Obama's Economic Plans

According to an article by Ann Sanner from the Associated Press, President-elect Barack Obama’s massive “public works plan” will focus on creating jobs, providing energy-efficient programs and investing in education. Obama will face a challenging task of generating new jobs and dealing with the economic crisis. Sanner showed that the Labor Department marks 533,000 job cuts in November. An article by Peter Nicholas and Janet Cook from The Los Angeles Times stated that the unemployment rate is now at 6.7 percent, the “highest” level in “15 years.” The article discussed how Obama and his team have been meeting with a variety of interest groups to develop his program, including representatives of Governor Arnold Schwarzenegger to discuss ways to improve California’s infrastructure. According to an article by Peter Baker and John M. Broder from The New York Times, Obama plans “the largest public works program since the interstate highway system.” The article stated that Obama is considering introducing “new-era jobs in technology” that are creative and efficient. Moreover, Obama hopes to improve “public utilities,” such as transportation and technology in schools, as well as create a “cleaner environment.” The cost of the programs could amount from $400 to $700 billion according to experts, and with the nation already with a “federal budget deficit” that could amount to “$1 trillion,” some economists and Republicans are wary of Obama’s plans. However, Obama stated that the money for the programs will be handled efficiently and responsibly with a ‘“use it or lose it strategy.”’

Started in '07, End in '09?

According to the National Bureau of Economic Research, the US economy has been in a recession since December 2007. Many economic experts have claimed that the recession will run at least deep into 2009. It is the worst recession since the 1980-1981 one.

President Bush, who formulated a $700 billion rescue package, has said that he will continue to use government intervention if it will help end the recession. An apologetic Bush expressed remorse for the economic downturn since it happened on "his watch", but wanted to stress that many of the failings were due decisions made on Wall Street almost a decade before he assumed the presidency. President Bush has been working keenly with President-Elect Obama on many issues, especially the economy, in hopes that Obama's transition will be a smooth one and that Obama will be ready to tackle the current crisis.

In more local news, Governor Schwarzenegger has declared a fiscal emergency in California, and has worked with state Democrats to develop a plan of tax hikes and spending cuts, but face stiff Republican opposition to the proposed rise in taxes. Seeing how the Democrats don't control the necessary two-thirds in the State Senate or Assembly, it will be tough to compromise on a plan to rescue the state from its current $11.2 billion deficit.