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Obama heads west to sign huge stimulus bill

AFP, Washington
President Barack Obama headed west Tuesday to sign his huge stimulus bill with a flourish meant to be a rare bright moment for the ailing US economy, and to confront a punishing wave of foreclosures.
The president will sign the 787-billion-dollar stimulus bill, which passed Congress last week, in Denver, Colorado, where he raised the hopes of millions by accepting the Democratic nomination last year.
He will first tour a solar panel installation project in a bid to show' how billions of dollars for alternative energy included in the stimulus package could launch a new generation economy.
The new bill aims to create or preserve 3.5 million jobs, many of them so-called "green jobs," as the country confronts its highest unem-
ployment rate in 16 years standing in January at 7.6 percent.
Roughly one-third of the stimulus funds will be spent on tax cuts, totaling 286 billion dollars, in an effort to boost consumer spending, a key engine of the world's largest economy.
But a further 120 billion dollars is being allocated to "shovel-ready" infrastructure projects, for such things as transportation, roadbuilding, improving the power grid and renewable energy installations.
Obama's senior White House aide David Axelrod told National Public Radio late Monday that "75 percent of what we've appropriated here will spend out in the first 18 months after the bill is signed, but some of these infrastructure projects will extend beyond the two years.
"And I think that's going
to benefit our economy, because I don't think we're going to be out of the woods completely in two years, and this is a good hedge against that."
But there has been Republican anger at the size of the package, and the bill was pushed through Congress only after a bruising battle and largely without the party's support.
A "Buy American" clause contained in the deal has been particularly targeted, with a former aide to expresident George W. Bush warning it would undermine efforts to revive the ailing global economy.
"We can't get the global economy back on a path to growth if each country pursues its domestic recovery in a manner that disadvantages others or seeks to disrupt global supply chains," Dan Price told AFP by telephone from Brussels.