The biggest defect of Pareto standard
The biggest defect of Pareto standard is that it ignores the distribution problem. Pareto criterion, also known as optimal state, is an important concept in economics, which points out the optimal allocation of resources. Under this standard, all individuals have reached their own optimal state, and no one's state can be better without affecting the state of others. This seems to be a perfect state, but the Pareto standard ignores an important issue, that is, the distribution problem. Under this standard, everyone's income is determined according to their production capacity, not according to their needs and contributions. This may lead to unfair distribution of wealth and resources, thus damaging social fairness and stability.