Posted on 09/07/2001 3:00:54 PM PDT by RCW2001
Friday September 7 4:41 PM ET
By Randall Mikkelsen
WASHINGTON (Reuters) - President Bush on Friday rushed to contain the political fallout of a big jump in unemployment, saying he was concerned about those losing their jobs but offering no new plan to revive a slowed economy.
``The slowdown is real and is affecting too many lives,'' Bush said. ``I want the American people to know we're deeply concerned about the unemployment rates and we intend to do something about it.''
Appearing outside the Oval Office with Vice President Dick Cheney, House of Representatives Speaker Dennis Hastert and Senate Republican Leader Trent Lott, Bush was reacting to the news that the jobless rate in August jumped to a nearly four-year high of 4.9 percent, up from 4.5 percent in July.
Companies cut 113,000 workers from their payrolls in the month.
Democrats quickly denounced the figures as evidence of economic mismanagement by Bush.
``I think it's a reflection, unfortunately, of the Bush budget and Bush economy,'' said Senate Democratic Leader Tom Daschle of South Dakota.
The White House said the Bush administration continued to believe better times were on the way and that existing steps to bolster the economy were sufficient.
``It was certainly not a good news report, but it doesn't really alter the view that the economy is near a turning point,'' Glenn Hubbard, chairman of the White House Council of Economic Advisers, told Reuters in a telephone interview.
STANDS BY PROJECTIONS
``We're still looking for improvement in the economy by the end of this year, by the fourth quarter of this year into 2002,'' Hubbard said. He said an earlier White House projection the U.S. economic growth rate would rise to 3.2 percent in 2002, from 1.7 percent in 2001, remained reasonable.
White House spokesman Ari Fleischer said Bush's $1.35 trillion tax cut and Federal Reserve interest rate cuts had occurred at ``exactly the right moment'' to help the economy.
Officials saw no need for new economy-boosting steps, pointing to further tax reductions already scheduled. ``There is substantial additional stimulus on the way,'' Hubbard said.
A senior aide said Bush's meeting with the Republican congressional leaders was arranged on Friday to demonstrate the president's concern over rising unemployment and to promote his economic agenda as the path to a rebound.
Bush urged Congress to enact his ``pro-growth agenda'' to create energy- and export-related jobs. Aides acknowledged that these proposals would have only a long-term impact.
On a day that stock markets were tumbling anew, Bush also said he wanted a federal budget that does not dip into the surplus Social Security revenues.
``It's absolutely essential that we work together to put a growth plan in place to create jobs for hard-working Americans. It starts with having a responsible budget that meets our nation's obligations without affecting Social Security or dipping into Social Security,'' Bush said.
BLAMES CLINTON POLICIES
Bush's quick expression of concern for jobless Americans seemed to reflect responses to the re-election defeat of Bush's father, former President George Bush. That 1992 loss to Bill Clinton was attributed in part to criticisms the elder Bush showed insufficient concern for economic woes.
White House aides also said that because the unemployment rate was lagging economic signal, the current rise was a result of former President Clinton's policies, not Bush's.
But House Democratic Leader Richard Gephardt of Missouri told reporters after meeting Bush that the economy was now Bush's responsibility.
``I think the real slowdown has begun in the last six months,'' he said. ``I think the economy has reacted to the president's budget plan.''
He said the president had undermined the economy through a tax cut which reduced budget surplus projections and drove up long-term interest rates.
Hubbard dismissed these charges as ``nonsense.''
Gephardt said new budget suggestions were needed, but left it up to Bush to propose them.
Fleischer said Bush remained open to a cut in capital gains taxes, but believed his existing tax cut would work and wanted to assess its impact before considering additional cuts.
He said Bush ruled out increased spending to stimulate the economy and rejected suggestions by some Republicans that he cast aside a pledge not to dip into the Social Security budget surplus.
Hubbard said across-the-board spending cuts were one option to shield Social Security surpluses, but added current projections showed such cuts were not needed.
