why it will be a better deal--and we're going to
    spend some time talking about this. Money grows over time. You hold
    money, and you get a decent rate of return on that money. It tends to
    compound. It grows. The growth accelerates. That's just how it works.
    It's called the compounding rate of interest. Right

    [[Page 919]]

    now, when we collect your money, if you're a youngster out there working
    hard and paying into the system, you'll be displeased to know you get
    about a 1.8-percent return on your money--which is pitiful--rate of
    return. Heck, you can put your money in T-bills and do better than that.
        I think we ought to allow younger workers to take some of their own
    payroll taxes--remember, it's your money and not the Government's--and
    set it aside and be able to invest in a conservative mix of bonds and
    stocks, if that's what you choose to do. I recognize some people, that
    makes them nervous in America. You don't have to do it. It's a voluntary
    idea. In other works, you say, ``Here's your option, if this is what you
    think makes sense.'' A conservative mix of bonds and stocks, for
    example, can yield, over a period of time, 4\1/2\ percent rate of
    return. And that difference between the 4\1/2\ percent somebody gets or
    the 1.8 percent you're now getting, over a 30-year period, is a lot of
    money. It's a lot of money.
        And so, when I say ``better deal,'' it's a better deal for somebody
    to earn better interest on their own money. That makes sense. I mean, we
    tried it before, by the way. As a matter of fact, we're trying it now.
    This may interest you. This was such a good idea that Members of the
    United States Senate and the United States Congress decided that in the
    Federal retirement system called the Thrift Savings Plan, that people,
    if they so choose, ought to be allowed to set aside some of their own
    money to get a better rate of return on their money. So here's my
    attitude and my message to the people in Washington, DC: If you let
    yourself do it, if you think it's such a good idea for you who's been
    elected to the Congress, then you ought to let workers have that same
    option.
        The personal savings account, the voluntary personal savings
    account, would be a supplement to your Social Security check. It would
    be a part of a Social Security system; it's not the Social Security
    system. The Government is going to say, ``You can't put all your payroll
    tax; you can put a portion of your payroll taxes,'' and so you'll end up
    with something in the Social Security system as well as your own nest
    egg that the Government cannot take away. It's your own nest egg that
    the Government can't spend on other Government programs. It's your
    money.
        If you're a 20-year-old making $8 an hour over your career--20 years
    old today, $8 an hour over your career, and if the Government lets you
    put a third of your payroll taxes in a voluntary personal savings
    account, you'll end up with a nest egg of $100,000 when you're 63. If
    you're a police officer and a nurse who started working in 2011 and you
    work your entire careers, when you retire, both of you will have a
    combined nest egg of $669,000 as part of your retirement package. That's
    how money grows.
        I think it makes sense to let people, if they so choose, have an
    asset they call their own. It's beneficial for society. One of the
    things I've tried to do as the President is promote an ownership
    society. We want more people owning their own assets. We want more
    people owning their own home. We want to encourage entrepreneurship, so
    people can own their own small business. I think it makes sense to have
    people from all walks of life owning and managing their own assets, if
    that's what they choose to do. I reject the idea, soundly reject the
    idea that the investor class, the so-called investor class, should be
    the only owners in America. I think ownership ought to be spread to
    every corner of America, from people of all walks of life, no matter
    what their demographic background may be or no matter what their income
    level is. I like the idea of moms and dads being able to pass on assets
    to whomever they choose.
        A couple of other things--I'm getting a little windy, aren't I?
    [Laughter] A couple of other----
        Audience member. You're on a roll.

    [[Page 920]]

