Obama Series

 

Excerpts

 

It is absolutely true that we can't depend on government alone to create jobs or economic growth. At this particular moment, with the private sector so weakened by this recession, the federal government is the only entity left with the resources to jolt our economy back into life. It is only government that can break the vicious cycle where lost jobs lead to people spending less money which leads to even more layoffs. And breaking that cycle is exactly what the plan that's moving through Congress is designed to do.

And that's why we have come together around a plan that combines hundreds of billions in tax cuts for the middle class with direct investment in areas like health care, energy, education, and infrastructure -- investments that will save jobs, create new jobs and new businesses, and help our economy grow again, now and in the future.

 

We saw this happen in Japan in the 1990s, where they did not act boldly and swiftly enough, and as a consequence they suffered what was called the "lost decade" where essentially for the entire '90s they did not see any significant economic growth.

 

We have to pass an economic recovery and reinvestment plan.

 

Now, the recovery and reinvestment package is not the only thing we have to do -- it's one leg of the stool. We are still going to have to make sure that we are attracting private capital, get the credit markets flowing again, because that's the lifeblood of the economy.

But my bottom line is, are we creating 4 million jobs, and are we laying the foundation for long-term economic growth.

 

Our immediate job is to stop the downward spiral, and that means putting money into consumers' pockets, it means loosening up credit, it means putting forward investments that not only employ people immediately but also lay the groundwork for long-term economic growth.

 

…because economic growth is plummeting….

 

What we are going to also have to do is to make sure that as soon as the economy stabilizes, investment begins again; we're no longer contracting but we're growing; that our mid-term and long-term budget is dealt with.

 

If people are working, then they've got enough confidence to make purchases, to make investments. Businesses start seeing that consumers are out there with a little more confidence, and they start making investments, which means they start hiring workers.

 

The biggest measure of success is whether we stop contracting and shedding jobs, and we start growing again.

 

One of my bottom lines is whether or not credit is flowing to the people who need it. Is it flowing to banks -- excuse me, is it flowing to businesses, large and small? Is it flowing to consumers? Are they able to operate in ways that translate into jobs and economic growth on Main Street?

 

 

Q: Do you know of any country in the Middle East that has nuclear weapons?
OBAMA: With respect to nuclear weapons, you know, I don't want to speculate.