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

[Chicago48]

http://www.newsweek.com/id/177614

Newsweek has it right. He's too lofty and too optimistic. Too ? unrealistic ?

[ThunderclapNewman]

That's not what Fineman said.

But you knew that.

[frappe]

Because their positions are indefensible (and they know it), they resort to deliberate deceit, lies, and mischaracterizations as a first defense. It's the "Republican way", so to speak.

[rich misty]

spin spin spin lie lie spin spin spin

"It's Obama's fault"

Yep, we know the GOP game plan

[UncleHomer]

If that is true there must be at least 76% of the nation that are also too lofty, optimistic and unrealistic because that is Obama's latest confidence rating.

[rich misty]

His approval rating is in the mid 80% range depending on the poll

[vjoseph]

You expect us to be as dum.b as you. Won't work

[aweissnet]

Well, although Biden was laughed out of town, the guy had some kind of psychic vision.

Obama is going to be tested more than any other president has been. His task list grows by the day. But it all happened under Bush's watch, so lest we blame it on O ... let's be clear where the blame lay. The world knows--and we know. Only the GOP pretends not to know. But heck, they don't believe in real science either. So they can pray for an end to all this.

Bush is laughing all the way back to Texas.

[Ihaveadream]

Companies of all kinds continue to import cheap clothing, toys and everything from vitamins to fish to furniture from Asia because we don't make it here anymore. Furniture companies in NC and the north - Hitchcock since 1820 - have closed. If they do make it here, many are hiring illegals because they don't have to comply with labor laws, but hey, the Bush admin just looked the other way for 8 years. Stop tax credits for shipping the raw materials, parts and pieces overseas for assembly. Make it hard for companies to do this. Even Alexander Hamilton understood the need to tax imports to protect US businesses.

This goes for most of the computer and tech support. They continue to replace American English speaking tech support people with ding dongs all over asia in terms of call centers. Banks too. If your bank does this change banks. Don't buy from companies who outsource tech support. Don't use internet providers who outsource. Buy local food. Buy second hand clothing (like we all need anymore anyway) from eBay or consignment stores. Buy new or used US made furniture. Take matters into your own hands and vote with your pocketbook. Don't buy packaged food if you don't know where the ingredients come from. I e-mailed my grocery store management that I wasn't buying fish from Asia.

[frappe]

I agree with you. I would only add that it would help tremendously if our government first considered the needs of its citizens over the needs of the lobbyists and special interests that now infest Washington D.C., many of whom are ex-Congressman working on behalf of foreign governments and corporations. For beginners, slam that Congressional door shut that leads from Congress to K St.. And I would argue for prohibiting any and all congressmen from becoming paid lobbyists after their congressional terms expire. It's so very destructive and is significantly responsible for much of the economic turmoil that we are now experiencing. And we need FAIR TRADE, not FREE TRADE.. We're the only country on the entire planet that allows foreign producers to saturate the U.S. market with their goods while those same exporters don't extend the same privileges to us.

[Ihaveadream]

Yes and yes. Thank you for the additions. I had to edit my post because it was originally too long

[jinxed]

Companies who ship American jobs overseas need to pay a tariff when importing BACK into the US. We need people to start companies in the US, hire Americans to build a product such as furniture etc. and tell all "foreign" (previously American companies) they can take their products back to the country that built or assembled them and sell them there. Too bad their workers don't make enough to purchase what they build/assemble.

The American business model used to be that if you paid your employees a living wage your employees will also be your customers. By sending American jobs overseas big business not only wipes out American jobs but also their American customer base. Short term profits for long term losses. Doesn't seem very profitable to me but what do I know, I'm not a CEO.

[UncleHomer]

But lets just remember that the news is not all bad.

I watched a report on CNN today that noted the business at pawn shops is booming.

[cdub1991]

Lots of good deals to be had on yachts.

[rich misty]

Gulfstream jets are a real bargin

[yogiguru]

I agree that people not within their means were part of the problem. But even at $10 an hour in most parts of the country you're going to have a hard time getting by. You're going to need credit to supplement your needs in case you have an emergency, car repair, etc. If it comes to me having to use my credit card to buy food when I'm broke, that's what I'll do.

