THE PRESIDENT:
Good morning.
Over the last few weeks, I have traveled across our nation and met with
tens of thousands of you to discuss my plans for strengthening Social
Security. I share a great responsibility with your representatives in
Congress. We must fix the system permanently, so it will be there for our
children and grandchildren.
I have been to 15 states, and I'm just getting started. On every visit,
I am assuring those of you born before 1950 that Social Security will
remain the same for you; no changes. No matter what the scare ads or
politicians might tell you, you will get your checks. You grandparents
also understand we have got to fix the holes in this vital safety net for
future generations. I appreciate the wisdom of our seniors and I welcome
your input on how to strengthen the system.
You younger workers
know what is happening to Social Security. The present pay-as-you-go
system is going broke. Huge numbers of baby boomers, like me, will be
retiring soon, and we are living longer and our benefits are rising. At
the same time, fewer workers will be paying into the system to support a
growing number of retirees. Therefore, the government is making promises
it cannot keep. Still, some folks are playing down the problem, and say we
can fix it later. The fact is, we have got a serious problem and we need
to fix it now. If you are in your 20s, or if you have children or
grandchildren in their 20s, the idea of Social Security collapsing is no
small matter, and it should not be a small matter to the Congress.
In 1983, Congress enacted what they thought was a 75-year fix to save
Social Security from bankruptcy. This bipartisan solution turned out to be
temporary because it did not address the system's fundamental flaws. Two
years later, Social Security was headed out of balance again. Now some in
Washington are talking about another 75-year fix, which means we will be
back to the starting line a few years from now. We do not need a band-aid
solution for Social Security. We want to solve this issue now and forever.
Putting off real reform makes fixing the system harder and more
expensive. As one Democrat leader observed recently, "Every year we delay
adds at least $600 billion to the cost of saving the system." And the
Social Security trustees agree. Postponing reform will leave our children
with drastic and unpleasant choices: huge tax increases that will kill
jobs, massive new borrowing or sudden, painful cuts in Social Security
benefits or other programs. Our children deserve better and we can give
them better. I have told Congress all ideas are on the table, except
raising the payroll tax rate. Some of the options available include
indexing benefits to prices, rather than wages; changing the benefit
formulas; raising the retirement age -- ideas Democrats and Republicans
have talked about before.
Whatever changes we make, we must provide a better and stronger system
for younger workers. And that is why I have proposed allowing younger
Americans to place some of your payroll taxes in voluntary personal
retirement accounts. You would have a choice of conservative bond and
stock funds, with the opportunity to earn a higher rate of return than is
possible under the current system. If you earn an average of $35,000 over
your career, you can build up nearly a quarter-million dollars in your
account, on top of your Social Security check. This would be real savings
you own, a nest egg you could pass on to your children.
The American people did not place us in office to pass on problems to
future generations and future Presidents and future Congresses. I will
work with both parties to fix Social Security permanently. Social Security
has been there for generations of Americans, and together we will
strengthen it for generations to come.
Thank you for listening. |