    [Public Papers of the Presidents of the United States: George W. Bush (2005, Book I)]
    [March 21, 2005]
    [Pages 482-492]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks in a Discussion on Strengthening Social Security in Tucson
    March 21, 2005

        The President. Thank you all. Thanks. Please be seated. Thanks for
    the warm welcome. It is nice to be back in Tucson. The last time I was
    here, remember, we were up dealing with forest fires. And hopefully, the
    Healthy Forest legislation that we got passed, thanks to the help of
    John and Jon and members
    of the Arizona congressional delegation, will help us preserve this
    valuable national treasure.
        I'm here today to talk with some distinguished citizens from your
    State about Social Security. Before I do so, I'd say--I've got some
    other things I want to talk about. [Laughter] First, I want to talk
    about how much I enjoy working with Senator John McCain. I appreciate the job he's doing for the people of
    Arizona. And I appreciate Senator Jon Kyl from
    the great State of Arizona. I'm glad you're being nice to him,

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    because he is on the Senate Finance Committee. [Laughter] They're going
    to write the bill to make sure we have a Social Security system not only
    available for today's seniors but for the next generation coming up.
    That's what we're here to talk about. Senator, thank you for your
    leadership on this issue.
        And how about Congressman Jim Kolbe. Appreciate you being here. Jim
    Kolbe has taken a lead on this issue as well.
    He's doing something that needs to happen. He's reached across the
    aisle; he has found a Democrat partner to help come up with some ideas
    as to how to make sure Social Security is strong for generations to
    come. I'm proud of your leadership, Jim. I want to thank you. He said
    he's been working on this issue for quite awhile.
        I'm proud that Congressman Trent Franks is
    with us, and his wife, Josie. Thanks for
    coming. Congressman John Shadegg is with us.
    I appreciate you being here, John. You allow people from Colorado in the
    State? Yes. Well, if that's the case, then why don't we introduce Bob
    Beauprez, Congressman from Colorado, and
    Congressman Joel Hefley. McCain said, ``Thank you for the water.'' [Laughter]
        Speaking about water, I had a fascinating discussion with your mayor
    about water for Tucson. Mayor Bob Walkup
    and I actually had talked about water my last trip here. He told me that
    he was going to work to put a long-term plan in place to make sure this
    great city and this part of the world has got ample supplies of water.
    Mr. Mayor, thank you for your vision, and thank you for your hard work
    on that issue.
        I'm proud we've got folks from the statehouse here. Secretary of
    State Jan Brewer is with us. Madam
    Secretary, thank you for joining us. Good to see you again. The
    president of the senate and the speaker of the
    house are with us. We're honored you all are
    here. Thanks for coming. Good to see you men again. We got supervisors;
    we got local officials.
        Mostly I want to thank the Tucson Chamber of Commerce for hosting
    this event. I appreciate you being here. Steve Touche and Jack Camper, I'm honored
    that you all would--and the chamber members for inviting us to come and
    have a dialog about a really important issue, which I'm working my way
    toward. [Laughter]
        I know you're playing baseball here. I wish the mighty Diamondbacks,
    with Ken Kendrick, all the best this year. Good
    to see you, Ken. Thank you, sir. Good luck.
        Russell Gursky is with us. Russell, thank
    you for coming. Russ, why don't you stand up. Hold your applause for
    Russell. Russell, you right there. Oh, there he is, sorry. This Russell
    Gursky. He came to the airport. He is a volunteer, 91 years old, still
    volunteering with the RSVP program to provide help at the Tucson Police
    Department. I'm honored for your service. Thank you for volunteering,
    sir.
        A couple of issues I do want to talk about. Democrats and
    Republicans in Congress came together last night to give Terri Schiavo's
    parents another opportunity to save their daughter's life. This is a
    complex case with serious issues, but in extraordinary circumstances
    like this, it is wise to always err on the side of life. I appreciate
    the work of the Senate and the House to get that bill for me to sign
    last night at about 1:08--or this morning, at about 1:08.
        I also want to say something about the freedom agenda. I appreciate
    the strong support of Senator McCain, Senator
    Kyl, members of the congressional delegation for
    understanding that everyone desires to be free, that deep in everybody's
    soul is the desire to live in a free society. And they also understand
    that free societies are peaceful societies and that if you're interested
    in a peaceful world, which we're interested in, for our children and our
    grandchildren, the best thing to do is to spread freedom, which is
    precisely what is taking place. I want to assure you that over the next
    4 years, we will work with our friends and allies to encourage those who
    live

