 President-elect Barack Obama has warned that "things are going to get worse before they get better" as he outlined details of an economic stimulus package that could reach $1 trillion and is designed to lift the United States out of recession.
On Friday the US announced a net loss of more than half a million jobs in November, the largest drop in a single month for 34 years and bringing unemployment to 6.7 per cent. The following day, Mr Obama announced the biggest infrastructure investment since President Dwight Eisenhower created the US highway system in the 1950s. He proposed government programmes for bridges, roads, ...
| ... so that gas-guzzling Detroit dinosaurs can drive through minority neighborhoods more quickly ... |
... broadband internet ...
| ... because we don't yet have that in our country ... |
... and schools ...
| ...because it's all about the children ... |
... as well as plans for greater energy efficiency and health spending.
Although he played down expectation for a quick economic recovery, Mr Obama said his plan was "equal to the task" that the US faced. "The key is making sure we jump-start the economy in a way that doesn't just deal with the short term, doesn't just create jobs immediately, but also puts us on a glide path for long-term sustainable economic growth," he said in an interview with NBC's "Meet the Press".
Stronger financial regulations would make banks, credit ratings agencies, mortgage brokers and others "much more accountable and behave much more responsibly".
| Oh, so he's going to rein in Fannie and Freddie? Wonder if Barney Franks knows ... |
He emphasised that the survival of the domestic car industry was crucial but any bailout must be "conditioned on an auto industry emerging at the end of the process that actually works".
| Whatever that means, and I don't think even he knows ... |
The president-elect criticized Detroit's Big Three car manufacturers for "repeated strategic mistakes" and a "failure to adapt to changing times -- building small cars and energy-efficient cars".
| Did he say anything about the labor contracts? |
He added, however: "The auto industry is the backbone of American manufacturing. It is a huge employer across many states. Millions of people, directly or indirectly, are reliant on that industry, and so I don't think it's an option to simply allow it to collapse."
Noting the US budget deficit might exceed $1,000bn (€785bn) even before his campaign promises and new spending plans were taken into account, factored in, Mr Obama said: "We understand that we've got to provide a blood infusion to the patient right now to make sure that the patient is stabilised. And that means that we can't worry short term about the deficit. We've got to make sure that the economic stimulus plan is large enough to get the economy moving."
Mr Obama has not to put a full cost on his plan but his advisers estimate it will be more than $700 billion and could even top to $1 trillion. |
