“All men have equal rights, but not to equal things.” – Edmund Burke
Vilfredo Pareto, an Italian mathematician trained in physics and mathematics, was interested in many fields of study, i.e., sociology, civil engineering, economics, political science, and philosophy. As a Renaissance scholar at the Lausanne School of Economics, he contributed to elite theory.
Elite
theory argues that
real power in any society is held by a small group with access to high paying
jobs, resources, and organizations. This group includes politicians, federal
judges, corporate executives, billionaires, military high ranks, university
professors, think tanks, and the mainstream media.
Pareto analyzed
choices that consumers made and drew conclusions important to the area of income
distribution. He helped develop the area of microeconomics. The concept of Pareto
efficiency in microeconomics was established based on his claim that income
follows a Pareto distribution, a composite of his observations that 80%
of wealth in Italy belonged to 20% of the population.
Income
distribution
reflects how a nation’s total income or Gross Domestic Product (GDP) is distributed
across the nation’s population.
The Pareto
Principle is a rule based on observations that “80 percent of effects tend to
come from 20 percent of causes.” This can be money, wealth, time, or other variables.
A good
expression of “misery loves company” is the communists’ effort to make everyone
equal, paying them equally, and working them equally. The result was an outcome
of equal misery.
The Social
Democrat fringe of the left is seeking equality of outcomes and are enforcing
DEI hiring practices of diversity, equity, and inclusion. Regardless of a
person’s motivation, ability, achievement, training, education, the left wants equality
of outcomes at all costs.
The amount
of skill embodied by the workforce is defined economically as human capital.
Human capital is measured by the amount of education and training. One variable
that was never considered was ability and the type of education that a student
pursues. It is painfully evident that many young Americans opt for higher
education in fields that are not helpful in finding professional employment. They
have a useless college diploma. Their levels of ability to survive as young
adults in a more complex society are lower than previous generations.
The
population at large produces value within any group but there are intrinsic
disparities in achievement based on the dramatic differences in ability and the
tendency to want to work an eight to five job.
The over-achiever
20 percent of the population have high ability and high propensity to work and
thus produce most value within any group – innovations, inventions, solutions,
and opportunities.
The other 80
percent of the population produces some value as well, however, regardless of
their contributions, they demand the same equal reward (outcome). They want to
rig the system in such a way that everybody, regardless of their individual
contribution, receives the same equal reward. They demand equity in the name of
fairness.
In the communist
system, when the motivated workers received the same pay (reward) as those who
pretended to work and hid during the workday or presented doctor’s excuses for
weeks on end for non-existent illnesses (after they bribed the doctors), the
high producers stopped working so hard and became slackers just like the unproductive
workers. The pay remained the same and the workers, blue or white collar,
followed the motto, “we pretend to work and they pretend to pay us.”
The result
was equal misery for all. Nobody contributed more than the least of them and
the race to the bottom began and stayed there for decades. The enforcement of
equal outcomes under socialism/communism produced equal misery, uniformity, depression,
and oppression. Did the Communist Party in charge of the country care about the
state of the population? No, those in power only cared about themselves and
their immediate families.








