Bush touts domestic agenda as vital to nation's economy

Speaking in the manufacturing center of Detroit, Bush ran through his list of domestic priorities, pressing Congress to make past tax cuts permanent, add private accounts to Social Security, curb lawsuit awards to plaintiffs, allow small businesses to pool health insurance purchases, approve his energy plan, create a guest worker program for illegal immigrants, require testing of high school students, and simplify the tax code -- all to help make the country more competitive on the global marketplace, he said.

''We're moving forward with an ambitious agenda to ensure that our economy remains the freest, the most flexible, and the most prosperous in the world," Bush said.

Although the economic recovery has become more firmly entrenched, and America's payrolls are growing, the job market is improving at a sluggish pace.

But with his reelection and the job-creation numbers finally in positive territory over his time in office, Bush has moved from the defensive to the offensive on the topic. He portrayed his spending plan as a centerpiece of his prescription for prosperity.

''Leaders in Congress and in the business sector have expressed their concerns about federal spending, and I've listened," he said.

Bush's plan would boost spending on the military and homeland security, but would slash programs benefiting farmers, veterans, and the poor as well as education and the environment. These programs have supporters in Congress and elsewhere who are sure to fight such cuts.

Bush said his budget plan is disciplined and shows ''us on track to cut the deficit in half by 2009." But it does so in part by leaving out massive expected spending on the Iraq war, the transition to private accounts in Social Security, and some tax cuts. He also said protecting America ''imposes costs that are large" and requires policy makers to ''show even more discipline about spending in other areas."

In particular, after being criticized for recommending elimination or stark reductions in several programs that benefit low-income Americans, Bush took pains to explain his rationale for wanting to end a $225 million literacy program, Even Start, in order to show that he is being sensible -- not callous. ''I can't think of anybody in the Congress who is not for helping low-income families become literate," Bush said, but three evaluations concluded that ''the program is not succeeding."