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    under tyranny to be bold and confident and to follow their hearts. We
    will work with friends and allies to make the world a more peaceful
    place by spreading freedom.
        And freedom is on the march. Just think about what has happened in
    Afghanistan, for example. Millions went to the polls after they were
    shackled by the Taliban. We acted in our own self-interest. We upheld
    doctrine that said, ``If you harbor a terrorist, you're equally as
    guilty as the terrorist.'' As a result of our action in self-defense and
    defending America, millions of people in Afghanistan are now free. The
    first voter in the election was a woman.
        The Ukraine had elections. There will be a Palestinian state, a
    democracy living side by side with our close friend and ally Israel,
    which will lead to peace. And then in Iraq, millions went to the polls
    in spite of the terrorists, in spite of the threats. You know why?
    People long to be free, and if just given the chance, they'll take the
    risk necessary to be free.
        These are exciting times. And I appreciate so very much working with
    people in the United States Congress who understand the deep desire for
    all souls, regardless of religion or where they live, to realize the
    greatest gift the Almighty can provide, and that is freedom to each man
    and woman in this world.
        I've got one other issue I want to talk about. I appreciate the fact
    that our economy is growing. You've got a, I think, about a 4 percent
    unemployment rate here in the great State of Arizona. That's a good
    sign. People are working. Today, more people are working in America than
    ever before in our Nation's history. And I want to thank the
    entrepreneurs who are here and the small-business owners and the
    dreamers and doers and job creators.
        But like you, I'm concerned about our energy prices. I'm concerned
    about the fact that we're--people are seeing more--paying more at the
    pump. And so I urge the Congress to stop debating and get an energy bill
    to my desk. We need an energy bill that encourages more conservation, an
    energy bill that works on renewable sources of energy, an energy bill
    that modernizes the electricity grid, an energy bill that allows for
    environmentally safe exploration for natural gas in our own homeland. We
    do not need an energy bill that provides tax breaks for oil companies.
    We need an energy bill that is a--that represents a broad strategy to
    encourage better use of energy and to find more energy so we become less
    dependent on foreign sources of energy.
        Now, let me talk about Social Security. First of all, right off the
    bat, I want to tell you, one of my predecessors did a smart thing.
    Franklin D. Roosevelt did a good thing in creating the Social Security
    system. The system has provided a safety net for millions of seniors. I
    want you to hear--you'll hear it more than one time--if you're a person
    now receiving a Social Security check, nothing will change for you. This
    United States Government will keep our promise to people who have
    retired or near retirement. Nothing is going to change. I don't care
    what the fliers say; I don't care what the ads say; I don't care what
    the political rhetoric says. If you're getting a check, nobody is going
    to change the system for you. And that's important for you to hear.
        Listen, I can understand people being nervous about a Social
    Security dialog. You know, sometimes that just means, ``Because Bush and
    McCain and others are talking about it, that
    means somebody is going to take my check away.'' It's just not going to
    happen. The system--the safety net is in good shape for people born
    prior to 1950.
        There are holes in the safety net, however, for a generation of
    Americans coming up, and I'll explain to you why. The math has changed.
    The math has changed this way: Baby boomers like me are getting ready to
    retire, and there's a lot of us. I turn 62 in 2008--it's a convenient
    date