Republicans and Democrats for years have shipped jobs overseas. They also aided and abetted our government and corporations to outsource customer service jobs overseas. The Republicans always talk about family values. How much family value is it having a 6 y/o overseas working in a diamond mine. Not very family friendly to me.

Americans have lost their purchasing power. At minimum wage, you're hard pressed to put food on the table, pay your rent or mortgage and utilities, there is not a whole left to buy all those cheap chinese imports. Bottom line our government and corporations shipped jobs overseas to save money. Now all the products they produce no one can buy them. You can slash your products 90% off, if I don't have the money, I won't buy them.

I only buy locally now. If something says made in China, Canada, Indonesia, anything overseas, I do not buy it. I love how people blame the poor. Look to our corrupt government and CEO's, that's a start.

[UncleHomer]

I think this is also an important factor to keep in mind.

When Ronald Reagan was elected 1% of the people in this nation controlled about 80% of the wealth.

Now the 1% control about 95% of the wealth. That's not just the rich getting richer. That is a system that is unsustainable.

[tedbear]

Truly, and the nerve of people who say the auto companies failed because the workers got paid too much.

Fox news "contributer" Michelle Malkin had the arrogant stupidity to say the UAW should give their profits to the automakers.

[aweissnet]

"If it comes to me having to use my credit card to buy food when I'm broke, that's what I'll do."

It's the new social programs. And since the banks were funded by the government, in a twisted way it all works out.

Do not worry about your credit score. Do not worry about the amount of debt that grows, until debtor's prison comes back into play. Feed your family and put a roof over their head, and keep the electric on. This is the job of the government--to take care of their citizens. We have been royally skrooed.

And make sure you line up your ducks and get 'em all in a row for the day when you can't continue to make payments. Start planning that ahead of time. Be savvy on laws in your state. Check out what's your property, what's in your name, etc., and if you're married you're in much better shape, from a legal standpoint.

And by the way, lest I be flamed here (and I could give 2 kraps), note that the credit card companies continue to bilk people with fraudulent practices. Laws have passed banning these practices, but not until summer of 2010. NOT NOW, but 1-1/2 years from now. Notice they didn't postpone the bailout for 1-1/2 years. I think the people can little afford this time delay of scamming, but it will yield the banks a lot of continued revenue for quite a while.

[TheJibreelaMonsters]

we are all New Yorkers Now
-well come tax time!

[DanniD]

Any Republican trying to halt or stall an economic recovery for the American people for any reason should be ousted from office effective immediately!

[ThunderclapNewman]

A nice sentiment, but not possible legally.

[DanniD]

Who said anything about legally? Besides the Republicans need to be reminded that they work for the American people. ALL OF US, not just those that vote for them or write them contribution checks!

[macrophone]

This is the death rattle of consumer capitalism. Not sustainable and the cracks are starting to show. Meanwhile, the 'american dream' dies a little bit every day.

[rich misty]

"Country First" was a very telling political slogan... Destroy the country first is the highest priority, even above getting elected.

[qdog112]

true true

[fire starter]

True that.

[njb444]

Infrastructure!

[sc92705]

A lot of the stimulus money will be used to feed the already bloated farm subsidy for ethanol.
The New York Times warned of Obama's ties to the ethanol lobby in June, 2008

http://www.nytimes.com/2008/06/23/us/politics/23ethanol.html?pagewanted=1&_r=2

[ThunderclapNewman]

Where's your proof?

[UncleHomer]

I think this is out of the right field of the Tin Foil Hat Society but regardless there is a simple solution.

We can provide 90% of our energy needs with bio mass production of hemp.

[sc92705]

Obama is indebted to the mid-west ethanol lobby. We have stockpiles of natural gas and Obama will prop up the corrupt ethanol industry. It takes more energy to produce ethanol from corn and it is just another form of the massive farm subsidy. Farmers made a ton of money in the commodities boom last year, now they are going to get an undeserved gift from Obama. Most mid-west farmers know the corn ethanol industry is a scam and the few honest ones will still take your tax dollars.

Obama is first and last a politician; for me the ethanol issue is the litmus test for this guy and he has flunked the test even before taking office.

[1003]

The Republicans and Bush have destroyed this country. No questions asked of Bush for the past 8 years. What ever he wanted, they obeyed and past every bill that was put in front to them. Now, Obama is left to clean up the mess and still, they are trying to give him a hard time. Well, Obama doesn't need the Republicans because the Democrats will be in charge, and Obama is trying to play nice by giving them a voice. I say to Obama, screw them! Let's use the only tool we got and get thing done by the Democrats only. Give them a taste of their own medicine!!

