    [Public Papers of the Presidents of the United States: George W. Bush (2005, Book I)]
    [May 24, 2005]
    [Pages 857-868]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks in a Discussion on Strengthening Social Security in Greece, New
    York
    May 24, 2005

        The President. Thank you all. Go ahead and be seated. Be seated,
    thank you. We've got to get to work. Thank you all for coming. Please be
    seated. Thanks for coming. Thanks for the warm welcome, and thanks for
    caring about the future of our country, because that's what we're here
    to discuss.

    [[Page 858]]

    Before I get to the Social Security issue, I do want to thank some
    people.
        First I want to thank the Greece Athena Middle and High Schools for
    letting us use this fantastic facility. It really is beautiful, yes. A
    fantastic place, isn't it? Yes. I want to thank Helen Wahl and Dick Snyder. Helen is
    the principal of the high school; Dick Snyder is the principal of the
    middle school. I want to thank all the teachers. I want to thank the
    superintendent. I want to thank all the folks who care a lot about
    making sure the kids get educated here in this part of the world.
        I'm sorry Laura is not here. Yes, you'd
    probably rather have her here than me, wouldn't you? Anyway--[laughter].
        Audience member. We didn't say that.
        The President. Well, no, but you thought it. You didn't say it, but
    I could tell you thought it. You're not the only person here who feels
    that way, I want you to know. She's doing great.
    She is on a trip promoting the freedom agenda. She's made it very clear
    to people in the Middle East, you can't have a complete society unless
    women participate fully in the society in the Middle East. I'm really
    proud of her. I'm a fortunate man that she said yes when I asked her to
    marry me back in Midland, Texas. She's a great First Lady. I'm looking
    forward to having her come home tonight, back to the White House.
        I thank Congressman Tom Reynolds.
    He's an effective United States Congressman who cares a lot about this
    district. I'm proud to call him friend. I'm proud to call Congressman
    Sherry Boehlert friend as well. Sherry
    is from the district next door; I've known him for a long time. He's a
    good, thoughtful man. He's a fine United States Congressman. Congressman
    Jim Walsh is with us today. He too is a fine
    United States Congressman. And I was proud to be traveling with
    Congressman Randy Kuhl. He's a
    freshman Member of the House of Representatives, doing a great job.
    Thank you all for coming.
        They wanted to ride on Air Force One. [Laughter] Proud to make room
    for them. They want to ride back on Air Force One. [Laughter] And they
    probably want a meal on Air Force One. Save up your appetite, fellows,
    you got a good meal coming.
        I want to thank all the State and local officials who have joined us
    today. I'm proud you're here.
        There's two athletes in the audience I want to pay recognition to.
    First of all, a person you all know well, really a fine member of the
    community, member of the NFL Hall of Fame, Jim Kelly. Thank you for coming. Good to see you again, Jim. And at
    the other age of the--at the other end of the age spectrum is a fine
    athlete from this part of the world. I just met her. As you know, I'm a
    baseball person. I love baseball. The fact that somebody would pitch a
    perfect game at any level of baseball is amazing. The fact that a person
    would pitch a perfect game and strike out every batter is even more
    amazing. So welcome a fantastic pitcher in the--representing the Dodgers
    baseball team, from Little League Baseball, Katie Brownell. Thanks for coming.
        And finally, one other person, before I get to the topic at hand,
    I'd like to introduce, is a woman named George-Ann
    Schauffele. George-Ann is a volunteer.
    And the reason I bring up people who volunteer is I want to remind you
    that the true strength of this country lies in the hearts and souls of
    our citizens, that if you want to be a participant in America and in the
    future America, volunteer to make somebody's life better. Feed the
    hungry; help find shelter for the homeless. George-Ann is involved with
    the Literacy Volunteers of Rochester program, helping somebody learn to
    read. I can't think of a better way to pass on a gift from one
    generation to the next than to mentor somebody, particularly somebody
    who needs to learn to read.
        My point is this: Serve your community and serve your country by
    taking time out of your busy lives to volunteer to make

