Steve Quayle News Alerts

February 10, 2004
By Richard Benedetto, USA TODAY

WASHINGTON -- The Bush administration is predicting that the U.S. economy will create 2.6 million jobs this year, despite sluggish growth so far.

It is a politically risky prediction. If most of the jobs materialize before November, it could improve President Bush’s odds of being re-elected. But if they don’t, that will add muscle to Democrats’ charges that Bush’s economic stewardship is a failure.

The upbeat forecast came in the annual Economic Report of the President, which was presented to Congress on Monday. Bush said in a statement with the report, "As 2004 begins, America’s economy is strong and getting stronger."

He credited income tax cuts passed in 2001 and 2003 with helping turn the economy around and laying the groundwork for growth in jobs this year.

Last year, the report projected creation of 1.7 million jobs in 2003. But the economy actually lost 53,000 jobs, bringing the number of jobs lost since Bush took office to 2.2 million by year’s end.

This year, the number of jobs is increasing, but at half the pace Bush is projecting. In January, 112,000 jobs were created.

Massachusetts Sen. John Kerry, the front-runner for the Democratic presidential nomination, called the Bush outlook "more empty promises."

On Monday, Bush was in Missouri, site of a Democratic primary Kerry won last Tuesday, talking up the economy and the value of tax cuts in stimulating job creation. He chided his Democratic rivals who have called for rolling back the cuts. Kerry wants to undo the cuts for the wealthiest taxpayers.

"When people say they’re going to repeal the Bush tax cuts, that’s a tax increase and that’s bad economics," Bush said at an auto engine manufacturer in Springfield, Mo.

Democratic National Committee chairman Terry McAuliffe issued a statement accusing Bush of "campaigning at taxpayer expense" by visiting states shortly after Democratic primaries are held there. Bush went to New Hampshire two days after its Jan. 27 primary and South Carolina two days after its Feb. 3 primary.

"If President Bush’s policies had put America on the right track, he wouldn’t be forced into a desperate game of follow the leader," McAuliffe said.

Fresh off an interview Sunday on NBC’s "Meet the Press," where he defended his decision to go to war in Iraq, Bush finds his political fortunes rebounding in a USA TODAY/CNN/Gallup Poll taken over the weekend. Most of the poll was conducted before the TV appearance.

http://www.thedesertsun.com/news/stories2004/national/20040210004106.shtml