Bush: 'We See the Problems, but We're Confident in the Economy'

The president responded by saying the economy is resilient. "We see problems, but we're confident in the long-term health of this economy," Bush said as the economic forum wound down that he convened at Baylor University. He held the forum in an attempt to calm the stock market and to overcome damage to the Republican Party in an election year.

Bush said he was "determined to build on the long-term security of the American people."

He said Congress must hold down spending if the economy is to recover. He said he would not spend $5.1 billion earmarked for combating terrorism because Congress included many unrelated projects in a bill authorizing the funds.

The CEO of Albertsons supermarkets, Larry Johnston, told the president that consumer confidence was declining and consumers were "gun shy." Instead of buying brand-name products, a lot of consumers are buying private-label products and brand-name goods only when they are on sale, Johnston said. Consumers also are buying "more hamburger than steak," he said.

Investor confidence is at a "very fragile point," Charles Schwab, chairman of Charles Schawb Corp., a stock market investment group, told the president. The stock market, however, has taken "a brutal correction" but remains the best place for individuals to invest in the long term, Schwab said.

But investors no longer trust the system, said Muriel Siebert, president of Muriel Siebert & Co., another stock market investment firm. People believe the system is against them, Siebert said.

And corporate managers' pay has approached "obscene" levels, Rutgers University student Julie Still said. She complained that one corporate executive's severance pay was 10 times what she could earn in a lifetime.

Meanwhile, House Republican Conference Chairman J.C. Watts commended the president for "bringing together a cross-section of the country to discuss how we can work together to get our economy back on track.

"Senate Democrats need to quit stalling on issues to help the average American worker. The House passed a bipartisan pension security bill to give employees new protections and freedoms to safeguard their retirement savings.

"The president is waiting to sign this bill. What is the holdup?" Watts asked.

"House Republicans uncovered, exposed and stopped the Arthur Andersen shredding scandal. We were the first to hold Enron hearings and uncovered whistle-blower Sharon Watkins' memo. And we were the first to hold hearings on the Global Crossing bankruptcy and the WorldCom accounting scandal.

"The House and the White House are working to strengthen our economy and secure the retirement savings for American employees. Senate Democrats need to wake up from their slumber and catch up. This is too important an issue to wait until after the November election," Watts concluded.

Copyright