[Public Papers of the Presidents of the United States: George W. Bush (2005, Book I)]
[May 19, 2005]
[Pages 823-834]
[From the U.S. Government Publishing Office www.gpo.gov]



Remarks in a Discussion on Strengthening Social Security in Milwaukee, 
Wisconsin
May 19, 2005

    The President. Thank you all very much. Pleased be seated. Thanks 
for coming. Thanks for the warm welcome. Dennis, thank you very much. I'm so honored that the MMAC 
would host this reception--or this conversation. Thanks for coming. And 
I appreciate Tim Sheehy as well, the 
president. I thank the members who are here for allowing me to come by 
and have a conversation with some of your fellow citizens about an 
incredibly important topic, and that is the Social Security system.
    But before I get there, I've got some other things I want to say, if 
you don't mind. [Laughter] First, I'm sorry Laura 
is not traveling with me today. She is--you probably think she's home 
preparing a few one-liners. [Laughter] She's not; she's home packing her 
bags. She is off to Jordan and Egypt and Israel to represent our 
country. I can't think of a better representative than Laura Bush. She's 
going to help advance the freedom agenda, which is really the peace 
agenda. The more freedom there is in the world, the more this world will 
be a peaceful world.
    It's been an incredible time. It's been an amazing time, hasn't it, 
to watch and to see these people around the world demanding their 
freedom. And it's such an honor to be a part of helping people realize 
the great potential of a free society. It was an amazing moment to stand 
in Georgia--Tbilisi, Georgia, in front of over 150,000 people that were 
so thrilled to see a representative of the United States, and they

[[Page 824]]

were thrilled to see us there because we stand for freedom and human 
dignity and the belief that everybody counts and that you ought to be 
able to worship freely. I hope you take great pride in what America 
stands for and know that, as we spread not American values but God-given 
values around the world, this world is a better place.
    I want to thank Congressman Paul Ryan. He's 
one of the bright lights in the United States Congress, a very sharp 
guy. He jumped on Air Force One--easy ride home, right, Ryan? [Laughter] 
Are you going back? Oh, he is going back. Good. But we spent a lot of 
time talking about this issue. He's a smart guy and cares a lot about 
the Social Security issue. I really appreciate you taking time out to 
come and hear this discussion.
    I want to thank Andrew Ziegler, the 
president of the Milwaukee Art Museum, and David Gordon for letting us come by. What a fantastic building. I 
mean, it's really--I know you're incredibly proud of this fantastic 
facility, and I know the citizens of Milwaukee support it strongly, as 
you should. So thanks for letting us come by and use this facility. It's 
a--look at it this way, it's a chance to show it off for the world, to 
the extent the world is watching C-SPAN.
    I had an amazing experience. I stopped by a business here called 
OnMilwaukee.com--[applause]--a little bit of a following. Things are 
catching on. I rode over here with Jeff Sherman 
and Andy Tarnoff, two young guys, Milwaukee 
citizens who started this company, entrepreneurs who took risk and have 
put out a product people obviously want. It's a fast-growing little 
business. I met our participants over there to talk about what we're 
going to do here, but also, I love to see entrepreneurs. You know, part 
of the role of Government is to create an environment in which people 
are willing to take risk and--which means low taxes, reasonable 
regulation. We've got to get rid of all these junk lawsuits that are 
threatening small businesses, the job creators. But I want to thank Andy 
and Jeff and their employees or associates for welcoming me there. And 
it was--thanks for putting me on the front page of today's addition. 
[Laughter]
    I also want to welcome Jack Voight, the 
State treasurer, and the State Senate majority leader, Dale 
Schultz. Hey, Dale, tell your wife hello. We traveled on a bus together.
    Let me start off on Social Security by saying this: Franklin 
Roosevelt did a smart thing in setting up a safety net for people who, 
when they retired, would know they would be able to more likely live in 
dignity upon retirement. He did a smart thing. And it worked. Social 
Security worked for a long time. As a matter of fact, I fully understand 
that right here in the State of Wisconsin, a lot of people are counting 
on the Social Security check. In other words, Social Security is really 
important for a lot of people's lives. In my home State of Texas, a lot 
of people rely solely on their Social Security check.
    And as we discuss Social Security, it's important for the people of 
Milwaukee to understand and Wisconsin to understand that this discussion 
we're having really is not about you, but it's about your children and 
your grandchildren, because I can look in the camera and say with 
absolute certainty, ``If you're on Social Security today, nothing will 
change. You will get your check.'' The system is solvent enough--the 
system is solvent for people born before 1950.
    The reason I have to say that is because many of you are aware of 
what takes place in politics. People say the darndest things to try to 
change people's opinions. They might say, ``If old so-and-so gets 
elected, you're not going to get your Social Security check.'' In other 
words, people have been using Social Security to scare seniors to vote 
one way or the other for a long period of time. And so therefore, when 
I'm talking about the reform, I want you to recognize,

