President Barack Obama

President-elect Barack Obama delivered a major speech on January 9 about the economy that presented a tone of gloom, making the case as to why Congress must pass a major economic stimulus package. Obama challenged Congress to work “day and night, on weekends if necessary,” to approve a massive stimulus package, to be funded with borrowed money that taxpayers will have to eventually pay back.

The words that came from Barack Obama spelled out that without a bold and very expensive economic stimulus package, the American economy face dire consequences. Obama warned of a recession that could last for many years, unless the U.S. government stepped in with its checkbook to jumpstart the economy.

While President-elect Obama is wasting no time in pushing Congress for quick action on the economy, there are indications, especially from Republicans but also from some Democrats, of skepticism on some of the Obama proposals. However, there is a consensus that the U.S. economy is in severe crisis, requiring decisive action by Congress.