Obama backs economic upturn steps

President-elect barrack Obama will seek on Thursday to rally support for a massive fiscal stimulus package by warning that the United States could remain mired in recession for years without bold action.

Mr. Obama, who will take office on January 20, promised to set a new course for the economy and to move quickly to toughen the financial regulatory system.

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”, Mr. Obama said in excerpts from a speech to be delivered later on Thursday. “If nothing is done, this recession could linger for years. The unemployment rate could linger for years. The unemployment rate could reach double digits”. The democratic President-elect will deliver his remarks at George Mason University in Fairfax, Virginia, at 11 a.m. as he prepares to take over from republican president George w. bush, Mr. Obama is about to inherit an economy that has been in recession for more that a year.
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Mr. Obama and his advertisers have been working with the US Congress to craft a two-year stimulus plan that could total more than $775 billion. The package will include tax cuts and money for the building of new roads, bridges and school. It would also pay for renewable energy projects, aid to cash-strapped state governments and enhanced unemployment benefits. Mr. Obama hopes to secure passage of the economic plan by mid-February. “For every day we wait or point fingers or drag our feet, more Americans will lose their jobs,” he said in the speech experts. “More families will lose their savings.” On Wednesday, a report on the US budget outlook painted a bleak picture this might add to Mr. Obama’s challenges in pushing his plan through congress.

The budget deficit for the current 2009 fiscal year ending September 30 is expected to nearly triple to around $1.2 trillion, according to the Congressional Budget Office. A deficit in that range would be about 8.3 per cent of GDP shattering the previous record of six per cent in 1983.

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