[[Page 825]]

one, Social Security is important, and two, if you're a senior, you have 
nothing to worry about. You will get your check.
    But if you've got a grandchild, you've got plenty to worry about if 
you care about your children and your grandchildren. And here's why--
here's why. There's a lot of us getting ready to retire. We're called 
baby boomers. I'm one. As a matter of fact, my retirement age is in 
2008. [Laughter] I turn 62 in 2008; it's kind of convenient. [Laughter] 
And there's a lot of us. As a matter of fact, by the time the baby 
boomers fully retire, there's going to be over 70 million of us. That's 
compared to 40-some odd million today. So the number of retirees that 
the system will have to take care of is increasing dramatically, and 
we're living longer.
    A lot of baby boomers have been working out and taking care of our 
bodies, making good choices, and medicine is better, and we're living 
longer. It's just a fact. We're living longer than the previous 
generation, and we've been promised greater benefits. People were 
running for office saying, ``Vote for me. I'm going to give you more 
benefits when it comes to Social Security.'' And sure enough, they got 
elected, and they kept their promise. And so you've got a lot of people 
getting ready to retire who are living longer who are getting greater 
benefits, and fewer people paying into the system.
    In 1950, there was, like, 15 workers to one beneficiary. In other 
words, you had a lot of workers relative to the number of beneficiaries. 
Today, there's 3.3 workers per beneficiary. Relatively quickly, it will 
be two workers per beneficiary--fewer people paying greater benefits to 
a greater number of people who are living longer.
    Now, secondly, Social Security is not a savings account. In my 
travels around the country, I hear people say, ``Why don't you just give 
us the money back we put in?'' But that's not the way Social Security 
works. It's a pay-as-you-go system. You pay; we go ahead and spend. 
[Laughter] You pay through payroll taxes. We spend on paying for the 
beneficiaries, the retirees for that year. But if we've got any money 
left over, we didn't save it for you. We spent it on Government. That's 
the way it works. It's a pay-as-you-go. And then there's--all that's 
left over is a file cabinet full of IOUs. I have seen the file cabinet 
in West Virginia firsthand, and I saw all the IOUs. But the system is 
not the kind of system where we're holding the money for you. That's not 
the way it works. We're spending your money and left behind some paper 
that can only be good if the Government decides to redeem the paper. 
That's a pay-as-you-go system.
    The pay-as-you-go system starts to go in the red, because it's going 
to pay out more in benefits than it collects in taxes, in 2017. That's 
12 years from now. If you've got a 6-year-old child, that will be about 
the time your child starts to drive, if the driving age is 18 here in 
Wisconsin. In 2027--and by the way, the situation gets worse every year, 
fewer people paying in for more beneficiaries. In 2017, the system will 
be $200 billion for that year in the red. I don't know where they're 
going to get the money. Every year it gets worse. In 2032, it's like 
$300 billion in the red. In 2041, it's bust.
    Now, if you're a senior, you have nothing to worry about because 
it's got plenty of money for you. But if you're a young worker, a young 
entrepreneur, a young mom paying into the system, you're paying into a 
bankrupt system unless the United States Congress decides to act.
    Now, I see a problem. I fully recognize that some in Washington 
don't see a problem. They'd rather kind of sweep this issue under the 
rug. But that's not the job of the President. The job of the President 
is to confront problems and not pass those problems on to another 
President or another Congress or another generation. And I realize if we 
don't act, it's going to cost $600 billion a year because of inaction. 
And I realize if we don't act, we're liable to

