    [Public Papers of the Presidents of the United States: George W. Bush (2005, Book I)]
    [February 3, 2005]
    [Pages 123-133]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks in a Discussion on Strengthening Social Security in Fargo, North
    Dakota
    February 3, 2005

        The President. Thanks for coming out. Please be seated. Thanks for
    coming. The Governor told me--he said, ``You
    come over here to North Dakota, we might be able to get a few people
    around to discuss Social Security.'' I said, ``Okay, I'll come.''
    Governor, looks like you got more than a few.
        I'm honored so many came out to hear what I think you're going to
    find to be an interesting discussion about a very important issue. It's
    an issue that relates to our children's future. It's an issue that will
    determine whether or not those of us in elective office have got the
    courage and the wisdom to solve problems now, and that's Social
    Security.
        But before I talk about that, I do want to thank our host, Joe
    Chapman, and North Dakota State University
    for welcoming us here. I'm glad a lot of the college kids are here
    because we're talking about something that's going to affect your life.
    That's what we're here to talk about, and I want you to pay attention.
    [Laughter] Something I didn't necessarily do when I was in college.
    [Laughter] I know the Bison women's basketball team is playing pretty
    well--after all, undefeated. Congratulations.
        I want to thank the first lady of North Dakota for being here.
    Mikey, welcome. Thanks for coming.
    I'm proud of your--proud of the job you're doing. Governor
    Hoeven is doing a fine job as well, and like me,
    he married well.
        I'm sorry Laura is not here.
        Audience members. Aw-w-w!
        The President. Yes, that's generally the reaction, which is like--
    [laughter]--why didn't you send her and you stay
    at home? I get it. [Laughter] But she is a unbelievably beautiful woman,
    great wife, terrific First Lady.
        I was proud that the Governor was at the
    State of the Union Address last night, and I was proud that he flew back
    from Washington with me, and I really enjoyed flying back as well with
    Senator Kent Conrad. I'm proud you're here,
    Senator. Thank you for coming. I enjoyed our visit. And Senator Conrad
    asked permission if he could bring a Senator with him from another
    State. I said, ``Fine, who is it?'' And he said, ``Well, that would be
    Senator Conrad Burns from Montana.'' I said,
    ``Bring him on.'' Welcome, Senator. I'm glad you're here.
        After here, we're going to Montana. Then I'm going to Nebraska. Then
    I'm going to Arkansas, and then I'm going to Florida. See, I think it's
    important to get out amongst the people and talk about important issues.
    And that's what I'm doing. And Congressman Denny Rehberg is with us from Montana as well. Denny, thank you for
    joining us, proud that you're here.

    [[Page 124]]

