    [Weekly Compilation of Presidential Documents Volume 41, Number 9 (Monday, March 7, 2005)]
    [Pages 359-367]
    [Online from the Government Publishing Office, www.gpo.gov]

    <R04>
    Remarks in a Discussion on Strengthening Social Security in Westfield,
    New Jersey

    March 4, 2005

        The President. Thanks for coming. Okay, let's get to work. Thanks
    for coming. A hundred years since a President has been here. I don't
    know what took the other ones so long to get here. [Laughter] Mr. Mayor,
    thanks. Mayor Greg McDermott, I appreciate your inviting me here,
    appreciate you being at the airport. I appreciate you and the local
    officials putting up with the entourage. Thank you all for coming.
        My regret is Laura is not with me. She is doing great, though. She
    is a fabulous woman, and I'm a lucky guy that she has agreed to marry
    me.
        I've got some things I want to talk about. I want to talk about
    freedom and peace. I want to talk about growing this economy. I want to
    talk about Social Security.
        Before I do so, I do want to say thanks to Congressman Mike Ferguson
    for his great leadership in the House of Representatives. And Maureen--
    good to see you, Maureen. I see her. She's doing great. Thanks for
    coming.
        Rodney Frelinghuysen is with us. Rodney, thank you, sir. Rodney and
    I were talking about, on Air Force One, how hard it is to be a baby
    boomer and trying to jog. [Laughter] Part of the problem we're going to
    face in Social Security is there's a lot of baby boomers like me and
    Rodney who are getting

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    ready to retire. But I'm going to wait a little bit and talk about that.
        I want to thank Scott Garrett for joining us--Congressman Scott
    Garrett. I'm very honored that Congressman Steve Rothman is with us. I'm
    honored you're here, Congressman. Thanks for coming. I appreciate you
    coming. Thanks for being here.
        I want to thank--there's a Congressman you probably have never heard
    of, or maybe you have. I shouldn't do that. I mean, that's unfair. I'm
    going from New Jersey to South Bend, Indiana, and a good fellow from
    South Bend, who happens to be the Congressman, said, ``Can I have a
    ride?'' And I said, ``You bet.'' And his name is Chris Chocola, from
    South Bend, Indiana. Congressman, thanks for coming.
        Mike Chertoff--anybody ever heard of him? He's now at the Department
    of Homeland Security--raised right here. So we're standing on the stage
    during the swearing-in--or maybe right before or right after--and he
    said, ``Tell the home folks thanks.'' So, okay, Chertoff said,
    ``Thanks.'' And I say thanks to Mike Chertoff for agreeing to serve in
    the Department of Homeland Security. He has got a big job. But he's
    capable of handling that job, and that job is to do all we can to make
    sure all Federal agencies work together to protect the American people.
        And speaking about protecting the American people, I want to thank
    the family members and the supporters of the Guard unit right here from
    this armory that is in Iraq right now. When you e-mail your loved one,
    tell them the Commander in Chief is incredibly proud, and so is the rest
    of the country. And we are thankful for the sacrifice and service not
    only of the men and women who wear the uniform but of their families as
    well.
        I want to thank--welcome Jason Reed, 2004 Olympic Gold Medalist in
    rowing. I appreciate you coming, Jason. Good job.
        Today when I landed, I met John Herrmann. John is a volunteer with
    the retired and senior volunteer program of Union County, New Jersey.
    What he does--he knows something about accounting, and so at tax time he
    helps the disabled or low-income or elderly individuals fill out their
    tax forms. What he is--he's a soldier in the army of compassion. He's a
    person who has taken his life--time out of his life to lend his talent
    to help a neighbor in need.
        And the reason I bring that up is there's all kinds of ways to serve
    our country. We've got those wearing the uniform serving our country,
    whether it be abroad or here at home. But you can serve your country as
    well by feeding the hungry or finding shelter for the homeless or
    helping a low-income person fill out a tax reform [form] *. You can
    serve your country just like John Herrmann is by volunteering and loving
    a neighbor just like you'd like to be loved yourselves. If you want to
    serve America, do so by helping save a soul and save a life. This
    country's real strength is the hearts and souls of our American
    citizens.
        * White House correction.
        We're living in amazing times. You know, we're--I want the
    youngsters here to just remember the times in which you are growing up.
    In Afghanistan, millions voted for a President. The Palestinians elected
    a new leader. In Iraq, over 8 million people, in spite of the violence,
    in spite of the threats, said, ``We refuse to be intimidated. We're
    going to vote. We want to be free.''
        Freedom is a powerful force for good. That's what the youngsters
    have got to recognize--and that freedom is just not a Western idea;
    freedom is not an American idea; freedom is a--in my judgment--a gift
    from a higher being, a higher power. Everybody desires to be free. And
    the job of the United States is to work with others to help people
    realize what's deep in their soul, and that is the desire to live in a
    free society. And it's in our interest we do so.
        Many of you were affected by the attacks of September the 11th.
    We'll stay on the hunt. We'll disrupt Al Qaida. We'll find them wherever
    they hide. But I will tell you the long-term solution to defeating
    hatred and hopelessness and the dark vision of Al Qaida and the likes of
    them is to spread freedom and hope around the world. And that's what
    you're seeing today.
        It's an amazing time. I just came back from Europe. I had a great
    trip. I want to thank our friends overseas for being such wonderful
    hosts to Laura and me. I sat down with