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    for me to retire. [Laughter] We're living longer. We're living a lot
    longer today than people were living when Franklin Roosevelt created the
    system. You've got a lot of us baby boomers getting ready to retire, and
    we're living longer. Plus, for years people ran for office saying,
    ``Vote for me; I'm going to increase your Social Security benefits if I
    get in.'' And they fulfilled those promises. My generation is going to
    be getting more--a better benefit package than the previous generation.
    So you're beginning to get part of the equation: a lot of us, living
    longer, getting better benefits than the previous generation. But
    there's not a lot of people putting money in the system anymore.
        You see, in 1950, there was 16 to 1 workers--16 workers for every
    beneficiary paying into the system. It means each worker didn't have
    much of a load to carry when it came to making sure that somebody who
    has retired got their benefits. Today, there are 3.3 to 1--3.3 workers
    paying into the system. Soon, there will be two workers paying in the
    system. More people getting greater benefits, living longer, and fewer
    people paying for us. That's a problem. And it's a problem that begins
    to manifest itself in 2018 when the Social Security system goes into the
    red.
        Now, let me tell you something about the Social Security system.
    It's not a trust. A lot of people think, well, we're collecting your
    money and we're holding it for you, and then when you retire, we're
    going to give it back to you. That's not the way it works. We're
    collecting your money, and if we've got money left over--in other words,
    if there's more money than the benefits promised to be paid, in our
    hands, we're spending it and leaving behind an IOU. That's how it works.
    It's called--as a pay-as-you-go system. You pay; we go ahead and spend
    it. [Laughter]
        In 2018, the system goes into the red, and every year thereafter, if
    we don't do anything, if we do not address the problem, it gets worse
    and worse and worse. To give you an example, in 2027, the system will be
    $200 billion in the red--in other words, 200 billion more to pay for the
    retirements promised to people like me who are living longer than coming
    in in payroll taxes. And it's 300 billion about 12 years later. In other
    words, we've got a problem out there. It's not a problem for me. It's
    not a problem for one senior in Tucson who's receiving a check today,
    but it's a problem for your grandchildren.
        You see, the question is how your grandchildren are going to pay for
    these promises the Government has made. And that's what--and that's the
    problem that Congress must address. See, my attitude is, I'm going to
    spend a lot of time traveling the country saying, ``Here's the
    problem,'' and then say to people in Congress, ``Bring your ideas.''
        So in my State of the Union Address, I stood up and said all ideas
    are on the table except raising up the payroll tax rate--all ideas. See,
    this isn't a Republican issue or a Democrat issue; this is a national
    issue that requires people of both parties to give a national response.
    That's what the people want, and that's what the people expect. The
    people expect people of good faith to take on an issue today so we can
    solve it for a generation to come. That's why we ran for office in the
    first place.
        A couple other points I want to make. Laura
    told me--by the way, she's doing fabulous. I'm a lucky man to have
    married Laura Bush. She just said, ``Make sure you remember there's
    others on the stage who need to talk too.'' [Laughter] In other words,
    ``Keep it short.'' But I'm just getting wound up. I've got a couple
    other things I want to share with you.
        Congress needs to hear from the people that this needs to be a
    permanent fix. I mean, when we sit down at the table, let's make sure we
    solve this problem once and for all. Now, in 1983, President Reagan, Tip
    O'Neill, Bob Dole, I think, other Members of
    the House and the Senate saw a problem. They came together, and they put