        Guess what we spent a lot of time talking about with the Senator--
    both Senators and the Congressman and the Governor. We spent time
    talking about beef. We spent time talking about the cattle men and women
    of North Dakota and Montana to make sure people can make--we spent time
    talking about rural health care, to make sure that people can find
    health care in America.
        Let me tell you one thing we need to do to make sure people in rural
    America can find health care, and that's to do something about these
    junk lawsuits that are running good doctors out of practice. Lawsuit
    after lawsuit after lawsuit is running up the cost of your health care,
    and it's making it hard for people to find a good doctor. I met too many
    women who are worried about their pregnancy because the ob-gyn they had
    been using is no longer in practice.
        We have a problem. I used to think these problems could be solved at
    the State level, but I recognized that these frivolous lawsuits are
    running up the cost of medicine, and therefore, they're affecting
    Federal budgets. I believe the medical liability crisis is a national
    problem that requires a national solution, and Congress needs to get a
    good bill to my desk this year.
        We also spent some time talking about energy. We've been debating
    energy for 4 years in the United States Congress. Now is the time to
    quit debating and get something done. And that means good conservation.
    It means renewable sources of energy like biodiesel and ethanol. It
    means clean, safe nuclear power. It means an energy plan that will make
    us less dependent on foreign sources of energy.
        I'll tell you what's going to be a great day for a President--when
    somebody comes in with the crop report and says that the amount of corn
    is up and therefore, we're less dependent on foreign sources of energy.
    I believe it's possible. And I believe it's a wise use of taxpayers'
    money to explore ways to develop energy here at home that's renewable,
    clean, and safe.
        I want to thank your Lieutenant Governor Jack Dalrymple and Betsy for being with us. Governor, thanks for coming. Betsy, I
    appreciate you being out at the airport. I want to thank the attorney
    general for being here today. Mr. Attorney General, thanks for coming. I want to thank the leaders of the
    house and the senate who have joined us.
        I appreciate my friend Ed Schafer
    and Nancy--the former Governor of North
    Dakota and former first lady. We're both members of the ex-Governors
    club. [Laughter] Tired old guys who can't run anymore. [Laughter] But I
    fondly remember the Schafers during our tenures as Governors of our
    respective States. It's great to see you all.
        I met Fran Rickers today at the airport.
    She was out there, standing right there when I came off the airplane, on
    Air Force One. Fran is a volunteer at the Veterans Center. And the
    reason I bring that up is, as I mentioned last night in the speech, one
    of the great values of America is compassion. And one of the great
    strengths of America is the fact that thousands of our citizens
    volunteer on a daily basis. It doesn't even require a Federal law, by
    the way. [Laughter] They do it out of the goodness of their heart. They
    do it because they're answering a call to love a neighbor just like they
    would like to be loved themselves.
        If any of the youngsters who are here are interested in how you can
    serve our country, find somebody whose heart needs healing, find
    somebody who's hungry, find somebody who is looking for shelter and make
    that person's life better. You see, you can serve America and change our
    country one heart, one soul, one conscience at a time.
        Fran, I want to thank you for setting such
    a good example by volunteering your time at the Veterans Center.

    [[Page 125]]

        Before I get to Social Security, I do want to talk about how amazing
    these past couple of months have been in the history of our world. I
    want the youngsters here to think about what has happened in such a
    brief period of time. First, there were elections in Afghanistan. Now,
    that's--[applause]--are you from Afghanistan? From? You're from Iraq?
        Audience member. [Inaudible]
        The President. Yes--thank you. Thank you. Okay, wait a minute, you
    got ahead of the story. [Laughter] You got me to Iraq before we even got
    out of Afghanistan. [Laughter] You see, Afghanistan used to be a
    training center, a safe haven for Al Qaida. That's where they plotted
    the attacks on America.
        So I set out a doctrine that said, ``If you harbor a terrorist,
    you're equally as guilty as the terrorist.'' We enforced the doctrine to
    protect ourselves. And by doing so, we removed the Taliban from power.
    And when that happened, it gave the chance for the Afghan citizens to
    rise up and vote and to develop a democracy. And it happened. Millions
    of people voted.
        There was a vote in the Ukraine that elected a new
    President. There was a vote in the
    Palestinian Territories that elected Abu Abbas [Abu Mazen] * as the leader. And then, as you know,
    last Sunday--I'm getting to you--[laughter]--the people of Iraq, when
    given a chance, went to the polls and said, ``We reject terrorism, and
    we love freedom.'' That's what they said.
    ---------------------------------------------------------------------------
        * White House correction.
    ---------------------------------------------------------------------------
        And that matters. Let me tell you why it matters. It matters because
    free societies are peaceful societies. It matters because in the long
    run, as freedom spreads, our children and grandchildren will more likely
    grow up in a peaceful world.
        This good-hearted country of ours longs for peace. We will do
    everything to defend ourselves against the threats of this era, and as
    we do so, we will spread freedom, because we know that freedom leads to
    peace, and that's what we want.
        The interesting--the lessons we should take away from what happened
    in the last 4 months is that deep within everybody's soul is the desire
    to be free. It doesn't matter where you're from or the nature of your
    religion, freedom is universal. Freedom is God's gift to every single
    person in this world. And if given the chance, people will express their
    desire to be free and take great risks to do so, like you saw in Iraq.
        Last night there was a touching moment when the mom and the voter
    hugged each other. It was a sincere expression of compassion and
    appreciation by a woman whose dad had been--whose assassination had been
    ordered by Saddam Hussein, who now had
    finally been given a chance to vote. It was an indication to me--and I
    think our country--that the Iraqi people so appreciate the sacrifices,
    especially those by our military and the military families, in order to
    free them.
        These are historic times. We're living in historic times. Freedom--
    --
        Audience member. Mr. President, thank you for liberating Iraq!
        The President. You're welcome.
        Audience member. You are right! They are wrong! We are--all the way
    with you!
        The President. Thank you, sir. Nothing better than a little free
    speech to liven up the crowd, you know. Very well-spoken. Got it. Got
    the message. [Laughter]
        These are historic times, and the United States of America will
    continue to lead with friends and allies by our side. I set a goal in my
    Inaugural speech that said, over the generations, over time, the free
    world must work to end tyranny. If you believe that freedom is the
    Almighty's gift to every soul, it makes sense to assume the duty to work
    with others to spread freedom so everybody, every soul can be free.
    That's what I believe the role of America must be. That's the call of
    our generation. And in

