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American Morning
President Bush Looks to Sell Tax Cut, Mend Weakening Economy
Aired August 27, 2001 - 10:14 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.
DARYN KAGAN, CNN ANCHOR: We turn to the economy -- and a bottom line of politics: the blame game. President Bush continues his working vacation. In fact, he's back in Crawford, Texas this morning. He is logging miles and driving home his administration's priorities -- the latest initiative: selling his tax cuts and assigning blame for the wheezing economy.
Our senior White House correspondent John King has the story.
(BEGIN VIDEOTAPE)
JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT (voice-over): Call it campaigning behind enemy lines -- the president making his case at a union steel mill, where their workers voted overwhelmingly for the other guy.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I am upbeat and my spirits are high. But I must confess, I am worried about the fact that our manufacturing sector in our economy is a lot slower than I would hope.
KING: The sluggish economy and shrinking surplus are major debating points for the fall budget battle in Washington. Democrats say times are tough and the president is to blame.
TERRY MCAULIFFE, DNC CHAIRMAN: But it's time to get back to work and start working for American families. They are sick and tired of the photo-ops. They're sick and tired of the T-ball games. They want action on this economy.
KING: But Mr. Bush says he is acting, telling families at the US Steel company picnic near Pittsburgh his tax cut was one ingredient of a rebound.
BUSH: Folks, when the economy slows down, it is time to understand how to get it started again. And one way to help is to give people their own money back.
KING: A new Republican Party TV ad also comes to the president's defense.
(BEGIN VIDEO CLIP, REPUBLICAN PARTY AD)
ANNOUNCER: But, Democrats, who for years supported budgets that spent all Social Security money and left no surplus, are now launching partisan, misleading attacks on President Bush.
(END VIDEO CLIP)
KING: Many workers here believe the economy has yet to hit bottom.
TOM MALACKI, U.S. STEEL WORKER: I don't think not yet. I think we are still in a downturn.
(END VIDEOTAPE)
KING: And this debate will only intensify in the days ahead. As the president wraps up his vacation here in Crawford, Texas, the Congressional Budget Office tomorrow will release its assessment of the shrinking federal surplus and warn that lawmakers and the administration are on a path to dip into Social Security funds, something they promised not to do.
And then on Wednesday, the government will issue a revised report on economic activity in the second quarter of this year. The initial report suggested very anemic growth of just 0.7 percent. Some believe this new report will show the economy performed even worse. Some believe the economy might actually have contracted in the second quarter -- Daryn.
KAGAN: John, can you explain a little bit more about this company the president was keeping? Union workers, President Bush: You don't exactly think of them like this.
KING: No, you don't. But the president wants to sell his tax cut.
One way to do that is to get out with the blue-collar families who might have enjoyed that $300 or $600. And, remember, he just narrowly lost Pennsylvania in the year 2000. If he is to win that state in 2004 -- Governor Ridge was with him, a Republican -- one of his priorities, he says: Spend more time with blue-collar workers; make the case that your economic plan in the end will help them -- Daryn.
KAGAN: John King in Crawford, Texas -- John, thank you.
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