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    together what they call a 75-year fix. The problem is, we're about 22
    years after 1983, not 75 years. The math is such that there's no such
    thing as a 75-year fix. They may tell you there's a 75-year fix, but
    there's not.
        When we sit down at the table, my call to the United States
    Congress--and I know Senator McCain agrees with
    me on this--let's fix it once and for all. Let's do our duty and
    permanently fix Social Security.
        I want to share one other idea with you, and then we're going to
    talk to our panelists here. It's an idea that I know that has been in
    the news. It's an idea to allow younger workers to take some of your own
    money and set it aside as a personal savings account. Let me tell you
    why I like this idea. First of all, it's voluntary. Nobody is saying to
    a younger worker, you must set aside a personal savings account. We're
    saying you can if you want to, take some of your payroll taxes and put
    it aside. After all, it's your money to begin with.
        Secondly, a personal savings account in a conservative mix of bonds
    and stocks will yield a greater rate of return than money that--that
    your money is earning now. And that's important, because over time, that
    money grows. Over time, there's a compounding rate of interest. Let me
    give you an example. If you're a $35,000-a-year worker over your
    lifetime, and you're allowed to put a third of your payroll taxes into a
    personal account, and you start saving at 21, by the time you retire,
    that account will have accumulated $250,000. That will help you with
    retirement. See, money grows, and the better rate of return you get, the
    more the money grows. And the rate of return we're getting on your money
    now is abysmal compared to a mix of conservative bonds and stocks. And
    so, in other words, you get a better deal.
        In order to fix permanent--Social Security permanently, there needs
    to be some things we've got to do, and I've laid them out on the table.
    But this is a way to make the system work better for the individual. And
    I think we need to be thinking about the individual when it comes time
    to making the Social Security system work better, because if you allow a
    person to take some of their own money and it compounds with a rate of
    interest, it means the nest egg that person is going to have is going to
    be more closely tied--more closely resemble that which the Government--
    the promise the Government can't keep.
        You see what I'm saying? In other words, when we fix the system,
    there're promises the Government has made that it can't keep. But one
    way to allow an individual worker, if they so choose, to have a
    retirement system that's closer to that promise is to allow that worker
    to get a better rate of return, a better compounding rate of return over
    time.
        Secondly, I think if you own something, you have a vital stake in
    the future of the country. I think we ought to encourage ownership
    throughout America. I like the idea of people having their own account
    that they can manage themselves.
        Thirdly, I like the idea of people from all walks of life being able
    to own an asset and pass it on to whomever they choose. That hasn't been
    the case throughout our history. If you think about the history of
    America, only a certain group of people have had assets they pass on.
    That's not the America I know. We want to encourage ownership throughout
    our--all our society. You know, they say, ``Well, only certain people
    can invest; this is too difficult.'' I just don't agree with that. I
    don't agree there's only a certain investor class in America. I think a
    society that's a hopeful society is one that encourages all people to
    own and invest. Please don't tell me only a certain kind of person can
    invest.
        You know how I know that that's not the case? We got this kind of
    plan already in place, the Federal employee Thrift Savings Plan. I'm not
    here on stage inventing something new; I'm here saying, if this is good
    enough for Federal employees to be able to take some of their own money
    and

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    set it aside in a conservative mix of bonds and stocks, it ought to be
    good enough for the worker who doesn't work for the Federal Government.
        So that's what I think we ought to consider, for the sake of the
    worker. I think we ought to say, you know, there's a 401(k) culture in
    America--in other words, more and more people are investing their own
    money. They know what it's like. Why don't we extend this concept to
    make it available for younger workers, if they choose to do so. If a
    younger worker says, ``Let me do this,'' it seems like to make a lot of
    sense to me for the Federal Government to say, ``You bet. We'll give you
    an opportunity to make sure you get a better deal out of the Social
    Security system.''
        And so I'm looking forward to discussing this idea with members of
    both political parties. It's a powerful idea. A lot of people have
    thought about it before me. A lot of Republicans liked it; a lot of
    Democrats thought it was an interesting idea in the past; and it ought
    to be on the table.
        Now, we've got some people with us who know--they know what they're
    talking about on this subject, starting with Lee Abdnor. Lee is right here to my left. Lee, tell us what you
    do.

    [At this point, Leanne Abdnor, former member, President's Commission to
    Strengthen Social Security, made brief remarks.]

