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President Bush’s
Position on the Comments by Federal Reserve Chairman Alan Greenspan
Urging a Reduction in Social Security and Medicare Spending
Press Briefing 2/25/04
Answers by Press
Secretary Scott McClellan
Q Scott, when the President was asked
this morning about Chairman Greenspan's comments, he said he hadn't seen
them. Has he had a greater chance -- have you all had a greater chance
to look at them, and what do you think of this idea of paring back
Social Security benefits in order to offset the growing deficit and
debt?
MR. McCLELLAN: I think the President
addressed the question, number one. He said that we have a plan to cut
the deficit in half over the next five years. And in terms of his
principles on Social Security, they are very clear. The President has
made it very clear that there should be no changes in benefits for
retirees or those nearing retirement. The President has also made it
very clear that, as part of our efforts to strengthen and reform Social
Security, we should allow younger workers the opportunity to invest a
small portion of their retirement savings in personal retirement
accounts. And the President talked about how voluntary personal
retirement accounts will allow those who choose the potential to realize
an even greater rate of return on their savings. That's part of our
efforts to save and strengthen Social Security.
Q When he talks about those near
retirement, does he use the age 50 to 55 benchmark that the Social
Security Administration --
MR. McCLELLAN: We said that the
principles -- have laid out those retirees and near retirees. That's
what we've laid out in the principles.
Q But here we appear to have a situation
where the record deficits that the federal government is running now
appear not only to be having an effect on the debt, but, according to
Chairman Greenspan, may have an effect on Social Security. It seems to
me as though that's a pretty big bombshell to be dropped on your head in
the middle --
MR. McCLELLAN: Well, you're talking some
short-term issues and you're talking some long-term issues that need to
be looked at. The President has called for saving and strengthening
Social Security. He appointed a commission. The commission went in and
looked at a variety of ideas and the commission came back and said there
needs to be a national dialogue on this issue. Members of Congress are
starting to put forward ideas. So there is some movement to address this
important issue. We do need to strengthen and reform Social Security,
and the President has talked about his principles for doing that.
Q But doesn't the suggestion that the
deficits that you've been running -- which your economic team has passed
off as "easily manageable in this economy" -- suddenly are having the
potential for an effect that goes far beyond anything that has been
calculated --
MR. McCLELLAN: You're talking long-term.
This President has acted to address some long-term fiscal issues, such
as Medicare and Social Security. We took an initial step in the Medicare
reform legislation to put in some cost controls to the program. Now,
there's more that needs to be done. There's also steps we need to take
when it comes to Social Security. So you're talking about some long-term
issues here, and some long-term problems that we face. And then, of
course, there's the deficit. The President talked about how we're
working to cut that in half over the next five years.
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