    [[Page 126]]

    so doing, we'll leave a peaceful world behind for our children and
    grandchildren.
        Thank you for letting me share that with you. I'm--as you can tell,
    I'm upbeat about where we're headed.
        And so the subject at hand is Social Security. Now, Social Security
    worked. We're going to talk to a soul who will tell you how important
    Social Security is to her and her family. Not yet. [Laughter] Pretty
    soon. [Laughter] And it's been important, and it's worked. But the
    problem is, Social Security has changed dramatically since it was
    created. You see, when it was created, most people's life expectancy
    was, what, around 60 years old, I guess, and today, people are living
    longer.
        There was--in 1950, there was 16 workers, as this chart will show
    you, paying for every beneficiary. In other words, there's a lot of
    workers putting taxes in to pay for the benefits promised. That made it
    easy to fund the system. Today, there are about 3.3 workers. When the
    college kids here get older, there's going to be two workers.
        The benefit structure has gone up over time. And so you've got fewer
    workers paying for more retirees who are living longer--greater
    benefits. And if you start kind of thinking about the math there, you
    begin to realize we've got a problem. In other words, there's not enough
    money coming into the system to pay for the promises for all those who
    are retiring, like baby boomers like me. There's a bunch of us getting
    ready to retire. We're living longer. We've been promised greater
    benefits, and there's few people--fewer people writing the check. In
    other words, the system has changed.
        Now, if you're retired or near retirement, you don't have a thing to
    worry about. The Social Security trust is solvent. As I said last night
    and I will continue to say, for those of you who have received your
    check or about to receive a check, not one thing will change. That's a
    fact. I fully understand that oftentimes when they stress the Social
    Security issue, people try to scare you about it, saying, ``If old
    George W. has his way, you're not going to get a dime.'' Well, that's
    not the way it's going to work. The truth of the matter is, you're going
    to get your checks if you're--if you're retired or near retirement. It's
    just a fact.
        The problem comes from younger folks. That's the problem. The math
    doesn't work. As a matter of fact, as you can see from this chart,
    starting in the year 2018, more money goes out of Social Security than
    comes in. Right now, it's the other way around. More money is coming in
    than is going out. But a bunch of baby boomers who are going to live
    longer and have been promised greater benefits are fixing to retire. And
    so the system goes into the red. And it goes into the red--that means
    negative, that means losing money--quite dramatically. In the year 2027,
    it will be $200 billion in the red--$200 billion for 1 year alone. And
    in 3032, it's like $300 billion. And in 20--I mean 2032. And in 2042,
    it's bust.
        Now, for people who have been elected, I guess that seems like a
    long time down the road. If you've got a 2-year horizon, you're only
    thinking about 2 years--or 4 years, in my case. But I believe the role
    of a President and I believe the role of a Congress is to confront
    problems and not pass them on to future generations. I believe that it's
    a problem when you're $200 billion a year short. Now, what does that
    mean? It means you either have to run up taxes, cut benefits, cut
    programs, or borrow money. That's what it means--in big ways.
        And so I went to Congress last night and said, ``I see a problem.''
    Some of them doesn't see--didn't see the problem, evidently. A lot of
    them do. A lot of really good people on both sides of the aisle
    recognize we have a problem. I'm going to spend the next couple of days
    going around the country explaining to people, as clearly as I can, the
    problem, because I expect

