[Weekly Compilation of Presidential Documents Volume 41, Number 25 (Monday, June 27, 2005)]
[Pages 1051-1060]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks in a Discussion on Strengthening Social Security in Silver 
Spring, Maryland

June 23, 2005

    The President. Thanks for the warm reception. Ben, you always draw a 
good crowd. [Laughter] He claims he went to this high school.
    Ben Stein. I did--class of '62.
    The President. Yes, pretty soon you'll be receiving a Social 
Security check.
    Mr. Stein. I hope so. I hope my son and my grandchildren will too.
    The President. Listen, thank you all for giving us a chance to come 
and visit with you about Social Security. Before I begin, I do want to 
thank Laurie Checco, who is the business manager at Montgomery Blair 
High School. Thanks for letting us come by. I appreciate you opening 
this beautiful facility.
    I want to thank Mark Mackey and Linda Hollands, who are part of the 
National Retirement Planning Coalition for sponsoring this event. It's 
important that there be an open dialog about Social Security, the 
problems inherent with Social Security, and the opportunities to fix 
Social Security. And that's why I've come today. So thank you all for 
sponsoring this.
    You know, some in Washington wish I hadn't brought it up. [Laughter] 
They say, ``Why would you bring up Social Security? I mean, after all, 
we might have to run for election.'' [Laughter] ``Why would you bring up 
such a difficult topic?'' And the answer is because I see a problem, and 
I believe my job is to address problems and not pass those problems on 
to future Presidents, future Congresses, or future generations. And 
here's why I see a problem.
    Before I describe the problem, I do want to congratulate one of my 
predecessors, Franklin Roosevelt, for doing something really smart and 
really wise, and that is setting up a safety net for retirees. Social 
Security has worked. It's been a very important part of a lot of 
people's lives.

[[Page 1052]]

    And the first thing I want to say to those who receive a Social 
Security check today: Nothing changes for you; you're in good shape. The 
system is solvent for people receiving a check. The reason I say that is 
because I understand how politics works. You see, the surest way to stop 
something from going forward or stop a dialog or stop reform if reform 
is needed, is to scare people. And in the past, people have used the 
Social Security issue to scare seniors. They say, ``Old George W. gets 
elected, you're not going to get your check,'' or, ``If this goes 
through, you're not going to get your check.'' You know, that's kind of 
shameless politics.
    And so I'm spending a lot of time not only describing the problem 
but assuring seniors that no matter what the rhetoric is coming out of 
Washington, you are going to get your check. So you need to tell your 
grandparents, they're going to get their checks. All of us, whether 
you're Republican or Democrat, know how important this program is to a 
lot of seniors around the country. The question is not whether the 
seniors will get their checks. The question is whether younger Americans 
will be able to have a safety net, a retirement system just like today's 
generation gets.
    And here's why we have a problem. There's a lot of people like me 
getting ready to retire. [Laughter] In my case, I reach retirement age 
in 2008, which turns out to be a fairly convenient date. [Laughter] Get 
it? [Laughter]
    About 70 million-plus of us are getting ready to retire. You're so 
old, you don't even qualify as a baby boomer. [Laughter]
    Mr. Stein. Thank you, Mr. President.
    The President. No, don't worry about it. [Laughter]
    There's now about 40 million retirees. So you get a sense of the 
problem. In other words, a whole bunch of people are getting ready to 
retire, and we're living longer than the previous generation, and we've 
been promised greater benefits than the previous generation.
    And so you've got a lot of people getting ready to retire who have 
been promised greater benefits. The problem we have is that there are 
fewer people paying into the system. In 1950, there were about 16 
workers for every beneficiary. Today, there's 3.3 beneficiary--workers 
for every beneficiary. Soon there will be two workers for every 
beneficiary. You've got a lot of people living longer, getting greater 
benefits, with fewer people paying for us. And the system, as a result, 
starts going into the red when the baby boomer generation begins to 
retire.
    As a matter of fact, it starts going into the red in 2017. I know 
that sounds like a long time for people in Washington. It's not very 
long if you're entering the workplace. In other words, you're paying 
into a system that starts going broke in 2017, into the red. And every 
year thereafter, after 2017, the problem gets worse. In 2027, it's $200 
billion in the hole. In 2030, it's $300 billion in the hole.
    See, Social Security is not a trust. It's a pay-as-you-go system. 
You pay, and we go ahead and spend. You pay payroll taxes. You work 
hard. You put payroll taxes into the system, and the Federal Government 
spends your payroll taxes on retirees. And with money left over, it goes 
for Government programs. And all that's left is a file cabinet of IOUs. 
In other words, some think that we're taking your money, and we're 
holding it for you, and then we're going to give it back to you when you 
retire. That's not the way it works. It's a pay-as-you-go system, and 
the pay-as-you-go system starts going into the red. And it gets worse 
and worse and worse.
    As a matter of fact, every year we wait, it's going to cost us $600 
billion to fix it--$600 billion a year to fix it. In other words, the 
longer we wait, the harder it is for me to be able to look at younger 
Americans and say, ``The money you're putting in the system is going to 
be there for you.''
    Now, if you're older, you're going to get your check. If you're born 
prior to 1950, you're fine. If you're a younger American, you need to 
pay attention to this issue. I think this is a generational issue. 
Grandmothers and granddads have nothing to worry about. Their 
grandchildren have got a lot to worry about.
    My strategy has been to travel the country saying, ``We've got a 
problem.'' I think pretty well most Americans now understand we do have 
a problem. And the reason I knew that was the first step that needed to 
be taken

