Obama to warn it may soon be too late to save economy

President-elect Barack Obama this morning will warn that unless "dramatic action" is taken quickly, it may be too late to pull the economy out of a recession that could last for years.

His staff just released excerpts from a speech the president-elect is due to give at 11 a.m. ET. Among those excerpts:

• "I don't believe it's too late to change course, but it will be if we don't take dramatic action as soon as possible. If nothing is done, this recession could linger for years. The unemployment rate could reach double digits. Our economy could fall $1 trillion short of its full capacity, which translates into more than $12,000 in lost income for a family of four. We could lose a generation of potential and promise, as more young Americans are forced to forgo dreams of college or the chance to train for the jobs of the future. And our nation could lose the competitive edge that has served as a foundation for our strength and standing in the world.

"In short, a bad situation could become dramatically worse."

• "There is no doubt that the cost of this plan will be considerable. It will certainly add to the budget deficit in the short-term. But equally certain are the consequences of doing too little or nothing at all, for that will lead to an even greater deficit of jobs, incomes, and confidence in our economy. It is true that we cannot depend on government alone to create jobs or long-term growth, but at this particular moment, only government can provide the short-term boost necessary to lift us from a recession this deep and severe. Only government can break the vicious cycles that are crippling our economy –- where a lack of spending leads to lost jobs which leads to even less spending; where an inability to lend and borrow stops growth and leads to even less credit."

• "It is time to set a new course for this economy, and that change must begin now. We should have an open and honest discussion about this recovery plan in the days ahead, but I urge Congress to move as quickly as possible on behalf of the American people. For every day we wait or point fingers or drag our feet, more Americans will lose their jobs. More families will lose their savings. More dreams will be deferred and denied. And our nation will sink deeper into a crisis that, at some point, we may not be able to reverse."

We're planning to live-blog the president-elect's speech, which he'll give at George Mason University in Fairfax, Va. Check back here at The Oval as 11 a.m. ET approaches.

Speaking of the economy and unemployment in particular, USA TODAY's Barbara Hagenbaugh and Sue Kirchhoff write this morning that some experts believe that employment news could get "truly gruesome" in coming months.


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