FROM THE OFFICE OF PUBLIC AFFAIRS

May 25, 2005
JS-2470

Secretary John W. Snow
Prepared Remarks to Hunter College High School Students
Washington, DC

I'm very happy to be able to talk with you today; spending time with sharp students like you is a real pleasure.

I want to commend you for studying government, and for your academic achievements. I know that you study very hard. But even with a lot of studying, sometimes it can be difficult to see the real-life importance of what you are learning. My hope is that our discussion today will help make what you've learned in class more "real."

I know that you have a keen interest in government, and I imagine you've learned quite a bit about the political parties - isn't it interesting how each party started and evolved? And you're learning about the checks-and-balances of our government, and how our founders designed it this way to get the best results for the people. After all, what makes our government special is that it was designed "of the people, by the people, for the people."

For so many decades, the parties have fought each other, battled for power and engaged in fascinating philosophical debates. But some of the greatest achievements of the two-party system have occurred when the two parties really work together, without animosity, to achieve great reforms, great good for our country.

Today, President Bush is encouraging the political parties to put aside their partisan bickering for the sake of your generation... specifically, so that we can strengthen and preserve the Social Security system for your benefit.

I know that retirement and Social Security must seem like such far-away parts of your life that you barely think about them. And I understand that; it's very natural. But I also hope you know that the national debate, the national dialogue about Social Security reform is really about you! The youngest generations of Americans stand to benefit so much from this debate... so I encourage you to read the newspaper and talk to your parents and teachers about it.

Your grandparents are the ones who receive Social Security benefits now... but reforming the system actually won't impact them. For anyone at or over the age of 55, the President has pledged that the system and its benefits won't change at all.

It could change for you. It must change for you. And it must change for the better. The results of this reform effort will impact the American economy, the amount of taxes you'll pay when you're older, and whether you will be able to look forward to a comfortable retirement when you are done working.

Here's where we are right now: As your parents can tell you, part of each of their paychecks goes to fund Social Security. Workers pay half of the tax, and their employers pay the other half. If they are self-employed, they pay the whole tax themselves. That money goes to pay the Social Security benefits of their parents – that's your grandparents' generation.

Right now, this works pretty well because there are more than three people paying that tax for every one person collecting the benefits (receiving a Social Security check).

As you know from buying things to share with your friends – like splitting the cost of a pizza – the more people chipping in, the less each person pays.

When your generation is working and paying those taxes, there will only be two of you paying for the benefits of every retiree. Unless each of you pays a lot more in taxes – something the President doesn't think would be fair – then there won't be enough money to pay the full, promised benefits for your parents.

You see, when your parents' generation – called the baby boomers because there are so many of them – begins to retire, it will dramatically increase the cash flow demands of the system. By the year 2041 – when some of your parents are still collecting benefits and when you yourselves are beginning to approach retirement – if nothing is done to change the system, benefits would have to be cut, abruptly, by 26 percent and would continue to fall thereafter.

The problem only gets worse with every passing year, as generations get smaller in number and people live longer lives. Throughout the future of the system it will be more than $11 trillion short.

This is serious stuff. It can be downright frightening. But the good news is that we don't have to accept that as our future... it doesn't have to be your future.

The President wants to work with the Congress to make Social Security solvent - so that it runs "in the black," not in debt. He also wants to see your generation have the ability to save your own money in a personal account. That means you'd be able to build a nest egg of your very own that wouldn't belong to the government.

And, very importantly, the President wants to make sure that the taxes you pay when you are working full-time aren't too high. He wants workers to keep as much of the money they earn as possible. That's good for workers and it's good for our economy, for our prosperity.

I know you are learning in this class that government affects everyone. This issue of Social Security is a very good example of that fact. The decisions made by your government – that means your locally elected leaders, your state legislators, your governor, Congress and the President – really do impact your life. They impact your present and, in this case, they profoundly impact your future.

So while your retirement seems to be a million years away right now... take it from me, the time will go by quickly and it's never too early to think about saving money for the future. I hope that you'll follow the Social Security debate and think about what type of reform would make the future brighter for you.

We are all part of an exciting moment in American history, where a President's courageous leadership has inspired a national discussion and, I'm confident, will lead to historic results. I encourage you to be involved, whether it's talking about the issue with your parents and teachers, or writing a letter to your Members of Congress.

If we act now, we can make sure that Social Security, and our economy, are on sound financial footing for your generation.

I really appreciate the chance to talk with you about this important issue, and would be happy to take your questions now.