Pareto's Law and Why 80% of These Words are Pointless
In 1896, the Italian economist Vilfredo Pareto published a paper that referred to the Pareto Principle. A principle that states that 20% of the causes produce 80% of the effects. He developed this principle by noticing that about 20% of the peapods in his garden contained 80% of the peas. That is a pretty basic observation that would soon turn into a very significant one that would change how people observe and measure almost every type of industry. This 80/20 Rule is now used in all sorts of analysis within sports, economics, wealth distribution, business, and even self-improvement; Which is what I find super interesting.
Does 80% of happiness come from 20% of my possessions? Does 80% of my unhappiness come from 20% of my problems? Does 20% of my work provide 80% of my productivity? In The Four Work Week, Ferris explains that this Rule can and should be used to analyze all aspects of life. And these aspects should be re-examined regularly. I have been doing this a lot lately and it is quite fascinating. It is a great exercise and I suggest everyone tries it.