[[Page 1053]]

is because I have confidence that once people realize there's a problem, 
then they'll ask their elected Representatives to do something about it. 
And I was pleased to see some Members, Republican Members of the House 
and the Senate have started laying out ideas. I've been laying out 
ideas.
    I think it's time for the leadership in the Democrat Party to start 
laying out ideas. See, the American people expect those of us who've 
come to Washington, DC, to negotiate in good faith on behalf of the 
people. If there's a problem, people ought to say, ``Here's what I'm 
for,'' not what they're against. People ought to be willing to step up 
and lead, as opposed to playing partisan politics. That's what the 
people want.
    I believe future generations ought to receive benefits equal to or 
greater than the previous generation. I like the idea that has been put 
on the table by a Democrat economist named Pozen. It's called 
progressive indexing. It says if you're the poorest of Americans or 
lower income Americans, you get your benefits calculated by wage 
increase. If you're the richest Americans, top 1 percent, you get your 
benefits calculated by inflation, increase of inflation. In other words, 
everybody's benefits go up. The wealthier people's benefits will go up 
slower than the poorer benefits. And in between, there's a scale. That's 
called progressive indexing. It basically says we can make a commitment 
to poor Americans that if you've worked all your life, you're not going 
to retire into poverty. I like that idea. I think that makes a lot of 
sense. This progressive indexing solves--permanently solves most of the 
problems in Social Security. It doesn't solve it all, but it permanently 
solves most of the problem.
    And there are other ideas on the table. I asked people to bring them 
forth. ``You've got a good idea, step up with it. I'm more than willing 
to listen.'' What I'm not going to listen to is this partisan bickering 
in Washington, DC. People really expect us to do different. They expect 
us to think differently and act differently when you see a problem, and 
we have a problem.
    I've got another idea that we're going to discuss today. It's an 
idea that some feel uncomfortable about--I understand that--but I think 
it's certainly worth the dialog. And that is, on the one hand, we ought 
to permanently solve the solvency issue for Social Security so I can--we 
can--all of us involved in politics can look at younger workers and say, 
``You're fixing to pay into a system that will not only take care of 
baby boomers like me, but there will be a retirement system for you.''
    I also think we ought to make the system a better deal for younger 
workers, and that means giving younger workers the option, the ability, 
if they so choose, to take some of their money--after all, it's your 
money in the payroll taxes--and set it aside in what we call a voluntary 
personal savings account. It's an opportunity--I like the idea of giving 
somebody a chance to build a nest egg that the Government can't spend. 
In other words, remember the--what you have left in the Social Security 
system today is a file cabinet with IOUs in West Virginia. I actually 
went and saw the file cabinet, and I'm proud to report the paper is 
there. [Laughter]
    I like the idea of encouraging people to own assets that they get to 
manage. It makes economic sense. If you're a younger worker and you 
realize that we're taking your money and we're putting it in a system 
that may not be around for you, you ought to demand change. But let me 
tell you what else we're doing. We're taking your money and putting it 
into a system that's yielding about a 1.8 percent return. That's a lousy 
deal.
    So I think you ought to be allowed to take some of your money, set 
it aside in a voluntary personal savings account so you can invest in 
bonds or stocks--bonds and stocks, whatever you so choose. You can't put 
it in the lottery, by the way. There will be go-bys. In other words, the 
Government is going to say, ``We're not going to let you take it to the 
track. We're not going to let you take wild risks.'' People do this all 
the time, by the way, and they get a better rate of return than 1.8 
percent. And if you can get a better rate of return than 1.8 percent, 
that compounds over time. And it's that compounding of interest that 
helps create wealth and security in retirement. The voluntary personal 
accounts will complement that which is available to you through the 
Social Security system. But you're going to get a better deal

