Obama Sets Expansive Goal for Jobs

Such a plan would be bold by historic standards. President Bill Clinton, facing a weak economy when he took office in 1993, proposed a $16 billion stimulus package, which was blocked in the Senate. Obama's proposal would be an order of magnitude larger, even when adjusted for the larger size of today's economy.

Some economists have compared Obama's proposals to the spending spree President Franklin D. Roosevelt launched during his early months in office in 1933. Roosevelt offered jobs programs, such as the Civilian Conservation Corps, and cash for public-works projects, such as the Tennessee Valley Authority, in hopes of easing the pain of the Great Depression.

While the stimulus plan Obama discussed on the campaign trail included tax cuts, he did not mention any changes in tax policy in his address yesterday. But House Democrats say they expect to push much of Obama's tax-cutting agenda along with a stimulus measure in January. That could mean enacting legislation that would extend Bush tax cuts for families who earn less than $250,000 past the 2010 expiration date.

Democrats are debating whether to roll back the tax cuts for wealthier families or let them expire on Dec. 31, 2010, as current law requires. Allowing them to expire would give the government additional revenue without forcing Democrats to vote to raise taxes. It also would avoid enacting a tax hike during a recession, which economists say would be unwise.

Without details, it is impossible to say if Obama's goal of creating 2.5 million jobs is realistic. It is also likely to be difficult to assess its effectiveness. Because unemployment is expected to soar in the coming months, the country is expected to shed jobs regardless of any government action. Obama is pledging to add 2.5 million jobs to that lower employment level.

There also is no assurance that Congress will approve such a large package. Republicans, particularly in the Senate, have resisted additional spending on the economy. While Democrats will have stronger majorities in both chambers in January, Obama acknowledged that "passing this plan won't be easy." He called on both Republicans and Democrats to offer "ideas and suggestions."

Staff writer Neil Irwin contributed to this report.