{"id":472,"date":"2013-10-11T15:05:27","date_gmt":"2013-10-11T15:05:27","guid":{"rendered":"http:\/\/www.qimacros.com\/lean-six-sigma-blog\/?p=472"},"modified":"2019-12-24T08:57:02","modified_gmt":"2019-12-24T15:57:02","slug":"paretos-rule-in-wealth-distribution","status":"publish","type":"post","link":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/paretos-rule-in-wealth-distribution\/","title":{"rendered":"Pareto&#8217;s Rule in Wealth Distribution"},"content":{"rendered":"<p><a href=\"https:\/\/www.upworthy.com\/9-out-of-10-americans-are-completely-wrong-about-this-mind-blowing-fact-2\" target=\"_blank\" rel=\"noopener noreferrer\">This video <\/a>suggests that&nbsp;9 out of 10&nbsp;Americans think that income should be more evenly distributed.<\/p>\n<p>Unfortunately, Vilfredo Pareto found over a century ago that 20% of the people have 80% of the wealth. He felt that even if it was redistributed it would soon fall back to the 80\/20 distribution.<\/p>\n<p>Pareto&#8217;s Rule is a power law which means that 4% of Americans should hold 64% of the wealth and 1% of Americans should hold 50% of the wealth. According to this video, the top 1% only has 40%. They also pay 40% of the taxes. The bottom 40% of Americans pay no taxes.<\/p>\n<p>One incorrect conclusion is that the poorest American&#8217;s can&#8217;t afford to save. I disagree. We don&#8217;t teach them how to save &nbsp;(I didn&#8217;t learn until I was 35). Even if it&#8217;s a buck here and a buck there, it adds up. It will grow even if there are occasional setbacks.<\/p>\n<p>Wealth will always be distributed according to Pareto&#8217;s Rule. The trick is to learn how to become part of the top tier&#8230;one dollar at&nbsp;a time.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This video suggests that&nbsp;9 out of 10&nbsp;Americans think that income should be more evenly distributed. Unfortunately, Vilfredo Pareto found over a century ago that 20% of the people have 80% of the wealth. He felt that even if it was redistributed it would soon fall back to the 80\/20 distribution. Pareto&rsquo;s Rule is a power [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-472","post","type-post","status-publish","format-standard","hentry","category-six-sigma"],"_links":{"self":[{"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/posts\/472","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/comments?post=472"}],"version-history":[{"count":3,"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/posts\/472\/revisions"}],"predecessor-version":[{"id":2555,"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/posts\/472\/revisions\/2555"}],"wp:attachment":[{"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/media?parent=472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/categories?post=472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.qimacros.com\/lean-six-sigma-blog\/wp-json\/wp\/v2\/tags?post=472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}