[[Page 1054]]

on your own money than in the current system.
    I like the idea of people having assets that they can pass on from 
one generation to the next. I reject this notion that the investor class 
is confined to only a certain group of people. I think investors ought 
to be around--[applause].
    And finally, I believe this idea ought to be debated because the 
system is not fair, in this sense. If you're a spouse and your other 
spouse--if you're a husband and your wife works or you're a wife and 
your husband works, and you're both contributing in the Social Security 
system, if one of you dies early--if you die before 62, what you get is 
you get a burial benefit from the Government. In other words, you've 
been working all your life; you're putting money in the Social Security 
system--both of you have been--one of you dies early, and the Government 
says, ``Here, fine, here's a burial benefit.'' And then when you get to 
retirement age, you get to choose. You get to choose the benefits of 
your spouse or your own benefits, whichever might be higher, but you 
don't get both.
    Think about that. So you've got two folks contributing into the 
system; one dies early. And by the time the survivor reaches retirement 
age, he or she gets to say, ``I either get my spouse's benefits or my 
benefits, but not both.'' In other words, one of--the deceased spouse 
has contributed to a system, and the money has just gone away. That's 
not fair. It's not fair to say to working people, ``Work all your life, 
and the money you've contributed is not around if you happen to die 
early.'' It's not fair to the spouse. It's not fair to the family.
    If we allow younger workers--if they so choose--to take some of 
their own money--now, remember, I keep saying, ``if they so choose''--to 
take some of their own money and set it up in an asset that grows over 
time, if that were to happen, if somebody were to die early, at least 
there's an asset to pass on to help the spouse.
    See, the system is not fair today. It's not fair for younger workers 
to know it's going broke, and you have to contribute into it. It's not 
fair for people living today, who worked in their system all their--paid 
into the system, and there's not an asset upon death, early death. It's 
not right. And I think now is the time to get something done.
    By the way, the idea of voluntary personal savings accounts is not 
new. You're going to hear from some young investors. Investing is not 
new. It's new for older people. You know, when we grew up, there wasn't 
401(k)s or IRAs. These are relatively new concepts. I bet there was no 
401(k)s when you grew up. You look like a baby boomer. [Laughter] Yes, 
okay, you.
    But the idea of, you know, saying if you work for the Government, 
you can take some of your own money and put it aside in a voluntary 
personal savings account isn't new in Washington. I don't know if you 
know this or not, but the Federal Thrift Savings Plan--see, that's the 
plan that the Congress set up for themselves and people who work in the 
Federal Government--it says if you want to, you can set aside some of 
your own money in a mix of bonds and stocks.
    And so my attitude is--to folks around the country is, if it's a 
good idea for Congressmen and Senators, in other words, if they think 
it's a good enough idea for themselves, it ought to be a good enough 
idea for workers all across the country.
    Anyway, I see a problem. I'm willing to talk about solutions. I'm 
looking forward to working with both Republicans and Democrats to get 
the job done. And I want to thank our panelists for joining us to help 
make some very important points. See, this is an education process we're 
going through. People have got to be educated. There's a lot of messages 
getting out there on the TV screens--you know, people saying this and 
people saying that. Once people understand there's a problem, once the 
grandmothers and granddads understand they're going to get their check, 
they can relax. Then they're going to start asking people who have been 
elected to office, ``What are you going to do about my grandkids?''
    You don't have a grandkid yet, do you?
    Mr. Stein. Thank God, our son is only 17. [Laughter]
    The President. Well, that's good. You went to high school here?
    Mr. Stein. I went to Montgomery Blair High School, class of '62. The 
best class ever.

