“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,” Obama said in a speech
at George Mason University in Fairfax, Va., outside Washington. It was
his highest-profile case yet on an issue certain to define his early
presidency.

“A bad situation could become dramatically worse,” he added, painting a dire
picture — including double-digit unemployment and $1 trillion in lost
economic activity — that recalled the days of the Great Depression in
the 1930s.

The current economic crisis is due to “an era of profound irresponsibility,” Obama said, adding that it is “time to set a new course for this economy, and that change must begin now.”

Obama also laid out goals of doubling the production of alternative energy over three years, updating most federal buildings to improve energy efficiency, making medical records electronic, expanding broadband networks and updating schools and universities.

It was the fourth day in a row that Obama has made a pitch for a huge infusion of taxpayer dollars to revive the sinking economy.

His events have increasingly taken on the trappings and air of the presidency, with the speech — coming a full 12 days before he takes over at the White House — a particularly showy move. Presidents-elect typically stick to naming administration appointments and otherwise staying in the background during the transition period between Election Day and Inauguration Day, but Obama has clearly made the calculation that a nation anxious about its economic outlook and eager to bid farewell to the current president, George W. Bush, needs to hear from him differently and more frequently.

Indeed, the economic news is grim.

Consumers and companies are folding under the negative forces of a collapsed housing market, a global credit crunch and the worst financial crisis since the 1930s. The recession, which started in December 2007, already is the longest in a quarter-century.

Major U.S. retailers reporter December sales that were so dismal, even Wal-Mart fell short of already low expectations.

New claims for unemployment benefits dropped unexpectedly last week, but the number of people continuing to seek aid rose sharply. The Labor Department says initial applications for unemployment insurance dropped by 24,000 to a seasonally adjusted 467,000 for the week ending Jan. 3. Wall Street economists expected initial claims to increase to 540,000. The figure partly reflects seasonal volatility that occurs around the New Year’s holiday.

Still, the number of people continuing to claim jobless benefits jumped unexpectedly by 101,000 to 4.61 million. That was above analysts’ expectations of 4.5 million and the highest level since November 1982.