Obama signs "most sweeping economic recovery package"

Promising that more federal help would be necessary - but that long term fiscal responsibility was critical - President Barack Obama signed a $787 billion economic rescue plan into law moments ago.

"We have begun today the essential work of keeping the American dream alive in our time,"Obama said in a superlative-filled speech in Denver that laid out some of the broad policy goals he hopes to accomplish.

The bill, which is designed to spur consumer spending and create millions of jobs, is "the most sweeping economic recovery package in our history," he said, noting that it also marked the "largest investment in education in our nation's history," as well as "the biggest investment in research funding," with tax benefits that are "the most progressive in our history."

All of which, said the president, was necessary in these dire economic times. "Today marks the beginning of the end..." he said. "The beginning of the first steps to set our economy on a firmer foundation."

To Republican lawmakers, who largely balked at scope of the package, Obama noted that the plan was a balance of tax cuts and investments. Regardless, it drew no GOP votes in the House and only three in the Senate.

Another concern: Many private economists are forecasting that the budget deficit for the current year will hit $1.6 trillion, including the stimulus spending. That's about three times last year's shortfall, and such year-to-year deficits contribute toward a mounting national debt.

"We need to begin restoring financial discipline and taming our deficit in the long term," Obama said.

Obama promised that bill would come with transparency to taxpayers. To that end, the White House went live today with a Web site, www.recovery.gov, that will allow people to track where the money is being spent.

The bill provides a $400 tax break for most individual workers and $800 for couples, including those who do not earn enough to pay income taxes. It dishes out tens of billions of dollars to states so they can head off deep cuts and layoffs. It provides financial incentives for people to start buying again, from first homes to new cars.

And it provides help to poor people and laid-off workers, with increased unemployment benefits and food stamps, and subsides for health insurance. It also pumps money into infrastructure projects, health care, renewable energy development and conservation, with twin goals of short-term job production and longer-term economic viability.

Obama chose the Denver Museum of Nature & Science for his speech, underscoring the investments the new law will make in “green” energy-related jobs. Introducing him was Blake Jones, CEO of Newmaste Solar Electric, who said the bill would allow his company to increase its workforce by 10 percent this year and 40 percent by 2010.

Tomorrow, in Arizona, Obama will unveil the next part of his rescue effort – a plan to help millions of homeowners avoid foreclosure.