In response to growing criticism of his economic recovery plan, President-elect Barack Obama detailed Saturday an internal analysis by his economic advisers that estimates the $775 billion plan of tax cuts and new spending would create 3.5 million jobs over the next two years.
However, the president-elect's advisers conceded in the 14-page report Obama posted on the Internet that their estimates are "subject to significant margins of error," because of the assumptions that went into their economic models and that no knows the final outlines of the package that will emerge from Congress.
However, the president-elect's advisers conceded in the 14-page report Obama posted on the Internet that their estimates are "subject to significant margins of error," because of the assumptions that went into their economic models and that no knows the final outlines of the package that will emerge from Congress.
"These numbers are a stark reminder that we simply cannot continue on our current path," Obama said Saturday in his weekly radio and YouTube broadcast 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.
Obama, who previously has provided few details of the massive spending and tax cut plan, released the report one day after the unemployment rate jumped to 7.2 percent, the highest in 16 years. The nation lost 524,000 jobs in December, bringing the total job loss for last year to 2.6 million, the largest since World War II.
If Congress fails to enact a big economic stimulus plan, Obama's advisers estimated that another 3 million to 4 million jobs will disappear before the recession ends.
As lawmaker criticisms of parts of his plan grew during the week, Obama agreed Friday to modest changes in his proposed tax cuts. Democratic congressional officials said his aides came under pressure in closed-door talks to jettison or significantly alter a proposed tax credit for creating jobs, and to include relief for upper middle-class families hit by the alternative minimum tax.
Read more for about Obama's recovery plan here: http://change.gov/
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