        The President. Thank you. She said I'm on a roll. [Laughter]
        Just a couple of other points I want to make; then we'll go to some
    of our guests here--not some of our guests, all of our guests. First of
    all, there are rules. In other words, people say to me, ``Well, you
    know, what happens if somebody makes a risky investment?'' The idea of
    having a voluntary personal savings account does not allow for--you
    can't take your money to the lottery or the track. [Laughter] There's a
    conservative mix of bonds and stocks.
        By the way, this happens all the time in our society where people
    are given some options in a rather conservative mix. It doesn't take
    much to get a better rate of return than Government gets for you now. I
    was with John McCain at one of these events one
    time. He said he thought--as he remembered, he got about a 7 percent
    rate of return on the conservative mix of bonds and stocks that he has
    held for about 20-something years. You put 7 percent onto a pretty good
    size of money, that grows rather quickly. And it's your money.
        And so there will be rules. People say to me, ``Well, Wall Street
    will benefit.'' No, we're not going to let Wall Street gouge people on
    this. I mean, that's just not going to happen. There will be a--there
    will be reasonable fees. In other words, the Government will have an
    oversight role in all this business. It will be an opportunity for
    people if they so choose.
        Let me tell you one other thing to--that I think you'll find
    patently unfair about this system. You got a husband and a wife, and
    they've worked all their life, both contributing into the Social
    Security. And the husband passes away, and the wife will then be in a
    position to either have her own benefits or her husband's benefits, but
    not both. In other words, somebody has been working, the spouse has been
    working, and one dies early, and both of them had been working all their
    life--think about this system--and when it comes time to retire, the
    surviving spouse, man or woman, gets to choose his or her benefits or
    the deceased spouse's benefits, which is ever higher, but not both. That
    means somebody has worked all their life and put money into the system
    that at some point in time just goes away.
        Now these are hard-working people we're talking about in America,
    people who have worked hard and paid that payroll tax. And if you're a
    youngster who just entered the workforce, you know what it means to give
    some payroll tax. That's that first shock you get when you see that
    payroll tax coming out of your check. Imagine a system where you've
    worked all your life, and it's not there. And so one of the reasons--
    another reason I like somebody to be able to have assets that they can
    pass on to whomever they choose. Here's an instance--the example I just
    gave you says that a husband or a wife will have an asset base upon
    death to be able to pass on to the surviving spouse to help them out
    during this incredibly difficult period.
        And so Congress needs to consider this idea. And I repeat, if it's
    good enough for you in the Congress, it ought to be good enough for
    working people here in America.
        Rick Paxton. Welcome, Rick, thank you.
    Where do you live?
        Richard C. Paxton. Yes, sir, I live
    right here in Hopkinsville, Kentucky, here.
        The President. Good place to live, isn't it?
        Mr. Paxton. It's a wonderful place to
    live.
        The President. Thanks for coming. Tell everybody what you do.
        Mr. Paxton. I'm a financial consultant
    with Hilliard-Lyons, have been for the last 15 years.
        The President. Good. I ask--on these panels I always ask somebody
    who--to come who knows what he or she is talking about, an expert.
        Mr. Paxton. Uh-oh. [Laughter]
        The President. Usually it's a Ph.D. I know you're not one. And I--
    [laughter]--and I like to tell people, ``He's a Ph.D.

    [[Page 921]]

    I'm a C student--was a C student--and look who the adviser is.''
    [Laughter] So all you C students out there, work hard, but there's hope
    for you. [Laughter]
        All right, Rick. Rick studies markets
    and investments. Let her rip.
        Mr. Paxton. Yes, sir. Well, first, I
    have with me today my wife, Anne, and my two wonderful children, Chris
    and Elizabeth.
        The President. Well, good. Welcome.
        Mr. Paxton. And on behalf of my
    children, I just want to thank you for being brave enough to take this
    on. I know it's politically been a thing that's been talked about. I can
    remember 30 years ago in a college economics class, the professor
    talking about the coming problem because of our generation, the baby
    boomers.
        The President. Yes.
        Mr. Paxton. And I just want to commend
    you for taking this on.
        The President. Well, thanks Rick.
    You're kind to say that, thank you. That's what you're paying me to do.
    Go ahead.

    [At this point, Mr. Paxton made further remarks.]