    [[Page 127]]

    people in Congress, when they see a problem, to then come up with
    solutions.
        And so last night I said, ``All options are on the table except for
    running up payroll taxes.'' I said, ``Everybody--all different--all
    different ideas as to how to solve the problem are on the table.'' And
    that's important for Members of Congress to hear. In other words, we're
    not going to play politics with the issue. We're going to say, ``If
    you've got a good idea, come forth with your idea, because now is the
    time to put partisanship aside and focus on saving Social Security for
    young workers.''
        I put out an idea last night that I think is important. It's a novel
    way of saying to young workers, ``We understand whose money we're
    spending,'' and two, ``We want you to be able to have more security in
    your retirement.'' And that is to allow younger workers to take some of
    their own payroll taxes and set aside--set it aside in what's called a
    personal retirement account, a personal retirement account that will
    earn a better rate of return than the current Social Security trust
    earns, a personal retirement account which you will call your own, a
    personal retirement account that can be only invested in conservative
    stocks and bonds, a conservative account that you can't withdraw all
    your money upon retirement. But it's your own account, and it grows. And
    it supplements Social Security. In other words, you'll get a Social
    Security check, but you'll also be able to withdraw money from your own
    personal retirement account to supplement that money.
        And why it's a good deal for younger workers is, is because it
    compounds at a rate of interest faster than the money inside the Social
    Security trust. You start setting aside money at a young age; it grows
    over time. It's your money. It's money that you can decide to leave to
    whomever you want. It's money that the Government can never take away.
    It's an interesting idea to make sure the Social Security beneficiaries
    of the future get as close to that which the Government has possible--
    has guaranteed is possible--has promised as possible, but it's a new
    idea to encourage ownership in our society.
        You know, Federal employees have this under the Thrift Savings Plan,
    this kind of idea. If it's good enough for Federal employees, it ought
    to be good enough for workers out there working every single day, it
    seems like to me.
        Now, I've heard all of the complaints, and you'll hear a lot more--
    how this is going to ruin Social Security. Forget it. It's going to make
    it stronger. We're going to phase it in so that we can be more fiscally
    responsible with the budget. And I want to work with Congress on the
    idea. I mean, I think it makes sense to put out new ideas for an old and
    important system to make sure it works. And that's exactly what we are
    doing, and I did last night. I want the people, as I travel around this
    country, to know, one, there's a problem; two, I'm willing to work with
    members of both parties to come up with a solution; and three, I've got
    an innovative idea as to how to benefit the younger workers in America.
        And I've got some people up here on the stage that we're going to
    discuss this issue with right now. Some of them know a lot more about it
    than I do. It's kind of a hard thing for me to admit. [Laughter] One of
    them, Jeffrey Brown--why would I say that
    you know more about it than I do? It's probably true, but beside the
    fact that it's true, like, what do you do?
        Jeffrey R. Brown. Well, you've just
    convinced me that you do know as much as I do.
        The President. I don't know.
        Dr. Brown. I'm a professor of economics
    and finance at the University of Illinois.
        The President. Good, yes. We won't hold that against you. Now, get
    started. [Laughter]

    [At this point, Dr. Brown, assistant professor, Department of Finance,
    University

    [[Page 128]]

    of Illinois at Urbana-Champaign, Champaign, IL, made brief remarks.]

        The President. Well, it doesn't sound like a long-term problem to
    me. Thirteen years seems like a pretty short time to me. It's like right
    around the corner.
        Dr. Brown. That's right. And the key
    here is that we have to act soon, because if we act soon, then we can
    phase in any changes gradually. We can give people the opportunity to
    build up these accounts. If we wait until the trust fund runs out of
    money, there are no good choices left except to cut benefits or raise
    taxes at that point.
        The President. See, I think it's pretty--I hope you're beginning to
    get a sense for the immediacy of the problem. Sometimes--again, I'm
    going to say this a lot over the next month: If you're receiving a
    Social Security check, you have no problem. That's important for people
    to hear loud and clear. I know there's some folks that are probably
    nervous when they hear the President talking about changing Social
    Security. I know that's the case. I've run for office twice to be the
    President, and people got nervous when I said we needed to do something
    about Social Security. You have nothing to worry about. We're talking
    about younger workers who are coming up have got a lot to worry about
    because of baby boomers like me--not those who have already retired.
    It's the bulge of us who are fixing to retire. That's Texas for going to
    retire. [Laughter]
        What else do you know? [Laughter]

    [Dr. Brown made further remarks.]

