Kerry rips handling of war and economy

GREENSBORO, N.C. -- John F. Kerry yesterday focused on the record $422 billion federal deficit and the growing cost of the Iraq war to question the president's fiscal stewardship, job creation record, and government priorities.

''He stands up and he says, 'Oh, gee, America, we had a war on terror, or we had a recession.' Well, wait a minute now, Franklin Roosevelt had World War II, and Harry Truman had World War II, and Lyndon Johnson and John Kennedy and Richard Nixon had Vietnam. We've had recessions and we're had wars, and every president since the Great Depression has created jobs in this country except George Bush, who has a policy of sending those jobs overseas," Kerry said during a town hall meeting focused on economic issues.

Continuing a new theme for his campaign, Kerry also highlighted the ongoing cost of the Iraq war and occupation, which is nearing $200 billion, and suggested the money could have been better spent had the president broadened the coalition fighting the war and sought foreign financial support for the operation. The Massachusetts senator voted in favor of a congressional resolution authorizing the war, but has accused Bush of a ''rush to war" that left the United States bearing a disproportionate share of the cost both financially and in terms of casualties.

''He promised America this war would cost $1 billion and that oil from Iraq would pay for it," Kerry said of Bush. ''It's almost $200 billion now, and I say to everybody in North Carolina, that's $200 billion that we're not investing in health care in North Carolina, that's $200 billion we're not investing in schools in America, that's $200 billion that we're not investing in prescription drugs for seniors, that's $200 billion we're not investing in better jobs, in science, stem-cell research, technology, the future."

His remarks did not directly address the Congressional Budget Office's new deficit forecast for the fiscal year ending Sept. 30. It pegged the figure at $422 billion -- less than the office's March estimate of $477 billion, but a record nonetheless. The Bush campaign embraced the lower figure, saying it proved tax cuts were beginning to stimulate the economy.

In a statement, the Kerry camp said: ''Only George W. Bush could celebrate over a record budget deficit of $422 billion, a loss of 1.6 million jobs, and Medicare premiums that are up by a record 17 percent. Last week the Bush administration said outsourcing was good, yesterday George Bush said the economy was great, and today George Bush is celebrating a record budget deficit."

Steve Schmidt, a Bush-Cheney campaign spokesman, issued a statement saying, ''John Kerry's own advisers say his tax plan won't stop outsourcing, and Kerry himself has disavowed his attacks on 'Benedict Arnold CEOs,' blaming them on 'overzealous speechwriters.' . . . Kerry's shifting positions on outsourcing are another reason that he faces a credibility problem."

The Greensboro event included a humorous moment, when Kerry called on the first questioner, a woman who was zealously waving her hand to get his attention.

''I'm so excited to see you," she said, as the crowd laughed. ''And I think you're hot."

''At my age, it sounds good," Kerry said, chuckling. ''And I will be sure to tell Teresa."

Glen Johnson can be reached at johnson@globe.com.