Wednesday, August 4, 2010

The Pareto Principle

A business rule-of-thumb:
Roughly 80% of the effects come from 20% of the causes.
You've got problems in the production line? 20% of the causes represent 80% of the problems! This is the Pareto Principle.
It's a fairly standard rule-of-thumb in industry.

Whence does this 'principle' derive?
From an Italian economist, Vilfredo Pareto (no kidding!), who observed that in most industrialized countries, 80% of the wealth was controlled by 20% of the population... this back in the 1910s.

Today in America?
80% of the wealth is controlled by 5% of the population!
That pretty much leaves the rest of us - those in the bottom 95th%-ile - out of the loop.
No power - economic or political!
... what's more, GOP policies - which for reasons I do NOT understand seem to predominate in DC culture - ensure that we will be FOREVER kept out of the loop!
- no power, economic or political!

Stop the madness!

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