[[Page 1055]]

    The President. Really? That's good. [Laughter]
    Mr. Stein. I'm concerned about it. I'm extremely concerned about it.
    The President. You've been talking about it for a while.
    Mr. Stein. I talk about it--I represent two groups. I represent the 
National Retirement Planning Coalition, which helps people plan for 
retirement. And I'm also representing for the gangstas all across the 
world--[laughter]--hidden corners in them low-lows girl. [Laughter] 
That's rap music, Mr. President. [Laughter]
    The President. Yes. [Laughter]

[At this point, Mr. Stein, economist, lawyer, actor, and writer, made 
further remarks.]

    The President. I'll tell you an interesting story. I was at an 
automobile plant in Mississippi, and I----
    Audience member. [Applause]
    The President. There you go. [Laughter]
    Mr. Stein. He's from Mississippi.
    The President. Yes, okay, two of you. [Laughter] And I was with the 
line workers. And I said, ``How many of you all have 401(k)s,'' in other 
words, ``How many of you are managing your own money?'' And I bet 90--I 
didn't count, but a lot, 90 percent of the hands went up. These are 
people from all walks of life, all income groups. It's amazing how quick 
you become financially literate when you're watching your own money, in 
other words.
    But let's talk about financial literacy, and let's talk about this 
notion of risk. Let's talk about whether or not a person who is nervous 
about stocks and bonds has the capacity to absorb all these fancy words 
you're talking about.
    Mr. Stein. But they're not--they turn out not to be fancy words.
    The President. They sound fancy.
    Mr. Stein. Well, it isn't fancy. [Laughter] A stock is a share in 
ownership of a corporation. A broad index of stocks is a share in 
hundreds, thousands of corporations. And the values of those investments 
will fluctuate from year to year. But over long periods of time, they 
will do incredibly well. I mean, here's a statistic--I know you don't 
like statistics.
    The President. No, I like them, yes, particularly when they help 
make the point. [Laughter]
    Mr. Stein. But over any 20-year period in the last 100 years, a 
person who bought the broad index of the Standard & Poor's 500, the 
largest 500 corporations in America, would not have lost money, and his 
average return would have been 10 times his money. That is so much more 
than Social Security, it's insane. Over a 25-year period, the average 
return is more than 20 times his money. And there's been no 20-year 
period in the last 100 years when a stock market investor would have 
lost money. So there will be fluctuations from year to year, but over 
long periods of time, investors in stocks through mutual funds, 
exchange-traded funds, variable annuities will come out way, way, way 
ahead of the game, wildly ahead of the game.
    The President. A lot of people--I hear, you know, I hear these 
people saying, ``Well, all they want to do is let Wall Street get 
rich.''
    Mr. Stein. They're already rich. [Laughter]
    The President. All right, richer. In other words, I think one of the 
things people have got to understand--and perhaps you can help on this 
one--is that there will be negotiated fees on behalf of the people. In 
other words, you're not going to get gouged. I think that's a convenient 
red herring.
    Mr. Stein. Yes, the usual fees on these things, especially if you're 
a careful shopper and especially under your plan, are going to be 
extremely minimal. I mean, fees for many of these things are close to 
zero. And Wall Street is not going to get rich off this. They're already 
rich. They don't need the money. The person who needs the money is the 
person Ben or Brian's age who is going to get in at the age of 20 or 21 
or 22 or 25 and is going to let compound interest do all the heavy 
lifting for him. If you get in, in your 20s, by the time you're in your 
40s, you're set.
    The President. Compound interest--some people many not know what 
that is.
    Mr. Stein. Well, compound interest means you earn interest, and then 
you earn interest on the interest. And if you let that work for you in 
the stock market for 20, 30, 40 years, even if you're just putting a 
small

