    [Public Papers of the Presidents of the United States: George W. Bush (2005, Book I)]
    [March 18, 2005]
    [Pages 458-471]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks in a Discussion on Strengthening Social Security in Pensacola,
    Florida
    March 18, 2005

        The President. Thank you, Governor. Please be
    seated. Thanks for coming. I am glad to be back under better
    circumstances. It was my honor to come and represent our Government
    during what was a terrible tragedy, and that was Hurricane Ivan. I want
    to thank the mayors of the communities here. I want to thank the base
    commanders. I want to thank people responsible for helping people get
    their lives back in order.
        I still saw a lot of blue roofs flying in. So I know there's still a
    lot of work to do. But I--it was such an honor to work with Jeb and Congressman Miller
    and members of the delegation and the mayors to try to do our duty to
    get resources to people who need help. And so I want to congratulate the
    stalwart citizens of this part of the world. I was struck by the
    devastation. I was pleased by the sense of spirit when we came down
    here, a spirit that has been manifested in what is obviously an ongoing
    recovery. But we're still paying attention to you. And again, I want to
    thank you for your courage.
        Before I talk about a big issue, I've got some other things to say.
    They used to say, ``Well, you know, he's got his daddy's eyes but his mother's
    mouth,''--[laughter]--which means I'm about to talk a lot. No--
    [laughter]--I do want to thank our panelists, including my mother. What
    a great honor that Mom is here. We're going on from here to Orlando. I'm
    going on to Crawford, and Mom is headed over to work with Jeb on raising money for literacy. And it's--I'm sorry
    Laura is not with me.
        Audience members. Aw-w-w!

    [[Page 459]]

        The President. Yes, I know. I used to oftentimes--all the time--say
    she was the country's greatest First Lady. Wait a
    minute. At least make it a tie. [Laughter] I love her dearly. She's a
    fabulous mom, great wife, and she really is a spectacular First Lady.
    She sends her best and love to Mom and to the
    great Governor of the great State of Florida, Jeb,
    and to you all. She's--I'm sorry she couldn't be here.
        Speaking about brothers and great Governors, he's doing a fabulous job for Florida. He's straightforward.
    He's plainspoken. He does what he says he's going to do. And I think
    that's important, and it's a good lesson for people who are paying
    attention to public servants, people who are wondering whether or not it
    makes sense to run for office. He came into office with his integrity,
    and he's going to leave with his integrity.
        I appreciate Gerald McKenzie and David
    Sam from Pensacola Junior College. We call them
    community colleges in Florida and Texas. I can't tell you how important
    the community college system is to make sure that workers, both old and
    young, gain the skills necessary to fill the jobs of the 21st century. I
    am a big supporter of community colleges, as is Jeb, because we understand the community college system is
    available, it is affordable, and it is flexible. If there needs to be a
    curriculum change to help people, help employers find workers, help
    hospitals find nurses, community colleges are able to do so.
        I want to thank the Members of Congress for making sure that my
    community college initiative is funded, not for only the sake of
    community colleges but, more importantly, for the sake of people who
    need a skill set to fill the jobs of the 21st century. So I want to
    thank the Pensacola Junior College folks for being so generous in the
    hospitality.
        I'm traveling with some pretty good company. Besides Mother and Jeb, Senator Mel
    Martinez is with us today. Senator, thank
    you. I mentioned him once; I get to mention him twice, since this is his
    district--Congressman Jeff Miller, doing
    a fine job. Thanks for being here. And then we've got some folks down
    from the central part of the State, starting with Congressman Tom
    Feeney. Congressman, I'm proud you're coming.
    Thanks for being here. Congressman Adam
    Putnam--last time I was with Adam was in the middle of an orange grove
    after one of the other hurricanes hit. As you can see, that orange grove
    did something to the color of his hair. [Laughter]
        And finally, we're here with Congressman Ric Keller. Appreciate you coming, Congressman. You don't know
    this, but you're about to find out that he is marrying Dee Dee
    Michel tomorrow.
    Congratulations, and good luck on the wedding. I'm a little surprised
    you're here with us. [Laughter] But we won't tell Dee Dee. We'll tell
    her you're planning for the wedding.
        I want to thank--oh, Congressman Dave Weldon is with us. Dave thanks for coming, a great man, Dr. Dave
    Weldon. Appreciate you coming, Dave.
        I am proud to be here with the Pensacola mayor, John Fogg. Mr. Mayor, thank you, sir; all the State and local
    officials--I'm working my way through a list here.
        There's one other fellow I wanted to introduce you to. His name is
    Bob Woodard. Bob, stand up for a minute, please.
    You don't know, Bob--some of you don't--but he was at the base of Air
    Force One when I landed, because every time I come to a community, I
    like to herald a soldier in the army of compassion, a volunteer,
    somebody who has taken time out of his or her life to make somebody
    else's life better. He is doing something which I think is an important
    contribution to the future of our country. He is a mentor. He is one of
    those souls who says--puts his arm around somebody who hurts, somebody
    who needs love, somebody who needs comfort and says, ``I love you,'' and
    ``What can I do to help you?'' I want to thank you for your contribution
    to the country.

