SAN FRANCISCO – President-elect Barack Obama’s top economic adviser said Sunday that the incoming administration’s proposed $825 billion stimulus package will pass within a month and will have some immediate, appreciable effects.

“I expect the (stimulus) program will pass within a month,” Lawrence Summers, incoming director of the National Economic Council, said on CBS’ “Face the Nation.”

“Some of the adjustments will take place almost immediately. People will see income in their paychecks, state and local governments will get support to prevent layoffs … and there are a ton of shovel-ready projects that are out there that aren’t going to have to be cancelled when this program passes,” Summers said.

But even with quick passage, the economy won’t recover overnight, he said.

“These problems weren’t made in a week or a month or a year and they’re not going to be fixed in a week or a month or a year. There’s almost no question the economy is going to decline for some time to come,” Summers said.

“The next months are almost certainly going to be difficult. But you know psychology is a lot of this. People sense a new leader with a clear plan, a commitment … that’s going to add to confidence,” he said.

Also Sunday, Obama’s senior adviser David Axelrod responded to some Republican lawmakers’ criticism that the stimulus plan carries too steep a price tag for the creation of 3 million to 4 million jobs.

“We’re not just spending money to create jobs. We’re investing money to strengthen this economy,” Axelrod said.

He said that in addition to new jobs, the package offers investments in alternative energy and computerizing the nation’s health records, among other plans.

“These things will pay long-term dividends to this country,” he said.


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