Obama's economic moves are likely too little, too late

With less than two months remaining before the critical vote, Americans are in a sour mood over an unemployment rate stubbornly holding near 10 percent and an economy that has made little progress in pulling the nation out of its worst downturn since the 1930s Great Depression.

Polls are virtually unanimous in showing Democrats primed to surrender their big majority in the House as voters prepare to cast ballots against incumbents and in favor of new blood from among Republicans and candidates aligned with the ultraconservative tea party phenomenon. Republican chances for taking a majority in the Senate are slim but not impossible.

In a speech in Cleveland, Ohio, on Wednesday, Obama will ask Congress to pass new tax breaks that would allow businesses to write off 100 percent of new capital investments through 2011. Additionally, Obama is seeking a US$50 billion infrastructure investment plan to boost employment and a permanent expansion of tax credits to companies for investment in research and development.

On Friday morning, Obama will discuss his economic program in only his second televised news conference of the year.

Several million people and 1.5 million businesses would benefit from the tax breaks, according to the White House. Estimates put the cost to taxpayers over 10 years at US$30 billion, with most of the money lost in tax revenue being recouped as the economy strengthens.

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