Barack Obama: we must spend our way out of recession
Barack Obama declared yesterday that only unprecedented and urgent government spending could prevent the deepening recession stretching for years into the future.
Eleven days before taking office, the US President-elect said that he was entering his presidency “in the midst of a crisis unlike any we have seen in our lifetime”.
The “day of reckoning” had arrived, he said, and the risks of “doing too little or nothing at all” were even greater than those of allowing a federal deficit – already projected to reach the record figure of $1.2 trillion – to spiral on into the years to come.
Mr Obama used his first major policy speech since his election to call on Congress to act quickly on his request to pump hundreds of billions of dollars into the American economy. He said that figures to be released today would reveal that the United States lost more jobs last year than at any time since the Second World War.
[mod edit: links removed keep it on the economy]