    [[Page 460]]

        I want to remind you, if you want to serve America, feed the hungry,
    find shelter for the homeless, find somebody whose heart is broken and
    help heal it with the love that God has given you. Thank you for what
    you do.
        Before we get to Social Security, I want to say a couple of other
    points. I want to thank the members of the United States military and
    those who support the military for not only making this country more
    secure in the short term but helping make this country secure for
    generations to come. You see, the more free the world becomes, the more
    peaceful the world becomes for our children and our grandchildren. And
    we took some tough decisions in order to protect this country. And by
    doing so, we have laid the foundation for freedom.
        You know, I hope it heartens those who have served and the families
    of those who have served to have seen the millions of people vote in
    Afghanistan. Think about what has happened--think about what's happened
    in that society in a brief period of time. Young girls couldn't go to
    school under the Taliban because these people were so backward and so
    barbaric that their view of the--vision of the world was dim and dark.
    We acted in our own self-interest, admittedly. We said, ``If you harbor
    a terrorist, you're equally as guilty as the terrorist.'' When the
    President says something, he better mean it. I meant it. Our military
    responded. The Taliban is out, but as importantly, the people of
    Afghanistan are free.
        I just talked to Condoleezza Rice on
    the phone. She just came back from a--she was in Afghanistan, I think,
    yesterday. She said, ``You're not going to believe it, Mr. President.
    You're not going to believe how hopeful this free society is. You're not
    going to believe the optimism that these people have, all because
    they're free.'' A free Afghanistan is in the interest of the United
    States of America.
        A free Lebanon is in the interest of the United States of America.
    It's a good sign when millions feel comfortable going to the street
    without Government reprisal to express their opinion. In order for there
    to be a free Lebanon, Syria must remove all the troops and all the
    intelligence services in order to let these people vote in free
    society--in freedom, without fear.
        I believe there will be a Palestinian state based upon democratic
    institutions, and I know it's in Israel's interest and in the
    Palestinians' interest for there to be two states, two democracies,
    living side by side in peace.
        And then, of course, one of the most amazing events--at least as far
    as I was concerned, from my perspective--is when over 8 million Iraqis,
    in complete defiance of people who were trying to prevent them from
    going to the polls by creating incredible fear--they said, ``You're not
    going to stop us. We long to be free.'' And they went to the polls
    sending a clear signal, not only the terrorists in Iraq but to freedom-
    lovers around the world, that freedom is a powerful force, and when
    unleashed, it will continue its march.
        Over the next 4 years, this administration will work to free
    people--will work with our friends and allies to promote freedom,
    because I understand free societies will be peaceful societies, and the
    more free the world is, the more peaceful the world will become. And
    people will look back at this moment of history and say, this
    generation, those of us given the honor of service will have done our
    duty to spread freedom and peace around the world. Freedom is on the
    march, and I want to thank the military folks and their families for
    helping make it happen.
        Our economy is recovering; it's doing well. I'm proud of the fact
    that the great State of Florida has got a 4.3 percent unemployment rate.
    It says something about your Governor. No, he's
    right--he just waved me off, kind of like trying to hit a carrier.
    [Laughter] He's right. Not because of him, not because of me, because of
    the entrepreneurs of Florida, people who

    [[Page 461]]

    are willing to take risk, be wise about spending capital, and employing
    people.
        No, the economy is fine. There are some dark clouds on the horizon
    that we've got to address. We got too many lawsuits. I want to thank
    Congress for getting a class-action bill to my suit--my desk. We need to
    get medical liability reform done in the United States Congress in order
    to keep good doctors practicing medicine.
        There's a lot of things we can do and will do. I'm looking forward
    to getting a final budget to my desk that's wise about how we spend your
    money, that's also wise about making sure you got money in your pocket.
    And you're going to need it because, unfortunately, energy prices are
    going up. And I know you're concerned about it, and I'm concerned about
    it too. I was concerned about it in 2001, when we put together a
    strategy, an energy strategy, part of which required action by the
    United States Congress that would encourage conservation, encourage the
    use of renewable sources of energy like ethanol and biodiesel, that
    encouraged research and development to figure out better ways to use
    energy in the long run--because one of these days, we're going to have
    to change the nature of the automobile by driving hydrogen-powered
    automobiles, to become less dependent on sources of energy. In other
    words, there's a lot of things we need to be doing now.
        I know we need to be building LNG, liquified natural gas, terminals.
    We need to do more on nuclear power. Congress needs to get an energy
    bill. We've been debating whether or not there ought to be an energy
    bill to my desk now for 4 years. And that's too much talk, given the
    fact that consumers are beginning to hurt, too much talk given the fact
    that the--we're too dependent on foreign sources of energy. I'm
    concerned about the energy, and Congress needs to be concerned.
    These Members are concerned. I talked to them on Air Force One about it. I can be a plainspoken
    fellow if I need to be. [Laughter] And they're good listeners. They're
    ready to go. But Congress needs to get a bill to my desk so we can start
    becoming less dependent on foreign sources of energy.
        Let me talk about Social Security. Jeb is
    right. We don't need to talk about it. Some people say, ``You shouldn't
    have talked about it.'' I think the job of a President is to confront
    problems and not pass them on to future Presidents. And I'm pleased to
    report Members from the United States Congress that are traveling with
    me agree that Congress needs to confront problems and not pass them on
    to future Congresses.
        And we got a problem in Social Security. Let me first tell you,
    Franklin Roosevelt did a good thing by setting up a safety net for
    seniors. And I applaud him for that. And a lot of seniors who are now
    getting their checks understand why I'm applauding him, because the
    Social Security check you receive is really important for you. And--but
    things have changed since Franklin Roosevelt was the President.
        Before I tell you what's changed, I'm going to say this once--I may
    say it 5 times before this is over: If you're getting a check, nothing
    is going to change. I don't care what the propaganda says. I don't care
    about the political rhetoric. You're going to get your check. For those
    of you born prior to 1950, you're going to get your check. The
    Government--nothing will change in the system. We're here to talk about
    not you--we're here to talk about your children and your grandchildren.
    That's who we're here to talk about.
        And I'll tell you why we've got a problem. First of all, Social
    Security is a pay-as-you-go system; money comes in, and it goes out.
    Now, some of you might think that Social Security is a trust. In other
    words, the Government takes your money and holds it for you, and then
    when it comes time to retire, you get your money back. That's not the
    way it works. The Government takes your payroll taxes and pays