    [[Page 859]]

    somebody's life better, to answer that universal call to love a neighbor
    just like you'd like to be loved yourself. I don't know where George-
    Ann is. Where are you, George-Ann?
    Thanks for coming. Thanks for being a great role model.
        We got a lot to do in Washington, DC. One of the big issues, of
    course, is Social Security--although yesterday there was some progress
    made. I'm pleased that the Senate is moving forward on my judicial
    nominees who were previously being blocked. These nominees have been
    waiting years for an up-or-down vote on the Senate floor, and now
    they'll get one. It's about time we're making some progress.
        It's important for this Nation to address issues. I believe the job
    of the President is to confront problems, not to pass them on to future
    Presidents or future generations. I believe my job in representing
    everyone who lives in this country is that when I see a problem, is to
    say to the United States Congress, ``Let's work together to solve the
    problem.'' And folks, we've got a problem when it comes to Social
    Security.
        First, let me start by saying that Franklin Roosevelt did a good
    thing when he created the Social Security system. Social Security has
    been an important part of a lot of people's lives in America. The Social
    Security system created by Franklin Roosevelt provided a safety net for
    people in their retirement, and it worked. There are a lot of people
    still in this country counting on their Social Security check. And
    therefore, I want to start by saying to people who are getting their
    check, people who were born prior to 1950, the system will not change
    when it comes to you. The system has got plenty of money in it to make
    sure you get your check.
        The reason I have to say that is because I understand how the Social
    Security issue has worked in the past: Somebody like me talks about it,
    and then somebody comes in behind by telling seniors, ``Really what he's
    saying is he's going to take away your check.'' That's old-style, scare
    politics, but it is a part of the American system. And so people have
    got to understand when we start talking about Social Security, to
    strengthen the Social Security system for generations to come, to deal
    with the problem I'm about to describe to you, that if you're a senior
    in Greece, New York, you're going to get your check. It's the folks
    coming up that you need to worry about. See, if you're a grandmother,
    you're going to get your check. You need to worry about your grandson.
        We're about to talk to a generation of folks from this part of the
    world about Social Security. Now, here's the reason I even have to bring
    it up, that the pay-as-you-go system in Social Security is confronting
    some serious demographic difficulties.
        Now, the system is pay-as-you-go. That means when you pay in, we go
    ahead and pay out. Your payroll tax goes into a--not into trust that we
    hold for your account; your payroll tax goes into an account, and we pay
    out the money for the retirees, and with any money left over, we spend
    it on general government. It's important for people to understand that
    aspect of Social Security. In other words, it's not a trust. In other
    words, we're not taking your money and holding it for you and then
    giving it back to you when you retire. We're taking your money; we're
    spending it on current retirees; and in that more money is coming in
    that needs to go out for the retirees, we're spending on other programs.
    And all that's left behind in Social Security is a group of file
    cabinets with IOUs in it. That's the way the system works. It's called
    pay-as-you-go.
        Now, what's going to change from today in terms of the pay-as-you-go
    system is that there's a lot of people getting ready to retire. I happen
    to be one of them. [Laughter] At least I reach retirement age in 2008.
    As I like to remind people, that's a convenient date for me--
    [laughter]--particularly the end of 2008. And there are a lot of people
    like me. We're called the baby

    [[Page 860]]