        The President. What Lee is talking about
    is when we first got into office in 2001, I think it was, is I asked
    Senator Daniel Patrick Moynihan, former colleague of John
    McCain's and Jon Kyl's,
    from New York, Democrat Senator, to chair a panel on Social Security. I
    saw it was a problem; others saw it was a problem. And they put
    together--we put together a group of eight Republicans and eight
    Democrats who sat down at the table and said, ``Why don't we come up
    with some ideas for Congress to look at.''
        First of all, I appreciate the spirit. If you noticed, eight
    Democrats and eight Republicans sat down at the table to discuss things
    in a positive way. It wasn't to sit down and say, ``My party is better
    than your party, or your party is deficient here.'' It was to sit down
    to say, ``We care deeply about the future of the United States of
    America, and so why don't we sit down in the spirit of reform and
    discuss the issue.''
        And I want to thank you for serving on the panel, Lee. I presume there was no fistfights or anything else.
    [Laughter]

    [Mrs. Abdnor made further remarks.]

        The President. And one of the interesting things that came out of
    this Commission--there was a guy named Pozen
    on there; he's a Democrat fellow who put forth some interesting ideas
    that I know the Congress is looking at, and that we can make sure this
    system takes care of low-income retirees. In other words, there are ways
    to make sure the system is progressive. And I appreciated his
    suggestion, and it's an interesting idea that I know that some in the
    Senate are looking at and some in the House are looking at.
        My point is, it doesn't matter who thinks of the idea. I think it's
    for the sake of the future of this country that people ought to sit down
    and put their ideas forward. Somebody who is willing to do so and
    somebody who understands the need to get the job done is Senator John
    McCain. I want to thank you. He and I have
    discussed this issue a lot, and so I'm confident in telling you he cares
    deeply about the issue and is willing to take the risk necessary to work
    with people of both parties to get this problem solved.
        Welcome, Senator.

    [Senator John McCain made brief remarks.]

        The President. Thanks, John.
        Joan Richardson--Joan, thank you for
    joining us. Appreciate you coming. Live right here in Tucson?

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        Joan Richardson. Yes, I do, Mr.
    President. Thank you.
        The President. Nice place?
        Mrs. Richardson. It's a pretty good
    place. I've been here 40 years.
        The President. It seems like--40 years?
        Mrs. Richardson. It's grown a little
    bit.
        The President. Yes. It's a spectacular place. Tell us about your
    issues with the Social Security system, if you don't mind.

    [Mrs. Richardson, retiree, made further remarks.]

        The President. Listen, let me make sure people understand what
    Joan just said. She's working; she's putting
    money in the Social Security system. Her husband was too. He passed
    away. All the money he put into the system didn't go to Joan. She had a
    choice to make: Either take the survivor benefits as a result of his
    contributions or the check as a result of her own contributions, but not
    both. Think about the system. The husband dies early; all the money just
    disappears into the system. That's not fair, is it?
        One reason why you ought to encourage--I think people ought to be
    allowed to take some of their own money and set it aside so it earns a
    better rate of return than their own money in the system, a nest egg
    they call their own, is to take care of situations like this.
        Unfortunately, it happens quite often. And a personal account would
    certainly help, because the--in this case, the husband would have left
    it for Joan, and she would have something to
    live on. Now, you can't liquidate your personal account when you retire.
    It's the interest off your personal account that will complement your
    Social Security check, no matter how big or little it is, that you're
    getting from the Federal Government. That's important to remember. But
    as a pass-through to your family member, Joan could liquidate the
    account and have lived on that and helped her and her family.
        So thanks for sharing that, Joan. I know
    it was hard, but you did a fine job. I appreciate you being here.
        Mrs. Richardson. Thank you, sir.
        The President. Mr. Jack Moore, straight out
    of Tucson, Arizona.
        Jack Moore. Thank you, Mr. President.
        The President. Welcome.
        Mr. Moore. I have lived here in Tucson since
    1947.
        The President. Really?
        Mr. Moore. Except for 2 years of military
    service.
        The President. That must have been like--what was it like in 1947?
        Mr. Moore. There were 48,000 people here in
    those days. [Laughter] I retired----
        The President. Did they have a lot of airplanes at the----
        Mr. Moore. No. [Laughter]
        The President. No.

