Pareto Principle At Work (Power Law)

THE PARETO PRINCIPLE AT WORK (A POWER LAW)

by Noah J Revoy

The worst 20% of the group creates 80% of the negative externalities.

The worst 20% of that subgroup causes 80% of that groups negative externalities.

Another way to say that is: Out of a population of 326 million people living in USA, 13 million (4%) create 64% of the harmful externalities.

The best 20% of the group creates 80% of the positive externalities.

The best 20% of that subgroup causes 80% of that groups positive externalities.

Another way to say that is: Out of a population of 326 million people living in the USA, 13 million (4%) create 64% of the beneficial externalities.

THe people at the bottom aren’t just unproductive, they’re harmful.