Obama Offers First Look at Massive Plan To Create Jobs
Project Would Be the Largest Since the Interstate
System
By Michael D. ShearWashington Post Staff Writer Sunday, December 7, 2008; Page A01
On the heels of more grim unemployment news, President-elect Barack Obama yesterday offered the first glimpse of what would be the largest public works program since President Dwight D. Eisenhower created the federal interstate system in the 1950s.
Obama said the massive government spending program he proposes to lift the country out of economic recession will include a renewed effort to make public buildings energy-efficient, rebuild the nation's highways, renovate aging schools and install computers in classrooms, extend high-speed Internet to underserved areas and modernize hospitals by giving them access to electronic medical records.
"We need to act with the urgency this moment demands to save or create at least 2 1/2 million jobs so that the nearly 2 million Americans who've lost them know that they have a future," Obama said in his weekly address, broadcast on the radio and the Internet.
Obama offered few details and no cost estimate for the investment in public infrastructure. But it is intended to be part of a broader effort to stimulate economic activity that will also include tax cuts for middle-class Americans and direct aid to state governments to forestall layoffs as programs shrink.
House Speaker Nancy Pelosi (D-Calif.) has called for spending between $400 billion and $500 billion on the overall package. Some Senate Democrats and other economists have suggested spending even more -- potentially $1 trillion -- in the hope of jolting the economy into shape more quickly.
On Friday, the government reported that 533,000 jobs were eliminated in November, the largest one-month drop since 1974, raising unemployment to 6.7 percent. And last week, the National Bureau of Economic Research officially declared that the country has been in a recession since last December.
"We have faced difficult times before, times when our economic destiny seemed to be slipping out of our hands," Obama said. "And at each moment, we have risen to meet the challenge, as one people united by a sense of common purpose. And I know that Americans can rise to the moment once again."
Governors praised Obama's proposals, saying their states stand ready with billions of dollars' worth of road and school projects that could be started quickly with an infusion of federal cash. At a meeting with Obama in Philadelphia last week, governors estimated that there are $136 billion worth of projects that are "ready to go" once money rolls in.
"Here in Virginia, we have more than a billion dollars in ready-to-go bridge, highway, rail, transit, port and airport projects that have been through appropriate local, regional and state planning processes and that can be under contract within 180 days," Gov. Timothy M. Kaine (D) said in a statement.
Maryland Gov. Martin O'Malley (D) said the plan would "help keep people employed and create new jobs, [and] it would allow us to deliver infrastructure improvements that will last beyond the immediate economic crisis and benefit generations to come."
In keeping with the secrecy that surrounds the development of his recovery plan, Obama has given the governors no commitment about how much money they would receive for such projects. But Pennsylvania Gov. Edward G. Rendell (D), chairman of the National Governors Association, said yesterday that he is not worried.
"Is it going to be big or little? It's going to be big," Rendell said. "I have no doubt that it's going to be substantial. [Obama] didn't blink an eye when we talked about $136 billion."
This article continues at: http://www.washingtonpost.com/wp-dyn/content/article/2008/12/06/AR2008120602187.html
Click for Obama "Radio" Address 12-6-08
19 comments:
The New New Deal will be a solid way to get our economy back on track. The U.S. will be killing two birds with one stone by making buildings more energy effiecent and making more jobs. While a $1 trillion budget is a massive amount of money, it's better to act now with this exorbitant sum than wait until things get worse and we won't have any money at all to fix anything.
I will not argue that something needs to be done. Personally I feel that businesses themselves should take some of the responsibility of getting the economy back in shape.
This seems like a decent idea in theory. Creating jobs and improving the infrastructure are both noble pursuits. I'm just worried that a bunch of time and money is going to be spent on arbitrary projects that will end up costing a fortune in maintenance costs rather than on fixing real problems.
I think that the idea of the New New Deal is the right course of action, because we would gain more jobs and help make buildings more energy effiecent. It also would include tax cuts for the middle class which is always a good thing. However, I don't think it will work, because the money probably won't be spent in responsible ways, and we will probably put more money into the deal then we see results for. For example;the bailout didn't work, because AIG officals went on a vacation with the money they got.
