"I am a firm believer in markets," President Bush declared this
morning, and then joked that he understands it doesn't seem that
way lately.
Appearing at an American Enterprise Institute event at the
Mayflower Hotel in Washington, Bush fielded questions for about
an hour put to him by AEI's Christopher DeMuth. During his
remarks Bush defended adding the prescription drug benefit to
Medicare and the recent string of bailouts all the while
presenting himself as a champion of the free market.
On Medicare, Bush claimed that he supported the prescription drug
plan because it saved money on surgeries by providing senior
citizens with preventative medication, and argued that the plan
cost 40 percent less than anticipated because he insisted on
"market-oriented principles."
President Bush said he understood the frustration people felt
over the financial industry bailouts, but at the time Ben
Bernanke had told him that if he didn't act, there could be an
economic crisis greater than the Great Depression.
"I didn't want to be the president who was there at the beginning
of a crisis that is greater than the Great Depression," he said.
Although he emphasized that a final decision hasn't been made,
Bush spoke as if the auto bailout were a foregone conclusion.
"Under normal circumstances, no question bankruptcy court is the
best way to work through credit and debt and restructuring," Bush
said. "These are not normal circumstances. That is the problem."
Bush argued that we'll never know what kind of economic
catastrophe would have resulted had he not taken the actions he
did. He said that all the actions he took should be viewed as
"temporary" and he doesn't believe that government should be
running the auto industry or mortgage system over the long run.
"This is a difficult time to be a free market person," Bush
observed at one point in his remarks.
No kidding, Mr. President.
