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Pareto Principle a Cause of Unequal Wealth Distribution

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Teodoro D. Cocca uses the Pareto Principle to explain the inequality of wealth distribution among people. He writes in his glossary in the OÖN of February 7, 2023, under the title “Uncomfortable truths about inequality“: “Successful entrepreneurship is also linked to creativity, but moreover, it is often also linked to other abilities. Those who are in the top one percent in several skills have a much greater chance of generating extremely high incomes. However, this is not given to everyone. In general, as the social science literature shows, professional or entrepreneurial success is linked to factors such as intelligence, performance and conscientiousness. These factors are – unfairly – not equally distributed in the population (just like physical health or fate). Thus, the unequal distribution of economic success is related to the unequal distribution of ability. This should at least be taken into account when comparing the extreme ends of the income and wealth distribution.”