Around the Nation: Ripple Effect and Saturday Senate

WASHINGTON (AP) - The Senate goes back into session this hour (noon Eastern time), as it moves closer to passing President Barack Obama's economic recovery plan.

By: Associated Press | WNCT
Published: February 08, 2009

The labor department says more than 11.5 million people are out of work in this country.

Everyone is under pressure to cut back on expenses, and that has a ripple effect on the economy.

The first ripple hit Erica Allen two weeks ago. She was laid off from her job with an interior design firm in Virginia because people are cutting back on home improvements.

"Interior design work is kinda slow. So I'm looking for other options," said Allen.

She is young, in debt, trying to be positive, but she's worried about her mortgage, paying her bills, her money.

"Not going out to eat. Not going out to bars. Not going to just any kind of entertainment. Didn't go see the new underworld movie," laughs Allen.

Her cutbacks are rippling out to local restaurants.

But to be safe restaurant owners are saving money by eating at home. "Well we don't eat out a lot. We just watch a lot of tv," said one owner.

Another ripple: if you're not working, like Erica, you cutback on dry cleaning.

Remember, Erica's decision to cutback on movies? Here's the ripple: she's not alone.

Companies that make movies and gadgets like the Sony Corporation has seen its value drop more than 50 percent in the last six months.

And you've got to wonder how this is hitting the supermarket with changes like this:

"Well not buying shrimp, salmon, really healthy yummy foods like that. More just Tony’s Pizza, off brands," said Allen.

Erica needs to go to the vet, she's holding off on that too. So many people were affected when 26-year-old Erica Allen lost her job, but that's the ripple effect.

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WASHINGTON (AP) - The Senate goes back into session this hour (noon Eastern time), as it moves closer to passing President Barack Obama's economic recovery plan.

Last night Democratic leaders reached a deal with a handful of Republican and Democratic moderates to trim more than $100 billion from the plan, which now totals about $827 billion. Moderates pushed for cuts in programs that might not generate sufficient jobs quickly.

Meanwhile, Obama used his weekly radio and Internet address to stress the need to pass the bill, saying it will jump-start the struggling economy and put people back to work.

In the GOP response, Republican National Committee Chairman Michael Steele says lots of money in the stimulus package is going to the wrong place.