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news without borders
Obama raises goal to 3m jobs
WASHINGTON: President-elect Barack
Obama has boosted plans to kickstart the
ailing US economy with an ambitious goal
to create three million jobs and unveiled
on Sunday a task force to protect working
families.
Several Obama advisors told US media
that after a four-hour meeting last week
with his economic advisors, Obama added
another 500,000 jobs to his plan announced
a month ago to create 2.5 million jobs over
the next two years.
Faced with fears the United States will
now shed some 3.5 million jobs in 2009,
driving unemployment rates up from 6.7%
to above 9%, Obama decided on a more
aggressive strategy, the Washington Post
reported.
He plans to hit the ground running when
he takes office on Jan 20, with his economic
Australia govt plans big budget cuts: Report
CANBERRA: Australia’s centre-left government
is planning millions of dollars in budget cuts to
combat the deteriorating financial outlook and
meet economic stimulus promises, the Australian
newspaper said yesterday.
Prime Minister Kevin Rudd had appointed a so-
called budget “razor gang” of ministers and senior
officials to prepare an austerity drive, Finance
Minister Lindsay Tanner said.
team already drawing up a huge stimulus
package to bring before Congress.
According to US media, Obama’s team
is looking to craft a package worth between
US$675 and US$775 billion (RM2.4 trillion
and RM2.8 trillion) over two years, but
it could swell to US$850 billion (RM3.06
trillion) as it moves through the legislative
process. Some news reports have predicted it
may even top a trillion dollars.
The US economy has been the foremost
concern of Americans for months, as it
continues to nosedive despite a US$700
billion Wall Street rescue plan agreed in
October. Vice president-elect Joseph Biden
on Sunday would not be drawn on precise
figures of a second stimulus package.
“What we’re doing is putting together
what we think will be the economic package
that will do two things. One, stem the
“The choices we’re facing are tougher than we
expected,” Tanner reportedly said.
“Because of the changed circumstances and
the increased pressure on finding savings, we
decided it was simpler to absorb that process into
the ordinary budget process.”
Treasurer Wayne Swan last month warned the
global financial crisis had poked a “US$40 billion
(RM144 billion) hole” in expected tax receipts over
haemorrhaging of the loss of jobs, and begin
to create new jobs,” Biden told ABC’s This
Week.
“At the same time, we provide continuing
liquidity for the financial markets.”
But he admitted that since the Democratic
team’s victory in the Nov 4 election, the
economy has turned out to be in much
worse shape than previously thought.
“There’s going to be real significant
investment, whether it’s US$600 billion or
more or US$700 billion. The clear notion is,
it’s a number no one thought about a year
ago,” Biden said.
He also revealed that he had agreed to
chair a special White House task force that
would come into effect on Jan 20 to help
boost middle-class and working families
who have seen a steady erosion of living
standards. – AFP
the next four years.
The Treasury Department is still forecasting a
budget surplus in 2008-09 after the government
announced a A$10.4 billion (RM26 billion)) stimulus
package and A$27 billion (RM68 billion) worth of
new spending on infrastructure. Cuts were not
expected in sensitive areas like welfare, taxation
and family support to avoid counter-acting against
the impact of stimulus measures. – Reuters
theSun | TUESDAY DECEMBER 23 2008
Winter storms hit
western, eastern
United States
SEATTLE: Winter storms walloped much of
the northern stretches of the United States on
Sunday, leaving holiday travellers stranded and
causing power outages as blizzards and freezing
rain struck parts of the East and West.
The second winter storm in three days blew
across the US Northeast on Sunday, the official
start of winter. It delayed flights and snarled
traffic on the final weekend day before the
Christmas holiday.
In the West, the Seattle area and other
parts of Washington state were hit on Saturday
night, with the heaviest blast in a week of snow
storms.
As 5 to 9 inches of snow fell, scattered power
cuts were reported and whiteout conditions
from heavy snows and high winds forced the
closure of Snoqualmie Pass, a key route over the
mountains east of Seattle on highway I-90.
Conditions there were “just a complete whit-
eout blizzard” on the pass, Washington State
Patrol trooper Dan McDonald told the Seattle
Post-Intelligencer newspaper via cell phone
from his patrol car. “I’ve never seen anything
like this. The side winds are probably easy 70
mph. They’re taking us off the road.”
But low visibility and winds spelt delays at
the three major New York region airports of one
to two hours on arriving and departing flights,
authorities said.
Plummeting temperatures on Sunday night
were expected to create more delays, forecast-
ers said. Police reported numerous fender-bend-
ers on area roads, causing traffic jams in areas
near major shopping outlets. – Reuters