[[Page 1056]]

amount away each month, you're going to have a much more comfortable 
retirement than you ever dreamed of having. If you start when you're in 
your 40s or 50s, the problem doesn't get solved. If you start when 
you're 20, it does get solved. And that's sort of exactly what we're 
talking about with your Social Security plan. If we start now, it's 
going to be easy to solve the problem. If we wait until the system is 
already broke, it's going to be incredibly difficult and expensive to 
solve the problem. Why not do it now, when it's easy?
    The President. See, the idea is to say to younger workers, ``Instead 
of putting money into a bankrupt system or a system that will be 
bankrupt, we're going to, one, permanently solve the problem and, two, 
give you a better deal by letting you watch your own money grow, 
investing in a safe mix of bonds and stocks that will compound over 
time.''
    Wendy Merrill is with us. Should we turn to Wendy?
    Mr. Stein. Yes, absolutely.
    The President. Wendy, where are you from?
    Wendy Merrill. Good morning. Thanks for having me.
    The President. Where are you from?
    Ms. Merrill. I'm from Reisterstown, Maryland----
    The President. Reisterstown, very good.
    Ms. Merrill. ----which is near Baltimore.
    The President. Great, thanks for coming over.
    Ms. Merrill. Thank you, my pleasure. I'm 32 years old, and I----
    The President. You don't look a day over 21.
    Ms. Merrill. Oh, aren't you sweet. Thank you.
    The President. Oh, you know how we politicians are. [Laughter]
    Ms. Merrill. I have two family members with me today. I wanted to 
say hi to my husband Stephen and my father Neil are in the audience with 
us today.
    The President. Thanks for coming, yes. Say hello to them after the 
event?
    Ms. Merrill. Yes.
    The President. Good, thank you.
    Ms. Merrill. And I have been in the financial services business for 
10 years. I'm an insurance broker. I work with my family's insurance 
agency. And I'm a big fan of these personal accounts.
    The President. Right.
    Ms. Merrill. I think it's a great solution to the problem. I am a 
member of--I'm a little older than these guys over here, but I'm 
definitely a member of the generation that was taught that I couldn't 
count on Social Security for my retirement. For that reason, ever since 
I joined the workforce, I've been saving in 401(k)s and IRAs and really 
taking charge of my own future, which is what I advise my clients to do 
as well, when we discuss retirement planning. I just tell them, you 
know, ``Don't count on Social Security,'' unless it gets fixed, of 
course.
    The President. That's kind of sad, isn't it? Excuse me for 
interrupting. You've got younger Americans saying, ``Don't count on 
Social Security.'' I guess the word is getting out, slowly but surely, 
we've got a problem with Social Security, to the point where you've got 
some people saying, ``Don't count on it.'' As a matter of fact, I saw a 
survey where it said younger workers feel like they're more likely to 
see a UFO than get a Social Security check. [Laughter] Excuse me for 
interrupting.
    Ms. Merrill. No problem. I agree. I mean, I----
    The President. It is amazing that we sit here in Washington not 
getting anything done knowing that you've got younger Americans not 
thinking they're going to see a check on Social Security. That's the 
wrong kind of politics.
    Sorry, go ahead.

