[lbo-talk] (no subject)

[michael perelman]

Economists, fond of making their work into a science, like to
transform their ideas into a "scientific" law.  Accordingly, the
Fascist Italian senator, Vilfredo Pareto is credited with discovering
Pareto's Law, which explains why inequality  is a natural outcome.
Pareto suggested that 20% of causes create 80% of effects.  He argued
that this law explains why 20% of the Italian population owned 80% of
the wealth.  Sadly, the U.S. experience calls Pareto's data into
question, but then, those lazy Southern Europeans wallow in socialism.

There is a second Pareto Law, which offers a more accurate explanation
inequality.  In his Manual of Political Economy, he explained:

More at:

http://michaelperelman.wordpress.com/2012/04/24/paretos-law-understanding-inequality/

-- 
Michael Perelman
Economics Department
California State University
Chico, CA
95929

530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com