        The President. They told me--and tell me if I'm right on
    this, Jeff--that every year we wait, the
    problem costs $600 billion more.
        Dr. Brown. That's right.
        The President. Is that an accurate statement?
        Dr. Brown. This is a number that the
    Social Security actuaries have put out. And basically what's happening
    is, every year we wait, another year of those surpluses is gone and more
    years of deficits lie ahead of us.
        The President. Do you have any--if you don't like them, go ahead and
    say it, but do you have any problems with the personal retirement
    accounts?
        Dr. Brown. Absolutely not. They offer--
    --
        The President. I was hoping that would be the answer. [Laughter] See
    if you can explain them better than I can explain them. I mean,
    compounding rate of interest is an important concept when it comes to
    the growth of money.

    [Dr. Brown made further remarks.]

        The President. I know some of you are saying, ``Well, gosh, if I put
    my money into the stock market, what happens if the market goes down the
    year before I retire?'' There are instruments that are devised or
    available--will be available for younger workers when they get ready to
    retire--to invest to ensure against a downturn of the market. In other
    words, it's a different kind of instrument. You still get a better rate
    than you would in the current trust, but it's a way to make sure that
    the money isn't lost all at once. But on the other hand, history shows
    that over any 17-year period of time, you don't lose money in the market
    on safe, conservative stocks and bonds. It is a fact of life. It is a
    way that our markets have worked in the past.
        And it's also important to know that when you have your own personal
    account, you can't withdraw all your money. In other words, there will
    be a withdrawal plan that will complement your Social Security check.
        These are all questions I know people are going to have, and I have
    the obligation to travel the country, like I'm doing, answering as many
    of the questions that I possibly can answer.
        You did a fine job, Jeff.
        Dr. Brown. Thank you, sir.
        The President. Are you ready, Mary?

    [[Page 129]]

        Mary Bond. I'm ready.
        The President. Thanks for coming. Where do you live?
        Mrs. Bond. I live in Walcott, North Dakota.
    [Applause]
        The President. Walcott, yes. A lot of your fellow townsmen are here
    today, it sounds like. [Laughter] Perhaps the whole town. [Laughter]
        Mrs. Bond. There are about 200 people.
        The President. Two hundred people in Walcott? That's 3 times bigger
    than Crawford. [Laughter] I think. Anyway----
        Mrs. Bond. Can I please say something?
        The President. Yes--you've got the mike. [Laughter] Yes, ma'am.
        Mrs. Bond. I just want you to know what an
    honor it is to have you here today.
        The President. Thank you. [Applause] I'm thrilled to be here. Thank
    you. Okay, wait, wait, we've got work to do. Thank you all. Thank you
    all very much. I'm thrilled to be here too.
        Mrs. Bond. And one more thing. You and Laura--
    or Mrs. Bush----
        The President. Laura is fine.
        Mrs. Bond. Okay. [Laughter] You have brought
    dignity and honor back to the White House. Thank you.
        The President. Thank you. [Applause] Thank you all. Okay, okay,
    Mary. You've done a fine job of firing up the
    crowd. [Laughter]
        Mrs. Bond. We're running out of time.
        The President. No, we're not running out of time. [Laughter] I
    appreciate those kind words. You're here to discuss Social Security.

    [Mrs. Bond made further remarks.]