    [[Page 462]]

    out to the people who have now retired, and if they got any money left
    over, it goes to pay other parts of Government. And all that's left is
    an IOU from one part of Government to the next. In other words, it's
    pay-as-you-go.
        And that system works well when you got a bunch of workers paying in
    for a few beneficiaries. That's the way it was when Franklin Roosevelt
    designed the system. In 1950, there were 16 workers paying into the
    system for every beneficiary. So obviously, the load per worker is
    pretty light. What's changed is there is a bulge of people fixing to
    retire called the baby boomers. Both of us are----
        Governor Jeb Bush. Both of us, yes, sir.
        The President. Yes. [Laughter] We are baby boomers. I happen to be
    turning eligible at--obviously, at age 62 in 2008. It's quite
    convenient. [Laughter] Did you plan it that way? Well, thank you. And
    there's a lot of us. There is a bulge in the population. And not only
    there's a lot of us, we're living longer than during the time when
    Social Security was first fixed. And we're living longer than the
    generation preceding us. So you got a lot of people getting ready to
    retire who will be living longer, and not only that, we've been promised
    more benefits than the previous generation. People have run for office
    saying, ``Vote for me; I'm going to make sure the benefits increase.''
    And so you've got a lot of people living longer, getting greater
    benefits, and yet we're not having as many children in this society. In
    other words, you got fewer people paying into the system. The math
    doesn't work.
        It works for those who've retired. Second time I've said it--if
    you're getting your check, you have nothing to worry about it. It
    doesn't work for people who are going to have to pay for the baby
    boomers like me who will be living longer, getting more money. And so
    the fundamental question is: If you see that problem, what are you going
    to do about it? And so the first thing I want to tell you is, we have
    got a problem.
        And the extent of the problem can be seen on this chart. In 2018,
    there's more money going out than coming in. Right now, because the baby
    boomers haven't started retiring--who will be living longer, receiving
    more money--there's more money coming in than going out, which is being
    spent. Pretty soon, there's going to be more money coming out than going
    in. In the year 2027, there will be $200 billion beyond the payroll
    taxes necessary to pay for the promises the Government has made. It
    increases every year, see. In 2018, it starts going negative--increases,
    increases, increases--to give you an extent by how much--by 2027, it's
    200 billion, greater than 200 billion the next year, greater than the
    next--you know.
        And so it starts to accumulate, which says to me that we have a
    problem that we need to address now. Because if you wait later, a
    younger worker is either going to have pay massive payroll taxes in
    order to make sure the Government pays the benefits; they're going to
    have to cut my benefits; they're going to have do--borrow a ton of
    money. In other words, now is the time to act. We do--have no problem
    for those of you who are receiving your check. We have a problem for
    your children and your grandchildren. And the problem is right there in
    the cash deficits in a pay-as-you-go system.
        And so I've taken it on. I think this is my 16th State. I'm
    traveling all around the country, which I like to do--it's a convenient
    excuse to get out of the Nation's Capital--[laughter]--and I'm
    explaining to people: You're going to get your check, and we've got a
    problem.
        And I think there's some logic to the strategy, because, listen to
    this: If you're a Member of Congress, and all of a sudden the
    constituents start to say, ``We've got a problem, Mr. Congressman or
    Madam Congressman.'' The next thing they're going to say is, ``What you
    going to do about

    [[Page 463]]

