US Economy: Obama Announces Plan for Economic Recovery

March 24, 2009Marketsby CaraTan

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Washington, 25 Mar. Today US President Barack Obama announced his plan for economic recovery. Included in this strategy includes means to create new jobs, reviving the housing market, and reestablishing liquidity in banks and getting them to resume lending.

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Obama said, "We are beginning to see signs of progress. The budget I submitted to Congress will build our economic recovery on a stronger foundation, so that we do not face another crisis like this 10 or 20 years from now."

Washington, 25 Mar. Today US President Barack Obama announced his plan for economic recovery. Included in this strategy includes means to create new jobs, reviving the housing market, and reestablishing liquidity in banks and getting them to resume lending.

Obama said, "We are beginning to see signs of progress. The budget I submitted to Congress will build our economic recovery on a stronger foundation, so that we do not face another crisis like this 10 or 20 years from now."

"We have made the tough choices necessary to cut our deficit in half by the end of my first term - even under the most pessimistic estimates," he added.

He stressed, "It will take time, it will take patience, and it will take an understanding that when we all work together, when each of us looks beyond our own short-term interests to the wider set of obligations we have to each other, that's when we succeed.”

He fielded a number of questions from the press, including one about the violent Mexican drug cartels which are expanding into the US. He said he would add further funds if necessary to what he has already pledged to fight this drug trade. On Tuesday, he announced a $700 million plan to combat the cartels.

Most Republicans oppose the overall budget, as they say it will only make the economic future worse for future administrations and even our children.

The Senate Republican leader Mitch McConnell said, “There is little or no Republican support for this budget. If these plans are carried out, we run the risk of looking like a Third World country.”

Obama responded to such criticism by saying these opponents have no better solution.

The Democratic chairman of the Senate budget committee, Kent Conrad, feels Obama’s 11% hike for non-defense spending should be more like 6%.

He said, "We cannot have debt pile on top of debt. In the short term, yes, we have got to have added deficits and debt to give lift to this economy, but longer term, we have got to pivot."

Obama also pointed out that tax write-offs for the richest 1% of Americans should be reduced, while the other 99% of the population can still enjoy the same level of write-offs. This is expected to be largely opposed by Republicans.

The President also announced strategies to reduce greenhouse emissions, in a policy dubbed ‘cap and trade’. Companies will be capped on their emissions, and will trade carbon credits.

"When it comes to cap and trade the broader principle is that we've got to move to a new energy era. And that means moving away from polluting energy sources towards cleaner energy sources."

He also pushed for "serious efforts at health care reform” in the 55-minute news conference.

Ron Portobello, EconomyWatch.com

 

 

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