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    the French President, and we came--we understand some things. And one of
    the things we really understand is that Syria--Syrian troops, Syrian
    intelligence services, must get out of Lebanon now.
        Lebanon is a democracy. Lebanon is a democracy, and we strongly
    support that democracy. I was pleased that Crown Prince Abdullah of
    Saudi Arabia sent the very same message. The world is beginning to speak
    with one voice. We want that democracy in Lebanon to succeed, and we
    know it cannot succeed so long as she is occupied by a foreign power,
    and that power is Syria. There's no half measures involved. When the
    United States and France and others say, ``Withdraw,'' we mean complete
    withdrawal, no half-hearted measures. And those of you who are trying to
    analyze our foreign policy, just remember, democracy leads to peace, the
    peace we all want for our children and our grandchildren.
        The economy is getting better. Today we got some good news. We added
    262,000 new jobs last month. The national unemployment rate is 5.4
    percent. It's 4.2 percent right here in the great State of New Jersey,
    and that's good news. But we're living in a dynamic world. Things
    change, and the fundamental question is, what do we do to keep our
    economy growing? I've told the Congress one way to do so is to make sure
    we've got certainty in the Tax Code. They need to make the tax cuts
    permanent.
        I sent up a budget that says I understand we need to do something
    about the deficits, and I'm looking forward to working with the Budget
    Committees in both the House and the Senate. I thought it was pretty
    smart of me to say to the American people at the State of the Union,
    we're going to be wise about how we spend your money, and if a program
    is not working, we're not going to spend the money on it. Seems
    realistic and logical.
        I want to thank the House and the Senate for getting a good piece of
    legal reform to my desk. One way to make sure the economy continues to
    grow is to make sure the scales of justice are balanced. They were not
    balanced when it came to class-action lawsuits. Too many class-action
    lawsuits were driving too many good people out of business, which meant
    people weren't able to find a job. And so we reformed the class-action
    lawsuit system in America for the better. And they need to do the same
    thing on asbestos reform and medical liability reform.
        I can spend a lot of time on a lot of subjects, but Laura told me,
    ``You're going to have some panelists up there. Give them a chance to
    speak.'' [Laughter] I will in a minute. [Laughter] I know, I'm going on
    too long. I'm just getting warmed up, then. Here we go. Let me talk
    about--let me get right to the subject at hand. I've asked some of our
    fellow citizens to join us on an incredibly important subject, and
    that's Social Security.
        First, let me say to you that the Social Security system has been a
    very important system, and I understand that. Social Security has
    provided a safety net for many retirees, and that's an important safety
    net. But the safety net has got a hole in it, and we need to make sure
    we save that safety net for future generations of Americans to come.
        The first thing I want to tell you about Social Security is that if
    you're getting your check, nothing will change. No matter what the talk
    is about reform, nothing will change. I don't care what the ads say. I
    don't care what the scare tactics say. You're going to get your check,
    just like the Government said. The problem isn't for the seniors. The
    problem is for the youngsters coming up; the question is, will you get
    your check? Will we be able to keep the promise?
        A lot of people say, ``Well, Mr. President, you're talking about
    Social Security. It's called the third rail of American politics. That
    means, if you touch it, you get a huge electric shock. Now, why are you
    talking about it?'' Well, you're going to hear me describe the problem.
    But I think we have a duty in elected office to confront problems and
    not pass them on to future Presidents, future Congresses, and future
    generations.
        I didn't run for office to dodge problems. And I don't think the
    American people--I don't care what your political party is, they don't--
    I think the American people expect us all to confront problems and deal
    with them in a fair, open way. That's what I think.
        Now, let me tell you why I think we got a problem. And me and Rodney
    are part of the problem; we're baby boomers, and we're fixing to retire.
    Matter of fact, a lot of us

