Obama: Country Needs Economic Stimulus Plan

CHICAGO — President-elect Barack Obama urged congressional leaders Saturday to move quickly on an economic recovery plan, even as some Republicans are saying they want more time to review the details.

Obama said Congress should pass an American Recovery and Reinvestment Plan designed to create 3 million jobs. The Democratic president-elect hasn't announced a final price tag on it, but aides said the cost could be as high as $775 billion.

"For too many families, this new year brings new unease and uncertainty as bills pile up, debts continue to mount and parents worry that their children won't have the same opportunities they had," Obama said in an address taped Friday and distributed on radio and posted on YouTube Saturday morning.

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The nation's economy remains the top challenge facing Obama when he takes office on Jan. 20. The Federal Reserve estimated that lenders were on track to initiate 2.25 million foreclosures this year, more than doubling the annual pace before the crisis set in. One in 10 U.S. homeowners is delinquent on mortgage payments or in foreclosure.

House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Harry Reid, D-Nev., are to receive details on Monday. Obama plans meetings next week with other congressional leaders _ including Republican members whose support he will need _ and made an effort not to blame his predecessor, the unpopular President George W. Bush.

"However we got here, the problems we face today are not Democratic problems or Republican problems," Obama said. "The dreams of putting a child through college, or staying in your home, or retiring with dignity and security know no boundaries of party or ideology. ... I am optimistic that if we come together to seek solutions that advance not the interests of any party, or the agenda of any one group, but the aspirations of all Americans, then we will meet the challenges of our time just as previous generations have met the challenges of theirs."

Obama aides had hoped to have an economic plan approved by the House and Senate before Obama takes office. That timeline, though, appears unlikely as time is running out and Republicans have urged a delay to review the plans. Sen. Mitch McConnell, the Republicans' top official, said the plan needs time so that "every dollar needs to be spent wisely and not wasted in the rush to get it spent."

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Congressional aides briefed on the measure say it's likely to blend tax cuts of $500 to $1,000 for middle-class individuals and couples with about $200 billion to help revenue-starved states with their Medicaid programs and other operating costs.

A large portion of the measure will go toward infrastructure projects, blending old-fashioned brick and mortar programs such as road and bridge repairs and water projects with new programs such as research and development on energy efficiency and an expensive rebuilding of the information technology system for health care.

"Economists from across the political spectrum agree that if we don't act swiftly and boldly, we could see a much deeper economic downturn that could lead to double-digit unemployment and the American dream slipping further and further out of reach," Obama said.

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Andrew Taylor reported from Washington.

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On the Net:

Obama Address: http://change.gov/newsroom/entry/american_recovery_and_reinvestment/

Comments

[citadelgrrl05]

I just have one thing to say...where can I report for duty Mr. President, he is so inspiring,...YES WE CAN!!!!

[HappyIdiot2008]

Words well spoken. Yes. We. Can.! Peace darlin.

[AngieMom57]

Obama is asking for a "Day of Service" on Jan. 19th--see the web site change.gov, sign up an event and make a difference...or not...kick back and enjoy the ride ;-)

[Mayoyo]

All I know is a lot of people are hurting out there....and if that is waht it takes to get us back on track....so be it...My taxes and I are all for it.

[rogerse]

Does Obama believe in Socialism or Capitalism?.

[readmewell22]

WHO GIVES A FLYING FLEAP as long as we ward off a 2nd GREAT DEPRESSION AND WORLD WAR #3

[HappyIdiot2008]

What do you think?

[rogerse]

Capitalism.

[iblog]

What does it matter if you refuse to be part of the solution?

[Anciano]

I know what Bush believes in: Corporate Socialism. He has handed more to various corporations, three fourths of which paid no income taxes for years, than would cost National Health Care and other remedies to our Middle Class ills. National Health Care is socialistic? Fine! Bring it on!

[rogerse]

Haha, Too bad Obama doesn't support single-payer i.e. socialized health care.

[svwl]

Hopefully NEITHER

Although, if he must believe in either Socialism and Capitalism, I hope its somewhere in between the two.

