18/12/2004 12:49:05 pm
President Bush on Growth, Deficits and Social Security. This Thursday, President Bush discussed his economic agenda at a televised White House Conference with experts and politicians. One interesting piece of fact which was mentioned was that in 1935, when the pay-as-you-go Social Security was introduced, there were 40 working people for each person being supported by the system. By 2020, there will be only two people working for each person being supported by Social Security. That illustrates well the need for change and the President spoke about that, arguing for his thought of having personal accounts. (Another interesting fact that was pointed out was that the budget deficit was projected to be 4,5 % of GDP this year, but turns out to be 3,6 % - still high but not a dramatic size. Now what matters is which measures will be taken to continue reducing it.) President Bush also talked briefly about the ideology behind his economic reforms:

"I love the idea of people being able to own something. You know, one of the most hopeful statistics in America is the fact that more and more people are owning their own home. It is a -- it?s just -- I met a lot of people on the campaign trail that said, I just bought my first home. And there?s just such joy in their voice, that they were able to say, this is my home.
I love the fact that more and more people are starting their own business. I think one of the unique things about America is that the entrepreneurial spirit is so strong that people are willing to take risks. People from all walks of life, all income levels are willing to take risks to start their own company. And it?s a fantastic experience to meet people who say, my business is doing well. I?m trying to do the best I can with my business.
And I like the idea of people being able to say, I?m in charge of my own health care. In other words, if I make a wise decision about how I live, I end up with more money in my pocket when it comes to a health care savings account. I particularly like the idea of a Social Security system that recognizes the importance and value of ownership. People who own something have a stake in the future of their country and they have a vital interest in the policies of their government."


Read a transcript of the White House Conference - >