To remedy the problems, Bush offered some of the "compassionate conservative" agenda that he stressed during his first presidential campaign but which has lately been overshadowed by the war in Iraq and other White House priorities such as the use of private retirement accounts under Social Security.

Bush in his speech proposed giving tax incentives to businesses, including those owned by minorities, that open in disaster areas in Mississippi, Alabama and Louisiana.

He recommended setting up $5,000 accounts that evacuees could draw on for job training and child care expenses when they look for work. He also proposed providing property on federal land where low income people could build homes.

Bush said that because of the 9/11 terrorist attacks, the government should have done a better job in developing disaster response.

"When the federal government fails to meet such an obligation, I as president am responsible for the problem, and for the solution," he said, extending a personal theme he unveiled this week.

Although some lawmakers have voiced concern about rebuilding a city that sits below sea level, Bush said the U.S. Army Corps of Engineers would work with state officials to strengthen the levee system that was built to protect New Orleans.

Bush struck an optimistic tone about the future of the devastated region.

"Every time, the people of this land have come back from fire, flood and storm to build anew," he said.

The president delivered the address standing at a lectern with the St. Louis Cathedral as a backdrop. With much of the region still without electricity, the White House provided its own generators and lighting.

Finis Shelnutt, who owns a building that houses the Alex Patout's restaurant in the French Quarter, watched the speech on a small battery-powered television as he sat outside at a table with a white linen cloth, a bottle of Schramsberg champagne and a beer.

"This is a powerful speech," he said. "What I'm concerned about is that some of the programs he mentioned need to be monitored closely. New Orleans has a reputation for funding disappearing."

Marine Corps Capt. Jason Smith, who has relatives in Houston, said, "What I took from it is that America always bounces back. It is time to stop pointing fingers and get to work with the rebuilding."

But Jimmy Delery, a local man who watched the speech with Shelnutt, was less impressed:

"(Bush) could have done this from Washington. Coming here has inconvenienced people and taken away resources from the recovery."

As Bush talked about massive reconstruction efforts, Delery responded, "I guess that is where Halliburton comes in," a reference to the company once headed by Vice President Dick Cheney that is rebuilding Iraq.