    [Mr. Moore made further remarks, concluding as follows.]

        Mr. Moore. Today, I'm very grateful to have
    that safety net. But I'm also fully aware, sir, that this is not about
    me; it's about the 30-year-olds today and the children and the
    grandchildren today, of which I'm happy to say that two, wherever they
    are, Heather and Alicia----
        The President. Don't hide now. There they are. Lousy seats. Wait a
    minute. [Laughter] You thought they would have got a better seat with
    their grandfather up here starring the way he is.
    [Laughter] Sorry about that. I'll talk to the advance man, you know.
    [Laughter] Blame it on the chamber. [Laughter]
        Go ahead. This is a generational issue. Jack,
    do you have any concern that you're not going to get your check?
        Mr. Moore. Oh, not a bit. This is not about
    me.
        The President. I appreciate him understanding that. Some are
    concerned you're not going to get your check; I know that. Some seniors
    hear the debate, and all they think is, ``Well, that just means old
    George

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    W. is going to make sure I don't get my check.'' That's just not the way
    it's going to work, folks. And Jack understands
    that. Once you understand that, if you've got your check here in
    Arizona, then do you know what the next question is going to be? Just
    like Jack, ``What are you going to do for my grandkids? You've got a
    problem, Members of Congress, Mr. President; go fix it now so that we
    don't saddle my grandkids with an unnecessary burden.''
        I appreciate your spirit, Jack. Thank you.
        Mr. Moore. Thank you, sir.
        The President. Appreciate that.
        Mr. Moore. And if I may, I appreciate you,
    sir, for your dedication and perseverance and taking on the hard issue
    such as updating Social Security.
        The President. Well, let me tell you my theory on this--not my
    theory; my view. [Applause] Thank you all, but here's what I believe. I
    know the Senator believes this--I know Senators
    believe it; I know Members--these Members of the House believe it. Our
    job is not to pass problems on to future Presidents or future
    Congresses. That's not why we ran for office. We ran for office, and we
    said to the people, ``When we see a problem, in good faith we will work
    together to solve it.'' That's what we said. This is a problem; now is
    the time for members of both political parties to work together to solve
    the problem so that a person like Jack says to
    Members of the Congress, both parties, ``Job well done, you've done what
    we expected you to do.''
        Mary-Margaret Raymond, welcome.
        Mary-Margaret Raymond. Thank you
    very much, Mr. President.
        The President. I appreciate you being here.
        Mrs. Raymond. Oh, my great
    pleasure.
        The President. Well, this is a lot of fun, isn't it? [Laughter] It's
    not exactly what you thought you'd be doing last week, is it?
        Mrs. Raymond. Yes.
        The President. Oh, it was? Okay. [Laughter] Shows you what I don't
    know. [Laughter]
        Mrs. Raymond. I've lived--I'm 84
    years old, and I've lived in Tucson 80 years.
        The President. Hold on for a minute, 80 years?
        Mrs. Raymond. Yes.
        The President. How many people lived back 80 years ago? [Laughter]
        Mrs. Raymond. Well, I didn't go to
    the university 80 years ago, but when I went to the university, I
    majored in public administration, and the major thing we had to learn
    about was the Social Security Act, because it passed in 1935. And when I
    got a degree from the University of Arizona in 1942, during the Second
    World War, we learned the basic principles of the Social Security Act.
    And except for the tinkering that they've done with it, it hasn't
    changed much.
        The President. Right, you're right.
        Mrs. Raymond. That's not good.
    [Laughter] Your refrigerator has changed--[laughter]--your automobile
    has changed; your education principles have changed. So it's time to
    look into Social Security. I'm all for you.
        I want to say this to my generation, particularly my generation of
    women: The President and everybody else concerned over this has said, if
    you're 55 years old and older, it's not going to make any change in what
    you get from the Social Security. Get off of your stick and quit
    worrying. What a waste of time. Get busy and learn about it.
        The President. It sounds like you were well-educated at the
    university--are you pulling for the Wildcats in the basketball
    tournament?
        Mrs. Raymond. You bet I'm for the
    Wildcats. I'm a darn good Wildcat.
        I think that the Social Security Act, along with a lot of other
    things, has many good points. But it needs to be updated.
        The President. I appreciate that.

