Obama Presents $700 Billion Economic Stimulus Plan

President-elect Barack Obama on Saturday unveiled the most detailed presentation of his plan for the economic recovery of the United States, which, through a combination of broad government investments and tax cuts worth approximately $700 billion, is intended to contribute to the revival of an economy affected by recession.

In his weekly radio and video message to the nation, on behalf of the opposition Democratic Party, Obama introduced the "American Recovery and Reinvestment Plan." The five main goals of this plan, according to him, are: to double the production of electricity from renewable sources and increase the energy efficiency of public buildings; to renovate dilapidated roads, bridges, and schools; to computerize the healthcare system; to modernize classrooms, laboratories, and libraries; and to provide tax cuts for workers.

"Economists from all sides of the political spectrum agree that without swift and bold action, we could face an even deeper economic decline," Obama said. "That is why we need the American Recovery and Reinvestment Plan, which will not only create jobs in the short term but will also stimulate economic growth and competitiveness in the long term." The main goal of the plan is to create three million new jobs, the majority of which will be in the private sector, Obama stated.

As Obama prepares to take office on January 20, America faces a series of serious economic challenges. Nearly two million jobs were lost in the first 11 months of 2008, and final government employment data for 2008 will be released in 2008. Investors have suffered the largest losses in stocks since the Great Depression of the 1930s. Nearly seven trillion dollars in market value of stocks were lost on Wall Street during 2008. Almost all U.S. states are facing budget deficits, causing many to cut critically important services and raise taxes.

Obama had previously announced that his economic stimulus package would also include some funding for the Medicaid state health insurance program, as well as for unemployment benefits and food stamps. In his weekly message to the nation, Obama did not mention the cost of his economic stimulus package, but his aides had previously indicated that it would be between $675 billion and $775 billion.

Obama confirmed today that next week he will discuss his plan with Democratic and Republican leaders in Congress, which is expected to be debated in Congress shortly after the inauguration. (Hina)