# Fiscal Stimulus to Guarantee Results

Figure 1. Pareto plot shows Obama’s 2009 stimulus spending was wasteful.

Much of the wasteful spending by Barack Obama – such as his failed stimulus of 2009 – could be prevented through the use of a simple statistical tool

### The Economy’s Performance Gap

Barack Obama’s handling of the economy — America’s most important problem — has been disappointing.

### Obama Defined by Maldistribution Curve

To determine the degree to which the maldistribution of Obama’s stimulus spending is associated with the Pareto distribution with probability density function (PDF)

$P(x) = \displaystyle\frac{ab^a}{x^{a+1}}$  for  $x \geq b$

normalized values for the Pareto PDF were plotted as a function of normalized values for spending. Linear regression by method of least squares fitting revealed a near-perfect correlation between the values, with the fitted line’s slope (R) equal to 0.9962 (Figure 2).

The 80-20 rule shows how a president with a real understanding of the economy could have achieved better results with \$787 billion in stimulus spending. The same amount could have been 80 percent more effective by using the simple statistical tool.

### Restoring American Supremacy

“It’s clear that the job could have been done better,” said the chairman of the non-partisan Recovery Accountability and Transparency Board, describing Obama’s maldistribution of taxpayer funds in an interview with The Wall Street Journal.

And what’s most clear of all — with a year left in Obama’s term and unemployment higher than the eight-percent maximum he guaranteed with his stimulus spending — is that it’s time for a president with a real understanding of the economy to restore America’s global supremacy, beginning at its weakest link among the bottom 80 percent of incomes.

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