i.e. Accountability for the money spent, Holding the Wall Street crooks accountable.
It may or may not work but at least he seems to be going about this stimulus in the right way. I am still burned about the Bank bailout with no accountability.
Obama warns of dire consequences without stimulus<cite>By JENNIFER LOVEN, AP White House Correspondent Jennifer Loven, Ap White House Correspondent</cite> - <abbr title="2009-01-08T04:36:44-0800">36 mins ago</abbr> Featured Topics:
WASHINGTON - President-elect Barack Obama said Thursday that the nation's recession could "linger for years" unless Congress acts to pump unprecedented sums from Washington into the U.S. economy, making his highest-profile case yet on an issue certain to define his early presidency.
"I don't believe it's too late to change course, but it will be if we don't take dramatic action as soon as possible," Obama said in a speech set to be delivered at George Mason University in Fairfax, Va., outside Washington. Excerpts from his prepared text were released in advance by his transition team.
"A bad situation could become dramatically worse," he added, painting a dire picture - including double-digit unemployment and $1 trillion in lost economic activity - that recalled the days of the Great Depression in the 1930s.
It was the fourth day in a row that Obama has made a pitch for a huge infusion of taxpayer dollars to revive the sinking economy.
His events have increasingly taken on the trappings and air of the presidency, with the speech - coming a full 12 days before he takes over at the White House - a particularly showy move. Presidents-elect typically stick to naming administration appointments and otherwise staying in the background during the transition period between Election Day and Inauguration Day, but Obama has clearly made the calculation that a nation anxious about its economic outlook and eager to bid farewell to the current president, George W. Bush, needs to hear from him differently and more frequently.
Indeed, the economic news is grim.
Consumers and companies are folding under the negative forces of a collapsed housing market, a global credit crunch and the worst financial crisis since the 1930s. The recession, which started in December 2007, already is the longest in a quarter-century.
A report due out the same day as Obama's speech is expected to show that the number of newly laid-off people signing up for state unemployment insurance last week rose to 540,000, up from 492,000 in the previous week. The number of people continuing to draw jobless benefits is projected to stay near 4.5 million, demonstrating the troubles the unemployed are having in finding new jobs.
For all of 2008, employers probably slashed payrolls by at least 2.4 million. That's based on economists' forecasts for a net loss of 500,000 additional jobs in December, as well as the job losses previously reported. Some, however, think the number of jobs cut last month will be higher, around 600,000 or 700,000. The Labor Department will release that report Friday.
"For every day we wait or point fingers or drag our feet, more Americans will lose their jobs," Obama said. "More families will lose their savings. More dreams will be deferred and denied. And our nation will sink deeper into a crisis that, at some point, we may not be able to reverse."
A day after the release of a stunning new estimate - that the federal budget deficit will reach an unprecedented $1.2 trillion this year, nearly three times last year's record - Obama acknowledged the new stimulus spending will "certainly add to the budget deficit." He also acknowledged some sympathy with those who "might be skeptical of this plan" because so much federal money has already been spent or committed in an attempt - largely unsuccessful so far - to get credit, the lifeblood of the American economy, flowing freely once again.
Such statements are coded to appeal to budget hawks in both parties, whom Obama wants to win over so that approval of a package draws wide, bipartisan support in the Democratic-led Congress.
To answer their concerns, he promised to allow funding only for what works. He also pledged a new level of transparency about where the money is going. A day earlier, he promised to tackle the out-of-control fiscal problem posed by Social Security and Medicare entitlement programs and named a special watchdog to clamp down on all federal programs.
Obama made broader arguments, too, saying that the private sector, typically the answer, cannot do what is needed now.
"At this particular moment, only government can provide the short-term boost necessary to lift us from a recession this deep and severe," he said.
Obama's transition team and Democratic congressional leaders are working daily to hammer out the still-evolving package, expected to total nearly $800 billion. The initial hope had been to have a new stimulus package approved by Congress in time for Obama to sign it upon taking office on Jan. 20. That timeline has slipped considerably, into at least mid-February if not later.
The package is expected to include tax cuts for businesses and middle-class workers, money to help cash-starved states with Medicaid programs and other operating costs, and a huge share for infrastructure building, investments in energy efficiency and a rebuilding of the information technology system for health care. Much of the latter portions of the plan are aimed at what Obama likes to talk about as the need for "reinvestment" and not just "recovery."
"It is not just another public works program," he said in the speech. "It's a plan that recognizes both the paradox and the promise of this moment, the fact that there are millions of Americans trying to find work even as, all around the country, there is so much work to be done."
He also promised action to address the economy's ills beyond the package, such as tackling the massive wave of home foreclosures many experts expect, preventing the failure of financial institutions, rewriting financial regulations and keeping accountable the "Wall Street wrongdoers" who engage in risky investing.
