BUSH: Economy Will Rebound
By Arshad Mohammed
Reuters
WACO, Texas (Aug. 13) - President Bush on Tuesday predicted a revival for the sluggish economy, pressured Congress to pass cut spending and urged Wall Street to clean up its act at an economic forum designed to show his focus on a vital issue ahead of November mid-term elections.
Bush, criticized by Democrats for holding a meeting without their leaders, mostly heard endorsements of his policies on tax cuts, pension reforms and terrorism insurance from a handpicked audience of 250 executives, union members, small investors, top officials, students and scholars at Waco's Baylor University.
''Even though times are kind of tough right now, we're America. I am incredibly optimistic about the future of this country,'' Bush told the meeting attended by Vice President Dick Cheney, Treasury Secretary Paul O'Neill and other officials.
The Federal Reserve, which voted on Tuesday to leave U.S. interest rates unchanged, appeared to differ with the Bush administration's upbeat assessment, saying the economy was in danger of greater deterioration ''for the foreseeable future.''
With U.S. economic growth in the April-June period crawling along at 1.1 percent, budget deficits soaring and control of both houses of Congress up for grabs in mid-term elections, Bush held the forum to hear ideas on how to restore growth and push his own prescriptions for the economy.
Meeting one day before CEOs of top U.S. companies have to begin following a government order to personally vouch for their financial statements, Bush also hoped to restore confidence in corporate America after a series of accounting scandals.
At the forum he demanded Congress pass legislation making the government a backstop for terrorism insurance, saying this could unleash $8 billion in blocked construction projects. He also called for it to cap medical malpractice lawsuit awards and enact reforms to better protect worker pensions.
''We need ... to get American hardhats back to work,'' Bush said, promising to listen to any policy ideas that emerged from the morning of meetings.
Democrats were largely dismissive of the forum.
''Under this administration, we've lost nearly 2 million jobs, $7 trillion in the market and more than $5 trillion of the surplus,'' said Senate Majority Leader Tom Daschle, a South Dakota Democrat. ''A made-for-TV economic forum isn't going to solve our problems, or ease families' concerns.''
Karl Rove, Bush's top political adviser, shot back, ''I understand why people who are hypersensitive about the fall elections want an opportunity to score a political cheap shot, but frankly every American ought to applaud it when their president sits down with ordinary people and hears from them.''
Bush and Cheney each dropped by four of the one-day forum's eight sessions, which had a boardroom-like atmosphere with speakers seated around tables making prepared remarks.
HAMBURGER INSTEAD OF STEAK
Bush had tough words for the investment industry, calling for it to act on its own to offer clearer financial disclosure, to complement a government crackdown on corporate criminals and help restore confidence in the markets. Bush said the industry must adjust to accommodate ordinary, less savvy Americans who have flocked to the stock markets over recent decades.
''There needs to be better disclosure so that people feel confident that they're not being led down the primrose path of fancy financial footwork,'' Bush said.
Bush heard some criticism at the forum as well as evidence that consumer confidence is weak.
''With all due respect, people feel that the government is not moving quick enough to take punitive actions against the CEOs who have destroyed the public trust in our institutions and in our public markets,'' Sheri Orlowitz, chief executive of manufacturing company Shan Industries, told Bush.
Businesspeople offered varying views on the economy, with Boise, Idaho-based grocery chain Albertsons Inc. Chairman Larry Johnston saying: ''Consumer confidence is weakening ... We see them buying things like hamburger instead of steak.''
Having watched his father's Gulf War popularity collapse in 1992 because of a struggling economy, Bush wants to avoid falling into the same trap of appearing out of touch with working Americans while he fights his war on terrorism.
Bush also had tough words for Congress, announcing he will refuse to release $5.1 billion in homeland security money that would go to purposes other than guarding the nation, defending his action on the grounds of fiscal restraint.
Bush said he would work with Congress to get $1 billion of the total he deemed important, including money to fight HIV/AIDS and to aid Israel and the Palestinians, but rejected the rest.
The guest list included some prominent Democrats but mostly they appeared to be supporters of the president.
Sitting beside Bush at one panel was Van Eure, owner of the Angus Barn Restaurant in Raleigh, North Carolina, who said, ''I'm just honored to be sitting next to one of my heroes.''
Reuters 15:33 08-13-02
Copyright 2002 Reuters Limited. |
