Bush: Economy Will Improve Soon Under Obama Administration

WASHINGTON — President George W. Bush said Friday that while the current economic crisis has sent shock waves around the world, he believes steps taken by his administration have "laid the groundwork for a return to economic growth and job creation" early in the administration of President-elect Barack Obama.

"The American economy has consistently proven its strength and resilience" Bush wrote in his final economic report to the nation.

He said this resilience has continued despite multiple blows to the economy.

Bush's statement came at the beginning of the annual report of the White House Council of Economic Advisers.

Those advisers predicted "a strong economic recovery early in the term of the next administration."

Bush said that a combination of factors rose to "threaten the entire financial system and generated a shock so large that its effects have been felt throughout the global economy."

"Under ordinary circumstances, it would be preferable to allow the free market to take its course and correct over time," he said. But, Bush added, the potential financial damage to households and businesses was so severe that "unprecedented government response was the only responsible policy option."

"A measure of stability has returned to the financial system," Bush said.

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He warned that "temporary government programs" established to deal with the crisis "must remain temporary and be unwound in an orderly manner as soon as conditions warrant."

In the underlying economic report, Bush's economic advisers said that while the economy had in fact proven itself " remarkably resilient" over Bush's two-term presidency, there is a "risk that recent events may overshadow the many positive developments of the past eight years."

The advisers suggested that the economic downturn, reflected in the half-percentage-point contraction in the gross domestic product in the final quarter of 2008, will likely continue in the first half of 2009. The White House panel noted that "most market forecasts" suggested a recovery beginning in the second half of 2009 "that will gain momentum in 2010 and beyond."

Looking ahead, the president's economic advisers said the global financial crisis presents several remaining challenges for the U.S. government: the need to modernize financial regulation, unwind temporary programs, and develop a long-term solution for dealing with mortgage giants Fannie Mae and Freddie Mac, now essentially under control of the government.

And Bush's advisers didn't miss an opportunity to put in a final political plug for the president's unfinished agenda, just five days before he leaves office.

"There remains considerable opportunity to strengthen our economic position by eliminating the uncertainty surrounding tax relief that is scheduled to expire."

It was a pitch to make permanent the Bush tax cuts that expire at the end of next year.

Comments

[stevebest]

Guess he figures that the economy will turn right around once he stops funneling our money to his cronies, truth is it is going to take more than getting bush's hand out of the cookie jar to turn things around.

[grf67]

If the economy improves this year it will be because Bush and his legions of incompetents and criminals are gone.

[ColoradoCool]

Such blythe pronouncements! "I laid the groundwork and now any recovery that takes place on Obama's watch is to my credit".

This buffoon spent 977 days of the 2890 days OF HIS TENURE ON VACATION!!­!!!!!!!!!! THAT'S 34% FOLKS!!!!!

He can't take credit for doing anything positive in all that time except maybe letting Barney out to take a crap!!!!

[mmgbizgirl]

I know this man is thinking about ditching the suit and picking up a fishing pole to focus the range of his mental power on killing a trout.

Don't believe for one minute that you'll walk away in the soft dappled sun light and call it the end.

YOUR ABUSE OF POWER is Brutishly Historic. We're not exactly done with you. Stay tuned.

[gofastboat]

Abuse of power- I do agree with that part- The failure of George Bush is that he became more "Big Government " than the Democrats. Obama will not be foolish enough to try him for war crimes- that would just polarize the country even more. I believe Bush's presidency was a huge failure largely due to the fact stayed the coarse with policies the democrats favored such as banks being compelled to loan money to people who cannot afford to pay back loans. But as far as being critical for abuse of power- let get real- Democrats and Republicans have financed these wars. As far as Guantanamo is concerned- every nation imprisons foreign combatants- they do not put them in civilian courts.

[senorlou]

It'll take us years to get over this buffoon's destruction of our economy. Economic advise from the man who probably couldn't even balance his own checkbook (If he ever had to, and he hasn't). It's almost over. Bushy can go live in shame in a Dallas Republican enclave and lurk inside his home.

[deminmo]

There is such an amazing disconnect with this soon-to-be ex-President,
that it is truely scary. Banks are still looking for bailout money, credit has
not been freed up, manufacturing is disappearing, retail is losing more
companies, mortgages are still being forclosed on, the list is growing.
I used to think maybe a turnaround could come in 18-20 months. After
reading lots of predictions and forcasts, and watching the finance pages
I wonder if we will fall off the cliff. This country, and others are bleeding.
Eventually China will not lend us money, nor will anyone else. Printing
more useless paper won't help. Doesn't look good right now.

[LovingHope]

Nobody cares what you think. If you were so knoledgeable about the economy then why are going through all these problems. You are at fault of what is going on. Hopefully Obama can clean up your mess. Now get the hell out of our lives.

[rasit]

Interesting comment, but the economy will improve under Obama admin. NOT because of the foundation laid by the Bush admin. but because of the common sense plan developed by the Obama Economic Team......

[EllaMcC]

OK -- For some reason this just sends me over the edge. I've been rather understanding of the legacy tour, but to actually lay this sort of junk out -- both setting expectations FAR higher than ANY economist is willing to publicly state and directly flying in the face of most economists' projections is simply wrong! It's one thing to try to polish your legacy, but this seems like trying to deliberately harm the incoming administration as well as puffing his own chest again. I'm SOOOOO tired of this man and his lies. I honestly just cannot stand another day of it. GO AWAY NOW, Mr. Bush! And stay away for a decade or two doing good works like Jimmy Carter -- carrying your own bags and staying out of the public eye -- then perhaps I won't feel like b*tch-slapping you when I next see your face -- around the time I'm in my late 60s! Argh!

[zull2]

That's an interesting way to hedge your bets. After all, an investment in infrastructure is a short term economic boost. When folks have jobs, they don't take employment benefits, they have more cash on hand, and they tend to pay off credit cards and buy stuff. The long term from infrastructure is the improved efficiency of the country, but the biggest gains are short term. SO...if Obama's plan works out, and gets people jobs right away...Bush is going to try and claim credit for it.

Giving money away to rich people doesn't fix the economy because those rich people are just taking it and investing it overseas in foreign money markets so the overall value won't depreciate as quickly as a result of the fed having written a major check with only debt on hand to begin with. But it sure will end up diluting the value of the dollar, making it that much harder to rebound.

[deminmo]

And US companies with business in other countries don't pay
taxes. That's why they have off-shore accounts. Get those
taxes back in the US and we will have a turnaround.

[getoffmedz]

Enough of you, Shrub!

Begone.