In today's Weekly address, President-Elect Obama announces that his economic teams is "already working on an Economic Recovery Plan that he will begin implementing the plan as soon as he takes office on January 20th. The goal of this plan is to generate 2.5 million jobs by January 2011. The president-elect calls the plan "big enough to meet the challenges we face".
He outlines the basic approach:
1. Infrastructure: build roads and schools
2. Green Energy infrastructure (wind and solar farms).
The economic team will include Tim Geithner at Treasury, Peter Orszag at the Office of Management and Budget, Jack Lew and Jason Furman at the National Economic Council, and Austan Goolsbee at the Council of Economic Advisors. (HT: Reich)
Three things that I would note:
1. Obama's approach is focusing on exactly what is necessary: Long term innovation and immediacy of action. We will only have a thriving economy if the government supports and creates incentives for the next new economy which will be green energy.
2. Obama is making it clear that he isn't too interested in handing out a check to Americans to boost spending. I sure would like one but I have to admit I wouldn't spend it.
3. Obama is a pragmatic who will take urgent action to address the economic crisis. The markets gotta love this. I expect that this approach and the competence that Obama and his team project will help the markets next week.
See also the following bloggers for more commentary:
1. Robert Reich: How Obama is Already Taking Charge
2. to be updated..
36 minutes ago