FROM THE OFFICE OF PUBLIC AFFAIRS

January 19, 2005
JS-2205

Statement of the Honorable John W. Snow on the
swearing-in of U.S. Treasurer Anna Escobedo Cabral

Good afternoon. I want to extend a warm welcome to Anna's family and friends who have come here to be part of this very special day. This is a momentous occasion not just for Anna, but for everyone who holds her dear. It is a day to feel proud of her, proud to know her, and the first of many days ahead in which your support of her will be essential to the job she is embarking upon.

Family has been the strong foundation upon which Anna has built a full life and a brilliant career, and I suspect this new position will not change that fact. As the third generation of a family who immigrated to the United States from Mexico, Anna has been inspired by her family's vision - and fulfillment - of the American dream. Her grandparents were Americans-by-choice and their love for this country, for freedom and opportunity, engendered a love for the same in the generations that followed, including Anna.

Anna knows that she is the manifestation of her family's American dream; and I know that humbles her. It is also one of the many reasons why I know she will, as the oath says, faithfully discharge the duties of the office of which she is about to enter.

Like so many American families, Anna's passionately embraced their citizenship here while also holding dear their native culture and traditions. Anna has dedicated much of her career to representing Latinos and Latino culture in the corporate world, the non-profit community of art and learning, and in the Congress.

She believes that the United States offers great hope and opportunity to Latinos - and that Latinos make enormous contributions, every day, to this great country.

In her role as U.S. Treasurer, Anna will be reaching out to all citizens to talk about some of the most important financial issues of the day: from financial literacy to deficit reduction and reform of the Social Security system. Each of these issues is instrumental in keeping the American promise of economic opportunity and security.

The promises made by Social Security are of great concern at this particular time, as a passionate debate on the issue is already underway. The President is leading an effort to enact change this year, because it is clear that a lack of action would have serious implications for both the future performance of the American economy and as well as the retirement security of our children and grandchildren.

Social Security has served retirees well for 70 years. For millions of Americans, it is a critical element in their plans for a stable retirement. And for today's senior citizens and those nearing retirement, the system will fulfill all of its promises. But for younger workers, Social Security is on an unsustainable path. If we do not fix it now, the system will not be able to pay the benefits promised to our children and grandchildren.

The problem is one of arithmetic. Our demographics have changed in a way that is incompatible with the pay-as-you-go structure of the Social Security system. Current retirees are supported by the taxes paid by current workers. And while that ratio was strong for quite some time, today it is plummeting. In the 1950s, there were about 16 workers paying in for each person drawing out. Today, it's about three workers for every beneficiary. And by the time today's workers in their mid 20s begin to retire, there will be just over two.

The total projected shortfall is around $10 trillion, and with each year that we wait to act, to fix the system, that shortfall will increase by about $600 billion. If we do not act now, government will eventually be left with two choices: dramatically reduce benefits, or impose huge, economically harmful tax increases. Leaving our children with such a mess would be, as President Bush has called it, a generational betrayal.

A bi-partisan effort in the 109th Congress can achieve the goal of reform this year. Furthermore, we can and should achieve reform that: protects the benefits of those currently and near retirement age; does not increase payroll taxes; and includes a promising future for younger workers by allowing them to start a nest egg in the form of a personal retirement account.

I am looking forward, as I know Anna is, to the lively debate in the coming months, and most of all to working with both sides of the aisle in Congress on Social Security solutions. I am confident that out of the debate we will see a shared understanding that the problem is real and that acting today is the responsible thing to do.

Anna, you are joining this historic department at an historic time. On behalf of the Treasury, I welcome you.

I look forward to working with Anna and benefiting from her counsel. I know that the entire Department feels so fortunate to have her here, and it is my strong belief that her country will benefit greatly from her service.

Congratulations, Anna, and welcome to the Treasury.

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