Jay's Tuesday Free Enterprise Quote - 1 May 2012

By
Home Inspector with Jay Markanich Real Estate Inspections, LLC

"Democratic government has this fundamental problem:  In broad terms, 20 percent of the people do most of the productive work and create most of the nation's wealth, but the other 80 percent command a heavy majority of votes."

Thomas G. Donlan

Well, this is certainly another view of the 1%!

It is also another take on the old "Pareto Principle," that everyone learns about in Econ 101 - the old 80/20 rule. 

This doctrine stems from the 1906 statement of an Italian economist named Vilfredo Pareto.  He observed that 80% of the land in Italy was owned by 20% of the people.  He was also a gardener, noticing that 80% of the peas in his garden came from 20% of the pods.

Considering this a natural occurrence, in both ways, he came up with his 80/20 economic principle.  Looking around at business activity, society incomes, a company's sales, and so forth, it is pretty much true all across the board! 

Generally speaking, in business, 80% of the profits come from 20% of the products; 80% of the sales are produced by 20% of the sales people; 80% of the profits come from 20% of the customers.  This goes on.  In this country the top 20% of income earners pay just over 80% of the taxes.  Again, this goes on.

This 80% of Mr. Donlan's less productive people has pretty much held true if you average out the last many presidential elections.  Just in the last three the winner in 2008 won 27%, in 2004 won 83% and in 2002 won 85% of the 3113 counties in the country.  Not naming names, but looking at an election map breakdown by county, does that not appear to hold true for the most productive counties in each election versus the least productive?  WHAT A CONTROVERSY THAT INTRODUCES!

For some time now, I have said that in this country the debate is no longer between left and right, or conservative and liberal (a misnomer).  It seems to me that the real debate is between the producers and non-producers, achievers and non-achievers, and those who give and those who feel entitled to be given to.  Note which group gets pandered to the most!  Note which group makes the most noise!  Note which group creates the most election controversies!

Thomas Donlan is the editorial page editor of Barron's, The Dow Jones Business and Financial Weekly, and is based in Washington DC.



 

Posted by

Jay Markanich Real Estate Inspections, LLC  

Based in Bristow, serving all of Northern Virginia.

Office (703) 330-6388   Cell (703) 585-7560

www.jaymarinspect.com


close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the balloons to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Groups:
Celebrating Free Enterprise
The Law of the Land
Silent Majority
Tea Party
Fight Socialism: ActiveRain Economic Bailout Group
Tags:
free enterprise

Comments 24 New Comment

Ambassador
1,892,879
Steve Hoffacker
New Home Sales Trainer/Coach, Sales Books Author
Hoffacker Associates LLC

Jay,

Congratulations. This post is now featured in "Celebrating Free Enterprise." :)

Steve

May 03, 2012 11:05 AM
Rainmaker
1,167,693
Jay Markanich
Home Inspector - servicing all Northern Virginia
Jay Markanich Real Estate Inspections, LLC

Thanks Steve.  I thought this one would be controversial, but I guess not!

May 03, 2012 12:14 PM
Ambassador
1,892,879
Steve Hoffacker
New Home Sales Trainer/Coach, Sales Books Author
Hoffacker Associates LLC

Jay,

I think people know this to be true - if not even more than the 80%. The shame is that they're OK with it. :)

Steve

May 06, 2012 02:09 PM
Ambassador
1,892,879
Steve Hoffacker
New Home Sales Trainer/Coach, Sales Books Author
Hoffacker Associates LLC

Jay,

Congratulations. This post is now featured in "The Law Of The Land." :)

Steve

May 06, 2012 02:09 PM
Rainmaker
1,167,693
Jay Markanich
Home Inspector - servicing all Northern Virginia
Jay Markanich Real Estate Inspections, LLC

Thanks Steve!  I wonder often about that 80%, in many contexts.

May 06, 2012 05:43 PM
Rainmaker
1,167,693

Jay Markanich

Home Inspector - servicing all Northern Virginia
You may contact me anytime...
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the flag to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

An experienced home inspector's look at current home inspection events and conditions along with his useful recommendations.