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Democrats revolt over Obama rescue plan
Paul Thompson9 Jan 2009
PRESIDENT-ELECT Barack Obama is facing opposition to his financial rescue package - from his own party.
Despite his warning that the US will slip into a deep depression unless his £600 billion rescue plan is approved, Democrats have voiced opposition.
In a passionate speech last night he said failure by Congress to swiftly pass his plan to pump billions into the economy would have disastrous consequences for the American people.
Warning of unemployment of more than 10 per cent, Mr Obama said that only massive government spending could revive the ailing economy.
"I don't believe it's too late to change course, but it will be if we don't take dramatic action as soon as possible," he said. "A bad situation could become dramatically worse."
Mr Obama urged Congress not to drag their heels, as they did over President Bush's bail-out for banks.
He said: "For every day we wait or point fingers or drag our feet, more Americans will lose their jobs. More families will lose their savings. More dreams will be deferred and denied.
"And our nation will sink deeper into a crisis that, at some point, we may not be able to reverse.
"That is not the country I know, and it is not a future I will accept as President of the United States. A world that depends on the strength of our economy is now watching and waiting for America to lead once more. And that is what we will do."
But his biggest speech since his election victory in November, and just 12 days before his inauguration, failed to impress senior politicians within his own party.
Democratic senators emerging from a private meeting of the Senate Finance Committee criticised his proposed tax cuts.
Some were particularly disapproving of a proposed £2,000 tax credit for companies which hire or retrain workers.
Massachusetts Senator John Kerry, a former presidential candidate, said: "I'd rather spend the money on the infrastructure, on direct investment, on energy conversion, on other kinds of things that much more directly, much more rapidly and much more certainly create a real job."
And Oregon Senator Ron Wyden doubted that the tax cuts would persuade consumers to spend.
"In tough times people don't respond all that well to marginal changes, such as a small amount of money added per pay cheque," he said.
Mr Obama's rescue plan includes £200 billion in tax cuts. The average American couple would get approximately £600 from the package.
Reader views (9)
Is it possible this twit has not idea how to solve the crisis. The spent 8 years tearing Bush down and cannot get over it. Now they are in power, the democrats are going to try the Roosevelt "new era" plan that failed 50 years ago.
- John (Brit Exp Pat), Phoenix USA, 12/01/2009 03:25
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It is unbelievable to me that the republican right-wingers will not let it drop. You lost the election, get over it. We now have a smart man in the white house for a change. What are you all so afraid of? He has been left a massive mess in this country and it will take all of our support to fix it. Instead of your negative diatribes, how about offering positive suggestions to help him fix our problems?
- L, Texas, USA, 11/01/2009 15:16
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The Democrats have always been revolting.
- Frank, ex-England, 11/01/2009 11:50
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What in the world does Obama and his party know about financial recovery. Spend and tax? They are largely responsible for the mess the US is in and what happened to the first 300 billion stimulus dollars?
- Herb B, Naples, Florida, 10/01/2009 20:21
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Bush was accused of being stupid because of what he said.
This new pop-idol president will prove his stupiduty through what he does.
His "spend"proposal is nothing more than a common Ponzi scheme and will land the next generation with huge debt.
Read Atlas Shrugged - he seems to be following the plot!!
- Dennis, Johannesburg, 10/01/2009 15:43
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Yep Keith - socialists of the world unite! Hang on - isn't that what they've been trying to do for decades? Hasn't worked yet though, has it!
- Rogan, Irving, 09/01/2009 18:53
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Now the Dems are arguing about how much they can skim off the top for themselves.
- Sierrasan, Reno, Nevada, 09/01/2009 16:31
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His own party should back his policies and his cooperation with the British PM and European leaders. After all, we will beat this economic crisis together, or not at all
- Keith Price, Luton, England, 09/01/2009 16:02
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more is needed....asap....fact
- Fox, us, 09/01/2009 13:47
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