Obama warns of dire consequences without stimulus

Published: Thursday, Jan. 8, 2009 8:44 a.m. MST
 |  E-MAIL | PRINT | FONT + - 
WASHINGTON — President-elect Barack Obama said Thursday the recession could "linger for years" unless Congress pumps unprecedented sums from Washington into the economy, making his highest-profile case yet on an issue certain to define and dominate his early presidency.

"I don't believe it's too late to change course, but it will be if we don't take dramatic action as soon as possible," Obama said in a speech set to be delivered at George Mason University in Fairfax, Va., outside Washington. Excerpts from his prepared text were released in advance by his transition team.

It was the fourth day in a row that Obama has made a pitch for a huge infusion of taxpayer dollars to revive the sinking economy he will inherit from President George W. Bush.

Obama's events have increasingly taken on the trappings and air of the presidency, with the speech — coming a full 12 days before he takes over at the White House — a particularly showy move. Presidents-elect typically stick to naming administration appointments and otherwise staying in the background during the transition period between Election Day and Inauguration Day, but Obama has clearly made the calculation that a nation anxious about its economic outlook and eager to bid farewell to Bush needs to hear from him differently and more frequently.

Story continues below
"A bad situation could become dramatically worse," Obama said, painting a dire picture — including double-digit unemployment and $1 trillion in lost economic activity — that recalled the days of the Great Depression in the 1930s.

Indeed, the economic news is grim.

Consumers and companies are folding under the negative forces of a collapsed housing market, a global credit crunch and the worst financial crisis since the 1930s. The recession, which started in December 2007, already is the longest in a quarter-century.

A report that came out the same day as Obama's speech showed that the number of people continuing to draw jobless benefits unexpectedly rose sharply to the highest level since November 1982, demonstrating the troubles the unemployed are having in finding new jobs.

And unemployment figures due out Friday are expected to show that the U.S. lost a net total of 500,000 jobs in December. If accurate, that would bring 2008's total job losses to 2.4 million, the first annual job loss since 2001 and the highest since 1945, though the number of jobs has more than tripled since then.

Recent comments

Its the people that are corrupt and they make lots of excuses of...

Al Pelaez | Jan. 27, 2009 at 8:55 p.m.

..have to go.

They are both as busy as they can be spending...

Both parties.. | Jan. 8, 2009 at 1:09 p.m.

YOU CAN NOT SPEND YOUR WAY OUT OF DEBT!

Obama is embarking on...

Voter | Jan. 8, 2009 at 1:04 p.m.

Related content
previousnext

Latest comments

Beck is extremely smart, he is selling books and is very popular on TV. All...

@Mick, the Federal Govt is run by corporations through contributions and...

RSL will play for MLS Cup tonight

Lets bond together and hope for a REAL celebration SUnday night, can hardly...

I was on the playground too and some teachers came out and called us all to...

BYU records with win

B.Y.U. has been a consistent a top 25 ranked winner under Max Hall. Hall has...

4A: Timpview wins 4th in 4 years

Did Timp win four in a row or 4 in 4 years?

Glenn Beck to enter politics?

You have a lot of growing up to do, It seems like you have not cxperienced...

The proposed ethics law puts roughly the same burden on a legislator that a...

BYU records with win

Hall ACTUALLY broke the all timme wins record vs WYO last week. I guess...

Sounds to me like Kraig Powell may be a candidate for resignation. So long,...

Advertisements