Obama's challenge at home

ALL OF President-elect Barack Obama's campaign promises to improve healthcare, spur renewable energy, and better fund education will be stalled if the economy continues its downward slide. For that reason, Obama can best demonstrate his commitment to change by working behind the scenes now to persuade Congress, especially Senate Republicans, to agree to a quick and substantial economic stimulus package.

House Speaker Nancy Pelosi is planning a lame-duck session of Congress for later this month to consider such a package. It should include at least $150 billion in infrastructure projects, lengthened unemployment benefits, increased food stamps, and direct assistance to states. Representative Barney Frank, chairman of the Financial Services Committee, has also suggested it include reduced tax rates for low- and middle-income households, a proposal that is in line with Obama's campaign pledge of tax relief for the middle class.

In September, the House approved a more modest, $61 billion array of stimulus measures, only to see Republican senators block a slightly less costly Senate version of the bill. Since then, job losses have mounted, manufacturing is down, and the automobile industry has gone into a tailspin.

What has also occurred since September is the election Tuesday, in which Republicans lost seats in both chambers. That outcome decisively proved the public's deep desire for action on the economy. All of this should make Senate Republicans open to a request from Obama that they not once again play the role of spoilers.

Obama has already spoken with Treasury Secretary Henry Paulson about the Bush administration's efforts to resolve the credit crisis with the $700 billion bailout. The president-elect should get his own economic team in place as quickly as possible so the new appointees can be kept abreast of the tactics the Bush administration is using.

When the new Congress convenes, Obama and its leaders will have to decide whether to push for his comprehensive healthcare plan or first wait out the recession. The argument for sweeping reform is that the economic downturn will cause even more families to lose jobs and coverage, increasing the need for the Obama plan. Also, without reforms Obama has favored, such as computerized record-keeping, the health sector will continue to be a drag on the economy.

There would be no better way for Obama to use the mandate he won Tuesday than by wrenching the dysfunctional US healthcare system into the 21st century. Before he tackles that, though, kick-starting the economy with a stimulus package deserves the highest priority.