Second... Speed up the tax cuts and cut the capital gains tax rate
Meanwhile, let's have a major cut in the Capital Gains tax rate. Sound for this quasi-recession and excellent long-term, too.
Most folks don't know the Bush family has some pretty serious connections with the Federal Reserve Bank (a private organization BTW). The bigger the deficit, the more easy money comes in.
His inexperience is really showing... but hopefully he'll learn from his mistakes. How in the world can he justify rewarding law breakers when there are millions of immigrants who've played by the rules and are still waiting... He just let Fox roll right over him.. Good gawd, I've told the local GOP off and fired off a nasty letter to the national office... They're hittin me up for money almost every month but my checkbook has been closed.
crackpot nonsense.
495,000 H1Bs asked to be admitted by this same administration?
Bush concerned over jobless?
Me thinks GWB speak with forked tongue. More BS for the masses.
I know of people personally who have been pushed out of jobs in favor of H1Bs.
CATO
On the other hand, I was quite glad to see him talking about the energy bill as one that is good for the economy and one that will create JOBS. Places the dems on defense, I think.
The only thing he can do is cut spending and reduce/eliminate taxes.
On the other hand, I was quite glad to see him talking about the energy bill as one that is good for the economy and one that will create JOBS. Places the dems on defense, I think.
I too was glad he went on TV to speak about the economy. Yes, the energy bill would be a good start followed by a capital gains tax cut. The President needs to do all he can to fight the growing perception that he isn't leading us out of this downturn. All the RATS can do is blame the tax cut. I hope the economy turns before I lose everything.
I really hope someone is looking into whether or not the stock market was manipulated by the Clintonistas. Robert Rubin seems to have dropped out of sight.
Methinks a lot of "profits" in yo=yoing for a small select few. A righteous good congame, legal for the government to do, legal for a small handful of bankers, illegal and you'd get chucked in jail if you did it on your own. First illegality is the poof creating counterfeit money that represents nothing whatsoever. "Money" is supposed to represent an actual 'thing" that in turn represents something else tangible, someplace down the line. Someone worked to create it. When it can just be poof created, you get inflation, deflation, extended credit and "debt", you get bad "investments" and "bubbles", you get a nation that owes this so called 'debt". Ole shrub has as much chance of effecting the economy as he does to influence the chinese dictators to wake up tomorrow morning and be "nice guys". Ain't happening. At least in this instance we have a president who isn't lying about it. He really can't do much at all himself, and frankly, it would be scarier if he could. We got enough dictator action going on already, in fact, it would be the best move if we dumped the federal reserve bank as a first step. And that isn't going to happen, so back to shrub and he's concerned and thinkin on it. Good, that's all he should do. Presidents muddling in an already thoroughly muddled and crooked economy are just like greyout davis muddling with electricity-it's a no win situation, the only potential they have is to make it worse. Unless he wants to bust the fed governors, then that would be OK by me.
;^)
I agree with what you write. If GWB is so "deeply concerned" about the unemployment rates, he should tell his buddy Fox to take the illegals and their families back with him to Mexico, and line the border with troops.
For the country's sake, I hope so. But who the hell is advising him? Bush's attitude appears that he came to Washington to reduce taxes. "Mission accomplished - in 2004, I'm outta here - back to the ranch". His administration may have even less vision than this father's. The liberals (in both parties) are controlling the agenda.
Any economists here? How does budget surpluses, that is money justing floating around in Washington, help the economy? I disagree with Daschle on principle, and I'm dubious of his economic arguments too. The projected surplus is dwindling, Democrats say, because of the tax cut. But so what? Deficits are bad, but if Bush and Congress can limit spending, then the US won't go into deficit. I commend the Democrat for their newfound frugality, but it seems their way to argue angainst tax cuts, which could stimulate the economy. Bush should have offered an immediate, across the board 5+ point reduction tax cut that widened tax levels.. How do these brackets sound ...10%22%28%33%?
The 1.35 trillion dollar tax cut was too small(esp. for people who earned between $6,000 and $65,000) and too spread out.
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