        The President. Yes, that's interesting. I hope everybody understands
    what he's saying. If you keep your money
    and it grows, it tends to--it accelerates; it snowballs, I guess. It's
    not a very sophisticated terminology, I recognize----
        Mr. Paxton. That's very good.
        The President. Thank you. Well, I did pay attention to some courses.
    [Laughter] Anyway, but it grows.
        You told me an interesting story about some of the seminars you
    conduct.
        Mr. Paxton. Yes, sir. One of the jobs
    that I have is to go into companies and work on the retirement plans
    with them. And we address rooms of people who are planning for their
    retirement and enrolling in the retirement plan. For 15 years I've been
    doing this, and the first question I ask them and have for 15 years,
    ``Is there anybody in this room who thinks that they'll be able to
    depend on their Social Security when they get there? Do you think it
    will be there for you in retirement?'' And in 15 years, I've never had a
    hand go up.
        The President. Interesting, isn't it? Think about a Government that
    has this program where we're taking a lot of money out of your pocket.
    And he goes in a room and says, ``Anybody think they're going to see a
    check''--these are younger workers he's talking to--``or think the
    system will be there for them,'' and they don't raise their hand.
        What are the--Government must build trust. And one way you build
    trust is you say that when you put money into something, you're going to
    get something out of it. Now, if you're an older American, you're in
    good shape. But the dynamics have shifted. And what the amazing thing
    is, a lot of youngsters understand what he's talking about. They're
    beginning to see the realities of a Social Security system that is not
    solvent for them. It's solvent for their dads and granddads and
    grandmoms. It's not solvent for them.
        You know, they tell me--somebody told me about a survey one time
    where the youngsters said they're more likely to see a UFO than a Social
    Security check. [Laughter] It's got to be a little disheartening if
    you're a person who believes you're more likely to see a UFO than get a
    Social Security check and you're paying into the system, hoping that the
    system is available for you. And that's why I keep trying to explain to
    people--or do explain to people, this is a generational issue. Grandmoms
    and granddads ought to be worried about their grandchildren coming up
    and putting money in a system that's not going to be available for them.
        What else you got? I've got a question for you. I've got an
    interesting--you know what's interesting about our society--and there is
    some concern. I readily understand that people are nervous about maybe
    investing their money, particularly older Americans that aren't used to
    it. But think about what's taking place in society today--

    [[Page 922]]

    401(k)s. You look like kind of an older fellow. Were you aware of a
    401(k) when you were 20 years old?
        Mr. Paxton. I wish they were around
    then.
        The President. Yes, 401(k)s are investment vehicles for workers to
    watch their own money grow. It's part of retirement. A lot of people
    have them. I was in an automobile factory in Mississippi, talking to
    line workers. I said, ``How many of you all invest your--watch your own
    money grow and make investment decisions for your money through a 401(k)
    plan, in this plant?'' I'm telling you, hands went up--a lot of hands,
    people from all walks of life. The culture is changing. We've got
    investors now all across America, people from all walks of life learning
    to invest. IRAs--I'm sure you're spending a lot of time on that.
        Mr. Paxton. Sure.
        The President. So when you hear people say, ``Well, I'm not so sure
    if America is ready for this,'' two things come to my mind. One, a lot
    of Americans already are watching their own money grow. And two, you can
    learn pretty quick when you're watching your own money. You know what
    I'm saying? You ask a lot of questions when it's your money, and you
    learn really fast.
        And so, Rick, thank you for coming. I
    appreciate it.
        Mr. Paxton. You're welcome, sir. Thank
    you for inviting me.
        The President. We've got Clay Walton. Speaking about younger--I don't know about UFOs
    and Social Security checks; I do know you're a farmer. Isn't that right?
        Charles Clayborn Walton III. Yes, sir.
        The President. Well, say something, then. [Laughter]
        Mr. Walton. That's
    correct.
        The President. Okay. What do you farm?
        Mr. Walton. I'm
    from here in Hopkinsville.
        The President. Like what crops?
        Mr. Walton. I grow
    alfalfa hay.
        The President. Very good. Is the market all right? I shouldn't have
    asked that--it's never all right if you're a farmer, is it?
        Mr. Walton. You
    can buy some, if you want. [Laughter]
        The President. Take it back to Crawford. [Laughter]
        So tell me, has this family farm been around for a while?
        Mr. Walton. Yes,
    sir, it sure has.
        The President. Good.
        Mr. Walton. My
    father and my grandfather and even my great-grandfather.
        The President. Really? Which brings up another subject. We've got to
    get rid of the death tax forever. We want to keep this asset in this
    man's family. Talk
    about passing assets from one generation to the next, farmers are pretty
    good about that. It doesn't make sense to tax a person's assets twice--
    when you're living and then when you die.
        Anyway, sorry to interrupt, just a thought that popped into my
    head--[laughter]--happens occasionally. [Laughter]
        What's your concerns on Social Security?
        Mr. Walton. Well,
    my concern is, being a farmer, Social Security is really the only thing
    I have. Nobody offered me a 401(k) or anything when I started farming.
    And I'm paying into it all these years, and I'm really counting on it,
    and I would kind of like it to be there when I retire.
        The President. Interesting, isn't it. Here's a sole
    proprietor, kind of a
    man out there on his own, and he's paying into the system and sounds
    like to me--I don't want to put words in your mouth, but it sounds like
    you might be a little nervous about whether it's going to be there.
        Mr. Walton. Oh,
    absolutely.
        The President. Yes. Congress has got to understand you've got a 29-
    year-old farmer
    working hard, putting money in the system. He's sitting right up here in
    front of all these cameras saying, ``I'm not so sure the system is going
    to be there for me.'' That's the problem. And that's the problem that

