Tuesday, January 20, 2015

Humans Beings Are Highly Unequal : About 20% of the members of any group provide about 80% of the group’s output.

Tea Party Economist reports:
The Left-wing Oxfam group has issued a report saying that the world’s wealthiest 1% will soon own 50% of the world’s wealth.

This press release has been nicely timed to match the meeting at Davos, Switzerland of the world’s wealthiest people. Oxfam pulled the same PR stunt last year at this time. It worked. So, they have done it again.

It’s time for a lesson in ancient economic history. (It will also be time again in a year.)

You have heard of Pareto’s law, I assume. It’s the 20-80 rule. About 20% of the members of any group provide about 80% of the group’s output. This general distribution applies in areas of life that we would not expect it.

This distribution pattern was first revealed in an 1897 book by Swiss-employed Italian economist Vilfredo Pareto. He found that 20% of the residents in every European nation he surveyed had 80% of the income.

This was big news in 1897. That it remains big news today is testimony to the fact that Left-wing alarmists have allies in the media — allies who are either incredibly ignorant of modern economic history (likely) or else willing conspirators in duping the public.
An article well worth your time. Most people who try to get tenure , aren't going to make it. Most successful stockbrokers' revenue come from 20% of their book...