[Weekly Compilation of Presidential Documents Volume 40, Number 51 (Monday, December 20, 2004)]
[Pages 2941-2942]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
The President's Radio Address

December 11, 2004

    Good morning. Social Security is one of the great moral achievements 
of American Government. For almost 70 years, it has kept millions of 
elderly citizens out of poverty and assured young Americans of a more 
secure future.
    The Social Security system is essential, yet it faces a deepening 
long-term problem. While benefits for today's seniors are secure, the 
system is headed towards bankruptcy down the road. If we do not act 
soon, Social Security will not be there for our children and 
grandchildren.
    So this week I met with the bipartisan leadership of Congress and 
asked them to join me in a great cause, preserving the essential promise 
of Social Security for future generations. We must begin by recognizing 
an essential fact, the current Social Security system was created for 
the needs of a different era. Back in 1935, most women did not work 
outside the home and the average life expectancy for American workers 
was less than 60 years. Today, more moms are working and most Americans 
are blessed with longer lives and longer retirements. The world has 
changed, and our Social Security system must change with it.
    Today, Social Security is not a personal savings plan. There is no 
account where your money goes to earn interest. Benefits paid to today's 
retirees come directly from the taxes paid by today's workers. And each 
year there are more retirees taking money out of the system and not 
enough additional workers to support them.

[[Page 2942]]

    In the 1950s, there were about 16 workers paying for every Social 
Security beneficiary. Today, there are about three. And eventually, 
there will only be two workers per beneficiary. These changes single a 
looming danger. In the year 2018, for the first time ever, Social 
Security will pay out more in benefits than the Government collects in 
payroll taxes. And once that line into the red has been crossed, the 
shortfalls will grow larger with each passing year. By the time today's 
workers in their mid twenties begin to retire, the system will be 
bankrupt, unless we act to save it.
    A crisis in Social Security can be averted if we in Government take 
our responsibilities seriously and work together today. I came to 
Washington to solve problems, not to pass them on to future Presidents 
and future generations. I campaigned on a promise to reform and preserve 
Social Security, and I intend to keep that promise.
    I have set forth several broad principles to guide our reforms. 
First, nothing will change for those who are receiving Social Security 
and for those who are near retirement. Secondly, we must not increase 
payroll taxes, because higher taxes would slow economic growth. And we 
must tap into the power of compound interest, by giving younger workers 
the option to save some of their payroll taxes in a personal account, a 
nest egg they can call their own, which Government cannot take away.
    Saving Social Security for future generations will not be easy. If 
it were easy, it would have already been done. There will be costs, yet 
the costs of continued inaction are unacceptable. And the longer we 
wait, the more difficult it will be to fix the system. Saving Social 
Security will require bipartisan cooperation and the courage of leaders 
in both parties. The American people voted for reform in 2004, and now 
they expect us to work together and deliver on our promises. I look 
forward to working with Members of Congress on this important issue. 
Together we will make certain that America meets its duty to our seniors 
and to our children and grandchildren.
    Thank you for listening.

Note: The address was recorded at 7:50 a.m. on December 10 in the 
Cabinet Room at the White House for broadcast at 10:06 a.m. on December 
11. The transcript was made available by the Office of the Press 
Secretary on December 10 but was embargoed for release until the 
broadcast. The Office of the Press Secretary also released a Spanish 
language transcript of this address.