Wealth, inequality and employment

1. Increase in top incomes not matched by economic expansion
Log curves extracted from the SCF published in Fifth part have shown a decrease in slope measured by the α that is in accordance with an increase in inequality noticed by numerous publications but which should also lead to an increase in economy ceiling if our theory holds. As far as income are concerned, they indeed raised for the top as shown by Forbes billionnaires list. But the rate of increase of the economy has dropped (...)

Though Paul Krugman, a Nobel price, could write in 1995: « We have to say that the rank-size rule is a major embarrassment for economic theory: one of the strongest statistical relationships we know, lacking any clear basis in theory », scientists have tried to explain Pareto distributions by building models. Benoît Mandelbrot has given an understanding of the Zipf law, a Pareto with discrete distribution on frequency of words in the language, and shown why this frequency is the (...)

One of the biggest obstacle to getting reliable results from economic surveys such as the world known Survey of Consumer Finances of the US Federal Reserve is the dispersion of data from one survey to the other, particularly the averages, because of the Pareto law distribution of economic figures.
The quantities we seek to measure such as income, assets, jobs created, etc. are economic quantities and most are governed by this law, also named the 80/20 law.
It is known since the late (...)