    boomers. I'm looking at some baby boomers out there. As a matter of
    fact, by the time the baby boomers fully retire, there's going to be
    over 70 million of us getting paid by younger workers who are paying
    through payroll--paying our retirement through payroll taxes. Today,
    there's about 40 million retirees. So, you see, a lot more people are
    going to be--having to be taken care of in the retirement system through
    the pay-as-you-go system.
        And not only that, we're going to live longer than the previous
    generation. And not only that, our benefits are going to rise faster--at
    least the promised benefits will rise faster than a previous generation.
    So you've got a lot of people who will be living longer, getting paid
    greater benefits, with fewer people paying into the system.
        In 1950, there were some 16-to-1 workers paying into the system for
    each beneficiary. Today, there's 3.3 workers for every beneficiary. Soon
    there's going to be 2 workers for every beneficiary. So, I think you're
    beginning to get a sense of the math. A lot of us are going to get
    greater benefits; we're going to live longer, with fewer of the young
    people paying in the system to take care of us.
        Now, what ends up happening under that type of system is that, in
    2017, the system starts to go into the red, more money going out than
    coming in on Social Security benefits, for Social Security benefits
    relative to the payroll taxes. And it gets worse every year. In 2027,
    it's projected there will be $200 billion in the hole, $200 billion more
    benefits going out than payroll taxes coming in. Every year worse after
    that, until 2041, all those--the paper in those file cabinets in West
    Virginia are just eaten up, bankrupt. The system is bust.
        What we're asking youngsters to do is to contribute money through
    payroll taxes into a system that will be broke in 2041, unless we do
    something about it. And so that's the problem. And it's a real problem.
    My friend Tim Penny, former Congressman
    from Minnesota, is going to describe the problem to you in further
    detail.
        Now, I have a duty not only to describe the problem; I believe I
    have a duty to come forth and say, ``Let's do something about it,'' and
    ``Here's some ideas,'' to the United States Congress. I did it. I stood
    up in front of the Congress at my State of the Union; I said, ``Here's a
    problem. By the way, here's some ideas. All ideas are on the table
    except running up the payroll tax rate''--which I think would hurt the
    economy--``all ideas are on the table; bring them forward.'' And then I
    further refined that by talking about some of these ideas. And the
    reason I'm doing it is because I understand if we wait, it costs $600
    billion a year more every year we wait. See, if we don't do anything, if
    we don't come up with a solution to permanently solve this problem, it
    is conceivable a younger generation of Americans will have to pay an 18-
    percent payroll tax or benefits will have to be cut by 30 percent or the
    rest of Government will have to be cut substantially in order to make
    sure that the promises that have been made are promises that will be
    kept.
        And so here are some ideas Congress needs to consider. First of all,
    that a future generation should receive benefits equal to or greater
    than the benefits enjoyed by today's seniors. That seems like a
    reasonable principle as we go forward. Secondly, that the Social
    Security system should be designed such--the future Social Security--by
    the way, if you were born prior to 1950, nothing changes. What I'm
    talking about here doesn't pertain to you. You're going to get your
    check. The system is going to be exactly the way it is. There's plenty
    of money in it to take care of you. It's the younger folks that need to
    be paying attention to what I'm talking about.
        And so I think a second principle ought to be this: if you've worked
    all your life, that you should not retire in poverty. That's a principle
    that makes sense. We can design a system that supports that concept.

    [[Page 861]]

    And here's the way you do it: It's called progressive indexing. That's a
    Washington kind of thing, you know. [Laughter] It says that if you're in
    the--for example, a guy named Pozen, who
    Tim knows well, came up with this concept.
    It said that if you're a--poorest 30 percent of the workers, nothing
    will change in terms of how your benefits increase.
        Right now the benefits, by the way, increases are tied to wages. If
    you're the top 1 percent of workers in terms of income, your benefits
    would increase by the rate of inflation, not by the rate of wage. Your
    benefits increase but not as fast as the folks at the bottom end of the
    spectrum. And if you're in between, depending upon your income, your
    benefits will increase somewhere between the rate of wage and the rate
    of price.
        Now, incredibly enough, structuring the system this way when it
    comes to benefit increases will get about--a significant portion of the
    problem permanently solved. I think it makes sense for Congress to
    consider this idea. It says you'll get a benefit equal to or greater
    than the previous generation, that at the very minimum, your benefit
    will grow at the rate of inflation; if you're poor, your benefit will
    grow at the rate of wage increases and that you won't retire into
    poverty.
        And there are other things we can do to permanently solve the
    problem completely. I say permanently solve it because you might
    remember 1983. Were you in the Congress then, Tim? Yes, first term in the Congress. Tim came together with
    others--Ronald Reagan was the President; Tip O'Neill was the Speaker. We
    had a problem in Social Security. They came together and put together
    what they called a 75-year fix. Here we are 22 years later. The 75-year
    fix didn't stick for 75 years. It's time to fix this deal once and for
    all.
        And there are some good ideas I put on the table. Let me tell you
    one other good idea that I want people to think about before we get to
    our panelists here, folks we're going to be discussing this issue with.
    And that is that I think that as we permanently solve the system, that
    we ought to make it a better deal for younger workers by allowing
    younger workers to take some of their own payroll taxes and set it aside
    in what is called a voluntary personal savings account.
        Notice I said ``voluntary.'' In other words, the Government should
    say to a younger worker, ``If you want to, you can put some of your own
    money aside. You don't have to. If you're uncomfortable with watching
    your money grow with a conservative mix of bonds and stocks, you don't
    have to do that.'' You can keep it the way--into the system. And you'll
    get your check. If you're in the bottom 30 percent, your benefits over
    time will grow with wages. If you're in the top 1 percent, they'll grow
    with inflation. And if you're somewhere in between, they'll grow
    depending upon your income but greater than the rate of inflation.
    Secondly, it's called a personal account. That means you own it. It's an
    account the Government cannot take away.
        So why would we do this? Why would we think of this idea? Well,
    first of all, with your money--your payroll taxes; after all it's your
    money--is earning about a 1.8 percent rate of return over time in the
    Social Security system. You can do better than that. You can do better
    than that with T-bills, which have very little risk to them, if any at
    all. You can do a lot better than that in a conservative mix of bonds
    and stocks. They say that over time you should be able to average at
    least 4.6 percent.
        Now, over a lifetime, that is a significant amount of money relative
    to the 1.8 percent, because money compounds, money grows. For example,
    if you're making $8 an hour and you put your money--and you're allowed
    to set aside a third of your payroll taxes--$8 an hour over your life,
    and you're allowed to set a third of your payroll taxes aside in a
    personal savings account, and you earn the 4.5 percent rate of return,
    which is definitely achievable,

