by Gary North
It never ends. We are besieged by articles on today’s increasing economic inequality. These articles have three things in common:
1. Each one has a favorite explanation/boogeyman.2. Each one calls for political reforms to make things more equal.3. Each one fails to mention Pareto’s 20/80 law.
Here is the main problem with these articles: economic inequality has not increased since at least 1897 — the year that Vilfredo Pareto published his discovery: about 20% of the people in every European nation he studied owned about 80% of the wealth.