Bush said in his address that his economic stimulus package had a "beneficial impact" on the economy.

Clinton countered that in last week's convention, Democrats laid out solutions to tackle challenges confronting the country.

"With Barack Obama in the White House and Democrats leading in Congress, we will revitalize the economy, create jobs, make college affordable again, and enable hard-working Americans to pay for gas, food, utilities and cover the monthly bills," said Clinton.

She said the gap between Democrats and Republicans could not be wider, especially on issues that matter to middle-class families.

On Friday, Clinton also shared her thoughts on Alaska Governor Sarah Palin, the vice presidential choice for presumptive Republican nominee John McCain. Palin is also the first female Republican vice-presidential candidate.

"We should all be proud of Governor Sarah Palin's historic nomination, and I congratulate her and Senator McCain. While their policies would take America in the wrong direction, Governor Palin will add an important new voice to the debate," said Clinton in a statement.

McCain and Palin held a rally in Pennsylvania Saturday, in anticipation of one in Missouri on Sunday and the Republican National Convention, which starts Monday in St. Paul, Minnesota.

Palin, Alaska's first female governor and the youngest ever to be elected to the position, was officially introduced Friday at a rally in Dayton, Ohio.

McCain cited Palin's experience in fighting corruption and her record of reform and bipartisanship as reasons for picking her.

"I have found the right partner to help me stand up to those who value their privileges over their responsibilities, who put power over principle, and put their interest before your needs," said McCain.

With McCain actively courting Hillary Clinton supporters, Palin acknowledged Clinton's accomplishments on the campaign trail, including the 18 million votes she won in the primaries.

"Hillary left 18 million cracks in the highest hardest glass ceiling. But it turns out the women of America aren't finished yet and we can shatter that ceiling once and for all!" said Palin.

President George Bush issued a statement after the announcement calling McCain's decision "exciting", and praising Palin as a "champion of accountability in government".

Palin built her career largely by challenging fellow Republicans, which drew comparisons to McCain.

She had to defeat an incumbent governor of her own party in a primary, defeated a former governor of Alaska to gain her current position and prosecuted Alaskan Republican officials for ethical violations.

A mother of five, Palin is anti-abortion. She was born in Idaho but moved to Alaska as a child. Her husband Todd is an oil worker, and one of their sons is an Army private headed to Iraq in September.

After two terms on the city council and two as mayor, Palin was elected governor in 2006.

She's also the first woman on any presidential ticket since 1984, when Democrat Geraldine Ferraro ran with Walter Mondale.

Obama's campaign released a new TV ad today entitled "No Change," which does not directly criticize Palin, but says that McCain would continue Bush's policies on the economy and the Iraq War.

Initially, Obama's campaign responded to McCain's announcement with a statement calling Palin "the former mayor of a town of 9,000 with zero foreign policy experience." But later Friday, Obama took a more congratulatory tone.

"I haven't met her before. She seems like a compelling person. Obviously a terrific story, a personal story,” said Obama in Pennsylvania yesterday. “I'm sure that she will help make the case for the Republicans. Unfortunately, the case is more of the same."

Obama and his vice presidential pick Joe Biden campaigned in Ohio Saturday.

The Democratic nominee spoke at a memorial service in Cleveland for late Ohio Congresswoman Stephanie Tubbs Jones.

The presidential candidate was joined by hundreds of others paying their respects, including his running mate Senator Joe Biden and the Clinton family.

Obama spoke about how kind and straightforward Tubbs Jones was.

"And what struck me most about Stephanie was how even after a decade in Congress she was so utterly unaffected by the ways of Washington. She was still a homegirl. Stephanie couldn't put on airs if she tried."

Obama was scheduled to hold a rally in Ohio later Saturday evening.