    [[Page 862]]

    particularly when you look at the history of a conservative mix of
    investments, by the time it comes--you reach retirement age, you'll have
    earned $100,000 in your nest egg. That will be a part of your Social
    Security retirement system. See, you'll get benefits out of the current
    system, out of the system that's reformed, plus you've got $100,000 that
    you call your own.
        If you're--say you're a police officer and a nurse, and they enter
    the workforce in 2011, and you set aside money; and you make the average
    salary those folks make over time, and you set aside a third of your
    payroll taxes--both of you do--by the time both retire, they have about
    $669,000 in a personal savings account. Money grows over time. The
    higher the rate of return, the more--the faster your money grows and the
    more you end up with.
        A lot of people are able to understand that. You know why? Because
    we're into a 401(k) culture. When Penny and
    I were growing up, we didn't have 401(k)s. The other day I was in an
    automobile manufacturing plant in Mississippi; I'm sitting with a lot of
    line workers. I said, ``How many of you have got 401(k)s?'' A lot of
    hands went up. A lot of people from different walks of life, different
    backgrounds, now understand what it means to watch your money grow. This
    isn't a new concept that's in American society. This is something that's
    taking place throughout all of society. And I think it makes sense to
    understand the investor class doesn't belong to a privileged few but the
    investor class ought to be extended to everybody who lives in America,
    if that's what you want, if that's what you choose.
        I like the idea of somebody saying, ``Here's your asset, and you can
    leave it to whomever you want.'' And the more people are able to do that
    in our society, the better off society is. See, I think Government ought
    to promote an ownership society. We ought to encourage more people to
    own their own home, encourage entrepreneurs to be able to take risk and
    own their own business and, in this case, encourage Americans from all
    walks of life, if they so choose, to manage their own retirement
    account. And I say ``manage it.'' You know, it's your money. You're
    going to have some choices to make when it comes to a personal savings
    account. You can't take it to the lottery, by the way. You notice I've
    been stressing conservative mix of bonds and stocks, because we want
    this account to grow and be a part of a modern safety net for you in
    your retirement. And so there will be some guidelines.
        And I can predict to you that it works because a lot of other people
    have watched their money grow in the same kind of accounts, including
    people who work for the Federal Government. See, we have got in
    Washington what's called a Thrift Savings Plan. And Members of the
    United States Senate, for example, can choose, if they so desire, to set
    aside some of their own money in a personal savings account, a voluntary
    personal savings account. And a lot of people like it.
        I think--I was doing one of these events with Senator
    McCain, who told me that his rate of return on
    his money was, like, 7 percent over the last 20 years. That's a lot
    better than the 1.8 percent we now get for you in the Social Security
    system. And so my attitude about this issue on Thrift Savings Plans when
    I speak to Members of the Congress is pretty simple. If the idea of
    taking some of your own money and setting it aside in a conservative mix
    of bonds and stocks is good enough for you, Mr. Senator, it is good
    enough for workers all across the United States of America. You'll be
    happy to hear Senator McCain agrees with me, because he's seen his money
    grow.
        Now, a personal savings account would be a part of a Social Security
    retirement system. It would be a part of what you would have to retire
    when you reach retirement age. As you--as I mentioned to you earlier,
    we're going to redesign the current system. If you've retired, you don't
    have

