Going Big On Stimulus

While many are tearing their hair out about the generally centrist cabinet picks, on the policy side there have been encouraging signs across the board. Between Waxman's ascent to the House Energy and Commerce Committee, Tom Daschle's HHS and health care czar selection, Max Baucus' release of a comprehensive health care reform document, the strong letter to federal employees calling for major changes to their outfits, and Obama's appearance at a global warming summit calling for sharp reductions in greenhouse gas emissions, there's been a lot of pretty good news. Now in his weekly YouTube address, Obama is going big, calling for a stimulus to create 2.5 million new jobs in two years.

There are no quick or easy fixes to this crisis, which has been many years in the making, and it’s likely to get worse before it gets better. But January 20th is our chance to begin anew — with a new direction, new ideas, and new reforms that will create jobs and fuel long-term economic growth.

I have already directed my economic team to come up with an Economic Recovery Plan that will mean 2.5 million more jobs by January of 2011 — a plan big enough to meet the challenges we face that I intend to sign soon after taking office. We’ll be working out the details in the weeks ahead, but it will be a two-year, nationwide effort to jumpstart job creation in America and lay the foundation for a strong and growing economy. We’ll put people back to work rebuilding our crumbling roads and bridges, modernizing schools that are failing our children, and building wind farms and solar panels; fuel-efficient cars and the alternative energy technologies that can free us from our dependence on foreign oil and keep our economy competitive in the years ahead.

The cost would be likely to be around $300 billion a year for two years, which approaches what is needed to combat the problem. That money getting cycled through the economy would be a great help.

As long as Obama continues to get the policy right, we'll be okay.