Matthew Effect/ Matthew Principle & The Pareto Principle

Wise Library 1985|Margaret W. Lavigne

The Pareto Principle
The Pareto Principle is derived from the Pareto distribution and is used to illustrate that many things, including wealth, are not distributed evenly in society. 

 

The Pareto Principle / known as the 80/20 rule

The theory was created by Italian economist Vilfredo Pareto who found that 80% of Italy’s property was owned by just 20% of the population. Also, the Human Development Reports has revealed that over 80% of all global wealth is owned by the top 20% of the population.

 

Wealth is shared unfairly in any generations.  In 1979, the top 1% population of the US earned around 33.1 times more of the population of the bottom 20%. 

 

Matthew effect/ Matthew principle in Economics

The concept believes that “the rich get richer and the poor get poorer” and those who have more will get more and those who have less get less.   Matthew effects primarily focus on inequality of wealth distribution.

Margaret W. Lavigne: I would say, the rich get more money by earning huge amounts of interests from the bank and the poor have to pay for more interests for the bank and that’s how the circle starts.  As you buy more, you get more discounts. Thus, the rich get more discounts than the poor. Besides, the rich have a greater capacity to invest their money in the markets or stock markets. Another reason is that the poor fail to purchase good stuff and they get cheap stuff and cheap stuff get broken easily and so they might end paying more money.  Besides, the poor might take more job offers to earn more, including taking the night shifts. However, night shifts proved to be highly connected with many illnesses, such as diabetes and depression. In truth, many families get terribly poor for the sake of tremendous medical debts. 

 

Nevertheless, there are billionaires who declare bankruptcy is real life. As people get a huge amount of money, they become prideful. Pride leads people to make bold and impulsive decisions. and they have more ambition and more desires. That how they ruin their life.  According to the Bible, pride is the capital sin among the seven deadly sins and luck is the gift from God. No one can be permanently successful without luck.

 

Rich people lose all their fortune for different reasons, such as economic downturns and bad investments. The former billionaires Bernie Madoff, Allen Stanford, and Eike Batista have all served jail time for financial-related crimes, while others lost their billions because of other reasons. 

 

#Patricia Kluge invested her settlement money from divorce into her own vineyard. However, the housing market crashed and she lost all. She was forced to sell her jewellery and pieces of art at auction. Patricia Kluge lost all her fortune during the housing-market crisis of 2008. Kluge met her second husband, John W. Kluge. The couple divorced, and Patricia Kluge received a $1 million settlement money every single year, along with the Albemarle estate.

 

# The airline and liquor tycoon Vijay Mallya lost most of his fortune after defaulting on bank loans. He is charged with fraud and money laundering. Vijay Mallya was a liquor tycoon known for his extravagant partying and high-flying lifestyle.

 

Sean Quinn was once the richest man in Ireland. When he applied for bankruptcy in 2011, Quinn claimed his assets was less than £50,000. Quinn was forced to hand over most of his $2.8 billion fortune for his bad investments in an Irish bank. Sean Quinn accumulated his wealth through investments in plastic, glass, and hotels. He was charged with contempt of court for attempting to hide his property assets from the bank in an effort to avoid paying back his debts.

 

Matthew 12: 29 (Bible Verses) 

“For everyone who has will be given more, and he will have an abundance. But the one who does not have, even what he has will be taken away from him.” 

 

More Info 

Forbes: 9 Famous People That Went Bankrupt Before They Were Rich

These 10 billionaires have all gone broke or declared bankruptcy — read the wild stories of how they lost their fortunes

 

image source 

 

Margaret W. Lavigne 

 

 

