**President Barack Obama has hailed the success of his continuing $787bn (£500bn) US economic stimulus package.**But, speaking on the first anniversary of the passing of the American Recovery and Reinvestment Act, he admitted some Americans were still “struggling”.
The president said the mixture of tax cuts and increased government spending had prevented an economic depression. and saved or created two million jobs.
But Republicans say the plan has not done enough to reduce US unemployment.
Tax cuts
“One year later, it is largely thanks to the recovery act that a second depression is no longer a possibility,” said President Obama.
“This was not the plan Americans asked for or the results they were promised”
Senate Republican Leader Mitch McConnell
“We acted because failure to do so would have led to catastrophe.”
So far under the stimulus package, $179bn (£113bn) has been spent on increased government projects - ranging from road building schemes to job training initiatives and more funds for healthcare.
In addition, $93bn (£59bn) in tax cuts for both individuals and companies have been issued.
While the US economy is now continuing to improve - expanding at its fastest rate for six years between October and December of last year - unemployment remains stubbornly high.
The unemployment rate in January was 9.7%, down from 10% in December.
‘Struggling’
“Millions of Americans are still without jobs, millions more are struggling to make ends meet,” said the president.
“It doesn’t yet feel like much of a recovery. I understand that.”
Senate Republican Leader Mitch McConnell said the stimulus package was “not the plan Americans asked for, or the results they were promised”.
“Americans have lost millions of jobs, the unemployment rate continues to hover near 10%, the deficit continues to soar, and we’re inundated with stories of waste, fraud and abuse,” he said.