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Obama Faces Tough Economic Challenge

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However, many lawmakers began questioning specifics of the plan, and dashed expectations for a quick vote. Some of the strongest objections can be found with Obama's Democratic party.

"How much lift is that going to give?" asked Senate Budget Chairman Kent Conrad. "I don't think there's much bang for the buck there."

The Democratic lawmaker urged greater emphasis on initiatives that will to shore up the housing market, among other things. "We don't have unlimited money," he said. "We've got to target."

Joseph Stigliz, the Nobel laureate economist from Columbia University, supported the stimulus plan but worried about the result of the further tax cuts.

"We are in uncharted territory in this crisis," he said. "Household tax cuts, except for possibly the poorest, should have no place in the stimulus. Nor should business tax breaks, except when closely linked with additional investment."

Obama also knows the difficulty, but he has noted that he was confident that "a new president can have an enormous impact."

"The need for us to act is now. It's never been more urgent," Obama said in a recent speech, warning that "recovery won't happen overnight, and it's likely that, even with these measures, things will get worse before they get better."

(Xinhua News Agency January 21, 2009)

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