Obama decries ‘bigger government,’ but backs new federal efforts

In his first address to Congress, President Obama on Tuesday pledged to devote "significant resources" of the federal government to economic recovery -- even more than the hundreds of billions of dollars that already have been committed to an economic stimulus package. But at the same time, he pledged to cut trillions of dollars in future spending.

"As soon as I took office, I asked this Congress to send me a recovery plan by President's Day that would put people back to work and put money in their pockets," Obama said. "Not because I believe in bigger government -- I don't. Not because I'm not mindful of the massive debt we've inherited -- I am. I called for action because the failure to do so would have cost more jobs and caused more hardships."

Obama said he rejects "the view that says our problems will simply take care of themselves; that says government has no role in laying the foundation for our common prosperity."

History, the president argued, teaches that economic upheavals require "bold action and big ideas," from the railroad tracks laid during the Civil War to the G.I. Bill passed after World War II and the Great Depression.

"In each case, government didn't supplant private enterprise; it catalyzed private enterprise," he said.

In his address, Obama noted his pledge this week to cut the federal budget deficit in half by the end of his first term in office. He said a "line by line" budget review aimed at helping to meet that goal already has "identified $2 trillion in savings over the next decade." Still, he added, hunting down "wasteful and ineffective programs" is "a process that will take some time."

Obama said that his first proposed budget, which he will outline on Thursday, will include specific recommendations for savings. For example, he said, "We'll eliminate the no-bid contracts that have wasted billions in Iraq, and reform our defense budget so that we're not paying for Cold War-era weapons systems we don't use."

At the same time, Obama said he would boost the defense budget in other areas, increasing the number of our soldiers and Marines and raising military pay. Traditionally, civilian federal employees have received annual pay increases matching those granted to military service members.