        The President. Let me stop there.
        Mrs. Bond. Okay. [Laughter]
        The President. See, it's very important that when Mary Bond hears us discussing the system is going bust in 2042
    that she recognizes the system isn't going broke for her. She's fine.
    It's these guys right here in the front--yes, you guys--not fine.
    [Laughter] You got a problem. Thanks for coming to listen, by the way.
    Now, get back to the library. [Laughter]
        What else did you want to say? The reason Mary
    is here is, again, to make the point--and I don't believe we can make it
    enough as we discuss this issue--that somebody who says, ``Gosh, the
    Social Security system is very important for me,'' recognizes that if
    you've retired or near retirement--you fall in the near retirement
    category----
        Mrs. Bond. Pretty close.
        The President. Have you retired yet?
        Mrs. Bond. No.
        The President. Then you're near retirement. [Laughter]
        Mrs. Bond. Sixty.
        The President. No, I'm not asking your age. [Laughter] I'm smarter
    than that, to ask the age. [Laughter] How old are you? No--[laughter].
        Mrs. Bond. Sixty. [Laughter]
        The President. So you were going to say something else.
        Mrs. Bond. Well, I do have a concern, because
    a few years ago, my sister-in-law passed away--we're the same age--and
    she was about 57. And she had worked all of her life. She had a gift
    shop. She was a realtor and several other jobs. She paid into Social
    Security all of her life. And then when she passed away, the Social
    Security was gone. It would be wonderful if she could will that to her
    husband or her kids. Her husband now is retired and has some health
    concerns, and he could use that money.
        The President. Well, it doesn't work that way. Now, what the
    personal retirement account would do was allow it to work that way. See,
    we're beginning to change a portion of Social Security to not only that
    which was in the current system but as well--a part of the system, but
    it's now a new owner. Right now your money goes in and it flows directly
    out to somebody who is receiving benefits. The new way of looking at it
    is, some of your money would go in and go out to paying benefits; some

    [[Page 130]]

    of your money would stay in your own account. And that is that portion
    that you can pass on to whomever you want. If it's not spent in your
    retirement, you get to decide. After all, it's your money.
        It's a concept that many are becoming accustomed to in our country
    through private pension plans, or Federal employees are used to what's
    called the Thrift Savings Plan--same concept, conservative mix of
    investment vehicles, and to get a better rate of return than that which
    is being earned, in this case, inside the Social Security trust. Certain
    rules that will prevent gouging by Wall Street so that the fee structure
    is reasonable and fair and--withdrawal rules. Obviously, you don't want
    somebody to either, one, invest their money in the race track or the
    lottery and, two, upon retirement, take it all out and take it to Vegas.
    As much as I--nothing against Vegas, except we don't want the retirement
    things all gambled away. We want retirement funds to be around for
    retirement purposes.
        And so the system that we're talking about would enable your sister-
    in-law to do that. Thanks for coming. You did a heck of a job.
        Mrs. Bond. Thank you.
        The President. You bet.
        All right, Tricia Traynor, welcome.
        Maj. Tricia Traynor, USAFR. Welcome.
        The President. Thank you. You are married? For how long?
        Maj. Traynor. Three months--almost 3
    months. My husband, Dan----
        The President. Where is he?
        Maj. Traynor. He is over to the right,
    waving his hand.
        The President. There he is. Fine-
    looking man. That a boy, Dan. Interesting about Tricia is she is a----
        Maj. Traynor. Major in the Air Force
    Reserve.
        The President. There you go. Have you been overseas yet?
        Maj. Traynor. Yes. I was in the Middle
    East for 6 months in 2003, for Operation Iraqi Freedom.
        The President. Good. Thanks for serving. Your Nation is grateful,
    but I--and equally as grateful are the good folks from Iraq that are
    here today. Thanks for being there.
        So tell me what's on your mind about Social Security. You're young.
        Maj. Traynor. We're in our thirties.
        The President. Yes, you fall in the category of those who should be
    worried about whether or not Congress and the President has got the will
    to act.
        Maj. Traynor. We'd like to make sure that
    the money we are investing in Social Security now will be there 30 years
    from now, 40 years from now.
        The President. Right. Well, don't look at that chart. [Laughter]
    Whatever you do, don't look over your left shoulder--[laughter]--and see
    how much money--because it's not going to be there. So therefore, you're
    interested--let me ask you something. So you've heard about personal
    retirement accounts. Give me--just tell the folks here what you thought
    when you heard it. I mean, people need to kind of get a sense for how
    souls such as yourself, an educated person, obviously interested in the
    future, worried about your and Dan's life,
    think about a new concept for Social Security.
        Maj. Traynor. Mr. President, it gives us
    hope that somebody is willing to address the issue. It's too easy to
    just push it down the road, and it's better to prevent the crisis before
    the crisis takes place.
        The President. That's the first threshold issue. Thank you. You know
    what I found--yes, you want to come back in?

