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CNN Live Today
Jobs Prediction Downplayed
Aired February 19, 2004 - 11:37 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: The economy and jobs are two issues important to voters in the presidential election, and the Bush administration is now downplaying earlier reports about how many jobs will be created this year.
CNN senior White House correspondent John King joins with us more details.
And what the heck are they building out there, John, at the White House?
JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: They're tearing up Pennsylvania Avenue, Carol. When they are done, it should be a great pedestrian mall outside of the president's house. So, in a few months hopefully we will benefit from the noise this morning.
You mentioned this controversy over the economy and jobs. This is the document at issue. It is the economic report of the president put out every year. In this case, this one was put out just 10 days ago. And in the tables in the back, the administration predicts at least 2.6 million new jobs will be created this year. Obviously, that would be a wonderful tonic for a president seeking re-election when the economy is one of the big issues.
But the White House now says that's based on economic data from late last year, not necessarily what will happen in the economy this year.
The president was asked just yesterday if he stood by those numbers, if the economy in his view was strong enough to create more than 2.5 million jobs this year. The president did not answer directly.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I think the economy is growing, and I think it's going to get stronger. I do think there are some things that we need to do. We need to make sure the tax cuts are permanent. I look forward to continuing to talk about this issue.
(END VIDEO CLIP)
KING: Now, this prediction became somewhat controversial at first when two of the president's top economic advisers -- his treasury secretary and his commerce secretary -- held out that prediction of 2.6 million new jobs at arm's length, saying there would be more jobs, but they would not commit to that specific number.
That led the Democrats to sense a political opening, including a letter to the president from Senator Tom Daschle and five other Senate Democrats in which they asked the president to come forward with a new projection. They asked for -- quote -- "a meaningful jobs prediction that all Americans, including your own cabinet, would find credible."
So, certainly, Carol, the Democrats sense an opening here. What the White House says should matter is not any predictions issued in February or January, but the performance of the economy between now and Election Day.
The president will talk about that this afternoon here in the White House complex, making the case that his tax cuts brought the economy out of recession, are beginning to spur economic growth and more job creation. The president will make the case he has the right policy. We're seeing in the Democratic campaign, Carol, they obviously disagree.
LIN: John, would the White House or the Bush campaign make the argument that it's not only the sheer numbers of jobs, but also the jobs paying, say, between $50,000 and $100,000, those are the jobs that are going to be feeding the economy in terms of getting people to buy houses and cars and the like?
KING: Well, that certainly is what the president would like, and that is one of the things the president cites most frequently, Carol. Home sales are up. Inflation is down. The bigger economic -- the unemployment number is usually a lagging indicator. So, the president says if you look at the other data, the economy is doing quite well.
But when the president travels to the key states in presidential elections, places like Michigan, Illinois and Ohio, the manufacturing base has suffered somewhat. Those are the states that will decide whether he gets re-elected this November. So, it is a concern for the president, not only that you have jobs, but that those jobs be significantly middle-class, well-paying jobs.
LIN: All right, thank you very much, John King, live at the White House.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
Aired February 19, 2004 - 11:37 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL LIN, CNN ANCHOR: The economy and jobs are two issues important to voters in the presidential election, and the Bush administration is now downplaying earlier reports about how many jobs will be created this year.
CNN senior White House correspondent John King joins with us more details.
And what the heck are they building out there, John, at the White House?
JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: They're tearing up Pennsylvania Avenue, Carol. When they are done, it should be a great pedestrian mall outside of the president's house. So, in a few months hopefully we will benefit from the noise this morning.
You mentioned this controversy over the economy and jobs. This is the document at issue. It is the economic report of the president put out every year. In this case, this one was put out just 10 days ago. And in the tables in the back, the administration predicts at least 2.6 million new jobs will be created this year. Obviously, that would be a wonderful tonic for a president seeking re-election when the economy is one of the big issues.
But the White House now says that's based on economic data from late last year, not necessarily what will happen in the economy this year.
The president was asked just yesterday if he stood by those numbers, if the economy in his view was strong enough to create more than 2.5 million jobs this year. The president did not answer directly.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I think the economy is growing, and I think it's going to get stronger. I do think there are some things that we need to do. We need to make sure the tax cuts are permanent. I look forward to continuing to talk about this issue.
(END VIDEO CLIP)
KING: Now, this prediction became somewhat controversial at first when two of the president's top economic advisers -- his treasury secretary and his commerce secretary -- held out that prediction of 2.6 million new jobs at arm's length, saying there would be more jobs, but they would not commit to that specific number.
That led the Democrats to sense a political opening, including a letter to the president from Senator Tom Daschle and five other Senate Democrats in which they asked the president to come forward with a new projection. They asked for -- quote -- "a meaningful jobs prediction that all Americans, including your own cabinet, would find credible."
So, certainly, Carol, the Democrats sense an opening here. What the White House says should matter is not any predictions issued in February or January, but the performance of the economy between now and Election Day.
The president will talk about that this afternoon here in the White House complex, making the case that his tax cuts brought the economy out of recession, are beginning to spur economic growth and more job creation. The president will make the case he has the right policy. We're seeing in the Democratic campaign, Carol, they obviously disagree.
LIN: John, would the White House or the Bush campaign make the argument that it's not only the sheer numbers of jobs, but also the jobs paying, say, between $50,000 and $100,000, those are the jobs that are going to be feeding the economy in terms of getting people to buy houses and cars and the like?
KING: Well, that certainly is what the president would like, and that is one of the things the president cites most frequently, Carol. Home sales are up. Inflation is down. The bigger economic -- the unemployment number is usually a lagging indicator. So, the president says if you look at the other data, the economy is doing quite well.
But when the president travels to the key states in presidential elections, places like Michigan, Illinois and Ohio, the manufacturing base has suffered somewhat. Those are the states that will decide whether he gets re-elected this November. So, it is a concern for the president, not only that you have jobs, but that those jobs be significantly middle-class, well-paying jobs.
LIN: All right, thank you very much, John King, live at the White House.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