[[Page 826]]

saddle a younger generation of Americans with an 18-percent payroll tax 
to make good for the promises that you've made for me. And that's not 
fair, and that's not right.
    And so I went in front of the Congress and said, ``We got a 
problem.'' I said it at the State of the Union. I also told the 
leadership that I plan on campaigning on this issue, in other words 
traveling the country doing exactly what we're doing here, making it 
perfectly clear to the American people we have a problem. Guess what. 
They now know we got a problem. And that's bad news for people in 
Washington, DC, who would rather do nothing, because once the people 
figure out we got a problem, the next question they're going to say to 
Members of the United States Congress is, ``What do you intend to do 
about it?''
    Now, I have an obligation to do more than just say we got a problem. 
I've got an obligation to say, ``Here's some ideas that we got to work 
on.'' First, anything we do, we got to make sure that future generations 
receive benefits equal to or greater than benefits enjoyed by today's 
seniors. I think that's a reasonable principle.
    Secondly, I believe that--I know we can solve a lot of the issue by 
embracing what's called progressive indexing of benefits. It's a long 
word, fancy words for this. Here's what happens: The promises Congress 
has made says that your benefits will raise--rise based upon wage 
increases. If you were to say to the upper income folks, ``Your benefits 
will raise--rise based upon inflation,'' you've gone a long way to 
solving the solvency problem. It sounds simple, but it basically means 
that poor people won't have to retire into poverty, and the wealthier 
people in America will get benefits that increase with the rate of 
inflation--for people born prior to 1950--I mean, after 1950.
    That progressive indexing plan does a couple of things. One, I think 
it is an important principle to say to somebody who has been working all 
their life in a hard job that you're not going to retire into poverty. 
America can make that promise, and it's a promise we ought to make for 
people. It makes sense. We want our people retiring with dignity. That's 
one way to make the Social Security system better.
    But it also makes sense to say to somebody who doesn't think they're 
going to see any benefits anyway, ``You're going to get benefits. 
They're just not going to grow quite as fast. They'll grow. They're 
going to be bigger--equal to or bigger than their previous generation. 
They're just not going to be quite as big as the Government promised 
you--that politicians promised you. They'll be bigger, but for the sake 
of solvency and permanency, if we don't do this, you're going to be 
saddled with a $200-billion-a-year bill in 2027.'' In other words, 
there's a reasonable approach that I'm confident that Congress, if it 
takes a look at, will see it is reasonable.
    Now, we've got to come together and solve other problems to make 
sure we permanently solve the issue. I keep saying ``permanently'' 
because I remember in 1983 when President Reagan and Speaker O'Neill, in 
the spirit of bipartisanship, said, ``We got a problem with Social 
Security,'' and they came together and said, ``We're going to put out a 
75-year fix.'' The problem is, we're now 22 years later, and that 75-
year fix didn't stick. In other words, if we're going to sit down at the 
table, let's get it done forever. Let's say to a younger generation of 
Americans, we're going to permanently solve the Social Security issue so 
you can grow up with peace of mind.
    I'm almost through. I think as we permanently fix the system, 
there's an opportunity--I know there's an opportunity to make the system 
a better deal for younger workers. And so I've asked Congress to 
consider this idea: Younger workers ought to be allowed to take some of 
their own payroll taxes, if they so choose, and set up a personal 
savings account. Some of the taxes will be in a--that they pay; after 
all,

[[Page 827]]

it's their money that they're paying--they ought to be allowed to take 
some of their money and set up a personal savings account.
    Here are the benefits for doing that. One, the Government does a 
lousy job on getting a good rate of return on your money. As a matter of 
fact, people calculate that in the Social Security system you earn about 
1.8 percent on your money. That's not a very good deal. You see, if you 
have a personal savings account, you could do a lot better than 1.8 
percent. A conservative mix of bonds and stocks, you can get up to 7 or 
8 percent. Four percent--if you're only in T-bills, you do better than 
1.8 percent. And it's that difference in interest that, over time, 
compounds that means a lot.
    In other words, if you start setting aside money, with a decent rate 
of return, it grows over time; it compounds. And it's that power of 
compound interest which younger workers ought to be allowed to take 
advantage of. But the system today doesn't let them take advantage of 
that.
    So let me give you an example. If you're a 20-year-old mom earning 
$8 an hour over the career and you're allowed to take a third of your 
payroll taxes and put it in a conservative mix of bonds and stocks, by 
the time that person retires, she would have a $100,000 nest egg. See, 
that's the power of compound interest.
    Here's another interesting example for you. Say you've got a child 
and that child decides to become a police force [policeman] *, marries a 
nurse. They're in the workplace in 2011, and they work their entire 
careers. They set aside money based upon the average salary of a 
policeman and nurse. By the time they retired at 65, they would have a 
$669,000 nest egg.
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    * White House correction.
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    That's what money does when it grows. That's what happens, and 
people ought to be allowed to take advantage of that, if they choose. 
The Government is not saying, ``You have to set up a personal 
retirement.'' I fully understand some people might not feel comfortable 
about putting their money in bonds and stocks. I know that. That's why 
this is a personal savings account, a voluntary personal account. 
Government is not saying, ``You must do this.'' They're saying, ``If you 
so choose, you should be allowed to make that decision.''
    And a lot of people are going to make that decision. You know why? 
The world has changed when it comes to investors. We're about to talk to 
some young investors. I can assure you, when I was their age, I wasn't 
spending much time thinking about 401(k)s. They didn't exist. There 
wasn't a lot of talk about people running--you know, ``How's your IRA 
doing?'' They didn't exist. The whole notion of people being--entrusting 
people with their money and watching it grow is changing. The culture is 
changing. The investor class is no longer confined to just a few people. 
The investor class is varied, and we ought to have policies in place 
that encourage every American to become an owner and investor and watch 
their assets grow.
    Laura said, ``Don't get too long-winded,'' 
but it's not working. [Laughter] A couple of other points I want to 
make, the system is inherently unfair to some. If you and your spouse 
are working and both of you contributing in the Social Security system 
and one of you die early, when you turn 62, you get a choice to make. 
You can either take the benefits accrued in the Social Security system 
to you or to your husband but not both.
    Think about that. Somebody has worked all their life, contributed to 
the system, dies early, and the money just disappears. That doesn't seem 
fair to me. That doesn't seem fair to me that fellow Americans working 
all his or her life, contributing in the system, and then dies early, 
and the surviving spouse gets a burial benefit and, at 62, gets the 
greater of the benefit structure but not both. It's not fair. If you 
allow a younger worker to set aside money and

