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

[rockyb26]

seems to me alot of the dissent on this comes from the fact that some people don't know what stimulus means. stimulus is not synonymous with a check in the mail folks. think outside of the box please. or just pay more attention. they've repeatedly said they will not issues checks because that's proven to be ineffective and wasteful.

[slinkymom]

Thank you for pointing that out, too many people just don't understand what Obama's plan really is. Either that or they are republicans who just can't admit their guy really screwed up.

[slinkymom]

I think that's what they're angry about, they want that check - not a job.

[harveyr2]

Obama's desire to spend more money is NOT change we can believe in.

Not a single expenditure in this "stimulus" plan will create a better USA.

Fix the roads. Fix the bridges. Fix the schools.

C'mon the only people who will be employed are the undocumented workers that are fleeing our country. Show me a plan to create jobs/a career for the out of work MBA's and other white collar workers who have been laid off. Show me a plan to create jobs/a career for the blue collar workers who have be laid off.

Shoveling pork to projects that merely fix does not create new jobs nor do they create a stronger economy.

[Icantbelieveher]

Please, sir, give us your alternative!

[vjoseph]

Whiners don't have solutions

[slinkymom]

You know jack about this issue. My husband, a civil engineer by degree and a natural born citizen, is out of work because their has been a steep decline in construction jobs. My brother is a pipefitter and he and hundreds of other fitters in the Chicago area are out of work.

Fixing our roads, bridges, schools, etc., is exactly what will put many Americans back to work. From the steel industry, to pipefitters, to teachers and office workers. If some illegals get work too, so be it. They pay taxes too, contrary to what the republicans want us to believe.

You have no clue.

[LazarusLong]

Well said. Thank you.

[dee544]

Are you on the transition team or in the cabinet? Funny, I haven't seen your name mentioned in any media report, nor have I seen the stimulus package. But, perhaps you have and can now tell the huffpos what it is and how it will work.
Glad you have the inside story and the capacity to judege the plan. Bravo to you! I'm sure your confidence and support put Obama over the top during the electiion!

[LazarusLong]

I personally know 17 engineers and CAD technicians who would be put immediately back to work with one local medium sized road project (already identified as necessary). The local concrete and asphalt suppliers could rehire their laid-off personnel and a traffic bottleneck (energy wasting) would be removed. Completion of this road could spur other PRIVATE development efforts, already in the planning stages.

This is just one project in one small (

[Icantbelieveher]

And the $$$ they spend once employed will trickle down to other areas -- restaurants, retail stores, etc!!! On top of which, these people will be paying payroll taxes, which will be a much better way to pay this debt back than paying out unemployment and medicaid benefits!

[slinkymom]

This package will put my husband and brother back to work.

[ShakeYourComplacency]

Won't your "Joe the Plumber" have work? If buildings are going up and schools are being repaired are you saying these places don't have plumbing and electricity? lol.

Pick one view or the other. Workers are dirty mexicans, or workers are bald-headed hard working white males. You can't have it both ways.

[opusprime]

So we're going to fix our Ponzi scheme economy, an economy based on excessive debt, with more debt?

This is like saying your going to fix your heroin addiction with more heroin.

The gig is up folks. We cannot borrow ourselves into prosperity. Debt does not equal production.

There is only one way out of this mess. We take the pain of our past overspending and deal with it. We let the insolvent banks go under, and balance the budget. Everything else is only going to make the problem worse.

Americans need to start saving money, and producing things again, without debt. Debt will be the end of us all, regardless of who is president.

[Burlington]

I agree...........and stop this free trade that has sent million of jobs overseas.....

[junebuginFL]

Freetrade caused this problem? Cheap labor caused this problem. Higher taxes also push jobs out. Companies will go where they can be more competitive. Either we work for less to match what 3rd world countries pay, or we focus attention on better paying jobs, new technology, and industries that will start a new industrial revolution. Just my opinion.

I am a little slow, I dont see how free trade does this, taxed goods only get passed on to the buyer.

I heard that a lot of manufacturing will be coming out of Vietnam now instead of China because we have free trade agreements with them and they have cheap labor. China wants no such deal with us, why should we give it to them?

[vjoseph]

Again, you are dense

[cheneyhasawarmachine]

amen brother!

[dee544]

People are in pain and it is going to get worse before it gets better. But do you think just letting millions of people suffer is the total answer? Sounds a little too simplistic since what happens to those suffering will impact all of us in ways that we have NEVER seen in the USA. How do starving, desparate people acr? Witness Eastern Europe, Africa and South America.
Be careful what you ask for as a solution to a greed created crisis.

