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Barack Obama Described America’s Economy as “very sick” Need Quick Ok.

Written By: admin on January 6, 2009 No Comment

US President-elect Barack Obama has described America’s economy as “very sick” and has said that the situation was worsening.

Summary from BBC News

Earlier, he met politicians in Washington to discuss ways to boost the economy and make new jobs.

US media reports say he is plotting a stimulus package worth more than $800bn (£551bn), including $300bn of tax cuts.

Mr Obama has said he wants a plot that will make 3m jobs by 2011.

“We’ve got an extraordinary economic challenge ahead of us, we’re expecting a sobering job report at the end of the week.”

‘Very serious situation’

The package is reported to include tax breaks for people earning less than $200,000 a year as well as tax credits for companies taking on additional staff.

Besides $500 tax cuts for most workers and $1,000 for couples, the proposals are said to include tax breaks of more than $100bn for businesses.

In a weekend speech, Janet Yellen, president of the San Francisco Federal Reserve Bank, called for the government to place more money into stimulating the economy.

Mr Obama’s economic team has been carving out a plot for several weeks and Vice President-elect Joe Biden said in an interview that the plans had been nearly finalised before Christmas.

Spending plans

Mr Obama’s economic recovery plot depends on swiftly pumping hundreds of billions of federal dollars into the economy to make jobs.

The focus is on tax cuts and government spending that can provide an immediate lift to the economy.

Some Republican critics say that the Democrats are simply using the current economic crisis to place money into long-term projects now, rather than in a few years when concerns about record budget deficits might threaten the spending.

“It’s incredibly hard to identify things that are valuable in the long run, can be financed in the small run and get the money out the door quickly,” said former Congressional Budget Office director Douglas Holtz-Eakin, who advised Senator John McCain’s presidential campaign.

Mr Obama’s officials have promised a “use it or lose it” rule to force states and localities to spend new federal money quickly to stimulate jobs.