    [[Page 923]]

    I'm going to spend whatever time is necessary talking about to get the
    folks up there to get something done on behalf of this good man. He
    works hard enough to [not] * have to worry about whether or not Congress
    can do the right thing with his money.
    ---------------------------------------------------------------------------
        * White House correction.
    ---------------------------------------------------------------------------
        What else you got?
        Mr. Walton. I have
    a new wife.
        The President. Well, that's a good move. [Laughter] That's the
    smartest thing you did. [Laughter] Good, I'm looking forward to meeting
    her.
        Mr. Walton. All
    right, you will.
        The President. Have you ever thought about the personal accounts at
    all? Has that thought ever----
        Mr. Walton. Oh, I
    think that's a very good idea. I mean, you know, anybody that's just
    giving their money away, they--you know, having choices and options for
    a little bit of our money seems reasonable to me.
        The President. Yes, seems like it is to me. I mean, what's wrong
    with Government saying, ``If you so choose''? I recognize that's maybe a
    little different philosophy than some have in Washington. But it says,
    ``We trust you.'' After all, who should Government trust? Government
    ought to trust the people. That's how this Government is formed. That's
    the strength of our country, is trusting people. And after all, we're
    trusting you with your own money. You said you're working hard; you're
    paying in the system. I just want you to recognize--I recognize whose
    money it is. It's not the Government's; it's yours.
        You're doing fine. Is it raining enough for you?
        Mr. Walton.
    Growing a little bit more now.
        The President. That's good. All right, Erica.
        Good job. When were you married, by the way?
        Mr. Walton. A
    little over 6 months ago.
        The President. Should have invited me. [Laughter] Never too late,
    get a couple of matchbooks or something. [Laughter]
        Erica Campbell--thank you, good job.
    Erica, welcome.
        Erica Campbell. Hello.
        The President. What do you do?
        Ms. Campbell. I'm a full-time nursing
    student and part-time medical assistant at OB GYN Associates.
        The President. Awesome. Need a little medical liability reform in
    Washington, DC, by the way, to keep these ob-gyns in practice.
        Ms. Campbell. Yes, we do.
        The President. You've also got a--your most important job, however,
    is----
        Ms. Campbell. I'm a mother.
        The President. There you go.
        Ms. Campbell. I have a 4-year-old
    daughter named Kyler.
        The President. Fantastic. Is she here?
        Ms. Campbell. She's right over there. Hi,
    Kyler.
        The President. Sound asleep.
        Ms. Campbell. Asleep? Okay.
        The President. Laura told me not to talk too
    much. I put her asleep, didn't I? [Laughter]
    This is--I love this story by the way. Here's a single mom, working
    hard, working a job--two jobs--mom, first, a--what did you say you were,
    an ob-gyn?
        Ms. Campbell. A medical assistant.
        The President. Medical assistant.
        Ms. Campbell. And a full-time nursing
    student.
        The President. Now going--a student, becoming a student, which is
    great. I appreciate you doing that. It's--you're doing your duty. Now,
    here you are talking about Social Security. Tell--give me some thoughts.

    [Ms. Campbell made further remarks.]

