  This paper combines ideas from classical economics and modern finance with
the general Lotka-Volterra models of Levy & Solomon to provide straightforward
explanations of wealth and income distributions. Using a simple and realistic
economic formulation, the distributions of both wealth and income are fully
explained. Both the power tail and the log-normal like body are fully captured.
It is of note that the full distribution, including the power law tail, is
created via the use of absolutely identical agents. It is further demonstrated
that a simple scheme of compulsory saving could eliminate poverty at little
cost to the taxpayer.