    it?'' And once we can convince the seniors they have nothing to worry
    about, which they don't, the fundamental question for them becomes--from
    a lot of younger Americans, ``I'm glad you're taking care of my
    grandparents or my dad or my mom, but what are you going to do for me?''
    And that's the dynamic that's going to get people coming to the table.
        In order to help them come to the table, in my State of the Union
    Address, I said, ``I really want people to bring ideas forward. Please
    bring your ideas forward. There will be no political retribution if you
    bring good ideas forward,'' because I understand this is going to
    require Republicans and Democrats coming to the table--precisely what
    the American people want, by the way. They want people to fix it, not to
    play politics with it.
        So all options are on the table. The other day, I was with a former
    Democrat Congressman named Tim Penny--Tim Penny, who had some interesting ideas. My predecessor, President
    Clinton, recognized we had a problem; he
    put some ideas on the table. And so I'm looking forward to people from
    both parties coming up and saying, ``Mr. President, here are some of my
    ideas.'' And my answer will be, ``Welcome. Thanks for bringing them
    forward. Let's just see if we can't work together to get something
    done.''
        I've got some ideas, and I want to share one of them with you, which
    I think--I hope you find interesting. And first of all, by the way, as
    Congress brings ideas, I'm not interested in a temporary fix, and
    neither should you be. I want you to remember 1983. There was a--
    President Ronald Reagan and Leader Dole and
    Speaker Tip O'Neill realized we had a problem, got Republicans and
    Democrats together, and came together and said, ``We'll put together a
    temporary fix.'' This is the so-called 75-year option. And I like the
    spirit of people coming together. I like the idea of people saying,
    ``We've got a problem. Why don't we fix it in a bipartisan way?'' The
    only problem is, the 75-year option wasn't exactly right, because today
    is a lot less than 75 years from 1983. And so when you hear the--``Don't
    worry. We'll just fix it for 75 years,'' the way the demographics are,
    the math just won't let that happen. So now is the time to have a
    permanent solution.
        And as they do the permanent solution, we also have got to work, in
    my judgment, to make sure individual workers get a better deal from
    Social Security. And the better deal would be allow--in my judgment,
    again--to allow younger workers to take part of their own money. See,
    when you hear ``payroll taxes,'' that kind of sounds like it's the
    Government's money. It's not; it's your money. And I want you to know I
    understand that--that you ought to take some of your own money and be
    able to save it in bonds and stocks.
        And the reason why I think you ought to be able to do that is
    because a mix of conservative bonds and stocks will get you a better
    rate of return on your money than that which you're going to get inside
    the Government. And that's important, because if you're a young worker,
    interest compounds--or if you're an old worker--interest compounds. But
    the longer you hold money, compounding, the more you'll end up with. It
    grows. And the greater rate of return you get on your money, the more
    you'll have when it comes time to retire.
        So the idea is, as a part of a Social Security system, allow you to
    take some of your money so you can build a nest egg of your own. I like
    the idea of people building nest eggs. I think if you own something,
    you're likely to have a more vital stake in the future of the country.
    One of the most heartening statistics, I think, in today's world is more
    and more people are owning their own home. More minority families own a
    home today than ever before. That's heartening, I think. I tell people,
    I love the idea of somebody opening up the door to their house and say,
    ``Welcome to my

    [[Page 464]]

    home. Thank you for coming to my piece of property.''
        I think the fact that more and more people are owning their own
    small business is helpful. I know it's going to be helpful to have more
    people owning a piece of their own retirement account and managing it.
        Now, a couple of things about personal accounts. One, I've told you
    about the compounding rate of return. Just to give you an example: If a
    person were allowed to take 4 percent of their payroll taxes, or a third
    of the payroll taxes, and set it aside in a personal account, starting
    at age 21, and that person earned $35,000 over her--his or her lifetime,
    that by the time she can retire, that money set aside would be worth
    $250,000, as a nest egg. In other words, that's compounding rate of
    interest will do that. Obviously, if you make 70,000 over your lifetime,
    it's double that. Then you have a half a million dollars that you can
    call your own.
        So what can you do with that? Well, first, I know some people get
    nervous about investments. We're going to talk about investments here.
    You can't take your money and put it in the lottery, let me put it to
    you that way. In other words, a personal account doesn't give you
    latitude to--you know, you still got jai alai here? Yes. Okay, you can't
    go to a jai alai deal. [Laughter] You've got to invest it in a
    conservative mix of bonds and stocks, just like Federal employees do
    now.
        Any Federal employees understand what I'm talking about, the Thrift
    Savings Plan? It works. We're going to talk to somebody who's got a
    piece of the Thrift Savings Plan. This is happening. This isn't--I
    didn't sit here and invent this. This is taking place already at the
    Federal level. People who work for the Federal Government get to take
    some of their own money and set it aside in a conservative mix of bonds
    and stocks because the Government realizes you get a better rate of
    return on your money. If it's good enough for Federal employees, it
    seems like to me it ought to be good enough for people who are working,
    you know, who aren't working for the Federal Government. [Laughter] That
    was not a cheap shot at people like me working at the Federal
    Government. [Laughter]
        Secondly, you'll get the check from the Federal Government in the
    Social Security system if you're a younger worker. I just can't
    guarantee how big it's going to be. You know, there's not enough money
    to pay the promises, I'll just tell you that. I think that's--part of
    the dialog is to make sure everybody understands. It's not a trust, and
    we're not going to be able to keep the promises unless we're willing to
    have extraordinarily high taxes on the people coming up, or significant
    benefit cuts.
        And so one way to help you do a better job of coming closer to what
    the Government has promised is to allow you to earn this money and then
    use it as a part of a retirement plan. In other words, the Government is
    going to get you a check, and then you're also going to be able to take
    money out of your own personal account to help you when you retire.
    That's important for you to know.
        The system is not fair for people, oftentimes. Somebody dies early,
    been working 30 years, dies at 55 years old; money goes in the system.
    The spouse doesn't get a dime until he or she turns 62. That doesn't
    seem fair to me. Does it to you? In a personal account, if you had one
    of those and your assets were growing and you passed away, you could
    leave it to whomever you want. There would be some comfort for the
    spouse. Two people working, a husband and a spouse; husband predeceases
    the spouse; she continues to work. She's either going to get, at 62
    years old, her own Social Security check or survivor benefits, which is
    ever larger, but not both. That doesn't seem fair, does it? Somebody is
    working all their life; the money they put inside Social Security is not
    available for somebody he or she loves. If you have your personal
    account, it grows.

