Bush: U.S. economic foundation remains strong

WASHINGTON (CNN) -- President Bush sought to reassure Americans Saturday that the underpinnings of the nation's economy will remain strong despite the uncertainty that has followed the terrorist attacks on New York and Washington.

The president, who was at Camp David on Saturday morning, took a pause from his busy schedule of meeting with national security advisers and working to line up international support for a broad campaign against terrorism to focus on the economy in his weekly radio address.

His comments followed the worst trading week on Wall Street since the Great Depression. Worries about the economy have mounted since the September 11 attacks, with the airline industry announcing plans to lay off more than 75,000 employees in the past five days. Dozens of companies have said profits would fall short of expectations.

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"The economy has had a shock," Bush said. "Yet for all these challenges, the American economy is fundamentally strong.

"We have the best-educated, most productive workforce in the world. Our factories produce more goods, and a broader variety of goods, than any country in the world,: he said. "Our scientists continue to push forward the frontiers of technology and science, and our entrepreneurs continue to invent new ways to bring these advances to market. This is why people from around the world invest in America."

Bush noted that the government had taken measures aimed at stimulating the economy before the terrorist attacks, hoping to turn around what has been a yearlong economic slowdown.

Those measures include the income tax cut that saw $40 billion returned to American taxpayers in rebate checks. Additional tax relief, totaling $70 billion, is on tap for next year under the 10-year tax cut plan.

The Federal Reserve has cut interest rates in half over the past eight months, another measure aimed at stimulating growth. Energy prices, he noted, are lower now than they were in the spring.

And the White House is working with Congress to help the struggling airline industry and to improve new security measures at airports and on planes.

"Both parties in both Houses of Congress are united in our determination to use the fundamental strength of our economy to meet our immediate economic challenges," Bush said.

The airline industry has been hit especially hard in the aftermath of the attacks in which four passenger jets were hijacked. Two planes crashed into the World Trade Center, collapsing the twin towers; another crashed into the Pentagon; and a fourth crashed in rural Pennsylvania.

On Friday, Congress approved a $15 billion financial aid package to help the airline industry and set up a government compensation fund for victims to help defer lawsuits. The measure provides $5 billion in immediate cash assistance and $10 billion in loan guarantees.

"You can look forward to an improved business climate in America in the years ahead," Bush said in his radio address.

"I want to remind the people of America, we're still the greatest nation on the face of the Earth, and no terrorist will ever be able to decide our fate."

In the Democratic response to the president's address, Rep. Richard Gephardt, D-Missouri, the House minority leader, vowed to work together with Bush as the nation responds to the terrorist threat, both militarily and economically.

"We will work to make the broken places right again. We will rebuild New York. We will work on a bipartisan package to strengthen the economy," Gephardt said, adding that the government also "will help unemployed workers in the airline, aerospace, tourist and other industries affected by the attack."