    [[Page 490]]

        Mrs. Raymond. And I think you are
    the person that can do it.
        The President. Yes, ma'am. [Laughter] Thank you. Just tell your
    friends, I can't do it alone. That's why I'm traveling the country. I
    think this is my 17th State since the State of the Union Address. I'm
    enjoying getting out of Washington. I like coming to places--I like
    Tucson and talking to folks like Mary-Margaret, and I'm going to continue. It doesn't matter how
    long it takes for the--I'm going to work as hard as I can to tell the
    people, these are the facts. I'm not making anything up. These are the
    facts. And now is the time for people to come together to solve this
    problem.
        Seniors have nothing to worry about. You're going to get your check.
    But younger folks, the ones they say aren't paying attention to
    politics--first of all, they are paying attention to politics. But,
    secondly, younger folks ought to be paying close attention to this
    issue. This is an issue that's going to affect your pocketbook. And
    that's why we asked Valerie Gallardo-Weller to join us. Valerie, welcome.
        Valerie Gallardo-Weller. Thank
    you very much.
        The President. Proud you're here. Thanks for coming. What are you
    doing these days? How are you--besides sitting on the stage with
    McCain, how are you occupying your time?
    [Laughter]

    [Mrs. Gallardo-Weller, dispatcher, Southwest Gas Corp., Phoenix, AZ,
    made brief remarks.]

        The President. Let me interrupt you there. I'm sorry to interrupt,
    but let me--I don't remember talking about 401(k)s when we were growing
    up. As a matter of fact, baby boomers like me really weren't thinking
    about what's now called a defined contribution plan. In other words,
    first of all, we never worried about Social Security. We never talked
    about Social Security. But we were never really thinking about setting
    aside retirement accounts which we would manage. In other words, when I
    was 33 years old, I don't think a lot of people my age were talking that
    way. And now you've got a 33-year-older sitting on the stage with the President saying, ``I
    set up my own 401(k).'' In other words, she's investing her own money.
        Is that not true?
        Mrs. Gallardo-Weller. My father
    made me. [Laughter]
        The President. Sometimes dads impart knowledge. [Laughter] Girls,
    remember that, will you? Anyway--[laughter].
        Mrs. Gallardo-Weller. And I do
    thank him for it. He's right there.
        The President. There he is. Good job, Dad. You're just warming up.
    You're doing good.

    [Mrs. Gallardo-Weller made further remarks.]

        The President. It's a very interesting statement she just said. It's the new reality of the Social
    Security system. Do you realize--one time a young person walked up to me
    and talked about a survey that said young people in America thinks it's
    more likely they'll see a UFO than to get a Social Security check.
    [Laughter]
        Senator McCain. On the issue of personal
    savings accounts, my friend, I think you should understand that not only
    do Federal workers but also Members of Congress can avail themselves of
    it. We can invest in one of five different groups. The average return of
    those five different groups over many years now has been between 6 and 9
    percent. Compare that with the 1.8 percent that is the interest on the
    money that goes into the Treasury. My friends, this is not the solution
    to Social Security, but isn't it a way to help everyone's retirement and
    give them a much better kind of lifestyle than the one they would get
    under the present system? Private savings accounts work. They have been
    proven to work not only in America but all over the world, and we ought
    to really strongly support it.