    [[Page 863]]

    anything to worry about--third time I've said that. [Laughter] I'll
    probably say it three more times. See, in my line of work you got to
    keep repeating things over and over and over again for the truth to sink
    in, to kind of catapult the propaganda.
        But if you choose to have one of these accounts--notice I keep
    saying ``if you choose''; the Government is not going to tell you, ``You
    have to do this.'' I think the Government ought to give you the
    opportunity to set up one of these accounts. And the account becomes a
    part of your retirement plan. It's your own asset. It's something you
    leave to somebody--whomever you choose. And it makes the system
    eminently more fair.
        Now, with those thoughts in mind, we got a problem, and here's some
    ideas on how to solve it. I've asked Congressman Tim Penny, right out of the State of Minnesota, a person
    who's followed this issue a lot. He happens to be of a different
    political party than I am, but, nevertheless, we both share the common
    goal of doing our duty as involved citizens to permanently solve the
    problem of Social Security today.
        Welcome, Congressman. Thanks for
    coming.

    [At this point, former Representative Timothy J. Penny, senior fellow
    and codirector, Hubert H. Humphrey Institute Policy Forum, made brief
    remarks.]

        The President. Well, thank you, Tim.
    Good job. Articulate guy, isn't he? Yes. One thing you don't have to
    worry about is me staying with this effort. This is a vital issue. The
    American people expect those of us who are fortunate enough to serve in
    Washington to solve problems. And I've just begun. I like getting out of
    Washington, to begin with--[laughter]--I like explaining the situation.
    But we're just beginning. If this were easy, it would have been done a
    while ago. And I fully recognize some in Washington don't particularly
    want to address this issue. It may be too difficult. And I recognize
    some of them say, ``Well, this is a partisan thing. We don't want to
    make one party look good as opposed--at the expense of another.''
        But let me tell you what I think is going to happen. I think--and
    Tim is right--I think more and more people
    recognize there's a problem, and people are beginning to say, ``Go do
    something about it.'' And those who obstruct reform, no matter what
    party they're in, will pay a political price, in my judgment. People
    expect us to go to Washington, DC, to work together. That's what they
    want to see, particularly when it comes to an issue like Social
    Security.
        We've got three members of a fine family here. We've got
    grandmother, mom,
    and down there anchoring at the end is grandson or son, isn't that right?
        Audrey Ceglinski. That's right.
        The President. Yes. You are Audrey Ceglinski.
        Mrs. Ceglinski. That's right. I'm a 70-
    year-old widow.
        The President. Don't ever say your age. [Laughter]
        Mrs. Ceglinski. Oh, that's--I have no
    problem. Don't ask me my weight, though.
        The President. Okay. [Laughter] Reminds me of my mother. [Laughter]
        Mrs. Ceglinski. That's good. I was a
    teacher aide for Williamsville South High School for 25 years, and I
    retired from there--a very enjoyable job. I also wanted to mention I'm a
    volunteer for Meals on Wheels----
        The President. Oh, fantastic.
        Mrs. Ceglinski. ----which I'm missing
    today. [Laughter]
        The President. I hope somebody filled in.
        Mrs. Ceglinski. Oh, yes. We've got some
    great people there. It's a good group.
        The President. Thanks for doing that.
        Mrs. Ceglinski. I like it a lot. My
    husband and I retired 8 years ago. Unfortunately, he passed on after
    only 2 years, so the money he had invested in Social Security in a sense
    was gone. Had we had

    [[Page 864]]

