Obama New Deal, phase 1

Feb. 17 update – The final stimulus bill allocates $ 790.6 bn:  the CBO estimates tax cuts will amount to $ 288.5 bn and public expenditures about $ 500 bn (wsj) for a total est. cost of $ 787 bn. Today the President signed the bill and wrote us

enzo fabio —

Today, I signed the American Recovery and Reinvestment Act into law.
This is a historic step — the first of many as we work together to climb out of this crisis — and I want to thank you for your resolve and your support. (…)
I’ve assigned a team of managers to oversee the implementation of the recovery act. We are committed to making sure no dollar is wasted. But accountability begins with you.
That’s why my administration has created Recovery.gov, a new website where citizens can track every dollar spent and every job created. We’ll invite you and your neighbors to weigh in with comments and questions.
Our progress will also be measured by the tens of thousands of personal stories submitted by people who are struggling to make ends meet. If you haven’t already, you can read stories from families all across the country:


Your stories are the heart of this recovery plan, and that’s what I’ll focus on every day as President. With your continued support, we’ll emerge a stronger and more prosperous nation.

Thank you,
President Barack Obama

On the eve of the 200-Charles Darwin Day, the US House and the Senate have finally agreed on the mega-stimulus package, which President Obama might already sign next Monday,  February the 15th, i.e. 25 days after entering the White House (1/4 of the early 100 days, when the Beauty versus the Beast – Apocalypse Now – fight will B decided upon in the short term).

Mainstream economists, with whom this time we are tempted to almost agree once (but we have other priorities, since it is not OUR problem to save Capitalisms, but their victims), converge with the great, sublime Paul Samuelson (self-defining himself a Centre-Left, moderate Keynesian), by saying that some moderation and “watering down” (in the Congress revision) of Adm. Obama’s proposals is a first best, since  -e.g. – a demand – only perspective  is balanced with less unilateral supply-side  considerations as well (on this, our friend Michele Boldrin is writing quite important and interesting, fresh things on NfA – Noise from America blog, since early this year; we will discuss them, here and on NfA at length, soon).

Let us say that this is the state-of-the-art in academic Political Economy, and it is symbiotic with what happened in these hard Congressional fights about the final compromise, during the last weeks. One day, just symbolically Sen. Mc Cain presented a  motion to cut the stimulus to half. It comes out with a great momentum, a variety of tools and targets (see the Summary below).

A HISTORIC BILL, starting the Obama New Deal long series, in the next few years.



Congress Makes a Deal


Congress Strikes $789 Billion Stimulus Deal

Historic Bill Would Spur Road Building, Give Businesses Tax Breaks, Expand Broadband Access; Final Passage Expected Soon

wsj summary table:

Focal Points of Stimulus Package

Key goals and what indicators to use to gauge success.

Business confidence
Steps: Tax breaks for businesses, appropriations.
Measurement of success: Stock market results and management surveys.

Low income/unemployment aid
Steps: Benefit checks, foodstamp increases, health insurance assistance, Medicaid.
Measurement: Benefit rates

Consumer spending
Steps: Tax breaks to workers.
Measurement: Retail spending, consumer-confidence surveys.

Job creation
Steps: Infrastructure spending, aid to states.
Measurement: Unemployment.

Economic Growth
Steps: Spending, tax breaks.
Measurement: GDP.

Please also note that:

The stimulus accord is a major win for the high-tech industry, which will receive billions of dollars in subsidies to expand broadband access to rural and other underserved areas and a huge infusion of funds to computerize health-care records.

The latter is a very important point, since it marks much more, than just Silicon Valley getting repaid for the EARLY support to “Sen. Nobody” (see on this Giuliano da Empoli 2008, already a classic and comprehensive book on Obama, in Italian; and our various, often updated  static pages on Obamology in http://arcapedia.wordpress.com/).

