FreedomWorks Members Featured in Coverage of President Bush Event

By KERI CLAY

Staff Writer/The News of Orange County

919-732-2171

www.newsoforange.com

RALEIGH – President George W. Bush was in Raleigh last week to speak on Social Security reform. Almost 2,000 people packed into Meymandi Concert Hall at the BTI Center for the Performing Arts to hear the President’s ideas and his plan for the next four years, “We’ve got a lot of work to do,” he said, to thunderous applause. As he tackled the issue of Social Security, Bush called it
the “third rail” of politics, one that politicians won’t usually discuss. “[But] I believe it’s the job of a President to confront problems and not pass them on to another generation,” Bush said. “I said, ‘Elect me, and I
will try to strengthen the system.’ I believe candidates are rewarded,
not punished, by taking on tough issues.” He said one of his main
goals with this nationwide tour is to reassure those born before 1950 that their benefits won’t change, while at the same time making sure there’s a system in place for young workers and
current retirees. “[Most young people] feel they have a better chance of seeing a UFO than a Social Security check,” Bush said.

As he allays fears of Congress members about reforming the system, he said
he wants citizens to voice their concerns as well.

“I know that when the people speak, members of Congress listen,” Bush
said, as he outlined the problems with the current system.

In 1950, 16 workers were paying for every one person who collected
Social Security. Today, it’s 3.3 workers paying for one. Soon, it will
be two paying for one, Bush said. Rising life expectancy rate, the
retirement of baby boomers, and smaller families with fewer people
contributing to the benefits pool have placed a strain on the current
system. By 2031, a projected 71 million people will be receiving
benefits. “When you add the equation, you have more people living
longer, receiving more benefits and being supported by less people,”
he said. Each person employed in the United States currently pays 6.2
percent of
his or her earnings to Social Security. Employers pay 6.2 also, for a
total of 12.4 percent for each person. Bush’s solution involves using
personal retirement account investments as a supplement to Social Security. Under this system, workers could invest
up to four percent of these taxes into stocks and bonds, for a higher return
on investment. Bush said if the average worker invests four percent of
an annual salary of $35,000, that worker will have an account with approximately $250,000 by
the time he or she retires from the work force. Investments would have to
be a conservative mix of stocks and bonds, and those who don’t know
how to invest can be taught, he said.

Bush said while its not the only option for reforming Social Security, personal investment accounts are one of many that are available if Congress votes for reform.

“I’m not taking options off the table until Congress comes to the
table,” said the President. Bush said he has two reasons that personal
investment accounts should be available to younger workers concerned
about their future. “One, it’s your money to begin with and you can do
what you want with it. Two, this money can be passed on to someone
else,” he said. The system will begin running a deficit by 2018, and
the surplus will be completely empty by 2042, Bush said.

“I know 13 years doesn’t sound like a lot. But, as I’ve told you, we have
to anticipate problems. The longer we wait, the more difficult the problems become,” he said. He said if Congress says no to reform, the only other options are to institute a major cut in benefits or adopt tax increases. But Bush said he wants a permanent solution.
“We have an obligation.to leave a better world behind,” he said.

“For the sake of the country, for the sake of younger generations, we must
act.”

Orange County activist group attends event Orange County FreedomWorks/
CSE sponsored the trip to see the President, with more than six bus
loads of activists and their guests making their way to the state
capitol this past Thursday. Many were from Orange County, a chapter
that has been recognized nationally with a “Most Active Chapter
Award.” Freedom Works/CSE is a non-partisan grassroots organization
that functions at the federal, state, and local level. The
organization has had more than 360,000 members since 1984 and
currently has chapters in 27 states. Kathy Hartkopf, the Legislative
Liaison for North Carolina Freedom Works/CSE, said the organization teaches citizens how to use their voices to affect change. “Along with our usual Orange County activists, we were able to invite a wide diversity of citizens interested in hearing the President’s ideas and expressing some of their own,” she said. The top priority for FreedomWorks/CSE activists at this time is Social Security reform of any kind, she said. “I don’t think that any of us know what [Bush’s] final proposal is going to look like,” Hartkopf said. “But, we definitely support reform.”

Jeff Schmitt of Hurdle Mills was a guest for the trip. He said he appreciates how the President is tackling this issue of Social Security. He said there’s a lot of misinformation floating around, and the current retirees and upcoming retirees need to have the right information to make a decision.

“I give him a lot of Kudos for doing that,” he said. “One of the things I think he’s trying to do is get a consistent base of understanding about where we are.” He thought Bush did a fine job of addressing both the subject matter and the people. “I thought he was very relaxed, comfortable, humorous and affable,” Schmitt said.

Ron Wood of Chapel Hill was also a guest attending the President’s event. Wood finds the idea of personal retirement accounts as a supplement to Social Security to be a favorable one. “If it’s strictly a voluntary program, it’s hard for me to understand how an individual can be opposed to it,” he said.

Wood liked the idea of being able to bequest the accounts to relatives and the fact that young people who are aware of the Social Security crisis won’t feel quite so helpless now. But, he cautions it’s not the final answer because the current system will still result in an empty bank in 2042.

“We’ve known this day was coming. To ignore it is the most
irresponsible thing to do,” Wood said.

Comments? Send them via e-mail: keri.clay@newsoforange.com