[[Page 828]]

watch that asset base grow, you're really saying, ``If something bad 
happens to you, you can pass that asset on to your surviving spouse.'' I 
like the idea of having--giving the capacity to a lot of people to be 
able to transfer assets from one generation to the next. That's what 
America is about.
    Before we get to our panel, a couple of other points. One, you can't 
take your money and put it in the lottery. In other words, this isn't 
one of these deals where it's a--you can take it and put it in high-
flyers. This is a retirement fund. This is a safety net. Therefore, 
there's going to be a conservative mix of bonds and stocks available for 
you to choose from. You can mix it up between bonds and stocks and T-
bills any way you want, but you cannot take your money to the track. In 
other words, it's a safety net. There will be guidelines.
    Secondly, there will be fee structures that are reasonable. Wall 
Street can't rip you off in this deal. I'm sure you've heard people say, 
``Oh, Bush's plan, it's going to give Wall Street a windfall.'' Wait a 
minute. There are all kinds of public retirement funds that exist around 
the country where the fee structures are reasonable managed. You'll be 
treated fairly.
    Speaking about that, all kinds of retirement systems around, I don't 
know if you know this or not, but the United States Congress took a look 
at this idea in what's called the Thrift Savings Plan. That's the 
Federal savings plan. And they thought about maybe giving somebody the 
option of putting their money in a conservative mix of bonds and stocks 
because they--the people who vote on that must have recognized the power 
of compound interest. And guess what happened. They adopted a plan that 
says Members of the United States Congress, if they so choose, can take 
some of their own money and set it aside in a conservative portfolio of 
bonds and stocks. Here's my attitude about that--and it should be the 
attitude of the American people--if setting aside money so it can grow 
better in a conservative mix of bonds and stocks is okay for United 
States Senators, it ought to be okay for workers all across America.
    Ready to go? I think we're going to get something done. I really do. 
I think the American people understand we've got a problem. I think 
seniors are now beginning to understand all the scare tactics, all the 
propaganda, is just that. And they're going to get their checks. And 
finally, the final part of this equation is, there's a lot of young 
Americans who are beginning to pay attention to this issue and say, 
``Wait a minute. I'm not contributing hard-earned money into a system 
that's going broke, and I don't like what I hear, and I expect members 
of both political parties to set aside their parties and focus on the 
good of the United States of America.''
    I want to thank you all for coming. First, we're going to start off 
with Jeff Brown. Jeff is what we call an 
expert--right?
    Jeffrey R. Brown. I'll take that 
description.
    The President. That's right. Tell us what you do. This isn't the 
first time we've been together, by the way. He's a fine lad.
    Dr. Brown. Thank you, Mr. President. 
I'm a professor--I don't know if I should admit it here, but I'm at the 
University of Illinois. And--[laughter].
    The President. He's sensitive. 
[Laughter]

[At this point, Dr. Brown, assistant professor, Department of Finance, 
University of Illinois at Urbana-Champaign, Champaign, IL, made further 
remarks.]