[Ms. Merrill, director of business development, Insurance Designers, 
Inc., made further remarks.]

    The President. Well, that's exactly the concept that I'm asking 
Congress to think about. One of things that people have got to 
understand is like in the Federal Thrift Savings Plan, there is--the 
options are relatively limited. In other words, you can't go out and 
create your own notion about what you want to invest in. The Government 
says, ``Here, if you want to take some of your own money, here's a 
variety of options'' and, you know, mainly bonds, mainly stocks, a mix 
of

[[Page 1057]]

bonds and stocks. And the truth of the matter is, when you're younger, 
you may want to take a little risk. I presume you say to younger people, 
``Take a little risk.'' When you're older, kind of----
    Ms. Merrill. Absolutely. I mean----
    The President. ----crank down on the risk.
    Ms. Merrill. ----it's always on an individual basis, obviously. But 
younger people can definitely afford to take more risk, and compound 
interest works for you. And you're better off putting a dollar in 
yesterday as opposed to two dollars tomorrow, because of that.
    The President. Yes. Good. Well, thanks for coming.
    Ms. Merrill. My pleasure.
    The President. Appreciate you being here.
    Brian Smart.
    Brian Smart. Yes, sir. How are you?
    The President. Feeling pretty good, yes. [Laughter] How about you?
    Mr. Smart. Good, good.
    The President. Good, thanks for coming. I understand you just got a 
job?
    Mr. Smart. Yes, which my parents--mom and dad and sister----
    The President. They must be thrilled, yes. [Laughter]
    Mr. Smart. They were very happy about--very happy.
    The President. Well, congratulations. And you paying payroll taxes 
yet?
    Mr. Smart. Yes.
    The President. Yes, you are.
    Mr. Smart. Yes, a lot of them.
    The President. More than you realized, right?
    Mr. Smart. It's a scary thing. I mean, I graduated from Radford 
University. I graduated this December, so relatively new, and got a job. 
And I'm out there making money, and this is kind of something that's 
come up to my attention that it's not going to be there. And it's 
something that really bothers me.
    The President. Like that bite out of the check, first time that 
happened, got your attention?
    Mr. Smart. Well, I mean, it's got my attention previously. But it's 
something that I'm realizing now that--and I'm not doing anything. I'm 
paying into something that I can't even use, and there's nothing I'm 
going to be able to do with it when I retire.
    The President. Yes, see, it's kind of a sad thought, isn't it? The 
Government now--has got a system now that has evolved away from 
something that worked really well. Franklin Roosevelt created something 
that worked well--working well when there's 15 workers for every 
beneficiary. And slowly but surely over time, as a result of demographic 
change, promises we made, we cannot keep. You got a 23-year-old guy, got 
his first job, saying he's nervous about the system.
    Government ought to--Government at the very minimum ought to earn 
the trust of the people. He trusts--[applause]. Keep going.
    Mr. Smart. Well, I mean----
    The President. So have you been paying attention to this issue when 
you were at college?
    Mr. Smart. A little bit.
    The President. Tell me the truth.
    Mr. Smart. No--to be honest, no, I haven't. [Laughter] But I mean, 
it's something that to me I've seen firsthand with my grandmother. She's 
retired, living the life I'd love to live. You know, she--her and my 
grandfather invested wisely when they were young, in stocks. And right 
now she's basically living off her dividends. She doesn't count on 
Social Security----
    The President. Yes.
    Mr. Smart. ----which is something that scares me because she's 
already at retirement.
    The President. Right.
    Mr. Smart. Something I have 40, 50 years before it even--I even 
start drawing Social Security.
    The President. Well, your grandma made some--and grandfather--made 
some wise choices. There's some people in this country, that's all they 
depend upon is their Social Security check. And it's really important 
that those folks know that they're going to continue to get their check. 
There are a lot of people that the only check they live on is the Social 
Security check, which as you can imagine, when they start hearing people 
talking about reforming the system, they're really thinking, ``Well, 
maybe my check is going to

