Bush says administration 'candid' about economy

CRAWFORD, Texas - President Bush, defending his record and his rhetoric, said yesterday that his administration has been "clear and candid" about the nation's economy.

"We saw the economic slowdown coming, we were up front about these concerns with the American people, and we've been taking decisive action," Bush said in his weekly radio address.

The president's comments appeared at least partly in response to a drumbeat of criticism from Democratic leaders, who say his view of the economy is rosy and unrealistic. Bush sounded an upbeat tone following a modest uptick of economic news this week.

The economy grew in the first quarter of the year, but only by a meager 0.6 percent. Yet it was not the contraction that some analysts feared. Employers slashed fewer jobs in April than they had in earlier months. The unemployment rate in April also fell slightly.

"No temporary setbacks can hold back the most powerful force in our economy - the ingenuity of the American people," Bush said. "Because of your hard work and dedication, I am confident that we will weather this rough period and emerge stronger than ever."

Consumer confidence, a vital part of the economy's health, has hit record lows. And in the public's mind, the president's handling of the economy has taken a serious blow, too.

In Bush's final year in office, families have been hit from all sides - soaring gas prices, crumbling mortgages, rising grocery bills, struggles to afford college loans. The president is counting on a short-term economic boost to help. In a deal he reached with Congress back in February, tax rebate checks of up to $600 for individuals and $1,200 for couples are on their way to more than 130 million households.

"This package will help American families increase their purchasing power and help offset the high prices that we're seeing at the gas pump and the grocery store," Bush said.

The true effect of those rebates remains a hotly debated question in economic circles.