    The President. Are students paying attention to the issue?
    Dr. Brown. They certainly are after 
they get done with my classes. [Laughter]
    The President. Thanks, Jeff. Thanks for 
coming.
    I like to remind people, he's a Ph.D., 
and I was a C student. [Laughter] I want you to take note of who's the 
President and who's the adviser. [Laughter]

[[Page 829]]

    Right, Bobby? Bobby Kraft. Welcome, 
Bobby.
    Robert Kraft. Thank you, Mr. President.
    The President. What do you do?
    Mr. Kraft. I'm president and CEO of a 
printing and a mailing services company here in Milwaukee, First Edge 
Solutions.
    The President. Started it?
    Mr. Kraft. Yes, 2 years ago.
    The President. Congratulations. Entrepreneurial spirit is strong.
    Mr. Kraft. Thank you. I learned that 
from my chairman over there, my dad. He--his company opened first; there 
are 450 employees.
    The President. Great, fantastic. You and your dad have got the same 
hairstyle, I notice. [Laughter]
    Mr. Kraft. Absolutely.
    The President. Yes. Sorry, Bobby.
    Mr. Kraft. It's been tough. It's been 
real tough.
    The President. Yes, yes. [Laughter] Anyway, how many employees you 
got?
    Mr. Kraft. We have 20 full-time 
employees.
    The President. Good. Add any last year?
    Mr. Kraft. Yes, we did.
    The President. Do you realize--it's a little off the subject, but 70 
percent of new jobs in America are created by small-business 
entrepreneurs. And I want to thank you, Bobby, for being a small-business entrepreneur.
    Mr. Kraft. Thank you, Mr. President.
    The President. I asked the same question to--OnMilwaukee.com. They 
added some employees last year too. It's a good sign, young 
entrepreneurs taking risks, building businesses, and employing people.
    Now, Bobby, tell me--you're here on 
Social Security.
    Mr. Kraft. Correct.
    The President. Why? Besides the fact you got invited, and you wanted 
to see the art museum. [Laughter]
    Mr. Kraft. Before I got into printing, I 
did have a short stint as an investment adviser. And the first thing I 
learned getting into the industry and studying all the financial books 
is that don't count on Social Security to be there. We take that same 
level of education, and we teach our employees that they need to take 
advantage of the 401(k) we put in place for them because of the fact, 
the way the Social Security system is set up, we cannot count on that to 
be here.
    The President. Yes, let me stop you. Young guy sitting here in Milwaukee, Wisconsin, in front of the 
President, ``Don't count on Social Security to be there.'' A lot of 
people feeling that way here in America. What I'm telling you is, if we 
can get the United States Congress to listen to you, we can put a plan 
in place to make sure Social Security is there.
    Keep going, Bobby.
    Mr. Kraft. Keep going?
    The President. It's got to be a little depressing to be paying 
small-business rates, small-business payroll taxes into a system where 
you say, ``It's not going to be there.'' That's not good Government--ask 
people to work hard, pay a payroll tax, and have people think--a lot of 
people think it's not going to be around. That's the problem. That's the 
issue. If you're a senior, you're going to get your check. Bobby is a little worried about his.
    Keep going.

[Mr. Kraft made further remarks.]

    The President. I appreciate that. So Bobby just said he's setting up a plan that says to his workers, 
you can watch your money grow. In other words, we want you to have a 
retirement system called a 401(k). Appreciate you setting it up.
    But part of what we're talking about is an educational process. I 
understand that. You know, Bobby said some 
people going around the water cooler aren't so sure they want to take 
risks with the money. It's managed risk. It's certainly not an 
overwhelming risk. And my attitude about that is, if you're nervous 
about it, stay in the system. Stay in the system as is. If not,

[[Page 830]]

