[lbo-talk] (no subject)

[c b]

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/

^^^^^^^^
CB: Isn't there a law of  of capitalism to create
inequality, even if not as Pareto specifies ?

http://www.marxists.org/archive/marx/works/1867-c1/ch25.htm#S4

The greater the social wealth, the functioning capital, the extent and
energy of its growth, and, therefore, also the absolute mass of the
proletariat and the productiveness of its labour, the greater is the
industrial reserve army. The same causes which develop the expansive
power of capital, develop also the labour power at its disposal. The
relative mass of the industrial reserve army increases therefore with
the potential energy of wealth. But the greater this reserve army in
proportion to the active labour army, the greater is the mass of a
consolidated surplus population, whose misery is in inverse ratio to
its torment of labour. The more extensive, finally, the lazarus layers
of the working class, and the industrial reserve army, the greater is
official pauperism. This is the absolute general law of capitalist
accumulation. Like all other laws it is modified in its working by
many circumstances, the analysis of which does not concern us here.