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    turn 62 in 2008. That's the time you start to retire, and there's a
    whole lot of us. Yet we're living longer. We're living longer than the
    previous generations of Americans. So you got more people retiring who
    are living longer, plus we have been promised greater benefits than the
    previous generation. So we got more people living longer getting bigger
    benefits. And the problem is, is that the number of people paying into
    the system is shrinking.
        If you look over here, in the fifties, 16 people were paying into
    the system to pay for one retiree. So if that person was to get $14,200,
    say, it would be $900 a payer. The system now is 3.3 people paying into
    the system. In a decade, it's going to be two people paying in the
    system.
        Now, this is a pay-as-you-go system. In other words, it says when
    you retire, somebody is going to have to pay for your benefits. This is
    not a savings account. One of the myths of Social Security is that your
    money is going into it and the Government is holding it and saving it
    for you. That's not the way it works. Your money is going into the
    system, and it's getting spent, some of it on retirement benefits, other
    parts on just general Government. And there's an IOU, a paper IOU
    accumulating. But it's not just sitting there. There's not an account
    with your name that's saying, on behalf of you, the Government has now
    got your money. That's not the way it works. So it's a pay-as-you-go. It
    goes in and goes out.
        Now, let me give you some numbers about the consequences of what
    we're talking about, and this chart says it pretty good. Right now,
    there are more people paying in--the money coming in on payroll taxes is
    greater than the money going out, and that's the black part of the
    chart. But very soon, in a very quick period of time--as a matter of
    fact, in 2018--the money going out exceeds the money coming in, in
    Social Security. In other words, baby boomers like me, who will be
    living longer and have been promised greater benefits, are going to
    start saying, ``Send me my check.'' And those of you paying in are going
    to start to have to pay into a system that is going into the red every
    year. As you can see, that number gets worse and worse as time goes on.
        In 2028, the number of--the amount of the money that needs to be
    paid in order to make the promises is 200 billion a year above and
    beyond payroll taxes. And it gets bigger every year. It gets into 300
    billion a year. So when you got more money going out, in terms of the
    promises made to baby boomers retiring and fewer people paying in, this
    thing gets into the red in a real hurry. That's why I say we got a
    problem.
        Now, 2018, some would say, ``That's not--that's pretty far down the
    road, isn't it?'' Think about that--2018, if you're a mom with a 5-year-
    old child, that person's going to be driving, and you're going to get
    gray hair before you know it. [Laughter] I mean, we're talking about
    right around the corner, when you think about it. Those of us in public
    office must look down the road. We can't say, ``Well, don't worry. I'm
    on a 2-year term,'' or ``I'm on a 6-year term,'' or ``I'm on a 4-year
    term. We'll just let somebody else deal with it,'' because the longer
    you wait, the harder the problem is.
        Imagine waiting until 2018, and you're a young worker, and the
    Government says, ``Oh, by the way, I'm going to have to raise your
    payroll taxes again in order to pay for the benefits we promised,'' or,
    ``We're going to have to slash this program, that program.'' I mean,
    eventually, when you're spending at least 200 billion above and beyond
    that which you've got in payroll taxes and increases every year,
    something drastic has to happen. If we act now, we can do so in a way
    that saves the system for younger workers.
        I'm going to tell you again; I'm going to keep saying it all around
    the country--and I like doing this, by the way. I like going around the
    country saying, ``Folks, we have got a problem.'' And I like saying to
    people, don't worry about it if you've been born prior to 1950. Nothing
    changes. You're going to get what you're promised. But I'm also saying
    to younger workers, you better listen carefully to this debate because
    you're the ones who are going to have to pay for it. And if I were you,
    I'd be saying, ``Well, if we have a problem, Mr. President, what do you
    and the Congress intend to do about it?''
        Right now we're wondering whether we've got a problem. I've been
    reading the newspapers and been seeing some folks saying,