[readmewell22]

So, if they withheld this news... do you think they would ADMIT the real figures, and the fact that this does not feel like a regular RECESSION, but feels like the beginning of a 2ND GREAT DEPRESSION!!!

And if you know anything about history, you know two things:

(1)... Double Digit Unemployment figures is probably what the true numbers are NOW!!! Look at the numerous bank closings, stock market crashes, store closings, ALL THE SIGNS ARE HERE NOW.all leading us into a Great Depression--- IF SOMETHING ISN"T DONE PRONTO... Let's make sure to add into this factor the $700BILLION DOLLAR BAIL OUT to WALL STREET.... That did not help stem the slide!!!! All the signs are here.

ALL of this marking very similar traits to what we have already seen here and abroad...and (2) ..... History tends to repeat itself. We are in big trouble folks! BIG TROUBLE and very Difficult times ahead. The America we once knew, may never be again!

[Seamus45]

The Labor Department does report it in U6. This counts all unemployed, including those who ran out of benefits and those that want full-time employment but are forced to work part-time.

It was last reported at 12.2%.

It's not well publised by the MSM.

It also closely tracts what was reported as unemployment in the 1930s.

[readmewell22]

When you have virtually NO INCOME, NO RESOURCES, and this is money, a paycheck, you will work for it and be glad to get it!!! GET REAL FOLKS!!! The 5000 sq foot homes are going to quickly be a thing of the past... you can not live in them, if you can not afford them. All expectations in this nation will CHANGE, all perceptions of wealth and middle class are going to CHANGE!!! Education, and the access to quality Education and Health, ARE GOING TO DRASTICALLY CHANGE... If they THE OBAMA TEAM.....if they don['t ] hit the ground running and and I mean fast, the nation as we know it... America as it has been, IS GOING TO CHANGE into something unrecognizable..... like a new wealthy third world nation....

I am glad he was elected. Thrilled about it...but now, it is time to GET REAL!!! GET BUSY AND GET DOWN TO BUSINESS>.... AND QUICK!!!

[HappyIdiot2008]

Yep. It's up to each one of us. We can change the world. Thank Goodness, we have someone to look up to to make it happen.

[citadelgrrl05]

hey that is exactly what the republicans want, so they can blame it on the deomcrats if things dont turn around, even though they are trying to sabotage obama with their fake opposition. What they ae misjudging is that the American people want things done right away.

[mattamorr]

Indeed! Like on January 21st!

[PatrickWalker]

The US already has "double-digit" if you included all the unemployed as well as the underemployed ... who should jsut be counted as unemployed anyway.

For the last thirty years, the government has been suppressing the actual unemployment as well as manipulating inflation.

I've always argued that Obama was always a flake and fraud and it makes me both happy and sad at the same time. In two years, watch as Obama flops around between all the neoliberal economic advice and yet the GOP will be there telling people they should have listened to them, not Obama.

Their refrain, I predict, is going to be "you've tried SOCIALISM and it didn't work."

Obama is about as progressive as the doorknob on my front door. Look at his Senate voting record vis-a-vis corporate rule. His vote for GOP-style tort reform, voting for Cheney's Oil Bill, his ludicrous "Say on Pay" measure, etc.

We are in for some SERIOUSLY rough times ahead and this whole problem we're facing today is a thirty year legacy that has simply been pushed off again and again with bubble after bubble. It's now time to pay the piper and the current two-party duopoly is utterly unwilling to do what's needed. When Obama jumped on the B.O.M.B. (Bush Obama McCain Bailout) it was proof positive that their attempt was to maintain the status quo, not fix anything.

[HappyIdiot2008]

Hello Patrick. Why do you blame Obama for the problems that lay before you? He is just trying to help us all focus on what is important. Good luck my friend.

[BarackstarObama]

You need to get a clue, Patrick... Obama will be a terrific president.

[FearlessFreep]

That's a matter of faith, isn't it?

