Bush Condemns Economic ‘Quick Fixes’ : Commerce: President tells executives that he will resist political pressure to interfere. He says nation is on way to ‘the best growth we’ve seen in years.’

President Bush vowed Friday to resist election-year pressure to apply “political quick fixes” to help solve the nation’s economic woes and declared that, with proper handling, the economy is on the road to “the best growth we’ve seen in years.”

At the same time, Bush sought to take credit for the extension of unemployment benefits approved by Congress and signed by him Friday, even though he had twice blocked earlier efforts to provide assistance to the long-term unemployed on grounds that they were too costly.

The President spoke in a closed-circuit television hookup to business executives participating in a forum of Fortune 500 companies in Charleston, S.C. Like most of his recent public pronouncements, Bush’s comments Friday reflected the increasing political pressure on the White House as the economy staggers, consumer confidence flags and Bush’s standing drops in public opinion polls.

With a few--but far from many--banks responding to his plea on Tuesday that they lower the interest rates on credit card debts, Bush said he hopes that “more will follow suit.” Such steps, he said, will “revive consumer confidence (and) give this economy a little kick.”

White House Press Secretary Marlin Fitzwater said, however, that Bush continues to oppose pending legislation that would put a mandatory cap on such interest rates. As the measure now stands, the President would veto the bill, Fitzwater said.

Fitzwater made it clear that Bush is opposed to any measure that would force banks to take such steps and that the President would prefer to see interest rates lowered as a result of market pressures or as a response to his own jawboning.

“We think it’s bad legislation in terms of what it does to the banking system. That’s not to say we wouldn’t like to see a drop in credit card interest rates. We obviously would,” Fitzwater said. “But . . . whatever the banks decide to do has to be within the interest of maintaining the wholesomeness of their financial situation, as well as being responsive to the market. This kind of legislation could have some very disastrous consequences.

“It’s a very competitive environment for credit card accounts, as you know from all the offers you get at home,” he added. “I’ve now been approved by every credit card known to modern man. You’d think I was a millionaire. I’m into gold, purple, green, every card you can find. The guy who reduces interest rates is going to pick up the new customers.”

But, Fitzwater said, when rates are lowered as a result of legislation “you impose artificial constraints that could be quite disastrous to the banking industry.”

As Bush increasingly takes on the tenor of a presidential candidate in his public appearances, he has cast the economy in glowing terms. At a news conference in Rome last week, he said the economy was no longer in recession--a statement technically supported by the report that the nation’s output of goods and services had shown at least weak growth in the third quarter, although many economists believe it has again turned down.

Bush acknowledged in his remarks to the business group Friday that even the third quarter’s “anemic” growth may have been followed by a “leveling off.” But he added, “most of the hot shots are predicting growth, so I hope that is correct.”

Turning decidedly upbeat--even as the stock market was falling to its largest one-day loss since 1989--the President declared: “If both of us do our jobs, 1992 will mark a new beginning for American business, and I really believe a new era of prosperity for the American people.

“The first rule of economic policy puts me in mind of the Hippocratic oath: ‘Do no harm,’ ” Bush said, declaring that his goal is to make sure that “government doesn’t get in the way.”

“We’re going to draw the line against the budget-busters. We’re going to resist the quick-fix solutions out there,” he said.

He continued:

“You and I know that when things are down, there’s a lot of political quick fixes that are proposed. And a lot of them are very, very attractive politically. . . . But from the folks who would have you believe they can reach in, flip a lever here, turn a knob there and fine-tune a $5-trillion economy, we’re getting these programs. We’ve got to resist. Pressure’s building as we enter 1992.”

As he has in the past, Bush rejected “enormous tax cuts that can’t be paid for in any way,” and he pledged not to “sacrifice long-term economic health for short-term political gain.”

JOBLESS MEASURE: The Senate overhauls House-approved formula for extending unemployment benefits. A20