    [[Page 465]]

    You die, your wife or your husband is going to get your personal
    account--or your children.
        I like the idea of encouraging savings. For those of you who studied
    macroeconomics--it's a fancy word for how to make sure the economy
    grows--the more you save, the more capital there is; the more capital
    there is, the more money is available for small-business expansion, so
    people can work.
        So we need to encourage savings. I like the idea. I'm telling you, I
    like the idea. I'm going to talk a lot about it. I'm going to talk to
    others about the idea too. It needs to be a part of the dialog. And it's
    interesting, you know, we're not talking about a big cultural shift
    here. When I was coming up, I don't remember my mother telling me to be careful about my 401(k) plan. They
    didn't exist, I don't think. There wasn't a lot of focus on encouraging
    people to manage their own money. Today, that has changed. There's a lot
    of young Americans, Americans from all walks of life, Americans from all
    income levels, Americans from all neighborhoods who understand what it
    means to have a 401(k), an IRA, a defined contribution plan. And they
    like it, and they're used to it, and they're comfortable with it.
        And so I want Congress to consider making this same kind of culture
    available for workers through the Social Security system, to strengthen
    the system, to say to younger workers, ``It's a better deal for you,''
    to be able to assure grandparents that when it comes to their
    grandchildren, the safety net that was available for them will be
    available for the new generation coming up.
        And so now I'm going to talk with some other people about it,
    starting with my mother. I promised not to tell
    you her age, but she's eligible for Social Security. [Laughter]
        Former First Lady Barbara Bush. How old are
    you? [Laughter]
        The President. Fifty-eight. How about that?
        Former First Lady Bush. Add 22 years.
    [Laughter]
        The President. Yes.
        Former First Lady Bush. You're supposed to
    ask me why I'm here.
        The President. Okay. First of all, I now know why I'm getting white
    hair. [Laughter]
        Former First Lady Bush. I'm here because
    when else can I see my two oldest boys? [Laughter]
        The President. How about a little better answer than that, will you?
        Former First Lady Bush. That's reason
    number one.
        The President. Now, wait, it's not, how can I see my two better boys, it's how can I tell my two better boys in
    person what to do, is what you're really trying to say. [Laughter]
        Former First Lady Bush. Right, right. If
    you would listen, I'd tell you more. [Laughter] But that's really not
    why I'm here. I'm here because your father and I have 17 grandchildren,
    all born after--we're doing our part, incidentally, on the labor--
    [laughter]--but all born after 1950. And we want to know, is someone
    going to do something about it. That's the whole reason--other than
    seeing my boys.
        The President. Well, I'm glad you're here, Mom. And yes, I hope you can tell--I think you will be
    able to tell--and I think others like Mom, who are worried about whether
    or not Government even cares about taking on a tough enough issue to
    address the issue for grandchildren, whether or not there's a will.
    You'll see. I think you'll see by the time this is over that there is an
    interest and a desire, a willingness to take on a tough issue, just like
    you taught me, not to shirk my duty but to step up and lead and to do--
    do the hard work.
        And it is. Listen, I concede, Mom, that
    Members of Congress, some would rather not be talking about it. But
    we're going to talk about it, and I'm going to assure you--I've got your
    stubbornness--that I'm going to--in a good way--I'm going to keep
    talking about it until something gets

    [[Page 466]]

    done. I'm going to keep traveling the country saying to people, ``We've
    got a problem. If you're a senior, you're going to get your check,'' and
    I'm willing to work with Congress. And I'm going to tell you, I--the
    people of this country are tired of partisan bickering on big issues.
    They don't want people--they just want the problem solved.
        We've got Lee Abdnor with us. She is--
    she's from Boulder, Colorado. Is that true still?
        Leanne Abdnor. Yes, sir.
        The President. Listen, I want you to know, I formed a committee in
    2001 of Republicans and Democrats to look at Social Security. And
    Patrick Moynihan, a former Senator from New York, headed it. Isn't that
    right?
        Ms. Abdnor. That's right.
        The President. And Lee's on it. Okay, let
    her go. She studied this.

    [At this point, Ms. Abdnor, president, For Our Grandchildren, Boulder,
    CO, made brief remarks.]

