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Obama Stimulus May Be Growing

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The Associated Press

The Tampa Tribune

Published: December 18, 2008

WASHINGTON - After consulting with economists from across the political spectrum, President-elect Barack Obama's advisers are contemplating an economic recovery plan that could cost as much as $1 trillion over two years.

The figure is far bigger than the $600 billion that Obama's team initially envisioned.

Obama's top economic advisers solicited the opinions as they worked to assemble a spending plan that would meet Obama's goal of saving or creating 2.5 million jobs over two years.

Obama advisers say his team has not picked a figure.

Under scenarios envisioned by his economic team, a $600 billion package would satisfy Obama's jobs goal by the first quarter of 2011, but would leave an unemployment rate of 8 percent two years from now.

Obama's economic team believes that to put unemployment on a downward trajectory with a goal of 7.5 percent or less over two years would require a stimulus package of about $850 billion. That would generate about 3.2 million jobs by the first quarter of 2011.

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