Obama Extends Unemployment Benefits, Expands Homebuyer Credits

(RTTNews) - Facing the nation's highest unemployment rate in decades, President Barack Obama Friday sought to reassure Americans that his administration was doing everything it could to fix the economy.

Obama pointed specifically to a bill that he had just signed to extend unemployment benefits for an additional 14 to 20 weeks, expand and continue a tax credit for first-time homebuyers and allow businesses to write off additional losses.

The measure passed the Senate Wednesday and was adopted by the House Thursday night.

"The need for such a measure was made clear by the jobs report that we received this morning," Obama said. "Although we lost fewer jobs than we did last month, our unemployment rate climbed to over 10 percent - a sobering number that underscores the economic challenges that lie ahead."

Earlier Friday morning, the Labor Department released the October jobs report, showing that the U.S. lost 190,000 jobs for the month. It also showed that the unemployment rate rose to 10.2%, the highest level in over 26 years.

"History tells us that job growth always lags behind economic growth, which is why we have to continue to pursue measures that will create new jobs," Obama said.

He added, "I can promise you that I won't let up until the Americans who want to find work can find work and until all Americans can earn enough to raise their families and keep their businesses open."

The extension of unemployment benefits will provide direct help for more than 1 million Americans who are still searching for work, but it also has a broader benefit, Obama said.

"It won't just put money into the people's pockets who are receiving the benefits," he said. "Economists tell us that when these benefits are spent on food or clothing or rent, it actually strengthens our economy and creates new jobs."

He added, "This bill will also cut taxes for struggling businesses, with even larger cuts for small businesses, which means that thousands of entrepreneurs will get the cash they need to avoid laying off workers or closing their doors."

Obama also noted that the housing market was one of the most important areas of growth in the economy.

The bill "will extend the tax credit for all home buyers through April of next year while strengthening it with stronger anti-fraud measures," he said. "The rebound in the housing market was one of the big factors that contributed to the growth of the economy last quarter, and brought hundreds of thousands of families into the housing market."

He added, "We want to give even more families the chance to own their own home."

The bill extends the $8,000 first-time homebuyer tax credit and expands it to include a $6,500 credit for people who have lived in their current homes for at least five years.

Obama also emphasized that the bill would not add to the swelling federal deficit.

"It is fully paid for, and so it is fiscally responsible," he said. "It builds on a Recovery Act that's already saved or created over â?¦ 1 million jobs, and it will lead to even more in the weeks and months ahead."

But Obama said his administration would not rest on its achievements so far.

"My economic team is looking at ideas such as additional investments in our aging roads and bridges, incentives to encourage families and businesses to make buildings more energy-efficient, additional tax cuts for businesses to create jobs, additional steps to increase the flow of credit to small businesses, and an aggressive agenda to promote exports and help American manufacturers sell their products around the world," he said.

He added, "Although it will take time and it will take patience, I am confident that our economy will recover. I'm confident that we're moving in the right direction. And I promise that I won't rest until America prospers once again."

In his remarks, Obama also discussed the shooting that occurred at the Fort Hood Army Post in Texas on Thursday.

Obama said he had met with FBI Director Mueller and the relevant agencies to discuss their ongoing investigation into what caused Major Nidal Malik Hasan to kill 13 and wound 30 during a shooting rampage at Fort Hood.

"We don't know all the answers yet and I would caution against jumping to conclusions until we have all the facts," Obama said.

In a sign of respect for the victims and their families, Obama ordered that, from now until Veterans Day, flags at the White House and other federal buildings be flown at half-staff.

"As we continue to learn more about what happened at Fort Hood, this administration will continue to provide you updates in the coming days and weeks," Obama added.

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