    a personal account, I would have had some money for Deb, Jeremy, his
    brothers, to pass on.
        The President. Let me stop you there, if you don't mind.
        Mrs. Ceglinski. That's fine. [Laughter]
    You have my permission.
        The President. Here's the way the system works. Two folks work; they
    both contribute to the Social Security system; if one dies early, the
    spouse, the remaining spouse gets to choose her benefits or his
    benefits, which are ever greater, but not both. Think about that system.
    Dad went and contributed a lot into the system. He passed away. But the
    money he put in--most of the money he put in is gone. That's not fair.
    What kind of system is that? It's not a fair system. It's not fair to
    the family. It's not fair to the person who has worked all his life, in
    this case. Had he been able to put money aside in a personal account,
    that account would have gone to Audrey.
        Isn't that right? Keep going. You're on a roll.
        Mrs. Ceglinski. Okay. [Laughter] I have
    five children, seven grandchildren, and that's my concern. I think you
    making the young people aware that there's a problem is going to make
    them aware and encourage them to save. And I think that's what we need
    to do.
        The President. Well, I appreciate that. Younger people need to pay
    attention to this issue. See, if nothing gets done in Congress, as
    Congressman Penny pointed out, you're going
    to get to pay higher payroll taxes--and higher and higher and higher
    payroll taxes. And so you need to pay attention. Actually, I believe
    younger people are beginning to pay closer attention to this issue.
    We're beginning to get their attention.
        First thing is, is there any doubt in your mind that you're going to
    get your check?
        Mrs. Ceglinski. I'm getting my check,
    and it's wonderful.
        The President. They're still coming.
        Mrs. Ceglinski. It's still coming, and
    I'm planning on it for a while yet. [Laughter]
        The President. Well, you need to, yes. Heading toward 80.
        Mrs. Ceglinski. That's right.
        The President. Right around the corner. You look great.
        Mrs. Ceglinski. Thank you very much.
        The President. You look like 100 to me. That's where you're going to
    be. Thirty more years?
        Mrs. Ceglinski. I'll remind you of
    that. [Laughter]
        The President. All right, good. And she's going to want her check. On her 99th birthday, she's
    going to want her check. And you're going to get your check.
        Okay, and so who did you bring with you?
        Mrs. Ceglinski. I brought my daughter,
    Deborah, the oldest of my five.
        The President. Debbie or Deborah?
        Mrs. Ceglinski. Debbie. We like to call
    her Debbie.
        The President. You called her Deborah.
        Mrs. Ceglinski. Yes.
        The President. Okay. [Laughter]
        Mrs. Ceglinski. Only when she's in
    trouble. And Jeremy, her youngest son.
        The President. Fantastic. Debbie, welcome.
        Deborah Brown. Thank you.
        The President. Thanks for coming. Mom
    did a good job, didn't she?
        Mrs. Brown. Yes, she did.
        The President. So what was it like growing up? Was Mom pretty tough, a disciplinarian?
        Mrs. Brown. Yes, she was. [Laughter]
        The President. Well, then you and I share the same thing. [Laughter]
        Mrs. Brown. Yes, we do.
        The President. Tell me what's on your mind.
        Mrs. Brown. Well, I appreciate the
    opportunity to be here. I was an at-home mom. I was privileged that my
    husband, who is here today, was willing to let me stay home and raise
    the kids, work part-

    [[Page 865]]

    time. But when you do that, you don't get to pay into a retirement
    system anywhere. So I went, got my master's degree. I have a job I'm
    very happy with now. But I will never be able to build a good retirement
    in the amount of time I have until I retire. So it's very appealing, the
    plans that you're talking about, because I'll be quite dependent on
    Social Security.
        The President. Yes, set aside a little money, watch it grow at a
    better rate than the current Social Security system.
        Mrs. Brown. Exactly, so that--certainly,
    for Jeremy and for my other three sons, as you said, it would make me
    happy to know that they're taken care of, too, and that they would have
    options.
        The President. Right. And how is old Jeremy
    doing?
        Jeremy Brown. I'm doing good. [Laughter]
        The President. Tell them where you were born.
        Mr. Brown. Tomball, Texas. [Laughter]
        The President. Tomball, Texas, right outside of Houston.
        Mr. Brown. Yes.
        The President. So you've got Grandmom
    here; you've got Mom here.
        Mr. Brown. I've got the brother out in the
    audience--one of the three is out in the audience, the other
    grandparents.
        The President. Good. First of all, what are you doing with yourself
    these days?
        Mr. Brown. Well, I'm 18. I'm a sophomore at
    Canisius College in Buffalo.
        The President. What's your major?
        Mr. Brown. I'm dual-majoring in business
    marketing and business management.
        The President. Great. All A's?
        Mr. Brown. Hopefully. [Laughter]
        The President. Well, don't worry about it. That won't disqualify you
    from being President.
        All right, Jeremy, get going, will you?
        Mr. Brown. All right, well, being the
    younger generation, I'm just starting to pay into the system. I like the
    idea of having these personal accounts, getting a better rate of return
    in the end, and compound interest and everything so I build up something
    for myself that I could leave for my future kids and everything. And I
    like the fact that I'll have something to show for it, because people go
    and pay decades and decades into Social Security and when it comes time
    for me to retire, if we don't change, I'll have nothing to show for it.
        The President. You know what's interesting--I say this a lot when I
    travel around the country--is that a lot of young people think it's more
    likely they'll see a UFO than a Social Security check. [Laughter] What
    do you think, Jeremy?
        Mr. Brown. I don't know. I'd rather see
    Social Security change. [Laughter]
        The President. I didn't ask your preference. [Laughter] But there's
    a lot of young people who, when they listen to the debate and understand
    the demographic shift that's going on, don't think they're going to see
    anything. What kind of system is that where you got a young guy getting ready to graduate from college paying into a--
    paying a payroll tax, a hefty payroll tax, into a system where he
    doesn't think he's going to see any benefits from it. It's a system that
    sounds like to me is screaming for reform, so that somebody who
    contributes into the system not only knows they're taking care of a baby
    boomer generation or doing their part for their retirement but also will
    have something left over for his family, in this case.
        What do you want to do when you get out of college?
        Mr. Brown. Go into real estate.
        The President. Real estate, yes, good. Sounds like to me you can
    understand finances pretty well, too, that money can grow over time.
        Mr. Brown. Yes.
        The President. Anybody--any other 18-year-olders that you know
    worried about this issue, thinking about the issue?
        Mr. Brown. They are now. I got them
    informed.

