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Obama: This isn't your 'run-of-the-mill recession' - CNN.com
(CNN) -- President Obama appeared before a national audience Monday night to make the case for his economic stimulus plan, saying this is not your "run-of-the-mill recession."
Barack Obama holds his first prime time news conference Monday.
"My bottom line is to make sure that we are saving or creating 4 million jobs, we are making sure that the financial system is working again, that homeowners are getting some relief," he said in his first prime time news conference.
Only the federal government can break the "vicious cycle" gripping the U.S. economy, he said.
"It is absolutely true that we cannot depend on government alone to create jobs or economic growth. That is and must be the role of the private sector," Obama said.
"But at this particular moment, with the private sector so weakened by this recession, the federal government is the only entity left with the resources to jolt our economy back to life."
Obama, his advisers and the Democratic leaders of Congress argue the roughly $838 billion measure will help pull the U.S. economy out of its current skid.
Much of the package involves infrastructure spending, long-term energy projects and aid to cash-strapped state and local government.
Obama said the plan -- a version of which passed a key Senate hurdle Monday -- was "not perfect," but would create up to 4 million new jobs. Watch Obama explain how the plan will create jobs »
"These will not be make-work jobs, but jobs doing the work that America desperately needs done," he said, including rebuilding roads and bridges and developing alternative energy sources.
Don't Miss
Transcript of Obama's prime time press conference
Stimulus will lead to 'disaster,' Republican warns
Stimulus bill clears critical hurdle
CNNMoney: Senate bill to cost $838 billion
The president said 90 percent of those jobs would be generated by the private sector, a rebuttal of some conservative critics who say the plan amounts to little more than a government jobs bill.
The president pointed to Japan to back up his claim that without action, the recession could become permanent.
"We saw this happen in Japan in the 1990s, where they did not act boldly and swiftly enough and, as a consequence, they suffered what was called the lost decade, where essentially, for the entire '90s, they did not see any significant economic growth."
"We are going through the worst economic crisis since the Great Depression," he said.
Obama also addressed a broader argument -- that the government should not be trying to fix the problem.
"You have some people, very sincere, who philosophically just think the government has no business interfering in the marketplace. And, in fact, there are several who've suggested that FDR was wrong to interfere back in the New Deal. They're fighting battles that I thought were resolved a pretty long time ago," he said.
The president said most economists "almost unanimously" recognize the government needs to play a role in jump-starting the economy.
Obama said he was "absolutely confident" the country's economic problems can be solved, "but it's going to require us to take some significant, important steps."
Obama said the first step is passing his economic recovery plan. Then, he said, it will be important to attract private capital and get the credit markets flowing again.
Obama's remarks come on the eve of a crucial vote, when the senators decide whether to pass their version of the stimulus bill.
The Senate gave Obama a big victory just hours before his news conference, voting to end debate on the bill and move to a full vote Tuesday.
The House passed its version of the stimulus bill nearly two weeks ago -- without a single Republican vote.
If the measure passes the Senate, the two chambers will have to reconcile the differences in their versions of the bill.
The president wants the final bill on his desk by Presidents Day, which is next Monday.
Republicans opposed to the bill say there is too much wasteful spending and not enough tax cuts in it.
Obama has urged lawmakers to act swiftly, warning that failure to do so "will turn crisis into a catastrophe."
Obama gave his message a road test Monday as he traveled to Elkhart, Indiana, to stump for the plan.
The downturn could become a "crisis that at some point we may be unable to reverse," Obama told a packed high school gymnasium at a campaign-style town hall. "We can't afford to wait."
Obama is planning a second campaign-style swing Tuesday, heading to Fort Myers, Florida, another city wrestling with double-digit unemployment.
Polls show the public is split over the stimulus plan. A slight majority, 54 percent, favors the bill; 45 percent are opposed, according to a CNN/Opinion Research Corp. survey released Monday.
Obama says his plan will spur job creation and long-term growth by:
Doubling the production of alternative energy in the next three years
Modernizing federal buildings and improving the energy efficiency of 2 million American homes
Making investments to have the country's medical records computerized within five years
Equipping schools with 21st-century classrooms
Expanding broadband access
Investing in science and new technologies
Leading Republicans warned Sunday that the Obama administration's stimulus effort will lead to what one called a "financial disaster."
"Everybody on the street in America understands that," said Sen. Richard Shelby, the ranking Republican on the Senate Banking Committee. "This is not the right road to go. We'll pay dearly."
The nonpartisan Congressional Budget Office reported last week that the stimulus measure, as it's presented now, is likely to create between 1.3 million and 3.9 million jobs by the end of 2010, lowering a projected unemployment rate of 8.7 percent by up to 2.1 percentage points.
But the CBO warned the long-term effect of that much government spending over the next decade could "crowd out" private investment, lowering long-term economic growth forecasts by 0.1 percent to 0.3 percent by 2019.
While the economy was the focus of the news conference, Obama also answered questions on foreign policy.
Obama said the United States is looking for opportunities for "face to face" dialogue with Iran after nearly three decades without diplomatic ties, but still has "deep concerns" about Tehran's actions.
"There's been a lot of mistrust built up over the years, so it's not going to happen overnight," Obama said.
He said his administration is reviewing existing U.S. policy toward Iran, which supports groups Washington has branded terrorist organizations and has defied U.N. demands to halt its uranium enrichment program.
Despite those concerns, he said his administration wants to use "all the resources at the United States' disposal" to resolve those concerns. "In the coming months, we will be looking for openings that can be created where we can start sitting across the table face
Did anyone watch his speech? If so, what did u think of it?
