President Obama made the speech he had to make to shore up his credibility on the economy.
In his weekly radio address, Obama dismissed the idea of a second stimulus and said the stimulus package was designed to work over two years, not four months. This is the truth. It is also exactly the message Obama needs to send if he is to maintain the trust of Americans on this critical issue.
The message, of course, was also a direct rebuke to VP Joe Biden’s comment last week that the administration had “misread” the economy.
By MATT APUZZO, Associated Press, WASHINGTON – President Barack Obama on Saturday dismissed the idea the nation might need a second stimulus to jolt the economy out of recession and urged Americans to be patient with his economic recovery plan.
Faced with rising unemployment numbers and criticism from Republicans who have already labelled the $787 billion stimulus a failure, Obama used his weekly radio and Internet address to remind voters that reversing job losses takes time.
He criticised Republicans for opposing the stimulus but offering few alternatives to the worst recession since the Great Depression. And he rejected talk of a second stimulus, an idea that has been discussed by Democrats and even famed investor Warren Buffett.
“We must let it work the way it’s supposed to, with the understanding that in any recession, unemployment tends to recover more slowly than other measures of economic activity,” Obama, who is visiting Ghana on Saturday, said in his recorded message.
The stimulus included $288 billion in tax cuts, dramatic increases in Medicaid spending, about $48 billion in highway and bridge construction and billions more to boost energy efficiency, shore up state budgets and improve schools.
The plan “was not designed to work in four months,” Obama said. “It was designed to work over two years.”
Since Obama signed the stimulus into law, the economy has lost more than 2 million jobs and the unemployment rate has climbed higher than the White House predicted it would have ever reached without the stimulus.
Some companies say stimulus money helped avoid layoffs. Independent government auditors found that stimulus aid to states helped keep teachers off unemployment lines. But overall job numbers continue to suffer.
Republicans have seized on this opportunity to criticise the president, but they have struggled to find their collective voice. At a news conference Friday, Republican lawmakers criticised the White House for spending so much, while simultaneously saying the administration wasn’t spending it fast enough.
With the Obama administration now pushing for a costly overhaul of the nation’s health care system, Republicans are casting Democrats as liberals on a shopping spree. In the GOP’s weekly address Saturday, Virginia Rep. Eric Cantor, the House Republican whip, accused the Democratic-controlled Congress of reckless spending and careless borrowing.
Though the Republican stimulus proposal this January had its own deficit-pushing price tag of $478 billion, Cantor and Republicans are trying to make their case against Obama as one of fiscal restraint.
“For the stimulus alone, Washington borrowed nearly $10,000 from every American household,” Cantor said. “Let me ask you: Do you feel $10,000 richer today?”
In his speech, Obama twice referred to “cleaning up the wreckage” of a recession that began on President George W. Bush’s watch. But with Obama’s poll numbers slipping on economic issues, Republicans want to lay the economy at the president’s feet.
“This is now President Obama’s economy,” Cantor said.
Business Insider Emails & Alerts
Site highlights each day to your inbox.