Obama: World is watching what U.S. will do

FAIRFAX, Va., Jan. 8 (UPI) -- U.S. President-elect Barack Obama Thursday warned the entire world is watching how the United States will handle the current economic crisis.

In a speech at George Mason University in Fairfax, Va., to unveil his American Recovery and Reinvestment Plan, Obama said Congress should act "without delay" to enact his stimulus package.

"The result (of the economic crisis) has been a devastating loss of trust and confidence in our economy, our financial markets, and our government," Obama said.

"Now, the very fact that this crisis is largely of our own making means that it's not beyond our ability to solve. Our problems are rooted in past mistakes, not our capacity for future greatness."

Obama warned it may take many years to rebuild trust and confidence in the system, and the longer we wait, the longer it will take. He said he realizes government alone cannot 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 cycle that is 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."

Obama said he realizes there is skepticism over the plan.

"Our government has already spent a good deal of money, but we haven't yet seen that translate into more jobs, or higher incomes, or renewed confidence in our economy," he said.

"And that's why the American Recovery and Reinvestment Plan won't just throw money at our problems. We'll invest in what works. A world that depends on the strength of our economy is now watching and waiting for America to lead once more, and that is what we will do.

"It will not come easy or happen overnight. And it is altogether likely that things may get worse before they get better. But that is all the more reason for Congress to act without delay."