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Obama Says Stimulus Is Creating Jobs, Helping Economy

WASHINGTON -(Dow Jones)- U.S. President Barack Obama said the nation's economy seems to be moving in the right direction, helped by a $787 billion stimulus package he signed into law early this year.

The Commerce Department announced this week that the U.S. economy grew 3.5% in the third quarter, after a year of contraction. In his weekly radio address, the president called the results "a good sign," and evidence that steps taken by his administration are "blunting the worst of this recession and helping to bring about its conclusion."

A new report on the economic stimulus act, also issued this week, shows it created and saved more than one million jobs, the president added. However, he cautioned that despite signs of a turnaround, the U.S. has a long way to go before it returns to prosperity and likely will see further job losses ahead.

"As I've said many times, it took years to dig our way into the crisis we've faced. It will take more than a few months to dig our way out. But make no mistake: that's exactly what we will do," the president said.

House Republican Leader John Boehner, R-Ohio, who delivered the Republican response, focused his remarks on efforts to overhaul U.S. health care. Boehner assailed legislation unveiled this week by House Democrats, saying it would empower bureaucrats to make medical decisions that could mean the difference between life and death.

Boehner also predicted that the Democrats' proposal would raise the cost of health insurance premiums, cut Medicare benefits for senior citizens, reduce jobs due to tax hikes and be too costly for taxpayers.

"We now have a choice: we can come together to implement smart, fiscally responsible reforms to improve Americans' health care or we can recklessly pursue this government takeover that creates far more problems than it solves," Boehner said.

-By Judith Burns, Dow Jones Newswires; 202-862-6692; judith.burns@dowjones.com

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