you'll get some Social Security benefits, but you're also going to get 
the benefit of owning your own money and watching it grow. And then when 
you retire, you'll have a nest egg--by the way, a nest egg that doesn't 
end up in a file cabinet in West Virginia, a nest egg you call your own 
that the United States Government cannot take away from you.
    Keep going, Bobby.
    Mr. Kraft. Okay, thank you. You know, 
really the disheartening thing for us as employers is talking to our 
employees who are working paycheck to paycheck at times and telling them 
that the percentage of tax that's being yanked from their check every 
time is going really to nowhere, and they're not able to grow it at all. 
And that's not fun to tell one of your employees that, that you can't 
count on that. Because we prefer to work on an optimistic basis, growing 
a company, being entrepreneurial, you take risks and you understand how 
to mitigate them. But at the same time, when you know that part of your 
employees' checks are going to be just going really to something that 
you can't count on, there's not a lot of confidence out there.
    The President. I appreciate you. That's the problem. That's the 
issue. It's the issue confronting people in the Democrat Party, issue 
confronting people in the Republican Party. And the fundamental question 
in Washington, DC, is, is there the political will to do what's right, 
to answer the question Bobby just brought 
up, and that is, how can you look a worker in the eye and say, ``You're 
working hard. You're contributing in a system that's going bankrupt.'' 
Now is the time to get after it and solve this problem once and for all.
    Bobby, thanks for coming. Very 
articulate. Good luck in your business. Glad you're here.
    Mr. Kraft. Thank you, Mr. President.
    The President. Christy Paavola.
    Christy Paavola. Yes.
    The President. College senior.
    Ms. Paavola. Yes, I am, at Concordia 
University, Wisconsin.
    The President. Yes, actually, I've been there.
    Ms. Paavola. Yes?
    The President. Yes. It's a great place.
    Ms. Paavola. We think so.
    The President. Beautiful campus. So when will you graduate?
    Ms. Paavola. May 2006.
    The President. Got another year to go.
    Ms. Paavola. Yes.
    The President. Are you out of school now?
    Ms. Paavola. What?
    The President. I mean, summer--a little summer break.
    Ms. Paavola. Yes. Yes, we just finished 
Friday.
    The President. Good. Well, congratulations. All A's?
    Ms. Paavola. Hopeful.
    The President. Yes--[laughter]--``None of your business, Mr. 
President.'' [Laughter] What would you like to do upon graduation?
    Ms. Paavola. I would like to teach in 
the Lutheran schools for the Lutheran Church, Missouri Synod.
    The President. Awesome. Yes, good. Wants to be a teacher.
    Ms. Paavola. Yes.
    The President. Thanks for teaching. By the way, anybody who's 
looking for a way to contribute to society: Teach. And you don't have to 
be a classroom--you want to be a classroom teacher?
    Ms. Paavola. Correct.
    The President. Yes. You can mentor a child, by the way. That's 
teaching. You can help save a child's life by teaching him or her how to 
read. So I hope you do. Thanks for setting a good example.
    Ms. Paavola. Thank you, Mr. President.
    The President. So here you are, senior in college, sitting right 
next to the President of the United States. [Laughter]
    Ms. Paavola. Yes. [Laughter]

[[Page 831]]

    The President. You got any thoughts about Social Security?
    Ms. Paavola. Yes. I don't think it's 
going to be there when I retire, which is really scary.
    The President. Interesting, isn't it? They took a survey amongst 
youngsters. Somebody explained to me, I didn't actually watch--see the 
survey, but I heard what the person said. He said more people are--that 
are Christy's age think they're more likely 
to see a UFO than get a Social Security check. [Laughter] Pretty 
frightening when you think about the fact that a lot of young people are 
going to be putting a lot of money into a system that may not be around. 
So we're sitting here with a senior in college saying, ``I don't think 
the system is going to be around.''
    Got anything else you want to say?
    Ms. Paavola. I really like the idea of 
personal savings accounts. I like the fact that I have control over my 
money, and I have the assurance of knowing that that money will be there 
when I retire.
    The President. Yes, thanks. That's a pretty sophisticated point of 
view for a college senior. I appreciate it. I hope people your age are 
paying attention to the issue.
    Ms. Paavola. Hopefully. It's an 
important issue.
    The President. It's a huge issue. It's a huge issue when you think 
about working hard and putting payroll tax into a system that's going 
broke. Imagine that. Just say we just started anew, and I say, ``All of 
you who want to contribute hard-earned money to a system that will be 
broke within 20 years, please raise your hand.'' Not a lot of 
contributors. You don't have the choice. But we've got a choice in 
Washington to do something about it. That's what the choice is, and I 
intend--[applause].
    Now is your chance. All kinds of cameras. [Laughter]

[Ms. Paavola made further remarks.]

