Obama promise of 3.5m new jobs
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Barack Obama
Facing growing criticism of his $775bn economic stimulus plan, President-elect Barack Obama yesterday released an analysis by his advisers that estimates his tax cuts and new spending would create 3.5 million jobs over the next two years.
Congressional Republicans, who have insisted on a politically-popular tax cut for the middle class, expressed scepticism. Republican lawmakers noted even Mr Obama's own economists acknowledged the estimates could be wrong.
The 14-page analysis says estimates are "subject to significant margins of error." That is because of the assumptions that went into their economic models and because it is not known what Congress might eventually approve.
"These numbers are a stark reminder that we simply cannot continue on our current path," Mr Obama said in his weekly address.
"If nothing is done, economists from across the spectrum tell us that this recession could linger for years and the unemployment rate could reach double digits -- and they warn that our nation could lose the competitive edge that has served as a foundation for our strength and standing in the world," he said.
Mr Obama has provided few details of the plan so far. The report came out one day after news that the unemployment rate in the US had jumped to 7.2 per cent, the highest in 16 years.
