Pareto's Law: Understanding Inequality
On Mon, Apr 23, 2012 at 7:37 PM, michael perelman
<michael.perelman3 at gmail.com> wrote:
> 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
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-- Michael Perelman Economics Department California State University Chico, CA 95929
530 898 5321 fax 530 898 5901 http://michaelperelman.wordpress.com