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As outlook dims, Obama expands recovery plans

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  • The new Congress convenes on January 6. The House and Senate, with larger Democratic majorities, will work to pass a bill for Obama to sign shortly after his inauguration, on January 20.

    The Obama blueprint covers five main areas of spending and tax breaks: health, education, infrastructure, energy, and support for the poor and the unemployed.

    Summers said the president-elect set short and long-term themes in choosing the plan's components: "Creating jobs for people who need them, and doing things that need to be done to lay the foundation for an economy that works for middle-class families."

    At the meeting on Tuesday, Romer also laid out recommendations from private sector analysts and liberal to conservative economists for a government stimulus that ranged from $800 billion to $1.3 trillion over two years. Those consulted included Martin Feldstein, a conservative economist and longtime Republican presidential adviser, who is at the low end, and Lawrence B Lindsey, a Federal Reserve governor and Bush administration economist, who has recommended up to $1 trillion.

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    U.S Recovery PlansBy: Dr.K.K.Ammannaya | 22-Dec-2008 Reply | Forward As rightly stated by Nobel Laureate Paul Krugmaneconomic recovery requires relearning the lessons fron the past crisis,particularly thelesson that everything can not be left completely to the whims of the market.There must be some balance between market and government.U.S must leran this and ensure that recovery efforts do not get reduced to privatisation of profits and socialisation of losses on a regular basis.U.S must follow the economic policies of India.Dr.Manamohan Singh has built up a prudent economic policy bas in India
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