It cannot let the auto industry disappear

"We need a recovery on Wall Street and Main Street", has professed yesterday Barack Obama while he presented four new members of his economic team. In the heart of its future programme, the creation of 2.5 million new jobs in two years, aid to avoid the bankruptcy of the automotive industry and the seizure of houses. "It cannot let the auto industry disappear." But it cannot be him sign a blank cheque. "Manufacturers must show us as they will restructure in a clean energy economy", he said. His team will have to work with Congress and the Bush administration to prepare a program that can be voted at the beginning of the year. "The Congress stands ready to work with the new President on his bold plan to restore confidence in our economy", its President, Nancy Pelosi responded. Barack Obama did not want to indicate the desired amounts but assured that the consensus for a new plan was already in the two parties. According to the "Washington Post", it could rise to $ 700 billion. "It will be expensive." "But even if it did nothing, the deficit next year would be substantial," observed the elected President. He indicated that the federal budget would be reviewed and that cuts would be made to have "a sustainable and responsible budget."

For Barack Obama, the recovery plan must have two components. A short term, to meet emergencies of the crisis, and a long term, to prepare the ground for its strategy, which targets priority clean energy, health and education. Asked about his tax policy, it has not been more specific, stating only that his program provided that 95 of Americans have a tax cut and rich (over 250,000 dollars of income per year) should pay more. Nevertheless, he suggested that they could see their taxes increase to the expiration of the tax cuts of the Bush administration, in 2010, while stressing that nothing has been decided.

Middle class

Barack Obama confirmed, moreover, the Secretary of the Treasury. It is Timothy Geithner ("Les Echos" from November 24), current President of the Federal Reserve of New York. Lawrence Summers, former Treasury Secretary under Bill Clinton, appointed economic advisor to the White House, is seen as the champion of the middle class. Tax reductions, protection of the consumer, loans, everything must be good to combat inequalities. "A strong middle class will strengthen Wall Street", repeated Barack Obama. He entrusted the economic doctrine to Cristina Romer, who became Director of the Council of Economic Advisors. She is currently Professor at Berkeley and a member of the National Bureau of Economics (the one who officially declares recessions). Finally, Melodie Barnes, new Director of the Domestic Policy Council, will be music economic programs that take it to heart.

Before his press conference yesterday, Barack Obama spoke with Fed Chairman Ben Bernanke and George Bush. He said yesterday that he was prepared to continue the bailouts of financial institutions, like what was done Sunday night for Citigroup. "We have this kind of decision in the past, we have taken a night last and, if necessary, we will do again to preserve the future of our financial system", he said.