    [[Page 866]]

        The President. Yes, you do? That's good. [Laughter] Good job. It's
    important for people Jeremy's age to start
    listening to this discussion. As Tim said, the longer we wait, the more
    difficult it's going to be for an up-and-coming generation.
        This is a generational issue, folks. See, the grandmoms and
    granddads around America now understand they're going to get their
    check, and so once that comfort level has been provided, the next
    logical question from many of the grandmothers I've talked to is, ``What
    are you going to do about my grandson? You've said there's a problem,
    Mr. President, I expect you and the United States Congress to make sure
    that my grandson has got a viable retirement system.'' That's what a lot
    of people are beginning to say around America.
        And that's why I can predict that once we get through on this issue,
    once I finish traveling the country--and I got a lot more to do--people
    are going to start demanding from their Representatives and their
    Senators a solution. They don't want any Washington doubletalk. What
    they want is a solution, so a grandmother
    can then look at her son, her grandson, Jeremy,
    and say, ``Thankfully, people in Washington did their duty, and I can
    rest easy knowing I'm going to get my check and Jeremy is going to get
    his as well.'' That's the issue.
        Good job. You were great.
        You two look alike. These are the Weitzel girls, McKenna and Riley, isn't that
    right? Okay. Which one is Riley? That makes you McKenna.
        McKenna Weitzel. That's true. [Laughter]
        The President. They're twins. I'm the father of twins. I am a white-haired father
    of twins. [Laughter]
        Riley Weitzel. They can do that to you.
        The President. Did you do the same thing?
        Riley Weitzel. Yes.
        The President. Tell me what you all do.
        Riley Weitzel. Well, I'm a history teacher
    at Bread of Life Christian Academy here in Rochester.
        The President. Fabulous. Thanks for teaching.
        Riley Weitzel. Yes. I teach history to the
    fourth through seventh graders there. Hi, guys. I love you, and I miss
    you, and I'll be there tomorrow. Be good.
        The President. Taking advantage of C-SPAN. [Laughter]
        Riley Weitzel. And I am getting married in
    the summer, in August. And my fiance and I are just starting to think
    about retirement and about future generations and, hopefully, if God
    blesses us with kids, our kids, and something we can pass on down to
    them. We're really excited about your plan and that we can set up
    personal accounts and then watch compound interest grow and hopefully
    get a nest egg and be able to hand that down to our kids.
        The President. Fantastic. I don't remember thinking about compound
    interest growing when I was 23. There wasn't a lot of discussion about
    that type of issue. There's a change; there's a cultural change in
    America when it comes to investment, because a lot of people are now
    getting used to the concept of watching their own money grow, isn't that
    right.
        So is fiance here?
        Riley Weitzel. Yes, he's right over there,
    Ben.
        The President. Ben. Look at him, fine-looking lad.
        Riley Weitzel. Thanks. I think so, too.
        The President. August is the wedding?
        Riley Weitzel. August 6th. You're invited.
    [Laughter]
        The President. That's a smart move. [Laughter] She knows I won't come, but I will send a gift. [Laughter]
    McKenna going to be in the wedding?
        Riley Weitzel. McKenna is my maid of
    honor, of course.
        The President. Cool. McKenna, what do
    you do?
        McKenna Weitzel. I'm a hairdresser at
    the Scott Miller Salon in Pittsford, New York.
        The President. Great, good.

