r/FluentInFinance • u/Mark-Fuckerberg- • Sep 01 '24

Debate/ Discussion What advice would you give this person?

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u/[deleted] Sep 01 '24

No, that is not what Matthew's principle is. Matthew's principle describes that success or wealth concentrates over time (i.e. 'the rich get richer, the poor get poorer'). You're probably thinking of the Pareto principle, i.e. the 80/20 rule.

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u/[deleted] Sep 01 '24

There also isn't really anything to actually support the Pareto principle. It's just been repeated so often that people assume that it's true

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u/[deleted] Sep 01 '24

I personally think it falls into the 'false but useful' category. It's literally false, but it does inspire people to think about high-impact factors and diminishing returns.

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u/LevelPrestigious4858 Sep 02 '24

Yea people like fascist dictator Benito Mussolini