    [Mrs. Bond made further remarks.]

        The President. You probably think I hired her
    or something. [Laughter] Did you talk to my mother this morning? [Laughter] Thanks.
        Look, here's the thing: The threshold question is whether there's a
    problem that needs to be solved. And if there is, then who can come up
    with solutions that work.

    [[Page 131]]

        And so thank you for saying that. I--it's in my nature to confront
    problems. And I really enjoyed giving the speech last night and trying
    to do the very best I could to kind of educate people, is to explain as
    rationally as possible why we have a problem. And the major is typical
    of many 30-year-old citizens around. In the course of two campaigns, I
    campaigned on this issue. Some were saying, ``Oh, don't talk about the
    issue. It's the third rail of American politics. If you touch it, you
    know, you become politically electrocuted.'' [Laughter]
        I don't--I believe that the whole issue has shifted over time. Once
    older citizens are sure they're going to get their check--and I assure
    you you're going to get your check--that younger workers begin to--will
    have a voice in deciding how this issue turns out. Once people say,
    ``Well, there is a problem. What are you going to do about it?''--that's
    what the major just said. And so, Major, personal accounts, any feel for
    that at all?
        Maj. Traynor. The Thrift Savings Plans
    were opened up to the military just a couple years ago.
        The President. You're in one?
        Maj. Traynor. I am in one. I participate.
    What it is, is it's a safe investment, and it allows me to take a
    portion of the income I'm earning and put it away to save it for the
    future. And I'm happy with that, and I like the idea of sharing that
    with the American public and not just limiting it to Federal employees.
        The President. Federal employees--see, she's in a Thrift Savings Plan very similar--in other words,
    we're not inventing something new. What's new is that it would be
    associated with a retirement through Social Security. It's not new. It's
    already being used. It's a plan that is--that Federal employees are able
    to take advantage of. The way we proposed the plan is that you could put
    $1,000--up to 4 percent of your income, which is ever less--in your
    account. And over time, the 1,000 grows. Is that right--up to 1,000, 4
    percent, which ever is less? Yes, I think that's right. It better be
    right. [Laughter]
        So in other words, if you're making 90,000, you'll eventually be
    able to put $3,600 a year away in a personal account. But it starts at
    1,000 and phases in over time, in order to make sure that the--is
    fiscally responsible. So I don't want to know your income, but you could
    start with 1,000, and over time it grows. And as interest compounds,
    Tricia and her husband would have a nice nest egg to complement that which would
    be coming out of Social Security.
        Is that the way you see it?
        Maj. Traynor. Yes.
        The President. That's the way it's going to be, if only we can get
    Congress to vote it in.
        All right, Paul. Paul Thomas.
        Paul Thomas. Yes, Mr. President.
        The President. Where are you from?
        Mr. Thomas. I'm from Velva, North Dakota,
    which is very close to Karlsruhe, North Dakota.
        The President. That's good. I was just thinking the same thing
    myself. [Laughter] What do you do?
        Mr. Thomas. I--just this past March, my
    wife, Karen, of 5\1/2\ years, and my son Jonathan, 4, and Michael, 2,
    returned to our family farm and took over that. We're the fourth
    generation of Thomases to farm that.
        The President. Fabulous. Sounds like a North Dakota tradition to me.
    One thing, before we get in--I've got another issue I want to drop out
    there. In order to make sure that Paul and
    future Pauls are able to stay on the farm, we need to get rid of the
    death tax once and for all. It's being phased out. It's being phased
    out, but it pops back up in 2011. It's going to make for some very
    interesting estate planning in 2010, if you get my drift. [Laughter]
    Like you think it's gone, and then it comes back. Anyway, we'll worry
    about that at another time.

    [[Page 132]]

    [Mr. Thomas, owner/manager, Thomas Grain Farms, Velva, ND, made further
    remarks.]