[[Page 1058]]

go away,'' and people have got to know it's not. It's just not going to 
go away. Government will never do that to people. But I'm not so sure 
you're going to have a check.
    Mr. Smart. And that's something, as a 23-year-old person who's 
paying into Social Security now, really scares me.
    The President. I hope so.
    Mr. Smart. Because I don't--I mean, I don't know enough. I don't 
really know enough right now to try to make a decision. And I'm hoping 
you can guide me in the right direction----
    The President. That's it.
    Mr. Smart. ----and tell me this is what you need to do.
    The President. Well, all right, I'll tell you. I'll give you a hint. 
In 2041, the system goes bankrupt. That's not very long.
    Mr. Smart. I know.
    The President. It's long for me and old Ben. That seems like ages, 
doesn't it?
    Mr. Stein. That's a long time.
    The President. Yes, but not for him.
    Mr. Stein. No, not at all.
    The President. Do you remember when you were 23?
    Mr. Stein. Extremely vividly. I remember when I was here at Blair 
High School at 17 and 16. But you know, his grandparents hitched their 
wagon to a star, which was the star of investing in stocks and bonds, 
and it worked incredibly well. The idea of allowing all Americans, not 
just well-to-do or even upper middle class ones, to hitch their wagons 
to that star makes total sense. Why should we say to the ordinary 
citizen, ``Look, because you're not rich, you can't get in on the same 
kind of investment opportunities that rich people can get in on.'' Let's 
let everybody get in on it. Let's let everybody get a chance to make 
some real money.
    The Standard & Poor's Index compounded at a rate--I know you don't 
like statistics--but 14 percent a year from 1926 to 2004. If you could 
have your Social Security or even a quarter of it or a fifth of it 
compound at that rate instead of at 1.8 percent a year, the difference 
would be astronomical--astronomical.
    The President. Yes, I do like statistics. [Laughter]
    Mr. Stein. Okay, sorry. [Laughter]
    The President. Just not too many of them.
    Mr. Stein. Okay. [Laughter]
    The President. What I like more--even more than statistics is the 
notion of an ownership society. We want more people owning something.
    You know, Brian said something interesting--he basically turned--he 
said, ``I hope you old guys fix it.'' And we have an obligation to fix 
it. I think there's a lot of younger folks sitting around saying, 
``Well, I'm--one, I either don't care; I'm not paying attention to it,'' 
when they start paying attention to it, realize there's a problem, and 
they're going to say, ``Well, you know, surely the people we sent to 
Washington will do something to permanently fix it. Surely, there's 
enough goodwill in the Nation's Capital that people will set aside their 
political parties and come together and permanently solve this problem. 
Surely, they're not going to let us pay money into a bankrupt system.''
    I hate to tell you, unfortunately, some are playing politics in 
Washington. But we're going to keep working it and keep working it and 
keep calling upon the people.
    Go ahead.

[Mr. Smart made further remarks.]

    The President. Like when you were sitting in the library, reading 
all those books, did you ever think about sitting on the stage with the 
President? [Laughter]
    Mr. Smart. No, not at all.
    The President. How about the library part? Was that fiction? 
[Laughter]
    Mr. Smart. Fiction. [Laughter]
    The President. I know what you mean. [Laughter]
    Ben Ferguson.
    Ben Ferguson. Howdy. I'm not one of those two Mississippi guys.
    The President. You are from Mississippi? Where?
    Mr. Ferguson. Well, Memphis, but I go to school at Ole Miss.
    The President. Oh, Ole Miss. Very good, yes. [Applause]
    Mr. Ferguson. There we go. I'm glad there's one.
    The President. So why are you here? Come all the way from Ole Miss.