    [[Page 491]]

        The President. In other words, what the Senator says, you can't take your money and put it in the
    lottery. [Laughter] You've got a lottery here? You do? Well, you can't
    use it in the Arizona lottery. You put it in a conservative mix. In
    other words, there's a range of options. I don't know, are you
    comfortable with that concept?
        Mrs. Gallardo-Weller. Actually,
    I am. In the 9 years that I've been putting in the most--maximum
    amount--I work for a good company that matches it, and I thank the
    Southwest Gas for that--but I've seen, even with the country and the
    economy going up and down, I've seen a positive rate of return.
        The President. And do you get a quarterly statement of what--how do
    you catch up with----
        Mrs. Gallardo-Weller. I do get a
    quarterly statement, and I can see where things are moving, and it's
    long term. My 401(k) is not something I'm putting in for now; it's long
    term. So, from what I understand, your plan pretty much does the same
    thing.
        The President. Well, absolutely. You can't--in other words, if this
    is a part of a personal--personal accounts are part of the Social
    Security, you can't pull your money out until it comes time to retire.
    And then you can't pull out the capital; you pull out the interest and
    you live on it, and then you leave your money to whomever you want.
    That's the way it works. It is a long-term hold.
        You know, how about the idea of younger folks on a quarterly basis
    watching their asset base? Now, think about that. Doesn't that make
    sense for Americans all across this country to open up their mail and
    say--watch their assets--``Here's my worth.'' This is a real asset as
    opposed to a promise that the Government may or may not be able to keep,
    but an asset, something you call your own.
        And let me say one other thing. The more savings that we have
    available in our economy, the more money available for investment; the
    more money available for investment, the more our entrepreneurial spirit
    remains strong; and the stronger the entrepreneurial spirit, the more
    likely somebody is going to find a job. In other words, encouraging
    savings is good for our economy.
        Listen, I want to thank our panelists. I want to thank you all for
    coming. I hope you found this to be as interesting a discussion as I
    did. I hope you all take away from here this--a couple of things. One,
    if you're a senior, you're going to get your check. Two, we've got a
    problem for younger Americans. Three, now is the time to solve the
    problem. The longer we wait, the more difficult it is going to be to
    solve the problem. And four, there are some interesting ideas that
    empower the individual, that make the system better for the individual
    American.
        I'm going to keep talking about it. I know the Senator is going to keep talking about it. You talk about it.
    You talk about it to your friends and neighbors. This is an issue that
    the American people will--help decide the future on this issue. I'm
    absolutely convinced of it, because once the Members of Congress hear
    from the people that there is a serious problem, the next question from
    the people is going to be, ``What are you going to do about it?''
    And the Members here--that are here and the Senators that
    are here, we're ready to work with people to get it done.
        I want to thank you for giving us a chance to come and discuss this
    issue. I want to thank the chamber. God bless you all.

    Note: The President spoke at 11:45 a.m. at the Tucson Convention Center.
    In his remarks, he referred to Mayor Bob Walkup of Tucson, AZ; Arizona
    Secretary of State Janice K. Brewer; Ken Bennett, president, Arizona
    State Senate; James P. Weiers, speaker, Arizona State House of
    Representatives; Steve Touche, chairman of the board, and John C.
    ``Jack'' Camper, president, Tucson Metropolitan Chamber of Commerce; Ken

    [[Page 492]]

    Kendrick, lead general partner, Arizona Diamondbacks; Robert and Mary
    Schindler, parents of Theresa Marie Schiavo, Florida hospice patient who
    was receiving nutrition and hydration by tube until it was withheld by
    court order on March 18; former Senator Bob Dole; and Robert C. Pozen,
    former member, President's Commission to Strengthen Social Security.