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Obama on the Economy: 'The Situation Is Getting Worse'

January 05, 2009 5:40 PM

ABC NEWS' JAKE TAPPER, STEPHANIE SMITH AND JENNIFER DUCK REPORT:

After meeting with his economic team, President-elect Barack Obama warned, "…we are in a very difficult spot.  The economy is bad.  The situation is getting worse."

Flanked by economic advisers Obama said, "It's clear that we have to act and we have to act now to address this crisis and break the momentum of the recession or the next few years could be dramatically worse."

When questioned about the transparency of an economic package that is expected to cost around $800 billion and be passed in just a few short weeks, Obama stood strong predicting "unprecedented transparency."

"We are confident that we can accomplish unprecedented transparency, even as we move this package forward," adding his new economic team hopes to put detailed information about economic projects online.

After scheduled meetings with both sides of the aisle on Capitol Hill, Obama made it clear both democrats and republicans have to work to solve the economic crisis.  "This is not a Republican problem or a Democratic problem at this stage.  This is an American problem, and we're all going to have to chip in and do the hard work that's required and what the American people expect of us."

"The reason I'm here today is that we are going to present our latest ideas to Congress," Obama said between meetings at the Capitol. "We expect them to begin this week on this process.  And, you know, I expect to sign a bill to create 3 million jobs for the American people shortly after I get inaugurated."

House Speaker Nancy Pelosi wouldn't commit to an exact date for the bill saying, "I won't make an announcement of how soon but we all know the tasks at hand."

Republicans were optimistic about the tax cuts but concerned about size of the package.

"I think we're glad that the president elect believes that tax cuts are in fact simulative and will in fact get our economy moving," House Republican Leader John Boehner said after the meeting.  "I'm a little concerned myself about the overall size of the package. It's not going to paid for by the current generation. It's going to be left to our children and grandchildren."

Senate Majority Leader Harry Reid hasn't seen the package but said the president-elect "has indicated that there's at least 20 economists that he's talked with, and all but one of those believe it should be from $800 billion to $1.2 trillion or $1.3 trillion."

In response to Reid's comments, Obama officials told ABC News they don't anticipate a number in the trillions but say $800 billion wouldn’t be too far off.

When a reporter questioned the President-elect's politics behind his tax cut plan, he played defense.  "The notion that me wanting to include relief for working families in this plan is somehow a political ploy, when this is -- was the centerpiece of my economic plan, for the last two years, doesn't make too much sense," he responded.

The President-elect urged Congress to put politics aside.  "I know that, regardless of our positions and our parties, everybody has the interests of their constituents at heart.  Everybody is motivated by doing what's best for their country," he said.  "And we may have some disagreements, but I think it's going to be possible for us to work out those disagreements in the atmosphere of civility and comity.  And that's going to be my goal."

"I'm confident we can do this, and we have to do this," Reid said calling the meeting with the incoming president "terrific."

--Jake Tapper, Stephanie Smith and Jennifer Duck

January 5, 2009 | Permalink | Share | User Comments (60)

User Comments

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yes sir, money for people who don't even pay taxes. money which is more worthless everyday. the millionaire democrat, Kennedy, Kerry, Obama, Biden Pelosi ( how much of this package will she give her husband this time ) really think $500 will save anybody who put themselves in such financial failure. No one force them to load up the credit cards, buy the cars on short terms, or buy a house when they didn't have a down payment. throwing more money at them won't help. but i bet the illegal workers in the country will find a way of getting a check

Posted by: s63m | Jan 5, 2009 10:38:12 PM

I still haven't heard a word about how Obama's stimulus plan is going to help the low income people, especially the disabled and the elderly on social security who sometimes have to choose between paying their most basic bills and buying food because they don't have enough income to do both. I would like to know how he's going to help them!

Posted by: countrygirl | Jan 5, 2009 10:29:34 PM

"They offer absolutely nothing in the way of solutions. They cannot even get past their own denial of whether a problem even exists. Yes Virginia the U.S has been loosing jobs lots of them, and a man named George Bush has played a large role"


What the hell is TARP? You know, the package that Obama quit the Senate so he didnt have to vote on? The problem he pretended didnt exist when McCain wanted people to work together on it.

Any you still cant admit that more people are employed under Bush than at any point in US history.

Posted by: BertieW | Jan 5, 2009 10:28:19 PM


The economy is not going to recover untill it crashes into a depression. Start thinking about to survive when violence, martial law ,and food riots break out. You cant imagine the devistation that is about to break out in America...

Posted by: sure thing | Jan 5, 2009 10:25:28 PM

" I really don't know where or how that ridiculous statement started and why it's still so widely used. "

CW is pretty much correct. The Federal government cutting taxes means they are reducing your federal tax burden.

property taxes- local government
social security taxes- Federal gov but supposedly a seperate annuity
medicate taxes- medicare supposedly pays for over 65 health cost.
food taxes- local
gas taxes- state

You cant really count SSN and Medicare since you are supposedly are "paying into" them (shhh).

Since the other things you listed arent federal taxes, there is no way a federal tax cut effects them.

Over 50% of income earners today pay no Federal income tax. How can you cut taxes on them? You cant. The Obama proposal is to rebate them money they never paid in the first place. I guess I could see the point of a Earned Income credit since it promotes activity that saves the government money, but things have gotten out of control. What are we supposed to be promoting with this new stimulus? Buying flat screens from Korea and iPhones from China.