        The President. Thanks for coming, Lee.
    Thanks for serving. It was----
        Ms. Abdnor. My pleasure.
        The President. Let me ask you. I think it's important for you to
    understand that those who served on the committee were good thinkers,
    all walks of life, and represented both political parties, and they came
    together with some ideas. I think there was a couple of ideas that I
    think are very interesting. We've sent them up to Congress, of course.
    One of the interesting points that came out of there--and it's very
    important for people to understand--is that you can design a system to
    make sure that low-income Americans--that the system is progressive,
    which is a good idea. Pozen is the man that
    you served with, I think.
        Ms. Abdnor. Yes, he was one of the ones.
        The President. He floated a really
    interesting idea that I hope Congress takes a look at, which is to make
    sure that the lower income Americans are treated in a way so that--that
    when people retire they're as taken care of as well as can be, that the
    safety net is truly a safety net. It makes sense. And so you can
    structure a system so that we're--make sure that we're taking care of
    the low-income people better.
        And my only point is Lee's committee had a
    lot of really good ideas out there. I like the spirit of how they met.
    They didn't show up and say, ``I'm not going to listen to your idea.''
    They showed up and said, ``Bring your ideas forward.'' And as I said,
    Senator Daniel Patrick Moynihan, who was a fine, fine United States
    Senator from New York, a Democrat, was able to coax good ideas out. So
    thanks for the spirit.
        Ms. Abdnor. Exactly, and Mr. President, I
    think one of the things that was most gratifying was that even in
    private, we never talked about politics, not once in all of those
    months. All we talked about was policy, what's the best way to go
    forward, how would certain people be helped, how would certain people be
    harmed by different ideas or by doing nothing.
        The President. Well, I appreciate you.
        Andrew Brown is with us.
        Andrew Brown. Yes, sir.
        The President. Where you from, Andrew?
        Mr. Brown. I'm from Bay, Arkansas. It's a
    small town, about 2,000 people, in northeast Arkansas.
        The President. That's 3 times more than Crawford. [Laughter]
        Mr. Brown. Yes, sir.
        The President. Good. Did you--are you educated?
        Mr. Brown. Well, I graduated from the Naval
    Academy last year, sir. [Applause]
        The President. Awesome, yes. [Applause] Figured that would get a
    nice round of applause here in Pensacola.
        Mr. Brown. Yes, sir, and I came down here
    last summer to begin flight school at Pensacola.
        The President. Good, yes. How is it going?

    [[Page 467]]

        Mr. Brown. It's going really well.
        The President. No crashes?
        Mr. Brown. No crashes, yet. [Laughter]
        The President. That's good. It sounds positive. [Laughter]
        Mr. Brown. Yes, sir. And I'm just really
    enjoying that and looking forward to getting my wings in a couple of
    months and getting out and doing it for real.
        The President. Congratulations. Thanks for serving. Other than
    making sure the Commander in Chief knows you're about to get your wings,
    why are you here? [Laughter]
        Mr. Brown. Yes, sir. Social Security kind
    of concerns me a little bit. I don't really foresee that it will be
    around for my generation.
        The President. Let me stop you. This is not the first time I have
    heard this, ``I don't think it's going to be around for my generation.''
    Congress needs to hear this. Go ahead.
        Mr. Brown. So I invest my money mostly in a
    Roth IRA. I think that's a great way to invest money. And I applaud
    Congress for upping the limits there, letting people do more with their
    money. And I also invest in the Thrift Savings Plan.
        The President. Explain to people what that means, invest in a Thrift
    Savings Plan. I think some out there listening may not be sure what the
    Thrift Savings Plan is. It sounds sophisticated. It sounds unmanageable.

    [Mr. Brown made further remarks.]

        The President. Who decides where the money goes?
        Mr. Brown. I decide where the money goes.
    The percentile breakdown, I decide.
        The President. The people who are running the Thrift Savings say,
    ``Here's five different options for you,'' kind of a different mix and
    risk and return, I guess.
        Mr. Brown. Yes, sir, ranging from
    international----
        The President. Which one of them is not the lottery, I want you to
    know. [Laughter]
        Mr. Brown. Yes, sir. And so I've enjoyed
    being able to put more money aside and grow tax-free through the Thrift
    Savings program that wouldn't be covered under the Roth.
        The President. And how often do you get a statement?
        Mr. Brown. I check all mine online, sir.
        The President. Oh, you do? [Laughter] Don't worry about making the
    Commander in Chief look technologically incompetent. [Laughter]
    Private. Anyway--[laughter].
        Think about this. I just want you to listen to what he said, he
    checks about it online. He watches his money
    grow. Some people get monthly statements. They watch their money.
    There's nothing better in a society than to have people concerned about
    their assets. That's what ownership does. It's yours. Nobody can take it
    away.
        The other thing is, is that when you hold money over a long period
    of time, there is a predictable rate of return depending upon the risks
    you take. And there's ways to design programs so that the closer you get
    to retirement, if the markets were to happen to go down, you're able to
    get your money, see? That's what's important for people to understand.
    And obviously, you feel comfortable doing it.
        Mr. Brown. Yes, sir, I'm very pleased with
    the Thrift Savings Plan.
        The President. Good. See, he's a Navy
    pilot, risktaker, and manages his own money. [Laughter] Thanks for
    coming, Andrew. I appreciate your concern.
        Mr. Brown. Thank you, sir. It's an honor.
        The President. Thanks for serving. By the way, somebody one time
    told me they saw a survey that said people like Andrew, people Andrew's age think it's a lot more likely
    they'll see a UFO than to get a Social Security check. [Laughter] May be
    right.
        With us is Dr. Ron Guy, age 58 years old.
        Ron Guy. Yes, sir, same age.
        The President. Welcome.
        Dr. Guy. Thank you, sir.

