Bush defends economic record as 'war president'

2.00pm

WASHINGTON - President George W Bush has defended his tax-cutting economic record, saying the US economy has begun to recover after "tremendous stress" because of war with Iraq, terror and confidence-sapping corporate scandals.

While blaming much of the economic difficulties on his campaign against terror and the war in Iraq, Bush ruled out raising taxes to pay the war bill, as other wartime presidents have done. He also refused to say he would not call for more tax cuts until the budget is balanced.

"I have been the president during a time of tremendous stress on our economy and made the decisions necessary to lead -- that would enhance recovery," Bush said in a rare one-hour appearance on NBC's Meet the Press today.

"I think this economy is coming around just right, frankly," he said, characterising himself as a "war president."

Bush's political opponents have seized on his economic record. Since Bush took office, 2.2 million US jobs have been lost. The surplus has vanished and there is now a record budget deficit. The national debt has swelled by 23 per cent.

Even some conservatives have begun to criticise Bush's fiscal track record and view him as a big-spender.

"They're wrong," Bush said of his detractors.

"I believe that the best way to stimulate economic growth is to let people keep more of their own money. And I believe if you raise taxes as the economy is beginning to recover from really tough times, you will slow down the economic growth. You will make it harder."

Bush said the jobless rate is falling, and he said it would be possible to cut the deficit in half in five years if Congress restrains spending.

"The economic stimulus plan that I passed, or I asked the Congress to pass, and I worked with Congress to pass, is making a big difference." he said.

He also hailed the Medicare bill passed last year as a key step in reforming the federal entitlement programmes. That bill introduced an element of competition into health care for the elderly, and created new tax-sheltered health savings accounts long championed by conservatives.

- REUTERS

Transcript from NBC television programme Meet the Press:

Interview with George W Bush

Herald Feature: Iraq

Iraq links and resources

Herald Feature: US Election