    [[Page 867]]

        McKenna Weitzel. Yes, it's a wonderful
    place to work.
        The President. A lot of talk about Social Security?
        McKenna Weitzel. Not a whole lot there
    but honestly, I've been thinking about it.
        The President. Have you? Good.
        McKenna Weitzel. Yes, definitely. I feel
    like there's definitely a problem in the system right now, and things
    need to change. And I want to say that it's completely commendable of
    you to stand up and tackle this issue.
        The President. Oh, thanks. Thank you. That's my job. [Laughter] I
    appreciate you saying that. There's a lot of others in Washington feel
    the same way I feel, that there's--they say, ``Are you taking a risk?''
    How can you be taking a risk when you're doing what the people expect,
    solving problems. I think the people who take the risk are those who
    won't come to the table to discuss the issue in a way that will help
    solve the problem.
        So are you in agreement with Riley on
    personal accounts?
        McKenna Weitzel. I certainly do. I feel
    like being able to take more ownership over your future and over your
    investments is very wise.
        The President. Yes. Don't you like the idea--some of you have got
    401(k)s, and you open up your statement on a quarterly basis. It seems
    like to me that would be a healthy thing for our country if more and
    more people are opening up a statement that says, ``This is what you're
    worth. This is how your worth has grown.'' It's a--to me, it's a notion
    of getting people to understand that they've got to pay attention to the
    future of the country, when you, on a monthly basis, in some cases on a
    daily basis if you want to get on the Internet and look at your asset
    base. Now, you're contributing in to the--both of you--payroll tax,
    aren't you?
        McKenna Weitzel. Yes, we both currently
    are.
        The President. Pretty good-size chunk?
        Riley Weitzel. No, not really.
        The President. No, a pretty good-size chunk of your payroll tax.
        Riley Weitzel. Oh, of course.
        McKenna Weitzel. Yes, yes.
        The President. I think the interesting thing is that when you first
    talk to people entering into the workplace, their reaction when they
    first get their checks, what--their reaction to what it's like to not
    have quite as much money as you expected. That happen to you?
        McKenna Weitzel. Yes, that was a
    shocker. [Laughter]
        The President. Yes, in other words, Government tends to take out a
    pretty good chunk. And it seems like to me that a significant chunk that
    is being taken out ought to at least be able to say to young kids,
    ``There's a reason why. It's worthwhile for the money to go out, because
    it will help me in my retirement age.'' That's kind of what we're
    talking about, isn't it?
        Okay, now that you've got your kids watching, anything else you want
    to say?
        Riley Weitzel. Just, be good today. That's
    all.
        The President. How about you, McKenna?
    McKenna, you got anything else you need to say?
        McKenna Weitzel. Well, I just also want
    to state that I feel like it's just encouraging to know that we could
    collect money in the end, that we aren't hoping that there will be money
    there, that it truly will be, and also just the responsibility of
    knowing that you're setting aside money and that you will be getting it.
        The President. See, it's a little lack of trust right now, it sounds
    like to me, ``Don't quite trust the Government to have a Social Security
    system available for my--for the money I put in.'' This is a matter of
    trust. This is a big issue.
        I want to thank our panelists for coming to discuss this issue--very
    good job. Washington has a duty to earn the trust of the people by
    making wise decisions about how the people's money will be used. We have

    [[Page 868]]

    a chance--both Republicans and Democrats have a chance to come together
    and to solve the Social Security issue forever. And when we do--and I
    believe we will, because the people's voices are going to resonate on
    this issue--and when we do, all of us who are fortunate enough to serve
    this country can look back and say, ``We did our duty for generations to
    come.''
        Listen, thank you all for coming. May God bless you all, and may God
    continue to bless our country.

    Note: The President spoke at 10:48 a.m. in the Athena Performing Arts
    Center at Greece Athena Middle and High School. In his remarks, he
    referred to Robert C. Pozen, former member, President's Commission to
    Strengthen Social Security.