[readmewell22]

I agree with your assessment that the government has been suppressing and perhaps manipulating the actual unemployment figures along with inflation. CASE IN POINT: They just told US what "we the people" already KNEW...when they released the statement that WE were in a Recession and then added that it started ....when? It started last year, December -2007. They waited a YEAR TO TELL US OFFICIALLY WHAT WE ALREADY KNEW AND FELT!
So, if they withheld this news... do you think they would ADMIT the real figures, and the fact that this does not feel like a regular RECESSION, but feels like the beginning of a 2ND GREAT DEPRESSION!!!

And if you know anything about history, you know two things:

(1)... Double Digits and numerous bank closings, stock market crashes, all lead us into a Great Depression marking very similar traits we have already seen here and abroad...and (2) ..... History tends to repeat itself. We are in big trouble folks! BIG TROUBLE and very Difficult times ahead. The America we once knew, may never be again!

[PhilipTaylor]

Thanks to the "BUSH LEGACY" and the current "BUSH Economic Trend" we will most likely hit 10% no matter how quickly the Stimulus is past.

Lets hope with the Stimulus we can avoid hitting 15%!

[5mith]

Can someone please explain how you curb an Enormous spending problem, by throwing money at it?

example:
Shopaholics love to shop. You don't give them an American Express Card and tell them to get it out of their system.... they will just end up with a Maxed out Credit Card that they can't pay off...

Then the powers that be compound interest, on top of the debt that their customers are already in. This all eventually leads to a collapse of the currency and a default of the debt of this country, therefore making the people of this country slaves to the people who control the credit and money.

when the people eventually get tired of bailing out retarded businesses that practice bad business ethics and politics, they will stop these bailouts.... Until then, Just bend over a little farther!

[Bitsko]

Let's get this Jubilee Train out of the station and rolling up the track.

[BabsfromKansas]

We are all Keynesians now.

[cdub1991]

That's because we're all in the same foxhole now

[jinxed]

So now that money is going to be spent on the country instead of special interest, "Sen. Mitch McConnell, the Republicans' top official, said the plan needs time so that "every dollar needs to be spent wisely and not wasted in the rush to get it spent."

Now they want to "make sure the money is spent wisely". Wonder why they didn't want to do this for Wall Street and the banks?

Too little, too late. Hey Mitch, go find a hole and fall in. If you can't be part of the solution sit down and shut up!

[dollbaby]

AMEN ! amen!!!!!! Didn't question the money or reason for the war either. But help people, lower and middle income people, are you crazy?

[martiniandabotoxchaser]

The question with "make work" jobs is what kind of jobs? During the Depression young men were willing to leave their homes and work under terrible conditions for very little pay. Today many of our "nastiest" and lowest paying jobs are being performed by illegal aliens because Americans won't perform those tasks at the given salary. I kind of doubt people will jump at positions to rebuild America's infrastructure. What Americans are looking for is high paying positions that can keep them living in their 5000 sq foot homes and driving expensive cars. That is just not going to happen. We all want what is best for our children; we just may have to realign our expectations.

[rich misty]

Change is coming

[militarymomforobama]

What you say is sometimes true, but not always. To make the blanket statement that Americans won't do certain kinds of work is a little much.

Many people just want to be paid a fair wage and have fair treatment.

[martiniandabotoxchaser]

And that is the rub...what is a fair wage? Depends on your education and training level.

[cdub1991]

I think there are a lot of construction workers and laborers are out of work now. I don't really consider that to be make work, especially since the infrastructure projects are things that need to be done.

[martiniandabotoxchaser]

Many if not most of the unemployed are not construction workers and laborers. They come from all strata of society and a variety of backgrounds and fields. Most of the unemployed are not trained in the construction trades. A point in the article was concerning parents wanting to have money to send their children to college. I doubt many graduates or their parents (who sacrificed since their child's birth) want our nations educated youth to do minimum wage construction labor. What is being proposed are created jobs, ie. "make work"; not the kind of positions that will provide for the long term health of our country. We need the type of jobs that will take advantage of the skills in which we excel. The work force today is very very different than that during the Depression. We can't go back in time.

[PhoebeMarieGriddlebone]

Your screen name just caused a spit-take. Thanks.

[martiniandabotoxchaser]

It just hit me one day.