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    ``There's not a problem. He's just exaggerating.'' Well, I'm going to
    keep telling people we've got a problem until it sinks in, because we've
    got one. The facts are irrefutable. You can't dodge whether we have a
    problem or not. Because, see, the next follow-on question to that is,
    ``If you've got a problem, what do you Republicans and Democrats and a
    few independents intend to do about it up there? Are you going to sit
    around and play politics? Or are you going to get it to table and do
    your duty as public servants?''
        And so I started that process. When I gave my State of the Union, I
    said, ``Put your ideas on the table.'' I said, ``Come on, bring some
    ideas forward. We have an obligation.'' And I reminded people that
    Senator Daniel Patrick Moynihan had some good ideas. President Clinton,
    my predecessor, had some good ideas. Former Democrat Congressman Tim
    Penny had some good ideas--all of them interesting ideas that need to be
    in the mix in order to permanently solve this problem. And so I want to
    say again to folks who are listening here today, I'm really interested
    in working with members of both parties to be able to say we've done our
    duty.
        Now, I've got some ideas, and I wanted to share one of the ideas
    with you right now. I believe in order to make the system work better
    for younger workers, they ought to be able--be allowed to, at their
    choice, to take some of their own money and set it aside in a personal
    savings account. That's what I think we ought to consider.
        Let me tell you why it makes sense to me that--first of all, the
    Government can't meet its promises. But one way for a younger worker to
    come close to what the Government has promised is to be able to take a
    portion of the money and get a better rate of return on your own money
    than that which the Social Security system gets. See, there's something
    called the compounding rate of interest. That's when you set aside a
    dollar or a series of dollars, and it grows over time. And obviously, if
    the rate on your money is 2 percent, it will grow at a certain pace. If
    it's 4 percent, it grows double that. And right now the money--your
    money is earning very little compared to what you can get in
    conservative stocks and bonds and investments. I'm talking conservative;
    I'm not talking about lottery, taking it to the track--[laughter]--a
    conservative mix of stocks and bonds just like Federal employees get in
    the employee Thrift Savings Plan. And just like we give people who work
    for the Government, you can take some of your own money, set it aside,
    and watch it grow.
        Do you realize that if you're a person who earns an average of
    $35,000 a year over your working career, $35,000, and you're allowed to
    take--put 4 percent of the money--the payroll tax aside in a personal
    account, and you hold it over time, that when you retire, you'll save a
    quarter-of-a-million dollars. That's your money. That money, by the way,
    the quarter-of-a-million dollars, is the capital account. Now, you can't
    spend all that the minute you retire. This is a retirement account we're
    talking about. But it's your money, and the interest off that money goes
    to supplement the Social Security check that you're going to get from
    the Federal Government. See, personal accounts is an add-on to that
    which the Government is going to pay you. It doesn't replace the Social
    Security system. It is a part of making--getting a better rate of
    return, though, so--to come closer to the promises made. That's
    important to know.
        Secondly, you just can't take it all out. I mean, it's a retirement
    system. There will be rules about withdrawal. You can't put it in
    certain things if you--start-ups. There are guidelines to encourage you
    to make the right kind of investments. Now, you can alter stocks and
    bonds and different things--your choice. But it's been proven that when
    you hold money over a period of time in safe, conservative investments,
    it gets a better rate of return than the money you get in the Social
    Security system. So there will be guidelines about what you can invest
    in.
        We've got to make sure the system is fair to poor Americans. And so
    there's ways to make sure the benefit structure is fair. But let me talk
    to you about investing. There's a certain notion in America that the
    investor class is only a certain type of person. I just don't believe
    that. I don't subscribe to that. I don't think that's what America is
    about. I think we ought to encourage people from all walks of life to
    own something. I think

