Video: Bush declares economy strong

updated 1/6/2006 2:12:48 PM ET 2006-01-06T19:12:48

President Bush shrugged off a report showing weaker-than-expected job growth on Friday and declared that “the American economy heads into 2006 with a full head of steam.”

Bush rattled off a string of recent government reports suggesting a growing U.S. economy, and he used his speech to the Chicago Economic Club to prod Congress to extend his administration’s tax cuts that are due to expire.

“In 2005, the American economy turned in a performance that is the envy of the industrialized world,” Bush said.

Bush, who also visited the Chicago Board of Trade, spoke as he and leaders of his economic team fanned out to trumpet recent improvements in the economy despite Friday’s mixed jobs report showing a slowdown in monthly hiring.

U.S. payrolls expanded by 108,000 jobs during December, about half of expectations. But hiring in November was revised sharply upward, to 305,000 new jobs instead of the earlier reported 215,000. And the unemployment rate declined last month to 4.9 percent from 5.0 percent in November.

By highlighting recent economic advances, Bush took an opportunity to turn attention away from the conflict in Iraq.

“By the way, we’re going to win the war,” he added as an aside.

He confronted Democratic critics and others who oppose extending tax cuts scheduled to expire in 2008, including lower rates on stock dividends and capital gains.

“Just as this economy is getting going, there are some in Washington who want to take the money out of your pockets,” Bush said.

He said that to oppose extending the tax cuts was the same as “saying we’re gong to raise taxes on you.”

The day also featured appearances by Vice President Dick Cheney at a Harley-Davidson factory in Kansas City, Mo.; Treasury Secretary John Snow at the New York Stock Exchange; Commerce Secretary Carlos Gutierrez in Louisville, Ky.; Labor Secretary Elaine Chao in Baltimore; and Energy Secretary Sam Bodman in Pittsburgh.

Major Market Indices

At the motorcycle plant, Cheney said he and the president “understand that government does not create prosperity. And nobody in Washington can wave a wand and create jobs.”

“What government can do, and must do, is help create an environment in which entrepreneurs want to invest and hire new employees, in which companies can expand and create more jobs,” the vice president said.

Bush’s poll numbers for handling the economy are up a bit since gasoline prices have fallen, according to AP-Ipsos polling.

Administration officials pointed to respectable if not spectacular holiday retail sales, rising consumer confidence and a third-quarter growth rate of 4.3 percent that was the highest since early 2004.

“We’re productive. We’re innovative. We’re entrepreneurial,” Bush declared. “And the role of government is to keep it that way.”

© 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 4.71%
$30K home equity loan FICO 5.26%
$75K home equity loan FICO 4.70%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.42%
13.42%
Cash Back Cards 17.94%
17.94%
Rewards Cards 17.14%
17.14%
Source: Bankrate.com