Mike Tierney collected the following statements that came from President George W. Bush. Mike added his own comments:

January 11, 2005: Remarks in a discussion on Social Security reform:
“…to allow younger workers, on a voluntary basis, to take some of their own money and set it aside in the form of a personal savings account, a personal savings account which is their own, a personal savings account which would earn a better rate of return than the money – their money currently held within the Social Security trust, a personal savings account which will compound over time and grow over time, a personal savings account which can’t be used to bet on the lottery, or a dice game, or the track.”

(So, there is a trust fund)

January 14, 2005: Florida Community College at Jacksonville in Jacksonville, Florida:
“The Social Security trust has got plenty of money in it to take care of those who have retired or near retirement.”

(Plenty of money in the trust fund)

February 3, 2005: North Dakota State University, Fargo, North Dakota:
“Now, if you’re retired or near retirement, you don’t have a thing to worry about. The Social Security trust is solvent.”

(Not only is there a trust with plenty of money, but it is solvent too)

February 3, 2005: Montana Expo Park, Great Falls, Montana:
“Now, that is – and because Social Security is a pay-as-you-go system, there’s not a great big trust of money. The money that goes in from your paycheck goes out to the beneficiaries. I know I’ve got a lot of explaining to do. And one of the most important explanations of all is Leo is going to get his check. Nothing changes. The system is sound.”

(There is no great big trust of money, but the system is sound)

February 4, 2005: Quest Center Omaha Arena, Omaha, Nebraska:
“When I talk about a Social Security trust going bankrupt in 2042, there is enough money in the system to take care of the promises for those who have retired, and those who are near retirement. That’s a fact.”

(Trust fund language is gone, but the system is sound)

February 10, 2005: Montgomery County Community College, Blue Bell, Pennsylvania:
“…in the year 2018, the system starts to go into the red. In other words, more money going out than coming in…Now, one of the myths about Social Security is there’s a pile of money sitting there accumulating, because you put money in, the government saves it for you, and then when you retire you get it out. That’s not the way the system works. Every dime that goes in from payroll taxes is spent. It’s spent on retirees, and if there’s excess, it’s spent on government programs. The only thing that Social Security has is a pile of IOUs from one part of government to the next.”

(There is no pile of money)

February 16, 2005: Pan Am Hangar – Pease International Tradeport Airport – Portsmouth, New Hampshire:
“As a matter of fact, in 2018, the system goes into the red. And by the way, there’s not a Social Security trust. In other words, people think your money goes into the trust and it’s held for your account and then you get it out. That’s not the way it works. It’s pay-as-you-go. It goes in and it goes out. And to the extent that there’s money more than the retirees receive, like it is today, it goes to other programs. And so what you’ve got is an IOU, kind of a bank of IOUs…and in 2042, the system goes broke.”

(Broke in 2042 – in the red in 2018 – but solvent for those 55 or older?)

March 10, 2005: The Kentucky Center for the Performing Arts, Louisville, Kentucky:
“There’s no such thing as a trust. The money that has come in has been spent. So the money to payroll taxes coming in are now paying for those who’ve been promised benefits, and everything is fine because the payroll taxes exceed the amount of money that needs to go out. But in 2018 that changes. There’s a safety net for retirees. There’s a hole in the safety net for a younger generation coming up. And that’s why I’ve asked Congress to discuss the issue.”

(Now that the trust is gone, we have a safety net concept)

March 11, 2005: Canon Center for the Performing Art Memphis, Tennessee:
“There’s a safety net. The problem is the safety has got a hole in it for younger Americans. The safety net is secure for older Americans. (Applause) That’s why I say there’s a hole in the safety net. And that hole exists for the people coming up.”

(A safety net with a hole in it that is designed to allow people “coming up” to fall through, but not us old farts. Is he talking string theory and multi-dimensions?)

March 18, 2005: Pensacola Junior College , Pensaco la, Florida:
“Any federal employees understand what I’m talking about – the Thrift Savings Plan. It works. If it’s good enough for federal employees, it seems like to me it ought to be good enough for people who are working.”

(Wow. It’s the Thrift Savings Plan for people who actually work)

March 18, 2005: Lake Nona YMCA Family Center, Orlan do, Florida:
“…remember 1983…a lot of people from both parties came together, said, we’ve got a real problem, let’s come together to do something about Social Security. And they put together the 75-year fix. But here we are in 2005. Doesn’t seem like a 75-year fix when you’re here talking about it 22 years later.”

(It was actually 1982 when the Greenspan Commission was appointed to study Social Security. And the “problem” was that for seven years in a row Social Security had turned to its trust fund. Small shortfalls in payroll receipts panicked politicians because the money had to come out of the general fund. Money they wanted for other things. On top of that, there was no surplus for them to enjoy.)

March 21, 2005: Tucson Convention Center, Tucs on, Arizona:
“The system – the safety net is in good shape for people born prior to 1950. Now, let me tell you something about the Social Security system. It’s not a trust.”

(Safety net in good shape. Again, no trust)

March 21, 2005: Wings Over The Rockies Air and Space Museum, Denver, Colorado:
“This President and the Congress – many in the Congress understand that safety net has got a hole in it. They can’t tell you how much yet. But you know you can get a check plus your own asset base if you allow people to have a personal savings account…Secondly, when you retire, you can’t pull all your money out. In other words, it’s there to help you retire. The capital stays in place and you live off the interest, plus whatever the Social Security system can afford.”

(It’s not quite like the Thrift Savings Plan either, just like the trust fund isn’t really a trust fund)

March 22, 2005: Kiva Auditorium, Albuquerq ue, New Mexico:
“The federal employees Thrift Savings Plan allows for federal employees to do just what I’m describing to you, take some of their money, set it aside so their money grows faster. My attitude is pretty clear on this one. I said, if Congress thinks it’s good enough for the federal employees, including themselves, sure seems good enough for the average worker in America (Applause) There was a guy named Pozen on my commission who has come up with some interesting ideas to make the system progressive for future retirees. And we’ve set that concept.”

(Progressive? Future retirees risk capital then live off interest?)

(The End)

Thanks Mike. It’s obvious to me that Bush doesn’t understand his own story. The system is in trouble in 2018. The trust fund sustains it until 2042. But there is no trust or at least no money in that debit black hole. Too bad the media and press don’t pick up on any of this. (Ed Henry)