Obama's economic plans

Obama seeks to assure nervous governors on economy

PHILADELPHIA – President-elect Barack Obama pledged quick work Tuesday on an economic recovery plan to include tax cuts and increased federal spending, and told the nation's governors he wants their advice in designing a package to help their hardhit states.

"We intend to put tax cuts into the pockets of hard-pressed middle class families, and we intend to make a down payments on the investments we need to build a strong economy for years to come," Obama said as he sat down with governors, nearly all of whom are struggling with budget deficits at home as a result of the recession.

Vice President-elect Joe Biden told the same group he hopes they will not criticize the incoming administration for raising the deficit as it tries to help them. "I know none of you would do that," he said jokingly. Many states have constitutions that prohibit deficit spending.

"Forty-one states are likely to face budget shortfalls this year or next, forcing you to choose between reining in spending and raising taxes," Obama said. "Programs for the needy are at risk. Libraries, parks and historic sites are being closed."

The recession and the accompanying increase in joblessness translate into higher health care costs for the poor, greater use of food stamps and added strain on welfare programs, and the governors are seeking help in coping.

They have asked for at least $40 billion to help pay for health care for the poor and disabled and perhaps $136 billion more in infrastructure projects like road and bridge repairs in the legislation, which Democrats hope to have ready for Obama's signature as soon as he takes office on Jan. 20.

Obama has said he will make an economic stimulus his top priority, and his aides and congressional leaders have been discussing the outlines of a measure that could exceed $500 billion over two years. The president-elect has said his goal is to secure 2.5 million jobs.

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Jan 20th cannot come too soon! We desperately need a president with a plan and not someone who simply adds to the problems and has no solutions. It's almost hard to imagine a government who is trying to fix problems rather than create them!