    [[Page 468]]

        The President. Leading edge of the baby boomers.
        Dr. Guy. Yes, sir.
        The President. What do you do?
        Dr. Guy. Presently, sir, I do financial
    strategies, working with a great group of partners at Guernsey and
    Associates. There are 15 of us that help people plan their life, from
    wherever they are to age 100. And we look very closely, sir, at Social
    Security.
        The President. What happens if they're 101? You can help them on
    that too?
        Dr. Guy. Okay, we can do that, too, sir.
        The President. Okay, good. So give me--this is his field, right? You
    understand pay-as-you-go; you understand all the terms we're using; you
    understand Thrift Savings Plans, internal rate of returns--let her go.

    [Dr. Guy made further remarks.]

        The President. Thank you, sir. Appreciate you.
    Let me--one of the interesting things about investing--when you think of
    investors, you think of a certain kind of person, and I don't view
    that--I'm sure you don't either. You work with people from all walks of
    life. I mean, everybody has got a chance to be an--should have a chance
    to be an investor. Investing is not limited to a certain class of
    person. That doesn't make any sense. And yet I think that's the attitude
    of some, you know, ``We can't let certain people, maybe, invest their
    own money. Maybe they don't know how to do it.''
        I'm kind of leading you on here, but give me a sense for how hard it
    is for people to figure out how to invest their money in a prescribed
    set of bonds and stocks.

    [Dr. Guy made further remarks.]

        The President. Well, good. See, financial literacy. By the way, one
    of the interesting things we've done is we've encouraged the faith-based
    community to take on the idea of educating people in financial literacy,
    so that we can make sure financial literacy is able to permeate all
    neighborhoods in our society. People will be comfortable with this. This
    is something that is happening, by the way, already without Government,
    of course. Defined contribution plans exist throughout all society right
    now, Thrift Savings accounts, IRAs, 401(k)s.
        The reason I keep emphasizing that is when I talk about a savings
    plan for individuals, it's happening. And the question is, do we have
    the wisdom to extend this kind of savings plan to the Social Security
    system to allow younger workers--this isn't going to--you don't have to
    worry about me and--we just don't have to worry about it. The system is
    fixed if you're born before 1950. It's not going to change one iota. The
    question is, do we listen to younger workers? Do we fit the plan in to
    meet the current culture, and do we give them a better deal? Do we try
    to make the system on an individual basis?
        I told the--[inaudible]--that these accounts do not permanently fix
    Social Security. We're going to have to do other things. They are part
    of a Social Security fix that will help the individual worker.
        Now, I'm going to talk to Myrtle Campbell. Myrtle, put that mike up there.
        Myrtle Campbell. Yes, Mr. President.
        The President. Thanks for coming. I came all the way to wish you a
    happy birthday for your birthday next Sunday--isn't that right?
        Mrs. Campbell. Yes. Thank you, Mr.
    President.
        The President. Myrtle Campbell is here,
    and she brought somebody with her. Who did
    you bring with you?
        Mrs. Campbell. I brought my
    granddaughter, Mary Beth Roberts.
        The President. Very good. We'll start with you, if that's all right.
        Mrs. Campbell. With me?
        The President. Yes. Do you receive a Social Security check?
        Mrs. Campbell. Yes. And for 82 years,
    that amounts to a lot of checks, you know. And it has come in real
    handy, and I would hate to part with it. [Laughter]

    [[Page 469]]

        The President. Yes, you count on it.
        Mrs. Campbell. Yes.
        The President. I want you to know, Myrtle, I understand a lot of people count on their Social
    Security check. I mean, it's a really important part of a lot of
    people's lives. Some people count only on their Social Security check,
    and therefore, one of the issues in talking about this is to make sure
    we don't frighten you. Seriously--we don't want people to feel like the
    Government is fixing to make sure that the check she counts on is
    diminished or goes away. And I understand. I fully understand that. And
    that's why I'm spending a lot of time talking about it, because I
    understand that sometimes there's another message getting out there.
        I can remember in 2000, they said, ``If old George W. gets elected,
    he's going to take away your check.'' I got elected, so in the 2004
    campaign it didn't quite work because people did get their checks.
        Keep going. Are you worried about it?
        Mrs. Campbell. I'm not worried about it,
    no. I am concerned, however, for my grandchildren and what's coming up
    for them and how their livelihood will be, what's due for them.
        The President. How many have you got, how many grandchildren?
        Mrs. Campbell. I have nine
    grandchildren, and I have a whole slew of students throughout the United
    States that I'm concerned about as well.
        The President. You're a teacher?
        Mrs. Campbell. I'm a Bible teacher.
        The President. Great, thanks.
        Mrs. Campbell. I'm a volunteer.
        The President. Volunteer, very good. That's fantastic.
        Mrs. Campbell. I was concerned with
    children, like your mother. [Laughter]
        The President. Yes.

    [Mrs. Campbell made further remarks.]