        The President. Let me stop you right there real quick. Isn't it
    interesting, a mom sitting here talking about
    a 401(k) or an

    [[Page 924]]

    IRA. These are investment vehicles that encourage people to save their
    own money.
        Now, tell me what it's like on a 401(k). I mean, do you get a
    monthly statement, quarterly statement?
        Ms. Campbell. We get--it seems like every
    day we get a piece of paper from it. [Laughter] But it's like every 2
    weeks----
        The President. Oh, that's good.
        Ms. Campbell. ----I think we get a
    statement from it. It's taken out of my paycheck before I ever see it,
    so I don't miss it. And it's right there, and I get to keep up with it.
        The President. And you get to look at it.
        Ms. Campbell. It's actually through
    Hilliard-Lyons.
        The President. That's good. Doesn't it make sense to have a society
    in which people are constantly reminded about growth of their assets? It
    seems like to me it would cause people to pay pretty close attention to
    what the Government's decisionmaking process is like. I mean, here's a
    young woman who opens up on a bimonthly basis
    her statement, reminding her that she owns that. That's part of an
    ownership society.
        Keep going. [Laughter]

    [Ms. Campbell made further remarks.]

        The President. This is what we're talking about. We're talking about
    giving a worker, a fellow American, the opportunity, if she so chooses,
    to take some of her own money, watch it grow just like she's doing in a 401(k), building up a nest egg, an asset
    base which will give her peace of mind. In other words, an asset that
    she can pass on to her young daughter.
        Now, this asset will grow over time, as we talked about. The
    interest compounds at a reasonable enough rate. It grows. And I just--I
    cannot believe that people in Washington, DC, are--don't understand the
    power of this idea for a person like Erica
    and wouldn't be willing to give Erica the opportunity, if she chooses--
    her choice--to set aside some of her own money, just like she just said
    she wants to do.
        And--is it hard to invest? I mean, do people--I hear people say,
    ``Well, it may be too difficult.''
        Ms. Campbell. I did it. I didn't think it
    was too hard. I'm not a rocket scientist, but whenever you sign up for
    your job, they just set it down and explain it to you right then, and
    you sign up for it, and you don't have to do anything else if you don't
    want to.
        The President. See, there's plenty of help. And you've got advisers,
    people who are going to--and these 401(k) plans, for example--and I'm--
    there will be a whole group of people that will be available to give
    people reasonable advice about what to do with their own money. And it's
    really important for our fellow citizens to understand it doesn't take
    much to get a better rate of return than the Government is getting for
    you now. And that differential makes a huge difference for future
    savings for our fellow citizens.
        Erica, thank you. Looking forward to
    meeting Kyler.
        Ms. Campbell. Thank you.
        The President. We better not wake her up
    yet, though, right?
        Ms. Campbell. We're waking her up for the
    picture. [Laughter]
        The President. Yes, okay, good. Thanks for coming.
        Lindsay Freeman. Lindsay, right here
    from Hopkinsville?
        Lindsay Freeman. Right here in
    Hopkinsville, 68 years.
        The President. Really, and that's how old you are?
        Mr. Freeman. Yes, sir. [Laughter]
        The President. So therefore, you were born here.
        Mr. Freeman. Yes, sir.
        The President. And you were a major general?
        Mr. Freeman. I retired from the Army
    Reserve as a major general, yes.

    [[Page 925]]