[aweissnet]

That is a useless generalization.

[martiniandabotoxchaser]

It is not useless if it starts a conversation. We should not be willing to just accept what is presented to us. Any modern plan needs to embrace our diversity and the breadth of training and education in our society. We need to differentiate ourselves from countries who can provide cheap low skilled labor if we are going to emerge from our current situation. We need to invest in our future, industries such as alternative fuel. We really need to analyze what makes us special.

[quantumspin]

My guess: those who have no power now, will be left to spin in the wind and will continue to be part of Bush's 'ownership society,' meaning: they will be on their own--unemployed, foreclosed, in debt, and no help whatsoever.

The lobbyists and Congress will configure any stimulus plan to make sure that the bulk goes to major contracting companies or existing corporations, just as we've seen massive billions go to banks with no strings, as we are told to 'trust.'

The working class--which includes anyone drawing a paycheck--is being cut loose, there is absolutely no doubt. Check out a few of today's posts on Daily Kos for a reality check as to what is happening to the 'little guy' right now--- no health care but diagnosed with cancer that 'has gone undiagnosed' and another who is unemployed, no place to live, and car repo'd---these folks have already reached the end of the line. Millions more will follow them in coming months and years.
Congress will block health care, will block any meaningful help to those in deep trouble.

[rich misty]

Make sure to get involved and stay involved... These people cannot be pawns of the lobbiests if they are not in office... The need to be educated by voting out those who support programs which do not benefit the people.

Obama is beholden to no lobby.

[HappyIdiot2008]

I just donated to his inauguration committee. His lobby is the people, if we just make it happen! We can, if we try.

[Midnightrain]

Your prediction is based on the assumption GW would be staying. Thankfully, he's outta there in 17 days. Congress will pass health care, I predict.

[aweissnet]

HEalth care will not feed and put a roof over your head.

[readmewell22]

The sad thing is all the DAMAGE BUSH And his ADMINISTRATION HAS DONE.... THE SAD THING IS THAT BUSH DIDN'T LEAVE FOUR YEARS AGO...AND UNFORTUNATELY HAD A SECOND TERM. LOOK AT THE MESS THIS NATION IS NOW IN....IT HAS HAD WORLD WIDE NEGATIVE WAVES OF PERIL.

[UncleHomer]

Only at our real peril.

We've actually been though this sort of thinking before under Ronald Reagan where conservatives essentially told the poor to sink or swim. A few years later they looked at the skyrocketing crime and homicide statistics and were surprised find they didn't drown.

And what we are talking about here is millions and millions of middle class citizens slipping into poverty.

[want2trustagain]

Until we put a time limit on how long a person can hold a seat in the house or senate, no matter who the president is, the lobbyist have and are going to continue to run the country through congress (unfortunately into the ground as they have especially proven over the last 8 years). I really think Obama wants to change things for the better but as long as we still have the same OLD PUBLIC SERVANTS that for some reason keep getting voted into office I'm afraid Obama's hands will be tied.
Also once you have lost your seat in house or senate you CAN NOT become a lobbyist!!!!!

GET THE LOBBYIST OUT OF WASHINGTON

[ThunderclapNewman]

We have term limits--they're called elections.

Lobbying is a constitutionally-protected activity, and cannot be outlawed.

[Midnightrain]

Corporate lobbying can be outlawed, and should be. Lobbying ought to only be permitted by individuals. Corporations ought not be given the status of 'individual'. That has been a monumental mistake of government.

[opusprime]

"Lobbying is a constitutionally-protected activity, and cannot be outlawed."

Really? Which Constitution are you reading?

We have term limits on Presidents and Governors, why is this a bad thing for corrupt Congress members?

I want term limits, and I want campaign contributions from lobbyists and corporations ended. Only voting constituents of an election should be allowed to contribute.

[UncleHomer]

I'm all for getting the lobbyists out of control of our government but the real problem with congress is not the length of time they have served. The problem is actually us, the voters, voting for our own special interests instead of the greater good.

There is historically what can only be seen as a congressional paradox. Its illustrated by numerous polls that can just about amount to two questions.