    The President. There you go. Well, I appreciate you coming.
    Ms. Paavola. Thank you very much.
    The President. You did a heck of a job. You deserve an ``A.'' You'll 
have to carry it over for next year, though.
    Ms. Paavola. Okay.
    The President. Good job. Thanks for coming.
    Ms. Paavola. Thank you.
    The President. Andrea Marton, welcome.
    Andrea Marton. Thank you. It's an honor to 
be here, Mr. President.
    The President. Andrea, just a little bit 
about yourself.
    Ms. Marton. Well, first of all, I'm 
assistant director at a preschool in Germantown, Rainbows End.
    The President. Good. Got a child?
    Ms. Marton. Yes, I do. He's three, and 
it's one of the hardest jobs I've ever had to do.
    The President. Yes. Listen, Andrea is a 
single mom. Being a single mom is the hardest job in America. And I want 
to thank you for being a good mom. So you go to work. How is it?
    Ms. Marton. I love it. I love being with 
kids. I love improving the future, and they are the future.
    The President. You bet.
    Ms. Marton. I come from a long line of 
teachers.
    The President. Do you really?
    Ms. Marton. Yes. Both my parents are 
teachers, and my grandfather was a teacher.
    The President. Are they here?
    Ms. Marton. Yes, they are--my parents. 
Yes, they are.
    The President. Right here in the audience?
    Ms. Marton. Yes, over there.
    Mr. Marton. You're doing great, Andrea!
    The President. What did he say?
    Ms. Marton. I'm doing great.
    The President. I'm not going to comment about your hair. [Laughter] 
Thanks for coming.

[[Page 832]]

    So, tell me, the Social Security issue interests you?
    Ms. Marton. Yes. Well, being a single 
mother and part of the working poor, it's very important for me to have 
something to rely on. And with the current system in place, we look down 
the road and it's not going to be there. And if it is there, it's going 
to be real slim.
    The President. You paying payroll taxes?
    Ms. Marton. Oh, you better believe it. 
[Laughter]
    The President. Do you feel it?
    Ms. Marton. I don't see it.
    The President. But you feel it.
    Ms. Marton. Oh, yes.
    The President. Well, you see why--you see what would have been and 
what wasn't when you get your check stub, right?
    Ms. Marton. Right, right, right. So, for 
me, to have the option and the choice to put my money into something 
that I will see in the future, you know, is just great.
    The President. Yes, see, it's an interesting thought, isn't it? A 
single mom sitting here saying she wants to 
be--have the opportunity to take some of her payroll taxes--you called 
yourself the working poor?
    Ms. Marton. Yes, I did.
    The President. Well, I hope that doesn't stay that way. Keep 
working.
    Ms. Marton. I hope not either.
    The President. Yes. But the point is, is that this issue affects 
people from all walks of life, all income levels. But how about--I gave 
the example of a single mom working an $8 job all her life and is able 
to put aside a third of her payroll taxes and watch it grow in a 
reasonable rate of return. That person will end up with $100,000, 
coupled with a Social Security system that will have her benefits grow 
with wages.
    And see--and then all of a sudden, Andrea 
is sitting there with $100,000 as part of her retirement plan that she 
can do with whatever she wants. In other words, you can use it for your 
retirement or drop it on the little one.
    Ms. Marton. Exactly, and that's----
    The President. The little guy.
    Ms. Marton. Yes, Angelo is a big part of 
my life, and I want to make sure that not only my future is secure but 
his as well. And with this plan, I believe that it is a great option to 
put my money into a fund that will earn interest and will be there, and 
for the next 40 to 50 years that I work, I'm going to see it, because I 
deserve it.
    The President. There you go. I couldn't have said it better myself. 
Thanks for coming.
    Okay, finally, we've got Joel and Tonya 
Bruins.
    Tonya Bruins. Hello.
    The President. Fine, fine. Where do you all live?
    Joel Bruins. Are you going to do the talking 
or do you want me to? [Laughter]
    The President. It's like one of these couple talk show things, you 
know. [Laughter] What's your favorite color? Anyway--[laughter].
    Mr. Bruins. We live in Brandon, Wisconsin. 
I'm a dairy farmer. I'm a partner with both my brother, John, and my 
dad, Bill, which you met last year.
    The President. Yes.
    Mr. Bruins. And my uncle, Cal. And the name 
of the farm is Homeland Dairy. We milk about 500 cows. And----
    The President. What's your job?
    Mr. Bruins. I take care of the cows. I'm the 
herdsman.
    The President. Herdsman, good.
    Mr. Bruins. So any breeding and reproduction 
and calves and anything dealing with the cattle is what I take care of.
    The President. Good, good.
    Mr. Bruins. And personnel, I guess, I get 
into sometimes too. To all the 15 employees, they keep you on your toes.
    The President. That's good. It's a good-size operation?
    Mr. Bruins. Yes, very--it's a very good-size 
operation.
    The President. Great. Tonya, you work?

