Obama admits there will be more pain before recovery

US president-elect Barack Obama said that his country's economy will get worse before it gets better, pledged a recovery plan “equal to the task” and warned politicians that the days of spending on pet projects are over.

Less than six weeks before his inauguration, Mr Obama declined to say how large an economic stimulus plan he envisions.

He said his blueprint for recovery will include help for homeowners facing foreclosure on their mortgages if President George Bush has not acted by Inauguration Day, January 20.

“We’ve got to provide a blood infusion to the patient right now to make sure that the patient is stabilised. And that means that we can’t worry short term about the deficit. We’ve got to make sure that the economic stimulus plan is large enough to get the economy moving,” he said.

Mr Obama made his comments on NBC’s Meet the Press, in his most extensive interview since winning the White House more than a month ago, and later at a news conference in Chicago.

The president-elect said it is important that domestic carmakers survive the economic crisis, although he accused the industry’s executives of taking a “head in the sand approach” that has prevented their companies from becoming more competitive.

“Congress is doing the exact right thing by asking for a conditions-based assistance package that holds the industry’s feet to the fire and gives the industry some short-term assistance,” he said.

Twice in the opening moments of the NBC interview, the president-elect said the economic situation “is going to get worse before it gets better,” an unspoken plea with voters to have patience as the incoming administration tries to grapple with the issue.

He announced plans on Saturday for the largest public works spending programme since the creation of the interstate highway system a half-century ago, although he said aides are still debating among themselves how much it should cost.

“What we need to do is examine, what are the projects where we’re going to get the most bang for the buck? How are we going to make sure taxpayers are protected? You know, the days of just pork (pet project spending) coming out of Congress as a strategy, those days are over,” he said.

In addition to the policy issues, Mr Obama avoided a direct answer when asked whether he has quit cigarettes as he prepares to move into a no-smoking White House.

“I have done a terrific job, under the circumstances, of making myself much healthier. And I think that you will not see any violations of these rules in the White House,” he said.