        The President. Yes, well, thank you, Paul.
    Look, here's an interesting--isn't it interesting. I wonder if 30 years
    ago, we would be having the same conversation. I don't think so. A lot
    has changed. There's a lot of more--there's a lot more awareness among
    younger Americans about what it means to manage your own retirement
    account. After all, it's happening more and more in our society; 401(k)s
    have become a part of how people think. You've just heard from two
    younger Americans who are now saying, ``Give me a chance to manage my
    own money. I feel more secure if I can see that money''--in other words,
    if you own it. I strongly believe in an ownership society. I want more
    people owning their home, own their own business, owning and managing
    their own health care account, and owning and managing their retirement
    account. I think it makes America a better place.
        What do you farm?
        Mr. Thomas. We produce a number of crops,
    principally wheat, sunflowers, peas and lentils, granola and barley--
    quite a few.
        The President. You sure do, yes. You selling any of it overseas?
        Mr. Thomas. Well, they eventually make it
    over there. We have--in our farm, we had also diversified into some
    specific IP crops that went to specific customers where we were able to
    get some better prices for them.
        The President. Yes, one of the things I need to do over the next 4
    years is to continue to open up markets. The reason why is North Dakota
    farmers are real good at what they do, and therefore, if you're good at
    what you do, you ought to have as many markets available for your
    product as possible. And so I appreciate you doing that. And same for
    cattlemen too, by the way. We want our beef going all over the world.
    There's great beef here in America, and people ought to be eating it--a
    lot of them.
        Today, I hope you get a sense of, one, there is a problem. If you're
    an older American, you have no problem. You're in good shape. You don't
    even look older to me. [Laughter] Two, if you're a young person, demand
    that Congress at least address the issue head on and not pass it down.
        Secondly, there are some interesting solutions on the table. All of
    them are on the table as far as I'm concerned. People have made
    interesting--put forth interesting ideas, and I just want the good
    people of North Dakota to listen. It doesn't matter to me whether it's a
    Democrat idea, a Republican idea. If it's a good idea to make this
    system work, I'll listen and work with them. I'll work with people who--
    and also, I hope you can tell I'm willing to put out some ideas of my
    own. I believe part of the role of a leader is to say, ``Well, there is
    a problem, and by the way, here are some ideas that make it work.'' And
    I also want you to know that I'm going to travel our country speaking as
    plainly as I can about a problem that I see, and expecting--because I
    believe, I truly believe that the American people can help decide an
    issue in the Halls of Congress. It's what a democracy does. When the
    people speak, the elected officials listen.
        That's what you're going to find out in Iraq, by the way. That's
    why, ultimately, democratic societies are peaceful societies--because
    most people want peace. Moms and dads from all cultures want to raise
    their child in a peaceful environment. Moms and dads of all cultures
    believe in a child's education and believe in compassion and don't want
    war for their children.
        And so representative government is one that responds to the people,
    and I believe when the people speak clearly on this issue, when they
    recognize there's a problem, they're going to say to the Congress, we
    expect a solution to make sure that younger

    [[Page 133]]

    Americans have got a retirement system that is viable in the years to
    come.
        And so you're witnessing step one of my--of what's going to be a
    series of trips around our great land. I kind of want to tell you
    something, though. Getting out of Washington is healthy, and getting out
    amongst the people is invigorating, and I want to thank you for coming
    out to say hello.
        May God bless you all.

    Note: The President spoke at 11:33 a.m. in the Bison Sports Arena at
    North Dakota State University. In his remarks, he referred to Gov. John
    Hoeven of North Dakota and his wife, Mical ``Mikey''; Joseph A. Chapman,
    president, North Dakota State University; Lt. Gov. Jack Dalrymple of
    North Dakota and his wife, Betsy; North Dakota State Attorney General
    Wayne Stenehjem; former Gov. Edward T. Schafer of North Dakota and his
    wife, Nancy Jones Schafer; President Viktor Yushchenko of Ukraine;
    President Mahmoud Abbas (Abu Mazen) of the Palestinian Authority; former
    President Saddam Hussein of Iraq; and Janet Norwood, mother of Sgt.
    Byron Norwood, USMC, who was killed in Iraq on November 13, 2004, and
    Iraqi citizen and political activist Safia Taleb al-Suhail, both of whom
    were guests of the First Lady at the President's State of the Union
    Address on February 2.