Topic: Is it true that 80% of the world's wealth in the hands of 20%? - page 6. (Read 1010 times)

Biggest way to increase distribution is to increase innovation and invention possible then you educate the population enough to benefit all of society.    When people can improve business or society through their work and intellectual property it should mean there is a much greater chance of distribution of wealth from the traditional to the new technology creators.
  The 80/20 split is probably correct and in some places it could be far worse.  Economies especially based around commodity wealth and control of land dont tend to reward individual achievement.  Its thought that an advanced society will develop beyond purely owning rich ground but the means to work it best, mining or farming etc.

What would people of the world do with wealth if they had it? Most who win the lottery end up poor again within a relatively short span of time. Even if all of the poor people of the world were given millions. All of them would probably wind up poor again before much time had passed.

Forces behind wealth distribution being what it is, travel far beyond a mere 80/20 ratio. They are spiritual and cultural. Most of our culture is consumerist in nature where the average person is both encouraged and expected to have a credit card to spend themselves as deep into debt as possible to purchase questionable items which they do not particularly want or need. Spiritually, most feel they have to compete financially against each other. If their neighbor or peers buy a new TV. They have to buy a new TV, too. Its called "keeping up with the joneses". Many feel peer pressured to conflict with their peers and make impulsive purchases so as not to fall behind.

These consumerist patterns trend opposite of a direction which the average person would need to follow in order to accumulate and amass wealth. But they are often an unescapable component to our culture, character and identity. It is these intangibles which serve as central pillars of wealth distribution ratios like the 80/20. But somehow I don't think that many care to think about or question what leads to these things. We simply imagine an invisible magic wand being waved to overturn these fundamental principles. Which is what makes them so difficult to define and address.

Lol. Why in the world would world governments want to decrease that gap when it would end up screwing them over in the process? Makes zero sense if you think about it op.

That gap will always keep widening and the only way to stop it is through a complete world reset which will most probably never happen. So many people have tried and failed to make a dent in that widening gap over time.

This is our reality where people keep trying hard to climb higher and higher.

Yes, Pareto's law is true in the long run. 

At the same time, attempts to cancel the operation of this law in relation to the distribution of national wealth in world history have been made.  Thus, in 1917, the Great October Socialist Revolution was carried out in Russia and an attempt was made to build a just socialist society. 

For a certain period of time, the gap in wealth between poor and rich citizens was not very large. 

However, over time, the country's bureaucracy was able to return to the pre-revolutionary state of affairs. 

The situation is similar in China.  Despite the fact that the Communist Party is in power there, the gap between the level of well-being of poor and rich Chinese citizens is very large.

I am sure that 80% of the world's wealth in the hands is not more than 20%, the fact is that there are many poor people in many countries, even in developing countries like mine, many countries' wealth is controlled by foreigners, and maybe less than 1% they control the country's assets, unfortunately many countries have no power to prevent this, foreign or private companies clearly control assets but the state is made powerless because of laws or corruption that occurred in the previous government.

I wonder if the mathematical Pareto law even holds true in the long run or, as you said, whether the situation is aggravated even further due to inheritance. Maybe the Pareto law does hold true forever because some of those who inherit huge amounts of capital also waste it and don't keep anything substantial to be passed on to later generations.

It's also possible that once this 80% to 20% rule gets out of balance too much, political pressure from either group will lead to striking that balance again as if there was an invisible hand at play. Meaning that if the working class realizes that the gap is becoming more and more severe, political measures will be taken such that relative peace can be restored overall without letting things get out of control.

Interestingly this law applies to many aspects of life and it is worth looking into it. There are some interesting summaries where this law actually holds true.

If globally, of course, this data requires in-depth research, but economists in my country have said that less than 10% of the world's population controls the world's wealth, and this is also almost similar to the facts in my country. According to research by economists several years ago, currently about 85% of wealth and welfare is controlled by less than 5% and 90% of the money printed by the state is controlled by around 8%.

Op you made me laugh. This question would have been asked by non educated person and not you. Even the illiterate knows that the distribution process is not equal. Yes it very much true that few hands control the wealth in the world, and that is the reason why capitalism took over the economic system from socialism which the Soviet Union. I think everyone if not all supposed know this world economics story from social, economics, geographical, historical, and political perspective and etc.

Government is part of the unequal distribution team so they can not help the people instead they support the unequal distribution process. Anyone that goes to the government join them to suffer the poor.

Most resources say that the main wealth is concentrated in the 10% of the wealthiest people. But if you take the largest state, then I think that these values ​​can reach 3-5%.

I also read an article that said that the fortune of 1% of the richest people on our planet is greater than that of the rest of the population. I don't know if this is true, but I suppose it could be true. This distribution has always been, there is nothing surprising in this.

Big fortunes gain influence, they are everywhere where there is big money and try to control everything in their favor, big fortunes make even more money. Inequality is somewhat out of control.