[rich misty]

That is my take anyways, thanks

[LINY516]

unfortunately, Obama needs 1 or 2 reasonable Republicans in the Senate. That's the cold hard based on the Senate rules. Obama and the nation have to deal with the ignorant Southern Republicans who will stand in his way and attempt to destroy this country to save their ideology. In other words, these yahoos are stuck on stupid.

[jinxed]

NOT a good idea. The only Republicans trying to trash the country are the neo-cons, racists and evangelical far right who have their own agenda. We don't need ALL of the Republicans to fix this mess just 5 or 10 moderates. This is doable if we think positive. If FDR and the progressives could do it in the 30's, we can do it again but with the advantage of history to avoid some of the pitfalls encountered by them.

[Anastasia]

Much of the current economic crisis revolves around banks and other institutions refusing to lend money to would be home buyers and businesses. Obama needs to find a way to force the banks that the US government gave bailout money to, to put that money back into circulation and get the economy moving again.

Congress needs to pass legislation that would retroactively force the banks to use it as intended; to get the economy moving again.

No amount of stimulus in the form of tax cuts et al will work, unless people and businesses are able to borrow again.

[ThunderclapNewman]

The US Constitution expressly prohibits ex post facto laws.

So anything requiring retro-active compliance is unconstitutional, and would be struck down.

[rbarry647]

Unfortunately that wasn't the case with the FISA law - I am still waiting for that to be challenged

[Episcopagan]

The Constitution prohibits ex post fact criminal laws being enacted.

Ex post facto civil laws are allowed.

That is how tax increases can be made retroactive.

[NWReader]

And you have forgotten your history lessons. It was infrastructure that got the economy moving again during the Depression. True, it took WWII to completely recover the economy, but it was the spending programs that got people working again.

[UncleHomer]

And I don't know about the rest of you but I live in a part of the country where the Civilian Conservation Corps projects are not only still visible but also still of great benefit. There are reservoirs, wind breaks, trails, and a really neat hot springs pool as well as many other projects that worked for jobs and long term benefits.

[rich misty]

And then the WPA.... Both of them did EXCELLENT work for the country.

[Episcopagan]

It was also the Eisenhower infrastructure program (the interstate highway system) which helped fuel the post-war boom.

[rich misty]

Exactly

[rockne]

After 5 years of FDR's New Deal programs, unemployment was still at 20%.

[lafrance]

this is true. We were on the road to recovery and then, Roosevelt was worried about the budget and tried to balance it in the second term and it caused the economy to have a reversal.
The spending programs did alot to help America recover from the depression and if we hope to stave off another one we need to do this program and worry about the budget after the economy is fixed.
The republicans caused the economy to collapse and now they are trying to block a recovery and fixing the problem.
Why do republicans hate America?

[hopefullee]

If you read real history, instead of the revisionist version that Reich-wing is trying to construct, it's not only true the infrastructure programs got the economy moving again, there is a possibility that FDR's programs could have pulled us out of the Depression without WWII. But, because once the economy was on the upswing, the Conservatives convinced him to try to balance the budget, and the economy slipped downward again until the war.

We'll never know what would have happened if he hadn't listened to the Right and the war never happened.

[Midnightrain]

Repost:

This is all very simple.

Starve the American family, starve the American economy. Conversely, feed the American family, feed the American economy.

Spending on useless junk such as military tech, tax cuts for the ultra rich is just that: spending. We get no ROI.

Investing in health care, jobs, education, infrastructure, and the ecology, is that that: Investing! Which brings a tremendous ROI.

It's really just that simple.

[rich misty]

Republicans do not understand, no matter how simple... They are completely incapable of cognizant thought.

[Ajegunle]

WHAT DO YOU EXPECT FROM THE SOUTHERN MARGINAL PARTY?

[ramal]

Too little, too late, I fear. I precict the U.S. will see double digit unemployment even with Obama's stimulus. It's going to be a long, hard ten years or so. All the American People can do is batten down the hatches and ride the storm out. Hopefully, we will be a stronger and more moral people when it is over.

[cdub1991]

Show your math, please.