Excerpts From Obama's Economy Speech

By: Tucker Reals
Topics: Economy

Below are verbatim excerpts of President-elect Barack Obama's speech on the economy, to be delivered later this morning. They were provided by Mr. Obama's Presidential Transition team.

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. If nothing is done, this recession could linger for years. The unemployment rate could reach double digits. Our economy could fall $1 trillion short of its full capacity, which translates into more than $12,000 in lost income for a family of four. We could lose a generation of potential and promise, as more young Americans are forced to forgo dreams of college or the chance to train for the jobs of the future. And our nation could lose the competitive edge that has served as a foundation for our strength and standing in the world.

In short, a bad situation could become dramatically worse.

There is no doubt that the cost of this plan will be considerable. It will certainly add to the budget deficit in the short-term. But equally certain are the consequences of doing too little or nothing at all, for that will lead to an even greater deficit of jobs, incomes, and confidence in our economy. It is true that we cannot depend on government alone to create jobs or long-term growth, but at this particular moment, only government can provide the short-term boost necessary to lift us from a recession this deep and severe. Only government can break the vicious cycles that are crippling our economy – where a lack of spending leads to lost jobs which leads to even less spending; where an inability to lend and borrow stops growth and leads to even less credit.

That is why we need to act boldly and act now to reverse these cycles. That's why we need to put money in the pockets of the American people, create new jobs, and invest in our future. That's why we need to re-start the flow of credit and restore the rules of the road that will ensure a crisis like this never happens again.

That work begins with this plan – a plan I am confident will save or create at least three million jobs over the next few years. It is not just another public works program. It's a plan that recognizes both the paradox and the promise of this moment – the fact that there are millions of Americans trying to find work, even as, all around the country, there is so much work to be done. That's why we'll invest in priorities like energy and education; health care and a new infrastructure that are necessary to keep us strong and competitive in the 21st century. That's why the overwhelming majority of the jobs created will be in the private sector, while our plan will save the public sector jobs of teachers, cops, firefighters and others who provide vital services.

I understand that some might be skeptical of this plan. Our government has already spent a good deal of money, but we haven't yet seen that translate into more jobs or higher incomes or renewed confidence in our economy. That's why the American Recovery and Reinvestment Plan won't just throw money at our problems – we'll invest in what works. The true test of the policies we'll pursue won't be whether they're Democratic or Republican ideas, but whether they create jobs, grow our economy, and put the American Dream within reach of the American people.

Instead of politicians doling out money behind a veil of secrecy, decisions about where we invest will be made transparently, and informed by independent experts wherever possible. Every American will be able to hold Washington accountable for these decisions by going online to see how and where their tax dollars are being spent. And as I announced yesterday, we will launch an unprecedented effort to eliminate unwise and unnecessary spending that has never been more unaffordable for our nation and our children's future than it is right now.

Now, this recovery plan alone will not solve all the problems that led us into this crisis. We must also work with the same sense of urgency to stabilize and repair the financial system we all depend on. That means using our full arsenal of tools to get credit flowing again to families and business, while restoring confidence in our markets. It means launching a sweeping effort to address the foreclosure crisis so that we can keep responsible families in their homes. It means preventing the catastrophic failure of financial institutions whose collapse could endanger the entire economy, but only with maximum protections for taxpayers and a clear understanding that government support for any company is an extraordinary action that must come with significant restrictions on the firms that receive support. And it means reforming a weak and outdated regulatory system so that we can better withstand financial shocks and better protect consumers, investors, and businesses from the reckless greed and risk-taking that must never endanger our prosperity again.

No longer can we allow Wall Street wrongdoers to slip through regulatory cracks. No longer can we allow special interests to put their thumbs on the economic scales. No longer can we allow the unscrupulous lending and borrowing that leads only to destructive cycles of bubble and bust.

It is time to set a new course for this economy, and that change must begin now. We should have an open and honest discussion about this recovery plan in the days ahead, but I urge Congress to move as quickly as possible on behalf of the American people. For every day we wait or point fingers or drag our feet, more Americans will lose their jobs. More families will lose their savings. More dreams will be deferred and denied. And our nation will sink deeper into a crisis that, at some point, we may not be able to reverse.

Tucker Reals
Tucker Reals is a senior news editor and overnight site editor for CBSNews.com, based at CBS News' London bureau.

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by rdupuy11 January 8, 2009 2:28 PM EST: A simplified tax structure would be good, but the one you''ve outlined doesn''t make sense, for various reasons, but I won''t get into it at the moment.

Instead let me say, the government also needs to reduce expenses. One thing it can do to reduce expenses is stop making everything in the world illegal, and then paying billions in law enforcement, billions in improsining people, etc.

Don''t outlaw smoking, just charge $5 in tax per pack of cigarettes.

The same with currently illegal drugs like marijuana, except make the tax even greater.

Don''t outlaw gas consumption, but charge $2 per gallon in taxes.

These things collect revenue, don''t put people in jail (as much, tax evasion will still be a crime).

It''s about persuasion versus force.

persuasion works, force only works in the most abusive of environments.; Reply to this comment


by irmcvet971 January 8, 2009 2:13 PM EST: Bush Sept. 08
"The fundamentals of our economy are sound"

He must have meant for the upper3%

However, what we do need is a different tax structure!!

I think we need to go to a flat income tax of 12%
A capital gains tax of 15%
An import duty of 8% on all imported goods
And a National sales tax of 5% on all products

Simplify the stupid Tax system
Get rid of all the loopholes

A 15% capital gains would spur business --
Increasing domestic spending and Manufacturing.

Since we are no longer a major export nation,
An Import duty would bring in Trillions
To a Gov''''t that''''s cash starved --

And in the end changing the tax structure would
even the playing field.

We need something new that''''s for sure
Steve Forbes has it right.

Posted by windmaster12 at 09:49 AM : Jan 08, 2009

Since YOU are not in charge, how about we follow the Young, VERY Intelligent Man we elected??; Reply to this comment


by windmaster12 January 8, 2009 12:49 PM EST: Bush Sept. 08
"The fundamentals of our economy are sound"

He must have meant for the upper3%

However, what we do need is a different tax structure!!

I think we need to go to a flat income tax of 12%
A capital gains tax of 15%
An import duty of 8% on all imported goods
And a National sales tax of 5% on all products

Simplify the stupid Tax system
Get rid of all the loopholes

A 15% capital gains would spur business --
Increasing domestic spending and Manufacturing.

Since we are no longer a major export nation,
An Import duty would bring in Trillions
To a Gov''t that''s cash starved --

And in the end changing the tax structure would
even the playing field.

We need something new that''s for sure
Steve Forbes has it right.; Reply to this comment