U.S. President Barack Obama says the transformation in American manufacturing has cost some people jobs, but he says Americans do not have to settle for a “lesser future.”

The president says Congress should reform the tax code and reward manufacturers keeping jobs at home.

During Saturday's weekly address from a Boeing manufacturing plant in Seattle, Washington, Mr. Obama hailed the company for hiring workers inside the United States.

“Companies like Boeing are realizing that even when we can't make things cheaper than China, we can make things better. That's how we're going to compete globally.”

He also says larger tax breaks should be available to firms creating high tech manufacturing jobs.

President Obama says bolstering exports will also help create more jobs in America.

In the Republican address, Congresswoman Cathy McMorris Rodgers accused the president of excessive spending that would lead the country into financial ruin, rivaling that of debt-ridden Greece.

“Instead of leading the effort to bring down our debt and make tough choices, the president is proposing that we spend more and more.''

Mr. Obama has faced intense criticism from Republicans over his handling of the economy as he fights to be re-elected year.