[[Page 833]]

    Mrs. Bruins. Yes, I work at the National 
Bank of Waupan. I'm in the bookkeeping department there, and I also take 
care of all the ACH processing for the bank.
    The President. Good. So you're familiar with finances?
    Mrs. Bruins. Right.
    The President. Give me your thoughts on Social Security. Dairy 
farmer sitting there--I can presume dairy 
farmers think about Social Security.

[Mr. Bruins made further remarks.]

    The President. We've got a farmer right 
here, with his wife, Tonya, set up an IRA. It's 
pretty interesting, isn't it? In other words, this notion about 
investing--people watching their money is pretty well filtering through 
most of society. ``Roth'' is kind of a fancy word for dealing with tax 
going in and coming out, right?
    Mr. Bruins. Right.
    The President. Anyway, so, you all watch your investments grow?
    Mr. Bruins. We watch them, yes, we do.
    The President. Make the decision?
    Mr. Bruins. Yes, we have made the decisions 
on it.
    The President. Tonya, do you want to say 
something?
    Mrs. Bruins. I'm also--my profit sharing 
plan at the bank allows me to control where I--what funds I want to put 
my----
    The President. So you've got choices? How does it work?
    Mrs. Bruins. Right, yes. We've got 15 
different funds we can choose to invest in. You know, if we want to keep 
it high risk or low risk, it's our decision.
    The President. Yes, see, it's an interesting idea, isn't it? The 
bank she works for, a little country bank, 
says, ``Wait a minute, we're going to trust our employees to be able to 
make a decision with their own money about what to put the money in, 15 
different options.'' Was it hard to learn about how to do that?
    Mrs. Bruins. They keep us very well-
informed. They have people that come in every year and advisers we can 
talk to and learn from them.
    The President. Yes, we do--there are some pockets of financial 
illiteracy in our country, but there's nothing like solving financial 
illiteracy when you're watching--when you're making decisions for your 
own money. You start asking questions; there's advisers, there's people 
around to help you make a rational decision what to do with your own 
money. And a good way to learn is when you're watching your own money 
grow.
    And so you get, what, quarterly statements, monthly statements?
    Mrs. Bruins. Quarterly.
    The President. Quarterly statements?
    Mrs. Bruins. Yes.
    The President. Open it right up, sit down at the kitchen table and 
say, ``Look at the--look what's happening here.''
    Mrs. Bruins. Yes. We also have the option 
to change funds whenever we want to. We can check them online at any 
time as well.
    The President. Sure. Think about that, though. It sounds pretty 
simple, but isn't it--doesn't it make sense to have people from all 
walks of life opening up a quarterly statement to watch their assets? It 
certainly makes you pay attention to the decision Government makes. It 
is, to me, a healthy America when more people are able to say, ``I'm 
watching my own assets.'' I like it when more Americans are owning their 
own home, owning their own business, and managing their own retirement 
plans. It's good for this country to have that kind of--[applause].
    You've got the mic.

[Mr. Bruins made further remarks.]

    The President. Yes, I appreciate that. By the way, one way to make 
sure families stay on the farm is to insist that the United States 
Congress get rid of the death tax forever.
    Listen, I hope you've enjoyed this as much as I. I want to thank you 
all for

[[Page 834]]

coming. Good job. I'm just beginning this debate. I'm going to spend 
whatever time it takes to continue traveling this country and make it 
absolutely clear to the people, we've got a problem.
    I will continue to reassure seniors who are counting on their Social 
Security check, you have nothing to worry about. You're going to get 
your check. I don't care what the mailers say, what the advertisements 
say. You will get your check. That's the pledge this Government has 
made, and it's a pledge we'll keep.
    And I'm going to continue reminding youngsters that they need to get 
involved in this issue because if the United States Congress does not 
act, we have saddled a young generation with an incredible burden. And I 
don't think that's right. I think now is the time for people in 
Washington, DC, to set aside partisanship and come together and solve 
this issue one time and for all, for the good of the United States of 
America.
    Thank you all for coming, and God bless.

Note: The President spoke at 11:25 a.m. at the Milwaukee Art Museum. In 
his remarks, he referred to Dennis Kuester, chairman, and Tim Sheehy, 
president, Metropolitan Milwaukee Association of Commerce; David Gordon, 
director and chief executive officer, Milwaukee Art Museum; and Jeff 
Sherman, co-owner and president, and Andy Tarnoff, co-owner and 
publisher, OnMilwaukee.com.