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Comments: 34
Worrying about the beleaguered dollar at this point is valid but is it the best solution? He is trying to do something and he is open about it. There may be consequences down the road but if the economy is robust it will be easier to overcome.
I too disagree with those massive CEO salaries and bonuses but that concerns me less than getting dollars into the hands of the consumer. It is the consumer that pays all of the taxes.
You say they will not spend it. They will because they need to eat and put a roof over their heads. The more money the people have the quicker our government can get out of debt.
That was part of my point if we are taking the money away from the consumer and giving it to others thay have less to spend. That hurts the economy.
And of course they will spend on food etc but I was talking about non essentials. If they have less money to spend they are not goping to go out and buy TVs and vacations which again hurts the economy.
Rich, how did prejudice get into this discussion?
Raising taxes on people who make over 250,000 or whatever number Obama is at now. I have heard so many different numbers and where do you think the money is going to come from for all the bailout? Us the people all of us. There is no way that he can do all he has promised on top of all the bailouts and not raise taxes. Even his own people admit that.
Anyways we are agreeing in a way the more money in our pockets the more we will spend and that is good for the economy.
All this nation has to do is quit Iraq and Afghanistan. Quit trying to support other countries except in emergency situations like flood or other national crisis. I know there are other ways to cut back without hurting our country. Like eliminate all the Bush Patriot act laws and the people hired to enforce them. There is too much duplication in government and law enforcement at the Federal level.
"Im confused too. when did we allow them to vote, let alone run for office?"
Just who is "them?" If you are talking about black people I dislike the racist concept you seem to be promoting. Its time has passed and should be buried! If it is someone else, let us know.
I'm in full agreement with you on this one as I too, want the transparency and accountability with any government funds lent. And I'm still angry over the finance companies getting the sweet treatment.
Tax cuts at this time will not help the severe recession we're in. People are likely to save, not spend the money (and it will only amount to a small amount per person), and companies that want to hire don't need tax cuts to do it; we need spending, and, most of all, JOBS (government created infrastructure (including new green and fiber optic broadband technology jobs), in the U.S. Do you know, for instance, that in Europe the average person has broadband speeds 10x or more than the highest available to us in the U.S. now?
The tax cut purposal does not affect me so I have not given it too much consuideration. You could be right that it is there to please the Repubs. Like you I seem to do I wonder how he is going to change much with all the old "as is" people he has appointed.
It is called the Bush Administration with his illegal wars mostly. That is the root cause. Everything else is spin off.
I am very worried about the amount of money needed, and yet agree we have to do it.
I wonder though how this can be made to work. Very little manufacturing is left here in the U.S. The steel purchased to make modifications to to the Oakland Bay Bridge in California is from China. and so on.
I don't know how jobs can be created without continuing to use Imports from China.
I think most of our cement now comes from Mexico, and so on.
But the problem is people, working people, and more recently the middle class, do not have any money. They cannot be called upon to spend our way to prosperity.
I think a package should include tax free savings account interest for anyone with adjusted gross incomes under 100,000.00 (that is middle class). People should be encouraged to save at least 5% of their income. This sounds counter to stimulating, but
it is putting money into banks that can be lent.
I have always thought it insane to tax working/middle class for saving interest.
And here is Rich, a Hannity Conservative, making filthy racist remarks .
I dont get it. Where I come from black people dont ASK for money, they just take it.
Im confused too. when did we allow them to vote, let alone run for office?
Rich Kaye, Jan 8, 2009, 3:15pm EST
Why doesnt he just take our money already?
Rich Kaye, Jan 8, 2009, 1:05pm EST
Having a good tax break for in country manufacturers and a stiff penalty for out of country manufacturers and foreign goods would help. Make it profitable to make their goods in the US. A good tarriff program could support our government with no taxes on individuals and would not hurt imports much since we are the largest consumer in the world.
China continues to limit U.S. imports, and literally sneak in goods. We once had the same imbalance with Japan. These imbalances exist because some very powerful and rich americans get richer because of the them.
We once were savers. Didn't Eisenhower once ask Americans to go spend some money.
There has been a culture imperative, beginning in the 80's to spend and acquire debt.
"Using other people's money" acquired nearly biblical sensibility.
As Shawn notes, the long term consequences of this pork project spendathon are dangerous. This money does not exist. Its being printed along side the Treasury notes that we hope other nations and terrified US business/consumers will buy to permit it. The interest payments add almost another 25% or more to the total cost of the package if the bonds actually get bought.
Once created, the bureaucracy to administer this "emergency plan" will not disappear and we will be stuck with more non producers. I really find it hard to fathom your support for this considering your past positions.
The rest of the package does little for the economy. It is heavy on pork, heavy toward business and heavy toward government control. Getting more money in the hands of the consumer is vital to the economic recovery of the nation.