New Congress Opens Pledging to Rescue Economy

Among them was a proposal to cut taxes by 10 percent. Another was to lend money to hard-pressed state governments rather than give it to them. "States will be far less likely to spend it frivolously" in that case, he said.

Senate Minority leader Mitch McConnell, left, listens to House Minority leader John Boehner, right,...

Senate Minority leader Mitch McConnell, left, listens to House Minority leader John Boehner, right, during a news conference following their bi-partisan meeting with President-elect Barack Obama on Capitol Hill in Washington, Monday, Jan. 5, 2009. (AP Photo/Pablo Martinez Monsivais)

(AP)

By the new political calculus, McConnell will soon be the most powerful Republican in government after elections that handed Democrats the White House and left them with gains of least seven seats in the Senate and 21 in the House.

McConnell's counterpart in the House, Republican leader John Boehner of Ohio, handed the speaker's gavel to Pelosi in a traditional unity tableau. He, too, pledged cooperation, then said, "America's potential is unlimited. But government's potential is not. We must not confuse the two."

Obama spent much of Monday in the Capitol, conferring with Republicans and Democrats alike on the economic stimulus measure he hopes to sign early in his term. The nation's consumer spending has plummeted, manufacturing has withered and job losses have grown in recent months, adding urgency to the legislative effort in contrast to the customary sluggish start to a new Congress.

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Strikingly, the war in Iraq drew scant mention during the day, a contrast to the weeks of debates that Democrats once had forced to try and maneuver Bush into withdrawing American forces.

Reid mentioned the fighting in passing when he noted the country was fighting two wars overseas, a reference to Iraq and Afghanistan.

Pelosi was even more indirect, saying, "We cannot afford to wait to modernize and rebuild our military."

Like Reid, she focused her remarks on domestic issues, the economy chief among them.

"We need action and we need action now," she said again and again, calling for help for "hardworking and still hopeful Americans" bearing the brunt of the economic crisis, for the states struggling to provide services, for families without health care, for a climate crisis and for energy needs.

Speechmaking and celebrations aside, House Democrats pushed through a series of rule changes, including one that calls for greater disclosure of earmarks.