        The President. Well, I appreciate you. Thank you for sharing that
    with us, Myrtle. And I want you to introduce
    your granddaughter to us.
        Mrs. Campbell. Well, this is Mary Beth
    Roberts. She's the daughter--one of the daughters of my daughter.
        The President. One of the daughters of
    your daughter.
        Mrs. Campbell. Wanda Roberts.
        The President. That's good. Three daughters?
        Mrs. Campbell. Three.
        Mary Beth Roberts. They're over there.
        Mrs. Campbell. She has five.
        The President. You got all the sisters here?
        Ms. Roberts. Yes.
        The President. Fantastic. Oh yes, I see them over there.
        Ms. Roberts. My little brother right
    there, too.
        The President. Brother? Fine-looking lad. [Laughter] Boyfriend?
        Ms. Roberts. Right next to him.
        The President. Yes, got it. [Laughter] I picked him out. Didn't mean
    to embarrass you.
        Ms. Roberts. It's okay.
        The President. Although, Mary Beth,
    before we came on, said, ``Make sure you introduce my boyfriend.''
    [Laughter] Just kidding.
        Ms. Roberts. That's all right.
        The President. So what do you do?
        Ms. Roberts. I am currently a college
    student at the University of West Florida, majoring in public relations.
        The President. Fantastic. Good. Good. How's it going?
        Ms. Roberts. I'm sorry?
        The President. How's it going?
        Ms. Roberts. It's going wonderful. I'm
    having a great time.
        The President. Actually, you took some classes here, right?
        Ms. Roberts. I did. I attended
    Pensacola Junior College and got my general education here.
        The President. Good. Good job.
        Ms. Roberts. Love it, too.

    [[Page 470]]

        The President. Major?
        Ms. Roberts. Public relations and
    advertising.
        The President. Here's your chance. [Laughter]
        Ms. Roberts. Appreciate that.
        The President. Yes, no problem. [Laughter] So your
    grandmother says she's worried about her
    grandchildren--a safety net for her grandchildren when they retire. Do
    you share that same concern?
        Ms. Roberts. I am extremely concerned.
    I'm pretty young. I'm 21, and I have a feeling that----
        The President. Pretty young? [Laughter]
        Ms. Roberts. I'm a baby.
        The President. You're really young. Younger and younger every year.
    [Laughter] Go ahead.
        Ms. Roberts. So by the time that I am
    a senior citizen, I'm sure Social Security will have been long gone, so
    I'm very concerned.
        The President. Yes, it's important for 21-year-old people to pay
    attention to this issue. If it doesn't get fixed, the bill is going to
    be huge. That's what you've got to understand if you're 21 years old.
    You know, they always say, 21-year-olders don't pay attention to
    politics or issues. I don't know if that's the case.
        Ms. Roberts. I pay attention, Mr.
    President.
        The President. That's good. [Laughter] Give me a chance--and by the
    way, personal accounts are voluntary. In other words, I'm not going to
    say--the Government isn't going to say, ``You have to do this.'' I
    believe in saying to somebody, ``If you choose to do this, you can do
    it. You don't have to do it.'' If given that opportunity--I'm maybe a
    little premature, but if things go right, you may be given that
    opportunity pretty quickly.
        Ms. Roberts. I hope so.
        The President. So what would you--do you have any sense for whether
    or not you would opt to decide to take some of your money aside and put
    it aside in an account?
        Ms. Roberts. I would definitely take
    that option.
        The President. Really? It doesn't frighten you?
        Ms. Roberts. Not at all. It actually
    would be encouraging to know that I will definitely get that when I do
    retire so I have something to count on.
        The President. Yes. A nest egg.
        Ms. Roberts. That's right.
        The President. The other thing I think is important is to be able to
    pass--for Mary Beth to be able to pass her
    money on to whomever she chooses. I think that would be beneficial for
    society to have more assets accumulate and to be able to have kind of a
    generational transfer of assets. I think it would be beneficial for
    people from all walks of life. I really do. I think it's a concept
    that's an important concept, the idea of passing property on to whomever
    you choose, the idea of accumulating property.
        If she starts, by the way, she's going
    to do quite well. It sounds like she's going to make quite a good living
    and set aside money and put it away, conservative bonds and stocks. And
    it grows. It compounds.
        I want to repeat another point. The money she'll get in her account, the return--rate of return on a
    conservative mix of bonds and stocks will be greater than her money will
    be earning in the Federal Government. And that's an important
    difference, particularly for a 21-year-old investor, over a period of 41
    years. That money grows.
        And so I'm glad you're interested.
        Ms. Roberts. Yes, sir.
        The President. My--then my advice to you, everybody else, people
    watching, is write your Senators and write your Congresspeople. Let them
    know you're concerned. Let them know you're interested in people coming
    together to solve this problem to save Social Security for generations
    to come.
        Thanks for coming. Thanks for your interest. God bless.

    [[Page 471]]

    Note: The President spoke at 9:01 a.m. at Pensacola Junior College. In
    his remarks, he referred to Gov. Jeb Bush of Florida; Gerald McKenzie,
    member, board of trustees, and David Sam, vice president of academic
    affairs, Pensacola Junior College; Mayor John R. Fogg of Pensacola, FL;
    former Representative Timothy J. Penny, senior fellow and co-director,
    Hubert H. Humphrey Institute Policy Forum; former Senator Bob Dole; and
    Robert C. Pozen, chairman, MFS Investment Management. The Office of the
    Press Secretary also released a Spanish language transcript of this
    discussion.