I think this is a great corse of action. We are not only fixing problems with jobs, but we are also helping our health problem, schools, and roads. Everyone seemingly is going to be helped someway by this New New deal. Now we just need to becareful how we toss around 1Trillion dollers.
I tend to agree with nathanl on this issue. I believe it is a good idea but I'm scared to see how much money will be wasted. There must be some that will be wasted because there always is. This may determine how effective the plan is.
Secondly I worry about the time period. I know it said governors have "ready to go" plans but is government ever "ready to go"? On top of that how long will it take to actually spend the rest of the money?
I believe the New New Deal will be great for creating more jobs and helping the economy. However, I also worry about the cost of the programs and how much money will go to waste.
I think this is not necessary we should wait it out and see how bad of shape we are in after that 700 billion is finally used and in full effect. We are jumping the gun here and putting ourselves in a much worse situation by even debating this idea until we know this is a necessity.
This New New Deal is a pretty good idea, because something needs to be done. The Bailout really hasn't done a lot to help the stock market and I think that making buildings more energy efficent is a great way to save tax dollars. The only thing that makes me and other people nervous is the 1 trillion dollar part.
I agree with Matt. The plan sounds good, but the price tag is a hefty one. I like some of the ideas presented about the schools and roads but my question is how we are going to pay for it when we were promised tax breaks and no new taxes?
I think that the new deal could turn into a big problem. It may cause a snowball effect with every industry. First it was the banks, now the car companies, what next. It will temporarly fix the "problems," not solve them. Something needs to be done but giving money away isn't the solution.
The United States Federal Government is not giving money away. if the states don't use the money for what it's for in a timely fashion, they money is taken away.
If that policy is strictly followed, I'd say that little to no money will be wasted.
What I have trouble understanding is how broadening internet access nationally is going to make the united states competetive.
The internet is wonderful if you have someone to guide you how to use it. But if we just increase internet access in places that formally didn't have it and don't simultaneously give more money for teachers and education... well...
I have two letters and a punctuation mark for this question: NO! It's as if government has become responsible for every single facet of activity or association in the United States. This is the problem with these new Democrats who have come into power. They have several wonderful ideas to make the US a place where flowers bloom and rainbows are abundant and everyone is happy and holding hands, yet they never provide any sort of rational justification for their actions. If we continue to poor our nation's economic resources into stupid things like bailout plans and a "new" New Deal, we come out worse than we did to begin with. We let China pay our bills and increase their influence on us, not to mention their growing dominance as a world power. Also, our taxes increase, and with the already asinine tax policy of Barack Obama about to be installed, the economy suffers and guess what? people lose jobs. Yeah, really bright idea Mr. President elect.
The New New Deal Plan sounds a lot like redistribution of wealth and a little like communism, no sarcasm intended, but communism is the exact opposite of what this great country was founded on. If we want to carry out all of these plans, who is going to pay for them? Obviously the "upper class" will take the biggest blow to their check book. But most people will be suprised when they realize how low on the pay scale this punishment will extend. It will be the money of the average working person that ends up paying Barack's bill.
The most recent New Deal sounds like it will be strong enough to turn around our economy but it may not be carried out in the best way possible. Since the businesses aren't taking the initiative to help fix the economy this seems to be a good course of action.
I think that it is a great idea. We need all the help we can get right now with the economy.
I agree, but all the help in the world isnt going to pay this huge tab off. We owe enough money to other countries as it is. especially China. I understand something has to be done but spending thism uch more money is notthe solution
So where exactly does this auto bailout fit into this plan. The bailout is getting close to being passed. Only the senate remains. Whatever happens with this they should try and do it faster. Since it looks like it will be passed (after debate in the senate) they should try to speed it up a little. I am just very frustrated with the economy right now. If we are doing something we should do it as soon as possible.
I think it probably will be necessary, but where is this money coming from? How will we protect ourselves from inflation if we just keep spending money we don't have? I like the idea of a huge public works campaign, but I wish we actually had the money for it.
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