FROM THE OFFICE OF PUBLIC AFFAIRS February 18, 2005 The Honorable John W. Snow
Good morning. It's great to be here in The financial leaders I met with share the President's concern that Social Security needs to be fixed. They know that if those of us in the government don't pursue and enact meaningful changes now, the Social Security system will eventually need to be propped up with massive tax increases, which will send terrible shockwaves through our economy. The American economy is the most dynamic and resilient in the world, but we cannot take that for granted, and this is something uniquely understood by financial leaders who watch and participate in our markets every day. They understand, as our President understands, that we must plan for the future and deal with looming financial threats when we see them. Wall Street is familiar with this way of thinking, which is why they share the President's interest in saving and strengthening the Social Security system. To ignore the problem, I think they agree, is to deny reality. These leaders live in the real world and make hard choices every day. The same can be said for our President. His leadership on Social Security reform displays his great courage as well as his dedication to doing what is right for the American people, for generations to come. Tackling the problems of Social Security is simply more important than partisan politics, and the President won't ignore this problem or leave it as an ugly inheritance for future presidents and future generations I've been pleased to be able to discuss the President's vision on Social Security in more detail during my meetings here in We've had terrific discussions here in Some of the most compelling conversations I've had this week, with some great financial minds here in And when those young workers retire, in 2042, the system will be exhausted, bankrupt. Today's 30-year-old can expect a 27% benefit cut from the current system when he/she reaches retirement age. Without action, our children and grandchildren will be faced with huge benefit cuts or massive tax increases. Social Security has been patched up in the past. We've raised taxes to take us through a few more generations of retirees. But the patches don't last because our demographics are working increasingly against us. We need lasting, meaningful reform. Part of lasting reform ought to be the option, for younger workers, to build a nest egg and I'm excited to be talking with the financial community about how to make that opportunity a reality in a fiscally responsible way that will not unsettle our financial markets. The President believes that a gradual approach to the establishment of personal retirement accounts – phasing in account participation and slowly phasing up the amount of allowable contributions – is the way to achieve those goals. It's been a pleasure to spend this time with the terrific financial minds and the good American hearts here in Thank you.
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