Obama uses first radio address to tout economic plan

The United States must act "boldly and swiftly" to implement an economic aid plan before the situation becomes "dramatically worse" for average Americans, President Barack Obama said in his first radio and internet address from the White House.

Obama took to the airwaves on Saturday to promote his economic aid plan and focused on wooing Americans with the promise of better schools, lower electricity bills and health coverage.

"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," Obama said in the five-minute address. "We could lose a generation of potential, as more young Americans are forced to forego college dreams or the chance to train for the jobs of the future.

"In short, if we do not act boldly and swiftly, a bad situation could become dramatically worse," the president said.

The address is the latest appeal from the new president for a massive spending bill that is designed to inject about $1 trillion US into the U.S. economy and fulfill many of Obama's campaign promises.

U.S. legislators are already considering a $825 billion US plan but the Obama administration also appears to have its sights on a second economic package. Aides told the Associated Press that a second economic package has not yet been ruled out.

Obama's economic team released a report on Saturday that outlines the benefits of the plan in an effort to shore up support.

The plan proposes spending more than $600 billion within 18 months.

Two-hour meeting

Obama's aides said citizens deserve to understand what they can expect from the package if Congress approves the proposed legislation.

Following his address, the president also met with his economic advisers for a two-hour session on Saturday to discuss the upcoming federal budget.

The United States lost 2.6 million jobs last year, the most in any single year since the Second World War.

Manufacturing is at a 28-year low and some economists have predicted unemployment could top 10 per cent before the recession ends.

At the same time, one in 10 homeowners is at risk of foreclosure and the U.S. dollar continues its slide in value.

Won't be instant results

Many of the goals that Obama highlighted in the address and the report were prominent during the president's two-year campaign, including shifting to electronic medical records and investing in preventive health care. The plan also heavily emphasizes public works projects and health care coverage for the 8.5 million people who lose their insurance when they either lose or shift jobs.

"It's a plan that will save or create three to four million jobs over the next few years" and recognizes "there are millions of Americans trying to find work even as, all around the country, there's so much work to be done," he said.

But Obama cautioned again against expecting instant results: "No one policy or program will solve the challenges we face right now, nor will this crisis recede in a short period of time."

In another development, House Republican leader John Boehner of Ohio said in the weekly GOP address that his party will continue to push for immediate tax cuts.

Republicans have also proposed a tax credit for home purchases, an end of taxation of unemployment benefits and tax incentives for small businesses to invest in new equipment and hire new employees.

"We cannot borrow and spend our way back to prosperity," Boehner said.