[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,

[[Page 483]]

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

[[Page 484]]

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

[[Page 486]]

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?

[[Page 488]]

    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

[[Page 489]]

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.

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    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

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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.