Posted by: BertieW | Jan 5, 2009 10:25:06 PM

Not one needy person will get any certification, career degree, journeyman trade training; it will be all worthless "Life Skills" masqueraded as "job training", forced 12-step religious conversion for people's addictions/alcoholism; what you don't have those issues? DENIAL, since you are disagreeing with the program you are now diagnosed mentally ill and will be required to attend never-ending group therapy session and pumped full of mandatory mind frying meds. You did not really think this stimulus program was going to get you working again, did you? They have it all planned out for you.

Posted by: rejco100 | Jan 5, 2009 10:09:47 PM

This 700 billion economic stimulus cum Tax cut needs to be done in 2 stages. Stage 1 tax cut as promised during the campaign and then the stimulus in stage 2. That way people supporting tax cut but not stimulus can help pass the tax cut without the pork and earmarks.

Posted by: gjkotw01 | Jan 5, 2009 10:04:34 PM

This is for CW who believes only people who don't pay taxes will benefit.

First and foremost, everyone pays taxes. Whether they punch a time clock or not. Everytime you go to the grocery store, buy gas, purchase a pack of gum you're paying taxes. I really don't know where or how that ridiculous statement started and why it's still so widely used.

And yes, I'm a taxpayer. I pay property taxes, federal taxes, social security taxes, medicate taxes, food taxes, gas taxes and a host of other taxes.

And it will take more than a month in office for Obama and his team to undue the damage this present adminstration had created for the past eight years.

Posted by: EveryonePays | Jan 5, 2009 9:49:53 PM

These people are really starting to scare me. They offer absolutely nothing in the way of solutions. They cannot even get past their own denial of whether a problem even exists.

Yes Virginia the U.S has been loosing jobs lots of them, and a man named George Bush has played a large role.

But there are people that are not able to accept this fact because it doesn’t fit their political affiliation. They only want to remember Mr. Bush as being someone who was a great liberator, and not someone who practically turned his back on the every day working people. Unfortunately these very same people accuse, insult and slander anyone who even tries to do anything to help with the apparent lack of ‘jobs’ problem.

It is almost a disease? People with a partisan viewpoint that runs contrary of what is best for the working people in our country. Maybe it is because they have not suffered as others have?

What has caused this? What can cure it?
I do know the last thing we need is another entertainer type to join the "aint we mean club". There's most definitely enough of those already. It is very sad. Mr. Bush said he would unite our country, but instead he has left us very divided.

Posted by: David Williams | Jan 5, 2009 9:36:43 PM

This stimulus plan would give people who don't pay taxes in the first place a check. Those of us who actually pay taxes will get the bill.!!!

Posted by: CW | Jan 5, 2009 9:27:49 PM

Why does everyone in America bitch and complain about everything. We are in tough times, don't complain at everyone, find solutions and support.
Hey man America is a great country, with great people. We did fail in the eyes of the world, But we are coming back,,,support our people.
Amen

Posted by: WallyJ | Jan 5, 2009 9:27:48 PM

$500/$1000 is buy off welfare voters not middle class voters because we will have to pay for this cash back BS to us, those that don't pay taxes, along with interest for fraud, waste, abuse and the typical burecratic administrative blackhole. Stop the spending......especially on nonsense that only puts us further in debt. Obama is hoping that taxpayers will push for more spending by the Billions is he sends us $500 now..........are people really this stupid?

Posted by: chattyway | Jan 5, 2009 9:08:06 PM

One president at a time..!!! Wait !!!
that only applies when Obama doesn't want to answer a question..!!!

Posted by: CW | Jan 5, 2009 9:02:40 PM

Joe is quoted saying in this pic...
"I want my shot of vodka now"

Posted by: Lumberman_63 | Jan 5, 2009 9:00:39 PM

It is the Clinton and Pelosi show..!!!
Obama is their puppet. I don't know what role Biden plays.Maybe that is why Biden has not resigned his Senate seat. He might need the job.!!lol

Posted by: CW | Jan 5, 2009 8:59:39 PM

Welcome to the USRA

-United Socialist Republic of America

Posted by: Giovanni | Jan 5, 2009 8:56:56 PM

IT'S SO EASY TO THINK COULD HE COULD DO BETTER;BUT IF YOU WERE IN HIS SHOES WHAT WOULD YOU DO.

Posted by: BOLLING | Jan 5, 2009 8:55:44 PM

What the hell is going on that Harry Reid doesnt know the size of this thing within 50%?

I think transparency should start with members of your own leadership.

And they are supposed to vote on this thing in a week?

Posted by: BertieW | Jan 5, 2009 8:53:12 PM

EIS have already been filed for many of these local projects - they're on hold for lack of funding, which is part of what Obama's plan is meant to rectify.

Posted by: Floretta | Jan 5, 2009 8:51:12 PM

So the House will be acting totally un-Democratic by not giving those who supported Republicans and Independents a voice in government. And the Dems always yell about disenfranchising voters and now they will do it to 46% of the voters. And back in 94 the Republicans introduced changes that limited terms of chairman of committees and allowed for more minority party voice for a more bi-partisan Congress. Pelosi is undoing all of that.COngress will not be representing the people.

Posted by: jschmidt | Jan 5, 2009 8:42:46 PM

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