On the other hand, it is a strong counter-tendency, a counter-factual to the MARKET SELECTION PARADIGM – e.g., theorised in Italy by the no.1 telecom expert, prof. Enzo Pontarollo.  He argues that it is not so bad that the Schumpeterian effect (sometimes called “The Invisible Foot”) and the credit crunch crisis SELECT among very expensive digital highway plans, and allocate credit only to the more rentable ones, where effective demand will repay faster, at least a part of the infrastructure investment.

This is such a complex, multi-dimensional issue. Let us just say  this, as a complement and further qualification to the important, and  theoretically well-rooted Prof. Pontarollo’s argument.

Japan (as far as I know,  the main great and still powerful State doing this) usually doesn’t bother much about “the digital market” plans selection – perhaps also because Japan’s regional economies have been levelled-up during the last half century, and suffer much more from congestion than regional, or rural\urban imbalances. They just shape and anticipate effective market demand years, or even a decade before, laying down  futuristic cooperative-public digital highways (namely in the New Generation Networks, lately).

But if the Nippon State is  now on the defensive, such programs will be delayed for many years, and this anticipatory effect will be lost. In a strong “neo- Keynesian & neo- Schumpeterian” mixed, eclectic and PRAGMATIST (“Nudge“) approach, the Obama’s New Deal starts now doing what Japan has problems to keep up to. This is another Invisible Foot effect: not across regions but across Nations: the US just elected Obama, while the Nippon political system is in search of a “2nd Republic” trajectory since 20 years ago, with no viable, longterm solution yet.

They desperately need either a Berlusconisan, or an Obamasan.

This stimulus Bull hitech component, has little to do with FDR, and we are happy about that: since you know (or at least, regular blog readers do) that we fully agree from the left with the “right” critique to FDR  –  stemming from the careful Amity Shlaes historic reconstruction of what really happened during THAT New Deal 8o years ago (on this precise point, we take a small bit of distance, a degree of freedom  from Obama’s public image and self-representation). In any case, ce n’est qu’un debut.

Class and race: remembering ML the King with Michelle Obama

It’s Obama’s New Deal time, girls and boys!

Do not waste a quantum of your energy: preserve it all for the ongoing socialismVSsubcrime fortissima class struggle


A partire da una commovente, densa mail di Michelle Obama, per l’anniversario di Martin Luther King, discutiamo qui alcuni temi di un Socialismo Situazionista su sfondo Dampyriano
🙂 Incoraggiati anche dal fatto che il FT weekend DI OGGI ha un articolo così amichevole (benché incolto, ingenuo e disinformato) sul SITUAZIONISMO. SE LO DICE IL FT!
a) L’idea comunicativa situazionista è: perché tutto accada, è sufficiente MISCHIARE CREATIVAMENTE LE CARTE ED I MODULI già esistenti. MA SOPRATTUTTO DARE LE CARTE A TUTTI, APRIRE IL GIOCO DELLA DIFFUSIONE MASSICCIA E CREATIVA, non banalmente imitativa-mimetica à la Girard (apertura che oggi, rispetto al messaggio originale di Guy&C, un’onda lunga fa, si avvale di varie onde di scolarizzazione superiore).
b) C’E’ GIA’ TUTTO ACCESSIBILE O QUASI ACCESSIBILE. Nello iato “quasi” è la ragione per cui tutto il mondo non fa ANCORA come i Tibetani a Lhasa, ma attenzione: c’è una incazzatura colta in giro (sulle origini e gestione della crisi economica, le caste politiche del mondo, mafie e vampiri finanzieri) da far paura.
c) Non occorre scrivere il Manifesto del 2008: è già nelle edicole, ma con barriere linguistiche – basterebbe tradurre in italiano il Financial Times, e – per pareggiare la bilancia commerciale – in tutte e altre N-1 lingue i fumetti italiani di Dampyr. La settimana dopo ci sarebbero barricate in varie capitali del mondo. Dampyr è l’unico testo marxista oggi in circolazione.
b) In base alla teoria sociale mainstream (da Schumpeter a Minsky e Carlota Perez), con una scommessa WE CAN che la stessa teoria sociale ci richiede di fare (anzi saremmo in ritardo di anni: Perez 2002): il New Deal che farà Obama nel quadriennio 2009-12, sarà il pivot di una serie di nuovi assetti e regimi istituzionali di gestione sociale di depressione e repressione (della ripresa “a scendere” della lotta di classe, per disperazione – e non per forza sul mercato del lavoro, che non può esserci, non in generale).