Money will buy happiness and will guarantee your happiness, the world has changed, my friend. I assure you, if you treat a girl but you don't have money and a guy with a lot of money, that girl will not hesitate to choose that rich guy. Because without money, married life will never be happy and not to mention our children will grow up without money, how will they have a life as friends.

This is the mathematical Pareto law, which is formulated as follows - twenty percent of the efforts give eighty percent of the results.  It is impossible to cancel this law (as well as any other mathematical law). 

People initially focus on different things.  Those people who initially focus on making money, on finances, on issues of power and economic influence, receive significantly more income than those who focus on sex, on entertainment, on alcohol, on low-revenue (but interesting) work. 

The situation is aggravated by the fact that rich people pass on their accumulated financial knowledge and capital by inheritance.

In addition, in the world there is such an activity as investing. 

Investing allows you to redistribute cash flows from poor people to rich people, since the presence of a large initial capital in investments gives an initial competitive advantage.

It is correct that money can buy many luxuries to bring comfort in life. However it is just a tool and doesn't guarantee happiness or fulfillment. Personnel growth, sense of purpose and inner peace are equally important. It is worth noting that a person's wealth and standard of living  can be greatly influenced by the economic conditions of the country. In developing countries, it can be very challenging to achieve financial stability as many people face significant hardships and obstacles in their lives.

I can't dispute this fact there is unequal wealth distribution
though it fair in developed countries, however in third world countries there is a vast disparity in wealth largely due to corruption among their government officials, politicians and few individuals who connived with government officials to enrich themselves at the expenses of their poor masses consequently widens the gap between the rich and the poor, unfortunately the government officials who ought to correct this abnormally are the major culprit, while the people who should vote the right people into power will rather accept vote buying deployed by corrupt politicians.

I think it highlights that income inequality has been at an all-time high for the last ten years. So, who is responsible for that 20% jump in wealth? Globalization and technological change, supply-demand balance, and international trade are some of the main reasons why wealth is concentrated in the hands of a few. Another reason is the privatization of the public and corporate sectors.

So, there are many factors why it happens and how to stop it. But first we need to understand what the consequences of this development will be and how it can weaken our society and affect our long-term future in my opinion.

To be rich is to have a lot of money because when you have a lot of money, you will have access to all the best things in this world, and your life will have the best quality. My country is a 3rd world country, the economy is quite difficult, and there are many items that cannot be imported to be used universally. But for rich people, they can easily buy those things to serve their luxurious life. With just money, you can bring the whole world into your home.

I agree with your perspective. The growing gap between rich and poor can create lot of social and economic problems, particularly when it undermines the ability of people to meet their basic needs. It is true that capitalism can be effective economic system but its also important that its benefits are fairly distributed.
Additionally, it is also important to recognize that wealth is not just having more money, but also having access to resources, opportunities and services that are essential for decent quality of life.

this world economy is controlled by some people, that is very true, but aren't your words very harsh toward the poor! until whenever it is true that the gap between the poor and the rich will forever exist, many rich people create new businesses with the aim of getting money from purchases made by the general public, for example > cigarettes, many cigarette business people make money from selling cigarettes to poor people because they are true cigarette addicts.


the government in many countries is controlled by businessmen because when they carry out campaigns, the political funds they receive can come from them.
because the emergence of bitcoin and cryptocurrency really cannot be stopped, most governments are afraid that what they have controlled so far will just disappear, so they do various ways to define bitcoin and cryptocurrency as a form of resistance against the government and the world economy.

I agree, we cannot do anything to it, we just need to let it be. Let us just focus in our own wealth and let us work harder for us to gain more and more money in the future. In times like this, I made these rich people as my motivation to stay productive everyday and to keep me going that I cannot stop now until I became rich like other people in this country. I want to make my own name.

If we are helpless yes but once we got up, let's also make it a habit to check around us if they are also fine. If not then we can lend some help about them. I think the beginning of human society isn't really that great but we already saw an improvement over the decades or centuries, so don't be too bitter and we shouldn't put the blame to others because sometimes they are also doing what they can to help.

Not all times they are bad or selfish who only focus on themselves. It also depends on the leader of the country. If they are understandable then they can always listen to the suggestions of the public so we shouldn't be afraid to hear our voice.

The wealth gap is insanely big and as far as I know it is going, but that doesn't mean that the average person is less wealthy than yesterday. It is important to consider that a gap in wealth still does not mean that the less wealthy are becoming poorer over time. It still comes with a lot of issues as those who have less feel the need to thrive as well and their desire is to close that gap with fair means.

I think that the real problems occur where one person's wealth undermines the fulfillment of the basic human needs of other people. Lots of people say that capitalism is the best social and economic order, but still it shouldn't be the case that malnutrition is so prevalent in the world. We have all the means to solve many of the existing problems and that would still allow for people to own more than others.