What kind of job is congress is doing?

(Most respondents say a bad job).

What kind of job is YOUR congressman doing?

(Most respondents say a pretty good job).

[Chillinout]

Not all lobbyists are the ene_my. What about those groups that lobby for human rights? Or for the poor and downtrodden?

The purpose of a lobbyist is to give a small group of people the ability to have their voices heard in Washington. Getting rid of the lobbyists isn't the answer. Reform how the lobbyists work is a better solution.

[militarymomforobama]

Lobbyists are simply representatives of people's interests. Not a bad thing in and of itself. There are lobbies for "good" things too.

[aweissnet]

Yes, but they have less money at their disposal than the lobbyists for the bad things.

[aweissnet]

Are lobbyists for the tobacco industry representatives of the people's interests? for just one obvious example of the error in the statement above?

[WonderingNThinking]

Two types of lobbyist in my opinion - Money and Power Interest or People Interest. Sometimes their goals align, but usually not.

[vjoseph]

There are good lobbyist who have the people's interest at heart and there are bad lobbyist who only care about corporate America. To get rid of all lobbyist means you will also get rid of the good ones

[Midnightrain]

Excerpts from an interview with Edward Wolff, a professor of economics at New York University.

Wolff says that:

The bottom 20 percent of Americans basically have zero wealth. They either have no assets, or their debt equals or exceeds their assets. The bottom 20 percent has typically accumulated no savings.

A household in the middle — the median household — has wealth of about $62,000. $62,000 is not insignificant, but if you consider that the top 1 percent of households’ average wealth is $12.5 million, you can see what a difference there is in the distribution.

Things are even more concentrated if you exclude owner-occupied housing. It is nice to own a house and it provides all kinds of benefits, but it is not very liquid. You can’t really dispose of it, because you need some place to live.

The top 1 percent of families hold half of all non-home wealth.

The middle class’s major assets are their home, liquid assets like checking and savings accounts, CDs and money market funds, and pension accounts. For the average family, these assets make up 84 percent of their total wealth.

The richest 10 percent of families own about 85 percent of all outstanding stocks. They own about 85 percent of all financial securities, 90 percent of all business assets. These financial assets and business equity are even more concentrated than total wealth.

[Midnightrain]

From the International Herald Tribune:

Driven by a painful mix of layoffs and rising food and fuel prices, the number of Americans receiving food stamps is projected to reach 28 million in the coming year, the highest level since the aid program began in the 1960s.

The number of recipients, who must have near-poverty incomes to qualify for benefits averaging $100 a month per family member, has fluctuated over the years along with economic conditions, eligibility rules, enlistment drives and natural disasters like Hurricane Katrina, which led to a spike in the South.

link to entire story: http://www.iht.com/articles/2008/03/31/america/31foodstamps.php

[rich misty]

This has Republicans smiling and cheering

[aweissnet]

Yes, well the criteria for entitlement in these social programs are as ridiculous as the minimum wage. If it was anywhere near realistic, this figure would be higher. Meaning, if ALL the people who need aid, received aid.

[aweissnet]

"People sign up for food stamps when ... their wages go down because their hours are cut," said Stacy Dean, director of food stamp policy at the Center on Budget and Policy Priorities in Washington, who noted that 14 states saw their rolls reach record numbers by last December.

If you have even meager wages, my experience is, you're not entitled. I may soon find out.

[HappyIdiot2008]

Wealth begins with the heart. I think all of us are in a good position.

[PhoebeMarieGriddlebone]

As long as we're healthy, anyway!

[aweissnet]

Thank you for sharing.

I'm afraid it will not be until this predicament becomes dire for many more Americans that they will understand your point.

Until then, optimism rules the day (what do they have if not hope?), and all those feel-good statements, and happily-ever-after movies we've been force-fed and brainwashed with dictate the prevailing thought.

Justice doesn't always prevail, and people will wind up homeless, freezing, and starving, while the rich elite are eating comfortably in their warm mansions.

I'm afraid Americans have become quite docile. I blame it on TV/movies.