In an intense, deeply moving mail to the Obama people on ML King assassination day (April 5), Michelle calls us to take his flags in our hands. She’s right, and she’s a predestinated too.

This mail has an aura:

In the video: Students at a high school in the Bronx, who had no real interest in their government, have found new hope.

Watch what these kids have to say about politics and race in this country:
Yes, they can
Much has changed in this country since Dr. King’s death, and thanks to his life and work we have taken critical strides towards racial equality.
The simple fact that Barack is running a competitive campaign for President is a direct result of Dr. King’s legacy — and this movement for change would be impossible without the support of people of all races, ages, and backgrounds.

Destiny asks the US Democrats to implement a New Deal now: for the depressed, the dominated, the enslaved, the exploited, the raped, the stolen, the vampirized proletariat, the subcrime victim of all the world and the US black and latino victim that cannot American Dream any more. ML King wanted every afro-american family to own her house: how many subcrime victims had his words still in mind, when there Dreams were raped?

Obama’s New Deal. Spinoza time as well: a STRICTLY DETERMINISTIC ROOT EXPLAINS the unbelievable (yesterday it was still Reagan era, ended March 14, 2008: one month ago!!!). WHY THE HELL NOW WE CAN, WE ABSOLUTELY CAN, WE REALLY CAN, SURE WE CAN, AND MATHEMATICALLY – NOT EVEN STOCHASTICALLY?

WE CAN because, when history enters Spinoza regions, social space-time curbs and quickly collapses into just one point. Now, it looks like the impossible- miracle – unpredictable: a New-New Deal by a US President, opening the 3rd M Olympics of power and social relations.

As it happens just now, like a black hole: the direction and pace of social evolution do not depend much upon me, you and even us all any more: we and those bastards, our class enemies. The rentiers extracting in “finance K circuits” (not properly K) trillions $ of surplus value, they even don’t know where it exactly comes from (here comes the difference between today’s rentiers and 2nd millennium entrepreneurial classes). These abrupt democide makers and lifelong serial criminals, through their obscene mass media, have manipulated (along 3 decades) and crafted a mainstream opinion of lower middle classes and proletarians – as if socialisms were now dead, and forever (never herd anything more against History than this PROZAC FOR ANXIOUS RENTIERS; see our page “Arcapedia: which are the Prozac …“), after the necessary decline of red fascisms. Still governing China, nonetheless, and not isolated in the Far East:

a) they sustain, through Bank of China highly profitable (internal monopoly) operations, a lifestyle more than twice its fundamentals – in the metropolis of the now dissolved and expired, former US Empire;

b) they act strategically for their red fascist regime sustainability, and commit all the necessary and required or even slack and superfluous democides, planned in their ROADMAP (from Congolese migrants in their Angola colony to Tibet; even “superfluous” Darfur, where democide’s budget has attained 400,000 victims).

c) Chinese tyrans belong to worldwide extended NETWORKS of division of labour (with mafias and tryads, State and Rentiers bureaucracies, altogether) and COLLABORATION with all sort of DEMO-KILLERS, MONSTERS, RAPERS, RENTIERS AND VAMPIRES. The textbook here is the Italian monthly BD album Dampyr, where all is true: social realities are a mix of anxiety, extorsion, slavery, terror and vampirism; this hyper-realistic and highly documented Vampire series, falls often below reality itself.

d) They call it improperly globalisation. Loretta Napoleoni’s and similar researches have definitely proved, it’s vampirism globalisation: the Russian women were the most liberated in the world (and even in last centuries); a Washington mafia-finance plot has sent them to sell sex in the streets or in Israel brothels. At The Economist they call this Progress: let us send their entire redaction to sell their bodies, in order to proof their Progress Theorem.

If Adam Smith came back, he’d call us to organise Russian prostitutes Trade Unions.