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    ownership is a vital part of being a productive citizen in our country.
    I think we ought to encourage ownership, not discourage ownership. And I
    think we ought to recognize people from all walks of life are plenty
    capable about managing their own affairs.
        I'm getting ready, hold on. I'm winding down here. [Laughter] Think
    about a system where you've accumulated a nest egg of your own--the
    35,000-a-year person, a quarter-of-a-million-dollar nest egg--and that
    when you pass on, you can leave it to whom you want. In other words,
    that person can then take it and spend it tomorrow if they feel like it.
    But it's your asset. See, it's your money to begin with.
        The Social Security system today--if you're a young widow and the
    money your husband put in, there's nothing there. There's no asset.
    There's a Government promise that at a certain age you'll get a stipend.
    But there's no assets there, see? And so what we're talking about is
    really changing how the system works so that your money can earn a
    better rate of return, and that after your--when you pass on, you can
    pass that money on to whomever you want. So we're talking about helping
    people build up an asset base, which I think is a vital part of a stable
    future. It also has the added benefit of providing more savings. And
    when there's more savings, there's more investment. And when there's
    more investment, there's more jobs. It will be good for the economy as
    well.
        So I'm interested in this idea. I'm excited about it. I've spent a
    lot of time talking about it to people. I understand we're going to have
    to explain to people, over time, when we talk with Congress, how this
    works. I've said it makes sense to phase it in very slowly so that we
    can better afford the transition cost to go from one system to another.
    But I'll tell you this: If we don't act, we're looking at about an $11
    trillion hole for the American taxpayers that are coming up. This is a
    big liability--not for me and baby boomers. We're fine. Rodney and I are
    just fine. We lucked out when it came time to--the year we were born.
        But if you're born--if you're a young worker, you've got a problem.
    And I repeat, I hope--I hope that as time goes on and this debate goes
    forward, that you understand the power of your voice to say to people,
    ``We've seen enough of this, `We're not going to move because somebody
    might look good,' or, `We don't want to do it because my political party
    told me not to do something.' '' Now is the time to get rid of all
    that--all that deadlock in Washington, and focus on the problem for the
    good of the generation to come.
        All right. Olivia Mitchell is with us. Olivia, tell us what you do.

    [At this point, Dr. Olivia Mitchell, executive director, Pension
    Research Council, Wharton School, University of Pennsylvania, and former
    Member, President's Commission to Strengthen Social Security, made brief
    remarks.]

        The President. Well, I appreciate that, Olivia. It is very
    important--[applause]. Thank you all. It is very important for those
    folks--and listen, I understand there's a lot of people who rely
    exclusively on their Social Security checks, and I know that. And it is
    very important for people to not be frightened by the discussion about
    making sure your grandchildren have got a system around. I mean, one of
    the great things about the generation who now relies upon Social
    Security is there's a deep concern about generations coming up. And this
    really is a generational issue, and I want to thank you for bringing
    that up.
        Speaking about that, we've got John Bligh with us. Welcome.
        John Bligh. Hi, Mr. President.
        The President. How are you?
        Mr. Bligh. Fine, thank you.

    [Mr. Bligh, retired senior, East Northport, NY, made brief remarks.]

        The President. Well, I appreciate you, John. Thanks, good job. Thank
    you, very good.
        See, I think the operative word is that he's not worried about
    getting his check--counts on his check, not worried about it. That's
    what I--one of the things I'm going to continue saying around this
    country, and by the way, this is State number 10, and tomorrow is 11,
    and I'm keeping moving. I just say I'm going to a lot of places. I'm not
    going to go