        The President. Thanks for serving. Good job. You get--you're
    eligible for Social Security?
        Mr. Freeman. Yes, sir.
        The President. Are you getting it?
        Mr. Freeman. That's a big part of my
    income today, is my Social Security.
        The President. A lot of people like Lindsay in America--``a big part
    of my income.'' ``How I live my life depends upon the Social Security
    check.'' And there's thousands and thousands of people like
    Lindsay. They're saying, ``I need my check,
    Mr. President. Don't take it away from me. Don't mess with it.'' And he
    doesn't have to worry about it. I hope that message has sunk in.
        Mr. Freeman. Well, I'm not worried about
    it for me, but I'm worried about it for my daughter who is out here,
    Elizabeth. And she works for the drug court. And we're worried about it
    for my son who is an equine veterinarian out in Utah.
        The President. Really. That's good. That's what I'm hearing a lot
    more of, by the way. Once we've convinced seniors there's nothing to
    worry about, then they're starting to say, ``Well, Mr. President, I'm
    not worried about me, but what are you--what do you all intend to do in
    Washington about my children or my grandchildren?''
        This is--folks, this is a generational issue we're talking about.
    This is an issue that really does relate to a younger generation of
    Americans who are just starting in the workforce and coming up.
        What else you got on your mind?
        Mr. Freeman. Well, I need to introduce
    my wife, Nancy, who is a former schoolteacher, is here. And she's the
    one in the wheelchair over there with the broken leg. And then my
    daughter's friend, Kenneth Stoll is a firefighter----
        The President. Fantastic.
        Mr. Freeman. And then my sister-in-law, TC Freeman, works for
    Senator Bunning. So we have a diverse family.
        The President. Yes, well--fortunately, you don't have a large
    family. Otherwise we'd still be--[laughter].
        Let me say something about your wife.
    First of all, thanks for being a schoolteacher. One great way to serve
    our Nation is to teach school, and it's a wonderful profession.
        Mr. Freeman. Well, I worked in a family
    business for almost 50 years, and of course, I paid self-employment tax
    for all those years. And I just wish that I'd have had an opportunity to
    invest some of my own money 50 years ago. And I would have invested it
    in a real safe mutual fund. And based on Rick's statistics, I'd have
    been a millionaire.
        The President. That's right. Well, he's not kidding, though. You put
    enough money aside, and you hold it long enough, and you get a decent
    rate of return, money grows. That's what people have got to understand.
    We're missing that opportunity in America. One way to make this system
    work better, a better deal for people who are putting hard-earned money,
    is just give them a chance to watch their money grow in a conservative
    mix. And that's what you're talking about.
        I appreciate you reminding people of that. I'm also beginning to
    hear more people saying, ``I wish I'd have put a little something aside
    or had the opportunity, if I so choose, to put money aside.'' And that's
    all we're saying. We're saying, ``If you want to, you can put it
    aside.'' The Government is not saying, ``You have to.'' We're saying,
    ``You ought to be able to,'' which seems reasonable. After all, they get
    to.
        What else you got, General?
        Mr. Freeman. Well, I still work part-
    time for BMAR & Associates, which is located here in Hopkinsville, and
    Terry Hamby is the president, and he has about 1,400 employees. And he
    really pushes your Social Security program, I'll tell you.
        The President. Well, I appreciate that. Tell him thanks.

    [[Page 926]]

        You know, one of the interesting things that Lindsay said, there are a lot of businesspeople who
    contribute 12.4 percent into the Social Security, a lot of sole
    proprietors. They pay the whole deal. You know workers pay 6.2 percent,
    but if you're self-employed, you're liable to pay 12.4 percent, which
    doubles the pain if you're a young self-employed person, when you think
    nothing is going to be there.
        And so we're really dealing with an issue that not only relates to a
    person being able to retire--in other words, listen, Social Security has
    been a safety net--let's put it that way--and there's a big hole in the
    safety net for a younger group of Americans, and we're trying to bind
    that hole up.
        But we're also giving people a chance to pass on assets from one
    generation to the next. That's what a free society is all about, isn't
    it? People work hard; they benefit from the freedom of America; and then
    they're able to pass something on to the next generation, if that's what
    they choose to do. To me, that brings stability to our society. It's an
    incentive. It gives people peace of mind. It gives a young mom peace of
    mind.
        We've got an interesting person with us here. That would be you.
    [Laughter] Cecil Ferrell.
        Cecil Ferrell. Right.
        The President. Microphone--I'm a little hesitant to tell
    her anything after that--she reminds me of my
    mother a little bit. [Laughter]
        Mrs. Ferrell. I thought I was just
    supposed to hold it; I didn't know I was supposed to talk in it.
    [Laughter]
        The President. Well, we're trying to get some wisdom from you. I'm
    really hungry. [Laughter]
        Mrs. Ferrell. You are?
        The President. Can you help me out?
        Mrs. Ferrell. Well, I tell you, the only
    thing is to bring you a hamburger. [Laughter]
        The President. That's it. Cecil Ferrell
    was one of the founders and owners of Ferrell Hamburgers. When did you
    all start the deal--start your business?
        Mrs. Ferrell. We started in Owensboro in
    1929. We had two places there. My husband and his four brothers were all
    in together. And so when they built the one in Hopkinsville, David and I
    moved down here and took over. So we've been here for 69 years.
        The President. Whew, that's a lot of burgers.
        Mrs. Ferrell. That's right. A lot of water
    under the bridge. A lot of water under the bridge. [Laughter]
        The President. That's right, a lot of water under the bridge.
        Mrs. Ferrell. I have--my husband died in
    2001, and my daughter died in 2002----
        The President. You've had a tough go.
        Mrs. Ferrell. My son is here. He----
        The President. Where is he?
        Mrs. Ferrell. He's over here, Phillip.
        The President. Are you still telling him
    what to do? [Laughter]
        Mrs. Ferrell. No, you don't tell him
    anything. [Laughter]
        The President. You're doing good.
        Mrs. Ferrell. His wife is with him,
    Carolyn, and one of my grandsons, David, lives in Bowling Green. He
    drove down.
        The President. That's good. You have a family reunion.
        Mrs. Ferrell. Just to see you.
        The President. Just to see you. [Laughter] I take it you're eligible
    for Social Security?
        Mrs. Ferrell. Well, I'm getting that way.
    [Laughter] I'm 86 years old. I go to work every morning at 4 o'clock.
    [Applause] How about that?
        The President. You're doing good.
        Mrs. Ferrell. I stay there usually around
    12 hours a day. On Monday, I go in at 3, and I stay for about 12 hours.
    So that's a pretty full life.
        The President. I'd say so. See if we can kind of track back toward
    Social Security here. [Laughter]

