Following is the full text of President Bush's speech on Social Security.
BUSH: Listen, thanks for coming today.
As you can see, I'm joined by some fellow citizens here on the stage who have come to talk about one of the great causes of our generation, and that is how to strengthen and save Social Security for generations to come. You know, I know this is an issue that some would rather not be talking about. It's an issue that is, kind of -- I think some think it's got too much political danger attached to it. So therefore, let's just, kind of, maybe move it down to the next group of people coming to Washington, or maybe things will get better by ignoring it.
That's not what I think.
And today I want to talk about why we have an issue with Social Security, why I believe those of us who have been elected to office have an obligation to do something about it. And then I want to end with some ideas -- some constructive ideas to Congress as to how to deal with the issue.
And then I want others to share with me their ideas. And we've got some people who've come a long way, flown all the way to Washington, D.C., to share some thoughts with the president. And I think you'll find their stories interesting. I certainly did when we had a little discussion a little bit ago.
You know, first, let me tell you how much I understand Social Security has meant for generations of Americans. I mean, Franklin Roosevelt, in thinking boldly, envisioned a Social Security system where Social Security would help seniors with their retirement.
And the system worked for a lot of people. And it's been, you know, an incredible achievement if you think about a piece of legislation being relevant for nearly 70 years.
The problem is is that times have changed since 1935. Then most women did not work outside the house, and the average life expectancy was about 60 years old, which for a guy 58 years old must have been a little discouraging.
(LAUGHTER)
Today, Americans, fortunately, are living longer and longer. I mean, we're living way beyond 60 years old and most women are working outside the house.
The Social Security system is an account where money comes out to pay for retirees and is put in the system by people who are working.
And that's changed. I mean, more and more retirees are taking out money relative to the number of people putting money in. In the '50s there were 16 workers for every beneficiary so the system was in pretty good shape. Today there's three workers for every beneficiary. Relatively quickly there's going to be two workers for every beneficiary.
And that's a problem. And that's a problem because in the year 2018, in order to take care of baby boomers like me and -- I don't -- and some others I see out there -- the money going out is going to exceed the money coming in.
That's not a good thing. It means that you're either going to have to raise the taxes of people or reduce the benefits. And the longer you wait, the more severe the pain's going to be to fulfill the promise for a younger generation of workers coming up.
As a matter of fact, by the time today's workers who are in their mid-20s begin to retire, the system will be bankrupt. So if you're 20 years old, in your mid-20s, and you're beginning to work, I want you to think about a Social Security system that will be flat bust, bankrupt, unless the United States Congress has got the willingness to act now.
And that's what we're here to talk about, a system that will be bankrupt.
And I readily concede some would say, Well, it's not bankrupt yet why don't we wait till it's bankrupt? The problem with that notion is that the longer you wait, the more difficult it is to fix.
You realize that the system of ours is going to be short, the difference between obligations and money coming in, by about $11 trillion unless we act. That's an issue. That's trillion with a t. That's a lot of money even for this town.
(LAUGHTER)
And so I'm looking forward to working with Congress to act. We've got an expert from the Social Security system that will talk about the problem and I'm going to talk about the problem.
You know, the problem is that some in Congress don't see it as a problem. They just, kind of, think that maybe things will be OK. But the structure of Social Security is such that you can't avoid the fact that there is a problem. And now's the time to get something done.
Now, I've talked about this and I want the people to clearly understand, if you're a senior receiving your Social Security check nothing is going to change.
Those days of politicizing Social Security, I hope, are in the past. A lot of people ran for office and they even mentioned the word Social Security there'd be TV ads and flyers and people knocking on doors saying, You know, so-and-so's going to ruin Social Security for you.
But younger people are listening to this issue. You know, I've traveled a lot, I campaigned on this issue of Social Security and the need to strengthen it and reform it. I didn't shy away from it in 2000. I certainly didn't shy away from it in 2004. I laid it out there for the people to hear.
I said, Vote for me and I'm going to work with Congress, see if we can't get something done to solve the system. This is part of fulfilling a campaign pledge. I wouldn't be sitting here if the people said, We don't want anybody to touch it. We think it's OK.
Most younger people in America think they'll never see a dime. Probably an exaggeration to a certain extent. But a lot of people who are young, who understand how Social Security works, really do wonder whether they'll see anything.
My attitude is, once we assure the seniors who will receive Social Security today that everything is fine, I think we got a shot to get something done, because younger Americans really want to see some leadership.
I've said we're not going to run up the payroll taxes. I think running up payroll taxes will slow down economic growth. This economy's beginning to kick in. It's beginning to make sense. I think we can solve the problem without increasing payroll taxes.
(APPLAUSE)
And also threw out another interesting idea -- certainly not my idea, others have talked about it -- and that is to allow younger workers, on a voluntary basis, to take some of their own money and set it aside in the form of a personal savings account; a personal savings account which is their own; a personal savings account which would earn a better rate of return than the money -- their money -- currently held within the Social Security trust; a personal savings account which will compound over time and grow over time; a personal savings account which can't be used to bet on the lottery or, you know, a dice game or the track.
I've heard some say, Well, you know, it's risky to allow people to invest their own money. You know, it's risky to let people say, You can take your money that's supposed to be for a retirement account and put it on the lottery. I realize that.
But it's not risky. Federal employees, thrift savings plans, invest under certain guidelines and I don't hear them screaming it's risky.
I makes sense to try to get a better rate of return on your money if you expect there to be a Social Security which is going broke. And that's what we're talking about.
Owning your own personal savings account does two other things. One, it allows you to pass on your savings to whoever you choose. You can't do what with Social Security today. If you pass away earlier than expected, that money that you put in the system is gone.
And at the same time that you manage your own account, you own your own account. I love promoting ownership in America. I like the idea of encouraging more people to say, I own my own home. I own my own business. I own and manage my health accounts. And now I own a significant part of my retirement account.
Promoting ownership in America makes sense to me to make sure people continue to have a vital stake in the future of our country.
And so I want to thank you all for coming today, for giving me a chance to address the Social Security issue. I plan on talking about it a lot. This isn't the first time I've talked about since the campaign is over, and it's certainly not going to be the last, because I believe it is a vital issue.
Now, I want to talk to Andrew Biggs. He is the associate commissioner for retirement policy at the Social Security Administration. To me that says expert.
I don't know if that's fair to call you an expert or not.
BIGGS: Thank you very much.