[[Page 1059]]

    Mr. Ferguson. I got together with some students who started an 
organization called Students for Saving Social Security----
    The President. Really?
    Mr. Ferguson. ----because we realized that basically our second 
chance at Social Security, the only chance we ever have to have this, is 
if it gets fixed and we get our personal accounts. That's the only way 
we're going to get it. We know it's not there. We know we're paying 
someone money that we're not going to see, and so we need our second 
chance. And that's the only way we're going to get it. I mean, besides 
if we win Ben Stein's money, but he told me there's not enough. 
[Laughter]
    The President. Pretty good line.
    Mr. Ferguson. Yes.
    The President. So how did you get involved in the Social Security 
issue? It's a--it's pretty interesting that you would pick up on the 
issue and decide to do something about it.

[Mr. Ferguson, communications director, Students for Saving Social 
Security, made further remarks.]

    The President. You're on a roll. Keep going. [Laughter] See, I've 
got a little--one of the dynamics of this issue is the people that are--
the people that benefit from Social Security today have nothing to worry 
about. You notice I keep saying that. In my line of work, you've got to 
say the same thing over and over and over again, finally get it to sink 
in.
    But one of the dynamics on the issue is that there's a lot of folks 
out there who need to pay attention to it who might not be paying 
attention to the issue. And therefore, Members of the Senate and the 
House aren't hearing from younger Americans.
    And so part of the goal is to remind people that if you're getting 
your check, you're going to get your check, but if you've got a child 
coming up, you better start asking the politicians what they're going to 
do about your child or your grandchild.

[The discussion continued.]

    The President. Yes, that's why I want to repeat what I said earlier. 
I believe in ownership. I want people from all walks of life, every 
background, saying, ``This is mine. I own this. I'm going to work my 
life. I'm going to own this asset. I'm going to pass it on to whomever I 
want to pass it on to.'' The more ownership there is in America, the 
better our future is. The more people can say, ``This is my stake. This 
is my home, my business, my retirement fund, my health care account''--
the more people say, ``I own this,'' the more solid the future of 
America will be.
    Have you got something else, because I've just--that was my 
peroration.
    Mr. Stein. No, I was just going to say, it is a basic fact of both 
political and economic life that societies that have a--in which the 
ordinary citizen feels he has a stake in the society and isn't just a 
ward of the state, isn't just a straw in the wind blowing about by the 
state, are societies that last a long time. And we want this society to 
last forever, and it will if we have an ownership society.
    The President. Absolutely. Go ahead, yes.
    Mr. Ferguson. And too, one thing is I want to let you know, and 
there's been a lot of people that have said in the media that young 
people just don't care. We started our organization 2 months ago. We 
have over 100 college campuses, chapters that have said, ``We want to be 
involved in this debate.''
    The President. That's good, thank you.
    Mr. Ferguson. Young people care, and I want to say thank you to you 
for actually listening to us instead of talking about us.
    The President. Well, I appreciate you. If you're interested, I'm 
sure you've got a web page where people interested in the issue can----
    Mr. Ferguson. Yes, you want me to plug it?
    The President. Well, yes, you've got the grammar--[laughter]----
    Mr. Ferguson. It's secureourfuture.org. There you go.
    The President. It's like Marketing I, right?
    Mr. Ferguson. That's right. I'll give you some money later.
    The President. Try it again--secureourfuture----
    Mr. Ferguson. Dot org. Right, there you go.

[[Page 1060]]

    The President. So people can get on the web page, figure out how to 
help.
    Mr. Ferguson. Start a campus chapter.
    The President. Get involved in the issue.
    Mr. Ferguson. Get involved and be heard.
    The President. My final point is, where does a guy get a pair of 
shoes like that?
    Mr. Stein. You can get them at a place called FrontRunners, in 
Brentwood, California.
    The President. Never mind.
    Listen, thank you all for coming. God bless.

Note: The President spoke at 10:03 a.m. at Montgomery Blair High School. 
In his remarks, he referred to Mark J. Mackey, president and chief 
executive officer, and Linda Hollands, vice president, operations, 
National Association for Variable Annuities, a member organization of 
the National Retirement Planning Coalition; and Robert C. Pozen, former 
member, President's Commission to Strengthen Social Security.