Thursday, April 2, 2020

Examples of the Pareto Principle (80% is the result of 20% of ...)

Well, roughly speaking, not exactly 80/20,
  1. Tiny majority of people own the vast majority of the world’s wealth. Adam Smith said capitalism depended on capitalists of “good character” implying to me that they “cared” about the Commons (air, water, soil, flora, fauna, and the underprivileged.) Which clearly the vast majority of that 20% (more like 1%) don’t.
  2. Tiny minority of the population account for the vast majority of the crimes committed. I did research on the police/crime in Baltimore and the COP (Chief of Police) said they knew who the criminals were and they were a tiny minority of people—preying on the rest. Includes DUI repeat offenders.
  3. Fast Thinkers versus Slow Thinkers (see Daniel Kahneman’s book). The vast majority of people make quick judgments based on their VABEs while a small minority judge more slowly—and seeking evidence and data.
  4. Tiny minority of micro-organisms create the biggest problems in human society. COV-19. Ebola. Plague. Pretty obvious.
  5. Cyclical disasters. A tiny few in the vast 4.5 billion year history of the earths’ major disasters have caused the vast majority of lethal consequences. Meteor strikes, Russian lava flows, volcanic eruptions (e.g. Krakatoa), hurricanes—not all that common, in fact, very uncommon, and yet they create huge consequences on life on earth.
  6. Life Health Costs. Study after study show that the vast majority of anyone’s (on average) lifetime healthcare costs are created in the last year or two of one’s life. End of life attempts to prolong life without regard to quality of life cost exponentially more than healthcare earlier in life—on average. For very modest extension at low quality. True also earlier in life wherein the few with severe birth defects or unusual conditions create the big majority of hospitalization costs.
  7. Mental health costs. The few (schizophrenia for example is about 1% of the worldwide population) create enormous stresses on society in living/surviving costs. Which sadly most of society ignore—and put them on the streets.
  8. Innovation. The Newton’s, daVinci’s, vanGogh’s, Einstein’s, Pasteurs, Nobel’s, Copernicus’s, Brahe’s, Planck’s, etc are a rare minority and yet they have contributed ginormous influence on society.
  9. VABEs. A tiny minority of VABEs and MEMEs have had huge negative effects on mankind. For example, “my religion is the true religion.” “My ethnicity is superior to your ethnicity.” “Because I am right, I am justified in forcing you to submit.” Moderating or eliminating those few VABEs would eliminate most of the war and suffering in the world.
  10. Enzymes. Injecting small amounts of the appropriate enzyme in a chemical process can create huge changes in the speed and results of the process.
Some that come to mind immediately. How will you use these examples to modify your understanding of the world and what you do in it?

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