Bush expresses optimism but acknowledges economy is in "tough time"

NEW YORK, March 14 (Xinhua) -- U.S. President George W. Bush acknowledged here Friday that the U.S. economy is experiencing a tough time, but it will regain its strength in the long run because the economic foundation remains solid.

In an address to the Economic Club of New York, Bush said the U.S. economy is resilient and will return to stronger growth.

Acknowledging that the economy is "obviously going through a tough time" on the housing and financial markets, Bush said the U.S. economy is a resilient one and that the "the ingenuity and resolve of the American people is what help us deal with these issues."

The Economic Club of New York was founded in 1907. The nonprofit organization has about 700 individual members "drawn primarily from the senior leadership ranks of the business and financial communities and the associated professions," the club said on its website.

Bush said the economy has experienced many challenges during his administration, but "every time, this economy has bounced back better and stronger than before."

"In the long run, I am confident that the economy will continue to grow because the foundation is solid," Bush said, citing a low jobless rate of 4.8 percent, rising wages, strong productivity, all-time high exports, and deficit "well below the historic average."

Bush touted "decisive" actions taken to jumpstart the economy, including last month's 168 billion dollar stimulus plan, which includes tax rebates ranging from 300 dollars to more than 1,200 dollars for 130 million households. He said the families will receive the money in the second week of May.

The stimulus package is expected to spur consumer spending, which will start to have an effect on the economy in the second and third quarters of the year, Bush said, citing economists.

He cautioned against over-correction in managing the economy. "When you overcorrect, you end up in a ditch," he said. "It's important to be steady."

Bush praised the steps taken by the Federal Reserve to bolster the economy, commending Fed Chairman Ben Bernanke for "doing a good job under tough circumstances."

He said a root cause of the economic slowdown has been the downturn in the housing market. "We fully understand that the mounting concern over housing is shaking the broader market that spread uncertainty through the global financial markets."

Bush cautioned against isolationism and protectionism and urged Congress to "move forward" on a free trade agreement with Colombia, saying rejecting the free trade agreement with the South American country would "send a terrible signal in our own neighborhood."

He called for allowing overseas funds to flow into the United States.

"A confident nation accepts capital from overseas," Bush said. "We can protect our people against investments that jeopardize our national security, but it makes no sense to deny capital, including sovereign wealth funds, from access to the U.S. markets."

On energy, Bush called for allowing new refineries and exploration of oil and gas inside the United States.

"As a result of us not having... been robust in exploring for oil and gas at home, we're dependent on other countries," he said." That creates an economic issue, obviously, and it creates a national security issue.