I find it interesting that our economy depends on our spending making it weak.
(CNN) -- President Obama appeared before a national audience Monday night to make the case for his economic stimulus plan, saying this is not your "run-of-the-mill recession."
Barack Obama holds his first prime time news conference Monday.
"My bottom line is to make sure that we are saving or creating 4 million jobs, we are making sure that the financial system is working again, that homeowners are getting some relief," he said in his first prime time news conference.
Only the federal government can break the "vicious cycle" gripping the U.S. economy, he said.
"It is absolutely true that we cannot depend on government alone to create jobs or economic growth. That is and must be the role of the private sector," Obama said.
"But at this particular moment, with the private sector so weakened by this recession, the federal government is the only entity left with the resources to jolt our economy back to life."
Obama, his advisers and the Democratic leaders of Congress argue the roughly $838 billion measure will help pull the U.S. economy out of its current skid.
Much of the package involves infrastructure spending, long-term energy projects and aid to cash-strapped state and local government.
Obama said the plan -- a version of which passed a key Senate hurdle Monday -- was "not perfect," but would create up to 4 million new jobs. Watch Obama explain how the plan will create jobs »
"These will not be make-work jobs, but jobs doing the work that America desperately needs done," he said, including rebuilding roads and bridges and developing alternative energy sources.
Don't Miss
Transcript of Obama's prime time press conference
Stimulus will lead to 'disaster,' Republican warns
Stimulus bill clears critical hurdle
CNNMoney: Senate bill to cost $838 billion
The president said 90 percent of those jobs would be generated by the private sector, a rebuttal of some conservative critics who say the plan amounts to little more than a government jobs bill.
The president pointed to Japan to back up his claim that without action, the recession could become permanent.
"We saw this happen in Japan in the 1990s, where they did not act boldly and swiftly enough and, as a consequence, they suffered what was called the lost decade, where essentially, for the entire '90s, they did not see any significant economic growth."
"We are going through the worst economic crisis since the Great Depression," he said.
Obama also addressed a broader argument -- that the government should not be trying to fix the problem.
"You have some people, very sincere, who philosophically just think the government has no business interfering in the marketplace. And, in fact, there are several who've suggested that FDR was wrong to interfere back in the New Deal. They're fighting battles that I thought were resolved a pretty long time ago," he said.
The president said most economists "almost unanimously" recognize the government needs to play a role in jump-starting the economy.
Obama said he was "absolutely confident" the country's economic problems can be solved, "but it's going to require us to take some significant, important steps."
Obama said the first step is passing his economic recovery plan. Then, he said, it will be important to attract private capital and get the credit markets flowing again.
Obama's remarks come on the eve of a crucial vote, when the senators decide whether to pass their version of the stimulus bill.
The Senate gave Obama a big victory just hours before his news conference, voting to end debate on the bill and move to a full vote Tuesday.
The House passed its version of the stimulus bill nearly two weeks ago -- without a single Republican vote.
If the measure passes the Senate, the two chambers will have to reconcile the differences in their versions of the bill.
The president wants the final bill on his desk by Presidents Day, which is next Monday.
Republicans opposed to the bill say there is too much wasteful spending and not enough tax cuts in it.
Obama has urged lawmakers to act swiftly, warning that failure to do so "will turn crisis into a catastrophe."
Obama gave his message a road test Monday as he traveled to Elkhart, Indiana, to stump for the plan.
The downturn could become a "crisis that at some point we may be unable to reverse," Obama told a packed high school gymnasium at a campaign-style town hall. "We can't afford to wait."
Obama is planning a second campaign-style swing Tuesday, heading to Fort Myers, Florida, another city wrestling with double-digit unemployment.
Polls show the public is split over the stimulus plan. A slight majority, 54 percent, favors the bill; 45 percent are opposed, according to a CNN/Opinion Research Corp. survey released Monday.
Obama says his plan will spur job creation and long-term growth by:
Doubling the production of alternative energy in the next three years
Modernizing federal buildings and improving the energy efficiency of 2 million American homes
Making investments to have the country's medical records computerized within five years
Equipping schools with 21st-century classrooms
Expanding broadband access
Investing in science and new technologies
Leading Republicans warned Sunday that the Obama administration's stimulus effort will lead to what one called a "financial disaster."
"Everybody on the street in America understands that," said Sen. Richard Shelby, the ranking Republican on the Senate Banking Committee. "This is not the right road to go. We'll pay dearly."
The nonpartisan Congressional Budget Office reported last week that the stimulus measure, as it's presented now, is likely to create between 1.3 million and 3.9 million jobs by the end of 2010, lowering a projected unemployment rate of 8.7 percent by up to 2.1 percentage points.
But the CBO warned the long-term effect of that much government spending over the next decade could "crowd out" private investment, lowering long-term economic growth forecasts by 0.1 percent to 0.3 percent by 2019.
While the economy was the focus of the news conference, Obama also answered questions on foreign policy.
Obama said the United States is looking for opportunities for "face to face" dialogue with Iran after nearly three decades without diplomatic ties, but still has "deep concerns" about Tehran's actions.
"There's been a lot of mistrust built up over the years, so it's not going to happen overnight," Obama said.
He said his administration is reviewing existing U.S. policy toward Iran, which supports groups Washington has branded terrorist organizations and has defied U.N. demands to halt its uranium enrichment program.
Despite those concerns, he said his administration wants to use "all the resources at the United States' disposal" to resolve those concerns. "In the coming months, we will be looking for openings that can be created where we can start sitting across the table face
Did anyone watch his speech? If so, what did u think of it?
I find it interesting that our economy depends on our spending making it weak.
