Former President Defends Bailouts, Policy Choices

Former President George W. Bush on Monday praised the power of individuals and businesses to direct economic activity, even as he defended massive bailouts of the banks and automobile manufacturers.

The keynote speaker at the annual dinner of the Pennsylvania Chamber of Business and Industry, an organization that advocates on behalf of businesses in the state, Bush said the bailouts were a necessity as the nation faced “economic hell” in the final two years of his administration. Without the bailouts, the country would have faced an economic reality worse than the Great Depression, Bush said he was told by then-Treasury Secretary Henry Paulson. 

He said the programs, which directed more than $700 billion to financial institutions and auto manufacturers in 2008, were recommended to him by Paulson and Ben Bernanke, chairman of the Federal Reserve, whom Bush called a trusted adviser. 

Paulson later told him the bailouts would not work, Bush said. But, if the situation were the same, he would make the same decision, the former chief executive said. 

“I didn’t want to be a president who could have done something about it and didn’t,” Bush said. “I think it saved the country from a depression, and I can’t prove it, but I think it did.” 

At the same time, the former president stressed the need for limited government regulation of business affairs and fiscal responsibility, saying government should not take money from the “coffers of the job creators” and let people make their own economic decisions. 

“I believe you spend your own money better than the government can, and you don’t need a Ph.D in economics to know that,” Bush said, drawing cheers from the pro-business crowd assembled in Hershey. 

But not everyone at the event bought the president’s explanation of the bailout.

“I didn’t like the idea of the bailouts at the time, and I don’t like what has happened since,” said William Day, of Allegheny County. “I think the marketplace should take care of itself.” 

Bob Figner, of Franklin County, defended the president’s leadership during a difficult period. 

“I can see where that was somewhat harmful to his image, but I believe he did what he thought was right,” Figner said. “I think history will judge him very well.” 

Bush’s comments to the crowd of 1,800 at the fundraising dinner generally steered clear of economic policy until he was questioned by Gene Barr, vice president of the Pennsylvania Chamber, after his remarks. 

During the 30-minute address, Bush chose to be glib from the start, when he thanked the crowd for “coming to hear an old retired guy” and told them the most frequently asked question is whether he misses being president. 

“Not really,” Bush chuckled. “Although I miss being pampered, and I had to stop for a traffic light on the way over here tonight.” 

In a blue suit with a blue tie and the always-present American flag pin on his lapel, Bush moved easily from topic to topic, touching on personal notes including his struggles with alcohol before entering the political realm, his relationship with his father and the infamous incident when he choked on a pretzel while watching a football game in the White House. 

He turned serious to address the results of his post 9/11 foreign policy, saying he was not surprised by the recent Arab Spring uprisings in the Middle East. He also stuck to his guns when it came to the ongoing conflicts in the region, expressing the belief that he would be vindicated by history. 

In 1943, anyone who believed Japan and the United States would be allies half a century later “would have been called an ideological nutjob,” he said. 

“Freedom is transformative and democracy created an ally,” Bush said. “I believe the same thing will happen in the Middle East.” 

He said he was “pleased” when told that Osama bin Laden had been killed, but he added that the wars in Iraq and Afghanistan were never about vengeance, only justice. 

When not discussing the more serious parts of his presidency, Bush talked about throwing out the first pitch at Yankee Stadium following the Sept. 11 attacks and related anecdotes about foreign leaders who visited him at the White House. 

The former president’s easygoing style and off-the-cuff remarks during his address and the question-and-answer period that followed were well received by the pro-Republican crowd at the event. Several guests said it was refreshing to hear a former president speak “from the heart” on a variety of issues. 

“It was like sitting in his living room,” said Rebecca Kaminsky of Washington County. 

Bush said it was a “conscious decision” to stay out of the public eye in the more than two years since he left the Oval Office. 

It is in the best interest of the country, he said, not to have a former president undermining the current commander-in-chief.