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Margaret W. Lavigne 司馬儀

There’s a strong link between imperfection, unconditional love and posttraumatic growth. In truth, we can only witness unconditional love in the hard times. If you believe in luck or miracles, be aware of the seven deadly sins and the seven heavenly virtues. According to the Bible, no one will be exempt from life challenges, including the chosen ones (1 Peter 1:3-9). God expects us to stay hopeful and “rejoice in our sufferings,” because “trials of various kinds” are training to make us “perfect and complete” (Romans 5:3-6, James 1:1-27). It’s comforting to know that “God promises to make something good out of the storm” (Roman 8: 28). We fall and we learn. As we learn to humble ourselves, life gets better. The connection between the brain and stomach is bidirectional. Excessive sugar intake sabotages our immune system that 70% to 80% of our immunity hinges on our gut health. Memory loss and cognitive impairment are common symptoms of Alzheimer’s disease, all of which are highly connected to type 2 diabetes. Early signs of type 2 diabetes include chronic fatigue, irritability, frequent urination, vision problems and slow wound healing. Depression is prevalent in people with diabetes due to the fact that diabetes causes “structural changes in the brain.” It’s worth noting that muscle-building helps regulate blood sugar levels. There is growing evidence that high blood sugar leads to reduced muscle mass. Beyond that, there’s a strong link between sleep deprivation and emotional weakness Be aware of the power of tenderness, humility and subconscious mind. Generally, negative emotions root in the inability to forgive, vanity or pride. People suffer from suppressed anger. God is watching our every move. God sees through our motives. Mental health crisis is sweeping on a global scale because the core value of capitalism is incompatible with what human truly needs. Money cannot purchase inner peace nor unconditional love. Wealth incurs fair-weather friends, frenemies and snobs. I would say, inner peace is the utmost blessing from God. Trauma is highly linked to chronic fatigue and chronic illness. Take time to deal with your old mental wounds. 這裡不是天堂,我們必須勇敢!這輩子身體顧好了,你就賺到四百萬+++。人生,除了身體健康以外的事都是小事,而生病只是提醒不是懲罰,因為無常是:一個健康的人一出門就沒有再回家了,連道別的機會和準備都沒有。人們錯過的都是最悲傷最真實的故事!因為多數人可以分享的都無關緊要的痛或路人皆知的痛。佛教用因果論概括一切,而聖經主張人生必有難題(包括選民),但好好表現,災難背後會有禮物。如果你以為誰的人生很輕鬆,肯定是你跟對方不熟。脖子控管自律神經!肩頸僵硬,「自律神經」就會被受到壓迫!自律神經失調引發的症狀包括頭痛、暈眩、焦慮、失眠、倦怠、口渴、耳鳴,甚至憂鬱等症狀。自律神經失調了,血液的品質也會跟著惡化!解法:甩手操。建議多按壓頭皮、耳朵和手上的穴道。腸胃健康和大腦健康息息相關,國外大力探討久坐對身體的傷害!健康建議:天芢無糖抹茶搭配芝麻和牛奶X 無糖豆漿X鹼性飲食X淋巴按摩X提高肌肉量(控制血糖的關鍵,糖尿病是可逆轉的)。鈣是解痛劑(看牙科前)。維生素E主修復,可避免留疤。高壓容易緊張族群可多攝取維生素B和鈣的食物。一夜白頭是心理影響身體的鐵證,勿低估負面情緒對身體的傷害,包括生悶氣或憂愁。詳情請參看網站醫療專欄。壞脾氣一定有理由,可能是高血糖或創傷症候群或高壓族群,而壞情緒會把幸運福氣和天使嚇跑。禍福相依,好消息可能會成為頭痛點,壞消息可能成為跳板!不屬於自己的只會逗留,不會久留,勿強求。引用小說《推理愛》:「判斷一個人愛不愛她很難,但判斷一個人珍不珍惜她卻很簡單。」「柔和」「謙卑」與「歸零」的力量。自信缺氧,就用力學習。不自律就無法成為更好的自己,不自律就無法肯定自己!提醒自己做該做的而不是想做的。預防改善糖尿病推薦食材:洋蔥、無糖抹茶、咖哩及酪梨。理財時代,從照顧好自己的健康開始。遠離乳癌,醫師呼籲不要使用塑膠袋裝熱食!國外研究證實:阿茲海默症患者「禁糖」便可望痊癒!人們低估了「糖過量」及「過食」對身體的破壞力。咖啡和巧克力的好被過度放大.精神不濟喝咖啡恐消耗維生素B。聖經說了,說過的每句話都會被記錄在一本書裡!好壞都被記錄了,所以聖經主張人們不可記他人的過錯。最佳午睡時間是20分鐘和90分鐘。以上,互相督促。生命線協談專線:1995 安心專線:1925 張老師專線:1980 自殺防治諮詢安心專線:0800-788995 聯繫司馬儀(譬如跨界合作):Gmail: jpsiawase@gmail.com 

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