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The actual distribution looks exactly like the 80/20 rule. So even though that may not be ideal, it is definitely not shocking or unexpected.
by Noughmad 10y ago
The actual distribution looks exactly like the 80/20 rule. So even though that may not be ideal, it is definitely not shocking or unexpected.
- Frogolocalypse 10y agoNo. It doesn't. More like a 60/1 rule. Or a 40/0.1 rule.
- flexie 10y agoIt's far from the 80/20 rule. The richest 1% has 40% of the wealth. The poorest 80% has 7 percent of wealth.
- Noughmad 10y agoThe 80/20 rule also says that 20% of the top 20% has 80% of the 80% of the total wealth. If you apply it three times, you get (0.2)^3 = 0.8% of the population has (0.8)^3 = 0.51% of the wealth. Which is even worse than what you see in the graph. Also, your 7% number is wrong, from the graph it seems the poorest 80% has about 16%, which is less than the one predicted by 80/20, but not by much. Again, I am not saying this is fair. The Pareto principle doesn't say this is healthy for a society, only that it is common.