Time for Obama's Package

President-elect Barack Obama warned that the U.S. is “trapped in a vicious cycle” and faces the loss of “millions of jobs” unless immediate steps are taken to stimulate the economy and to rescue the nation’s automakers.

“If we do not act swiftly and act boldly, most experts now believe we could lose millions of jobs next year,” Obama said at a press conference today in Chicago. “We do not have a minute to waste.”

Democratic lawmakers including Senator Charles Schumer of New York said this weekend they plan to design a package as large as $700 billion and deliver it to Obama on his first day in office.

Obama said any economic-recovery plan should also address clean energy and education. “Not only do I want this stimulus package to deal with the immediate crisis, I want it also to lay the groundwork for long-term, sustained economic growth.”

He conceded that any plan is “going to be costly” and lead to a substantial budget deficit.

Obama also pledged to aid American automakers in avoiding a cash shortage and possible bankruptcies, saying, “We can’t allow the auto industry simply to vanish.”

Still, he said, the Big Three automakers must present a plan on how they will overhaul their operations to become more competitive with foreign automakers, and take into account environmental and energy concerns.