Pledging action to retard the rate of unemployment which has hit a 25 year high, President Obama said that speeding up spending of the stimulus package has to potency to save and create 600,000 jobs in the coming 100 days.
In a meeting that was held at White House to review the path to recovery after the congress passed the extensive stimulus package early this year along with Vice President Joe Biden and other cabinet officials, president Obama said that although there is progress, there is still a lot that needs to be done in order to aid recovery.
President Obama feels concerned about the toll that lay offs have on family units and communities at large could be fortifying. He further added that spending has decreased due to lay offs which in turn affects sales for some businesses leading to further more layoffs.
The meeting was scheduled 3 days post the Labor Department’s release of report stating that unemployment figures increased to 9.4 % last month, though job cuts were less severe with 345,000 reported cuts.
Obama said that this was very encouraging and promised that the stimulus package would be spent with complete transparency such that taxpayers money is not spent wastefully.
The $787 bn Recovery and Reinvestment Act which was passed in the congress with enormous opposition from Republicans is estimated to create/save 3 – 4 million jobs by 2011. It is reported that the act created/saved close to 150,000 jobs in its 1st 100 days. Republicans pointed out that Mr. Biden has previously quoted on 13Th May that as many as 150,000 jobs were saved/created in 1st 77 days.
Since the onset of recession in December 07, U.S. economy lost close to 6 million jobs and another 2.9 million in the current year.
In an effort to loosen the Democrats’ power in the election-2010, Republicans debated that the recovery act is thoughtless bill for enormous spending which would make the country to accumulate huge debts.
Mitch McConnell, the Senate Minority Leader remarked last week that he doubted that the big stimulus package is actually going to produce any positive result, at least in the near future. He felt that the economy had the dynamics to recover all by itself even before the stimulus package starts producing any positive results.
200 waste & water systems in the rural regions, creation of 125,000 summer jobs; construction & maintenance of 98 airports at 1,500 different highway areas and a 107Â national parks is what the accelerated stimulus spending is purported to achieve.
Of the committed $135 bn stimulus package by the White House only $44 bn has been utilized.
In a statement Mr. Biden expressed his intentions to speed up growth in the construction sector, spend more on recovery and create jobs for people.
More than a third of the humongous Recovery Act was to provide tax relief, with another major part committed to relief for local/state governments so that inflation in healthcare and education programs is kept in check without further raising the taxes.
The accelerated project consists of:
Extended health care assistance given to 300,000 patients at hospitals across U.S.
Financial support for 135,000 jobs in the education sector
Betterment of 90 medical centers for veterans
Hiring/maintenance of 5,000 law enforcement jobs
Cleanup of 20 Superfund locates
359 military facilities to undergo Construction and rehabilitation of 2,300 undertakings
