Obama Sets Expansive Goal for Jobs

President-elect Barack Obama is developing a plan to create or preserve 2.5 million jobs over the next two years by spending billions of dollars to rebuild roads and bridges, modernize public schools, and construct wind farms and other alternative sources of energy.

The plan, which Obama announced yesterday during the weekly Democratic radio address, is more expansive — and undoubtedly more expensive — than anything proposed so far to revive the nation’s deteriorating economy. Obama said the darkening economic outlook demands that Washington act “swiftly and boldly” to diminish the risk that the nation “could lose millions of jobs next year.”

“The news this week has only reinforced the fact that we are facing an economic crisis of historic proportions,” Obama said, citing chaotic financial markets, rising jobless claims and the specter of a “deflationary spiral that could increase our massive debt even further.” He provided few details and no price tag, but said his economic team is working on “a plan big enough to meet the challenges we face that I intend to sign soon after taking office.”

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While cast as a response to a rapidly worsening crisis, the plan could enable Obama to shift massive sums to domestic priorities that Democrats say have long been neglected, such as health care and education. It also could provide seed money to reshape major U.S. industries, hastening the production of wind and solar energy and fuel-efficient cars, for example. Obama said the plan would be “a down payment on the type of reform my administration will bring to Washington.”

Obama has scheduled his second formal news conference since the election for tomorrow to introduce his economic team, including Federal Bank of New York President Timothy F. Geithner, Obama’s nominee for Treasury secretary. According to Democratic sources, Harvard economist Lawrence Summers, a Clinton administration Treasury chief, will be named director of the National Economic Council. In this capacity, Summers will coordinate the Obama administration’s overall economic policy.

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