Obama addresses the economy: "A bad situation could become dramatically worse."

Obama is delivering a major address on the economy today. It is, of course, about the economy and the need for immediate action. The transition team e-mailed excerpts of the speech:

I don’t believe it’s too late to change course, but it will be if we don’t take dramatic action as soon as possible. If nothing is done, this recession could linger for years. The unemployment rate could reach double digits. Our economy could fall $1 trillion short of its full capacity, which translates into more than $12,000 in lost income for a family of four. We could lose a generation of potential and promise, as more young Americans are forced to forgo dreams of college or the chance to train for the jobs of the future. And our nation could lose the competitive edge that has served as a foundation for our strength and standing in the world.

In short, a bad situation could become dramatically worse....

...There is no doubt that the cost of this plan will be considerable. It will certainly add to the budget deficit in the short-term. But equally certain are the consequences of doing too little or nothing at all, for that will lead to an even greater deficit of jobs, incomes, and confidence in our economy.

Yesterday, the Congressional Budget Office announced that we're facing a $1.2 trillion budget deficit. That number is causing all kinds of consternation, as it should. The GOP is using it to raise questions the size of the stimulus, via The Hill:

Republicans, whom Obama has courted by promising $300 billion in tax cuts as part of the package, continued to sound skeptical about the size of the stimulus.

“This morning’s announcement by the Congressional Budget Office that the deficit now stands at nearly $1.2 trillion is a stunning and sobering reminder that Congress must strengthen its efforts to be good stewards of the taxpayers’ money,” Senate Minority Leader Mitch McConnell (R-Ky.) said in a statement. “Though we agree that Congress must carefully pursue ways to strengthen our economy, this report should cause us to make certain that any dollar spent to stimulate the economy will in fact achieve that outcome and produce jobs and opportunity.”

You have to love how all the Republicans are now so worried about the huge decifit, which their president and their policies caused. But, Congressman David Obey, who doesn't mince words, (D-WI) put it bluntly:

“The deficit will be larger if we sit on our butts and do nothing than if we act,” Rep. David Obey (D-Wis.), the chairman of the House Appropriations Committee, said after a hearing by the all-Democratic Steering and Policy Committee on the stimulus.

Obama and Obey are on the same page that a bad situation could get even worse -- even worse than what Bush and the GOP have already inflicted on us.