[Kiba]

Deficit spending when the economy is doing well is ins.ane. Government injection of capital into the economy during an economic downturn is essential.

[vjoseph]

Shhh... do not befuddle him with facts

[opusprime]

Pure Keynesian hogwash.

Again, you cannot borrow yourself into prosperity.

Its going to be a very long and painful road indeed.

[CO Redhawk]

Some debt is a very good thing. Debt that can be paid with growth. But American needs to produce something.

We send our jobs over seas for years, now we are shocked, SHOCKED! to find out we don't have any jobs.

How to make wealth: Grow it, Mine it, Build it, Save it (and loan money to others). America doesn't do any of this enough

[ErnestineBass]

Thank you! Opus is out to lunch.

[RebelPatriot]

We are already at double-digit unemployment.

If you used the measuring metrics that were wipe out by the Clinton Administration.

about 12% unemployment.

[rbarry647]

Don't worry Republicans, Democrats will fix everything just like we did the last time and maybe leave you with a surplus again

[LazarusLong]

Scares the crap out of 'em. Think they're irrelevant now ?!

[joeblow69]

just curious, how that guy Carter work out for the USA, refresh my memory, he was a dem or repub??

[gjohntheterrible]

Which they will take and run the nation into the ground. My prayer is that people in this nation will wake up and keep the republicans away from the presidency and control of congress for about 20 to 25 years.

[cheneyhasawarmachine]

note to the federal government they way to "fix" the economy is to spend less and make more (ie cut spending lower taxes) tax revenues ALWAYS go up after a tax cut.

this 'stimulus' plan is the equivilant of someone trying to lose wait by increasing their food intake it wont work.

[slinkymom]

Sure, that's why the debt has decreased so much under Bush, all those increased tax revenues...

no wait, the debt increased and there are less jobs and home values decreased, but hey, he gave us a tax cut! Great plan.

[cheneyhasawarmachine]

thats because bush and congress increased spending at historic levels nice try you cant ignore that factor.

[rockyb26]

exactly. tax cut for wealthy + decreased government spending on stuff that actually matters (schools, healthcare, infrastructure) + increased spending on stuff that doesn't matter (stupid wars, oil companies, "defense") = economy in the tank at the hands of the GOP

[rockyb26]

and you're an economist right? all top economists (cons and lib) agree that big government spending is the only way to fix the economy. unless you're an economist, your rant is meaningless.

[vjoseph]

Hear, hear

[gjohntheterrible]

Oddly enough if you talk to any nutritionist they will tell you that increasing your food intake is the way to loose weight. Most nutrition experts say that you need to eat 6 meals along with 8 cups of water. The caveat is that you watch what you eat. Eat small quantities but eat often, that is how you lose weight. If you starve yourself the body goes into lockdown mode and stores fat.

[qdog112]

Support your belief with some impressive letters behind your name (DEGREE DESIGNATION) or your sources of such a definitive statement.

Anybody can say it won't work. When you come back tell us WHAT WILL WORK.

[gjohntheterrible]

Oddly enough if you talk to any nutritionist they will tell you that increasing your food intake is the way to loose weight. Most nutrition experts say that you need to eat 6 meals along with 8 cups of water. The caveat is that you watch what you eat, no burgers and fries. Lots of vegtables and less red meat. If you starve yourself the body goes into lockdown mode and you can't shed the pounds.

[slinkymom]

Exactly. When you eat the right food at the right time you lose weight. Obama will spend the right money at the right time so the economy become healthy once again.

[rockyb26]

yep

[Midnightrain]

That's just too complex for these dolts to understand.

[cheneyhasawarmachine]

right and the cooling of the planet over the last decade proves global warming got it.

i do get your point but the anaolgy still holds, we can still spend but increasing spending on things for the sake of an increase in hope that it 'stimulates' the economy is the same thing as eating burgers and fries, how about measered, smart spending?--- throwing almost a trillion dollars out there isnt the answer. governemtn spending is necessary i get that but increasing it at this point is not seeing the forrest for the trees as it were.

[GrammaCarol]

Actually, some of that is old thinking. It's true that starving or eating low calorie puts the body into lockdown, but lower carbs, moderate protein, and higher fat is what the body needs. I lost 100 pounds eating steak and other red meat, fatty pork, chicken, eggs, cheese, and tons of veggies smothered in butter or salads with blue cheese dressing. I also lowered my triglycerides to 50 and total cholesterol to 141 with this change in eating. Good old Dr. Atkins knew what he was talking about!! More research every year is proving him true.