    [[Page 927]]

        Mrs. Ferrell. Okay. Well, I draw----
        The President. Are you getting a check?
        Mrs. Ferrell. I draw my husband's Social
    Security.
        The President. Right, you draw the----
        Mrs. Ferrell. Mine, I wasn't getting
    anything, so--[laughter].
        The President. Remember what I told you? She had a choice, the higher of the two. So the payroll tax
    you put in there just, poof, just went away.
        Mrs. Ferrell. Yes, it just went the way of
    the balloon.
        The President. Yes, it went in to pay for some of those Government
    programs in the pay-as-you-go system.
        Mrs. Ferrell. Right.
        The President. And you're getting a check. Any doubt you'll get a
    check?
        Mrs. Ferrell. No, I don't have any doubt.
    And I think that----
        The President. That's good to hear.
        Mrs. Ferrell. ----I think the system that
    you're working up is going to work if people will just get with it and
    hang in there with you.
        The President. I think it will. I appreciate you saying that.
        Mrs. Ferrell. Is my face red?
        The President. No, not at all. You're doing good. [Laughter] You
    know what the problem is in Washington?
        Mrs. Ferrell. What?
        The President. There is kind of a zero-sum attitude. See, if we do
    this, so-and-so might look good or such-and-such party might benefit,
    and, therefore, let's do nothing. It's not the right attitude, you know
    that?
        Mrs. Ferrell. No.
        The President. This country expects better out of the elected
    officials. Don't you?
        Mrs. Ferrell. People have to learn how to
    work together.
        The President. Well, that's right. And my attitude is this: The
    President's job is to lay the problem out. I've done so here today. I
    will continue doing so around the country. I'm heading down to Crawford,
    but after that I'm going to head back out again, and I'm going to spend
    time talking about Social Security every week until something gets done,
    because that's my job. And my job also is to remind people of both
    political parties that there's a time to set all that business aside and
    focus on what's good for the American people.
        And what's good for the American people is to hear the truth. The
    truth is we've got a problem. The truth is people who have retired are
    going to get their checks; they have nothing to worry about. And the
    truth is they've got a younger generation of Americans coming up that
    are going to be paying into the payroll--paying through payroll tax into
    the Social Security system, into a system that's going to be bankrupt in
    2041.
        And now is the time. Now is the time for people to come together.
    And when they do, there will be plenty of credit to go around, plenty of
    credit for whoever is willing to come to that table and do what's right
    for the American people.
        I want to thank you all for joining us. I want to thank you all for
    coming out today on a rainy day to say hello. I appreciate you giving me
    a chance to come and explain one of the really vital issues for the
    United States, an issue that will affect generations of Americans to
    come. We're going to get something done, folks. You know why? Because
    when it's all said and done, the American people are going to rise up
    and say, ``Solve this problem. Then you can go on to the next.''
        Thanks for coming. God bless.

    Note: The President spoke at 2:30 p.m. at the Hopkinsville Christian
    County Conference and Convention Center. In his remarks, he referred to
    Gov. Ernie Fletcher of Kentucky; E.O. and Ginny Whitfield, parents of
    Representative Ed Whitfield; and Mayor Richard G. Liebe of Hopkinsville,
    KY.

    [[Page 928]]