Anxious to jolt the economy back to life, President-elect Barack Obama is considering a federal stimulus package that could reach a whopping $1 trillion, dwarfing last spring’s tax rebates and rivaling drastic government actions to fight the Great Depression.
Obama has not settled on a grand total, but after consulting with outside economists of all political stripes, his advisers appear determined to make the stimulus bigger than the $600 billion they initially envisioned, aides said Wednesday.
By JIM KUHNHENN, Associated Press Writer
Obama is promoting a recovery plan that would feature spending on roads and other infrastructure projects, energy-efficient government buildings, new and renovated schools and environmentally friendly technologies.
There would also be some form of tax relief, according to the Obama team, which is well aware of the political difficulty of pushing such a large package through Congress, even in a time of recession.
While a stimulus of $1 trillion over two years is under discussion, a more likely figure seems to be $850 billion. There is concern that a package that looks too large could worry financial markets, and the incoming economic team also wants to signal fiscal restraint.