[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.