I trust PE Obama to follow his own great instincts, to listen to the right people and to do the right thing, even though it seems counter-intuitive to so many who bought the lies about trickle-down economics since Reagan.

[concernvoter]

Obama is going to do his job no matter what we say

[vjoseph]

Yep

[hawkseye]

Rethugs are busy with their Wiley Coyote PR plan in which they present themselves to voters as obstructionists.

[qdog112]

Right - in the guise of "country first".

[cheneyhasawarmachine]

in just 17 days the seas will cease to rise, the earth will finally begin to cool, the economy will do a 180, the middle east will become peaceful, terrorists will see the folly of their ways and the rivers will flow with milk and honey.

this is our time, we are the people we have been waiting for. together we can accomplish anything.

[ShakeYourComplacency]

This will be the first test. We'll see how quickly he can push through a stimulus. If the congress drags it down, it's kind of an indication of how all other policies will also be turtle-like.

If you ask me, credit-card debt restructuring should have been considered. I know homes are the biggest problem right now, but the underlying economic woes for every household also includes credit card debt, health bills, low wages, and no savings to fall back on for emergencies. If they implemented a debt-forgiveness plan, especially getting rid of those old loans dragging on for 10 years or more, it would free people up to both spend and save, not living from paycheck to paycheck.

[Drdemocrat]

Right now Obama will have enough votes in the Senate to pass it even if there is a Filibuster. There will be 57 Dem Senators in January (minus Dem Senator from Illinois and Dem Senator from Minnesota) and they will all vote for it. All Obama needs is at least 3 Republican Senators who I think will be the 2 Maine Senators & Ohio GOP Senator as well as the Pennsylvania GOP Senator.

This will be quickly passed.

[slinkymom]

I do hope you are right. I believe Obama has the right plan but there are those that want to stop this plan and will use every trick in there nasty little bag to stop it.

[rbarry647]

I noticed he added that 80% of the jobs would be in the private sector, why would Republicans have a problem with that?

[slinkymom]

He's going to make them look bad. They are so bent on having things their own way, they don't care if they bring us all down, just can't have Obama make them look like the fools they are.

[hawkseye]

Obama won't have to lift a finger to make Rethugs look like fools. They have already begun to destroy themselves futher, bit by bit.

[Drdemocrat]

The December unemployment numbers are going to come out next Friday and they will be DISMAL where America probably lost ANOTHER 500,000 jobs resulting in more than 2 million jobs LOST in 2008 alone.

That FACT will put the FIRE under the belly to get this passed.

[msjimmied]

As I was reading yesterday,

"if you had a million dollars, and spent $1000 a day, you would run out of money in 2 years and 9 months.
If however, you had a billion dollars and spent $1000 a day, it would take you 2,737 years, 10 months and 1 week (that last week would probably be very stressful). If you had a trillion dollars and spent $1000 a day, you would be destitute in 2,739,726 years..."

The banks are broke, the states are broke, and the people are broke. We are at war, the environment is sending out an SOS, and all our ideals embodied in our constitution lies in ruins. We are going to have to dig deep to find our way out of this morass. We need to engineer a paradigm shift and it's going to take some time. However, I think the gravity of the situation hasn't sunk in yet.

[AnnfromCA]

I'd rather see a reduction in corporate tax rate that is killing start-up businesses.

[Drdemocrat]

Obama was elected to improve the economy. This is a nice start. That's why the stock market INCREASED on the first trading day of the year above 9000 in anticipation to Obama's economic recovery plan.

Now we need to know the details and it to be transparent on what each dollar will be spent on.

[cheneyhasawarmachine]

wow you seem to know a lot about the stock market.

[Burlington]

Sorry but the stock market doesnt move for Obama.........

That was the plunge protection team

and his recovery plan will only cause more problems.......
you cant keep printing money.....hrs not talking about cutting bloated defense budgets or ending the wa r

he will cause hyperinflation when the dollar crashes

[slinkymom]

Yes he has spoken about decreasing all programs where there is waste, including the military. Ending the war and bringing our troops home would save loads of money, wouldn't it?

[mervr1]

Still don't know what you're talking about do you. I think you need to find a Fixed news site where you fit in.

[vote-obama]

17 days and counting. the future never looked brighter.