Obama urges economic action

During his first week in Washington, US President-elect Barack Obama has called for ÔÇ£drastic action,ÔÇØ urging Congress to quickly pass his $800 billion stimulus plan in order to prevent the US economic situation from worsening. ┬á  ÔÇ£I donÔÇÖt believe itÔÇÖs too late to change course,ÔÇØ said Obama in his first major policy speech since being elected, ÔÇ£but it will be if we donÔÇÖt take dramatic action as soon as possible. If nothing is done, this recession could linger for years.ÔÇØ ┬á  The US President-elect said that with US interest rates near zero, and economic activity and lending still shrinking, "only the government can provide the short-term boost necessary to lift us from a recession this deep and severe." ┬á The US economy is entering its worst recession since the 1930s, and ObamaÔÇÖs stark warning comes as US job losses for 2008 are expected to reach 2.5 million when the December figure is released on Friday.┬á Obama said his plan would create three million jobs by 2011, with 40 percent of the stimulus package consisting of tax breaks, including rebates for people earning less than $200,000 a year, and tax credits for companies taking on additional staff. ObamaÔÇÖs plan would bring $500 tax cuts for most workers, $1,000 for couples, and the possibility of more than $100 billion for businesses, as well as other incentives for business investment in new equipment.┬á The proposals also appear to contain money that might not actually be spent for several years, such as plans to rebuild the electric power grid and buy billions of dollars of computers and software for the health care sector, and to refurbish public schools. ┬á The Congressional Budget Office released projections on Wednesday that the budget deficit will reach $1.2 trillion this year, before any extra stimulus plan, causing any hope of Congress passing the plan by the time Obama takes office to fade. Mid-February is now seen as the earliest date that Congress could take action.┬á "I understand that some might be skeptical of this plan. Our government has already spent a good deal of money, but we haven't yet seen that translate into more jobs or higher incomes or renewed confidence in our economy," Mr Obama said. ┬á He said that any decisions on spending would be made transparently and informed by "independent experts", while he would launch an "unprecedented effort" to "eliminate unwise and unnecessary spending".┬á "Every day we wait, or point fingers, or drag our feet, more Americans will lose their jobs, 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,ÔÇØ he said. ÔÇ£I urge Congress to move as quickly as possible on behalf of the American people."