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    away on this issue because it's vital, and we've got to do something for
    the younger folks.
        And the fact that John said he's not worried about the check, the
    check that he's been promised, is an important statement. He said, ``I
    need it, and I'm not worried about it.'' And I want others to hear that
    as well.
        Then he invited--Lisa--who invited who? Did you invite Dad, or did
    he invite himself?
        Lisa Engler. Well--I'm sorry--the truth of the matter is, I need my
    parents on a regular basis to help me, because I have five children----
        The President. Five kids, that's good, yes.
        Mrs. Engler. ----and I really can't do it all on my own. So anyway,
    yes, I'm Lisa Engler. I'm here with my husband, Will. We have five
    children.
        The President. Right. John is your dad.
        Mrs. Engler. And my dad. And Social Security, of course, for me is
    an issue, because not only did I work in the workforce for 10 years and
    saw a big chunk of my money go into Social Security, and all the senior
    managers telling me, you know, ``It may not be here for you. Invest in
    401(k),'' but now, looking at the numbers and everything, it's very
    frightening as a parent. I have a 3-month-old daughter who, at the age
    of 65, this system will be bankrupt for almost 30 years. It's
    frightening.
        The President. In 2042, it goes broke, for good. It not only goes in
    the red, but whatever paper is available in the form of IOUs is gone. I
    mean, it's just--it's a fact.
        Mrs. Engler. And there's no getting around it. I mean, we all know
    it. We all heard----
        The President. No, not everybody knows it yet. They're going to know
    it.
        Mrs. Engler. Oops.
        The President. You know it. It's all right.

    [Mrs. Engler, stay-at-home mom, Westfield, NJ, made further remarks.]

        The President. There you go. [Laughter] Yes, and not only that--
    that's a good--very good. And not only do you watch your money grow, but
    you watch people making decisions about the economy. In other words,
    there's a certain sense of when you own something, you actually own a
    stake, and the future matters a lot.
        You know, I love the fact that more people are owning their home in
    America than ever before. I love the fact that people are owning their
    own business in America, people from all walks of life. And I think it
    makes sense to encourage ownership when it comes to retirement systems.
        Carlos Pagan.
        Carlos Pagan. Thank you, Mr. President.
        The President. First of all, he's a firefighter, and I'm proud of
    you.
        Mr. Pagan. Thank you, Mr. President.
        The President. Good job. All right, where are you a firefighter?
        Mr. Pagan. I'm a fireman in the city of Paterson.
        The President. Good, yes. Thank you. Staying in good shape?
        Mr. Pagan. Yes, sir.
        The President. One thing about those firefighters, they stay in good
    shape. You also----
        Mr. Pagan. I own a real estate company in the city of Paterson.
    Again, my name is Carlos Pagan. I'm 33 years old. I'm raising two kids.
    I have a daughter named Vanessa; she's 15.
        The President. No, you're not 15. [Laughter]
        Mr. Pagan. And my son, Steven; he's 13.
        The President. So like, teenagers?
        Mr. Pagan. Yes, sir.
        The President. Yes--I've been there. [Laughter]

    [Mr. Pagan, owner, Century 21 Northern Realty, and firefighter,
    Paterson, NJ, made further remarks.]

        The President. Let me tell you an interesting statistic. You know,
    Carlos--I was getting ready to tell you, the other day I was at one of
    these forums, and the person said, ``People like me''--see, she had read
    a survey that said people her age thought they were likely to see a UFO
    before they'd get a Social Security check when they retire. [Laughter]
    Kind of an interesting observation, isn't it? [Laughter] So here's
    Carlos, a firefighter, saying, ``Just give me a chance to manage some of
    my own money.''

    [[Page 366]]