If the international coordination side of 2009-11 New Deals will forget their slavery, they will be Old Deals.

No: socialism is more alive than ever. They are walking dead, they are alreday dead and fucked up, the subcrime rentiers.

By itself, by a pretty long and hyper-complex chain of events, in the actual start of a New Millennium.

By itself, in Spinozian times, with an autonomous momentum (orders of magnitude bigger than the Obama’s one), coupled socio-economic and POLITICAL TSUNAMIS are abating themselves upon all the corrupted, the selfish and the useless CLASSI DIRIGENTI, at the same time and in many countries: be them managers or priests, any rentier or vampire. The precipitation of the real recession, the dramas of hundred millions of families around the world, demand and urge for NEW LEADERS, NEW RELATIONS and dialectics citizens-leaders (e.g., of the type Obama and Axelrod – “progressive” (SIC) bloggers and MoveOn.org).

This is – at first Millennium decade end – an air of the 1960s. And 52 years is, on past average, a Kondratiev long wave: there we are?

In the 1960s economic miracles started producing tensions on, tense labour markets (reversing them FROM DEMAND TO SUPPLY-LED MARKETS, as Adam Smith explained the first).

Big difference is the LABOUR MARKET JUST NOW: Carsic class struggle can emerge on surface, only in a few tight labour markets (e.g. air pilots now in China: ). With 0.9 bn poors in India, almost the same amount in China, and all of them totally integrated and inserted into the world chain of regional labour markets – as never before -, the legacy of 2nd Millennium colonialist 2nd half, is an enslavement of the entire world LF (approximately: 2bn wage earners, indirectly enslaved by labour market globalisation, and a further 10%, i.e. 200 millions SLAVES in the full and literal sense – according to ILO, Genève statistics corrected by our international research center, coord. by Valter Zanin at Padova).


A quotation from last Xmas NYT Matt Bai: the absolute guru, the only one who knows and tells us everything about the DP, and supplies the Obamian boys and girls with a necessary contemporary history perspective (why necessary? since we are agents of Dike and of Necessity, we better know where we come from, or -better- where the wind carrying us comes from). (1)

In an impressive 2005 commencement speech at Knox College, Obama talked about economic transformation. “Instead of doing nothing or simply defending 20th-century solutions, let’s imagine together what we could do to give every American a fighting chance in the 21st century,” he said. “What if we prepared every child in America with the education and skills they need to compete in the new economy? If we made sure that college was affordable for everyone who wanted to go? If we walked up to those Maytag workers and said, Your old job is not coming back, but a new job will be there because we’re going to seriously retrain you and there’s a lifelong education waiting for you?

“Republicans will have to recognize our collective responsibilities,” he went on, “even as Democrats recognize that we have to do more than just defend old programs.”

(1) Three essentials on Matt Bai, a first class political commentator, No.1 on US Democrats:

– his blog: The primary argument, on Sunday’s The NYT Magazine

– his biog, cleverly written by a young and promising Rachel Goldman; she is a NYU student in journalism

– his 2006 book -a must for readers all over the world: The Argument: Billionaires, Bloggers and the Battle to Remake Democratic Politics

post scriptum

See you at next blogpost: I’m going to cast my NECESSARY, SPINOZIAN vote in Italian general elections. I am sorry I can’t vote, by ideological divide, the only one candidate I love: Ms Daniela Santanché. But she’s a black fascist. Being socialist, I am absolutely free to chose best offer (but, in 2006 and 2008, not best candidate: under a semi-fascist Berlusconi’s electoral law) in the moderate right-to- extreme left spectrum. But in my choice set borders, I-we have two twin 20th century taboos written with the blood of Martyrs on my-our subconscious: can’t vote either black or red fascists – the latters marketing their political services under “Communist” labels, or other subtle “cache” sub-labels and trademarks.

Hope the vote will send the correct Tsunami signals and incentives: OFF the Italian political class. Tutti a casa. There was one “last of mohicans” decent MP or Senator, Marco Boato: he was not candidated.