June 27, 2005
JS-2608
The Honorable John W. Snow
Prepared Remarks to NASDAQ employees
Trumbull, CT
Good afternoon; it's great to be here and I appreciate the chance to talk with you about the historic effort that is going on in
The time to make meaning and permanent change to the system is now for two important reasons.
First, waiting to fix the problem is terribly expensive, and I believe irresponsible considering that younger generations will be left paying the bill. Every year we delay permanently reforming the system, $600 billion is added to the shortfall – which, according to the non-partisan Social Security actuaries is $11.1 trillion on a permanent basis.
Second, our outstanding economic health presents us with an excellent opportunity to move forward with meaningful reform.
We are enjoying terrific economic strength, with more Americans working today than at any time in our history. Since 2002,
Saving and improving Social Security will mean a positive change, but a change of enormous proportions nonetheless. And significant change is best done from a position of economic strength like the one that we currently enjoy.
Because of your economic and financial expertise, as employees of NASDAQ, I know you appreciate these points. You are especially informed, sharp observers and participants in this national discussion.
Most of you are likely taking a smart, three part approach to your own retirement. I know that NASDAQ has a pension plan and offers a 401(k) with a match, so that's one piece.
Depending on your age, you may or may not be counting on Social Security as the second piece. The younger folks, I'll bet, aren't counting on it – an interesting cultural phenomenon that should not discourage young people from being involved in this national dialogue, by the way. In fact, Social Security reform is primarily about, and for, the youngest generations of workers.
The third piece of the retirement picture would be your own savings, investment and IRAs.
You are probably among those Americans most prepared for their retirement years. Many don't have all three pieces in place and rely heavily on Social Security. It was with that fact in mind that the President took this issue to the public, and to Congress. He knew that we simply couldn't turn a blind eye to the looming problems with a program this important.
Since the President raised this issue to the top of the nation's domestic policy agenda, a lot of terrific ideas have been discussed – at lunch counters and dinner tables, from college dining halls to the halls of Congress – and today we're getting much closer to having significant legislation move on Capitol Hill.
The President has welcomed all ideas – other than raising the payroll tax rate or changing benefits for those older than age 55 – to help solve the challenges facing the Social Security system.
He is strongly committed to giving workers the option of a voluntary personal account so they can save their own money in a nest egg – because it's the best way to ensure that Social Security money is spent on Social Security. As you all know, Social Security surplus funds are spent every day, by Congress, on everything under the sun other than Social Security.
The President is encouraged, as I am, by the increasing pace of activity in Congress on how to save and strengthen Social Security for future generations. He appreciates the Members who have introduced legislation, and who have supported his objectives in this effort.
Your own Senator Lieberman, for example, has been superbly open in his acknowledgment that that Social Security has serious problems. There are still plenty of Members of Congress who still won't face up to the plain mathematical facts!
Joe has also pointed out to his Democratic colleagues that "It is not enough to oppose the President's plan." He is encouraging those colleagues to come up with a plan of their own to protect the program.
Senator Bennett introduced a bill a few days ago that contained progressive benefit growth, which is one of the elements of reform that the President has been promoting. Progressive benefit growth would mean that the lowest income seniors would have the fastest-growing benefits while benefits for those who are more well-off grow more slowly, with protection from inflation.
The President has also welcomed plans from other Members like Senator DeMint and Congressman Bill Thomas. Every time legislation is introduced, it advances this issue – and that is what the President wants.
This is fascinating time in government history. Enacting real reform of Social Security this year – which I believe we will – holds great promise for generations of American workers and retirees. If done right, reform will benefit our economy and end the decades-long tradition of hiking payroll taxes every time the Social Security formula is off-balance.
I'm extremely proud to be helping the President as we seek to achieve a safe and promising financial future for all Americans.
Thanks again; I'd be happy to take your questions now.