        Things have changed in America since I was Carlos' age. I don't
    remember 401(k)s when I was 30 years old. Maybe they were there; I just
    wasn't observant of it. I don't think 401(k)s came into being. I don't
    think there was this notion of defined contribution plans. So here we
    are, talking to a brave firefighter, talking about, ``Give me a chance
    to contribute to my own plan.'' It's kind of interesting, isn't it? It's
    an interesting shift of attitude. There's a lot of folks that may not
    realize this; there's a whole kind of investor culture that is growing
    up throughout the whole younger generation. People are used to it, used
    to the concept of opening up a quarterly statement and saying, ``Look at
    my asset base. Look how it is growing.''
        That's an important thing that people need to hear, particularly
    people in the United States Congress, that we're not talking about a
    foreign idea of allowing people to take some of their own money, in
    order so that that money can grow at a better rate than that which is in
    the Government, so that when they come to retire, it can be closer to
    the benefits promised by the Federal Government. That's what we're
    talking about.
        I think it's interesting, don't you, that Carlos is--he's got an
    entrepreneurial spirit to begin with, right? When did you start your own
    business?
        Mr. Pagan. Seven years ago, sir.
        The President. Making a living?
        Mr. Pagan. Yes, doing all right.
        The President. That's good, yes. It's what we like to hear.
    [Laughter] Employing people?
        Mr. Pagan. Yes, and this summer, I'm going to employ my daughter for
    the first time, and she'll be able to contribute to Social Security.
        The President. That's good. Good job.
        Okay. Brian Dougherty. Welcome.
        Brian Dougherty. Thank you, sir. It's a pleasure to be here, Mr.
    President.
        The President. Glad you're here. Age?
        Mr. Dougherty. Twenty-three.
        The President. See, he's nervous, and should be. Not about sitting
    up here--[laughter].
        Mr. Dougherty. I'm 23 years old. I live in Hoboken, New Jersey, now.
    I'm a sales manager at the Hilton Short Hills around the corner.
        The President. Business all right?
        Mr. Dougherty. Business is good.
        The President. You deserve a promotion, then, what the heck.
    [Laughter]
        Mr. Dougherty. Well, thank you. Maybe if we can get you to stay in
    the Presidential suite, which is calling your name.
        The President. Very good.
        Mr. Dougherty. Your next overnight trip, sir.
        The President. That's called turning the tide on the old boy, you
    know. That's good. [Laughter]

    [Mr. Dougherty made further remarks.]

        The President. It's interesting, isn't it? Listen to this 23-year-
    old guy. He's saying, ``I've analyzed it. I started to pay attention to
    it. And when I looked at the math, I realized I'm going to be on the
    short end of the stick.'' In other words, you can put all the money in
    you want, but because of the demographics and the math, there's not
    going to be anything left. You're just paying for me, and I--and I
    appreciate it. [Laughter] We're happy you are. The question is, will you
    be paying for anything for yourself? And the answer is, not unless we
    reform this system. That's what the message is here today.
        Keep going, you're on a roll. Keep going.
        Mr. Dougherty. The other thing, Mr. President--we had an opportunity
    to speak backstage, and I appreciate your listening. I'm here to ask
    that Congress listens. You don't see many 23-year-olds on the MSNBC
    circuit or anything like that at nighttime, but we have something to
    say, and we're concerned about the issue.
        The President. Yes. You sure do have something to say. See, here's
    the thing about this issue. I actually ran on it. I said, ``Vote for me,
    and I'm going to do something about Social Security, and I'm going to
    try to put out some innovative ideas to fix it.'' And in the past,
    people would say, ``Don't campaign on Social Security; you'll get
    beat.'' It used to be politically that if you just said something about
    it, they would run ads saying, ``Well, Bush is going to take away your
    check.'' And they actually did that in 2000, I was told. And
    fortunately, when I ran the

    [[Page 367]]

    next time, I was able to say, ``Well, we didn't take away your check.''
        But I'm still talking about it because I think it's an issue we need
    to talk about. I think it's an important issue. And the dynamics have
    changed. Young people are beginning to say, ``What about my check?
    What's going to be around for me?''
        This is a generational issue. People born from 1950 and before have
    nothing to worry about; the promise is going to be made. The fundamental
    question is, will the Congress have the will and the desire to work with
    the administration so that we can say to people like Brian and Carlos
    and everybody else up here that are born after 1950, ``We hear your
    voice, too. We know you've got a concern, and we want to make sure this
    very important system, the retirement system, is modernized and reformed
    so you'll have the safety net when you retire as well.''
        Listen, I want to thank you all for giving us a chance to discuss
    this. I want to thank our panelists. God bless. Thanks for coming.

    Note: The President spoke at 10:56 a.m. at the Westfield Armory. In his
    remarks, he referred to Mayor Gregory S. McDermott of Westfield, NJ;
    Maureen Ferguson, wife of Representative Mike Ferguson; President Hamid
    Karzai of Afghanistan; President Mahmoud Abbas (Abu Mazen) of the
    Palestinian Authority; President Jacques Chirac of France; and Crown
    Prince Abdullah of Saudi Arabia.