ᴡʜᴀᴛ ɪs ᴘᴀʀᴇᴛᴏ's ᴘʀɪɴᴄɪᴘʟᴇ ?
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ᴛʜᴇ ᴘᴀʀᴇᴛᴏ ᴘʀɪɴᴄɪᴘʟᴇ, ɴᴀᴍᴇᴅ ᴀғᴛᴇʀ ᴇsᴛᴇᴇᴍᴇᴅ ᴇᴄᴏɴᴏᴍɪsᴛ ᴠɪʟғʀᴇᴅᴏ ᴘᴀʀᴇᴛᴏ, sᴘᴇᴄɪғɪᴇs ᴛʜᴀᴛ 80% ᴏғ ᴄᴏɴsᴇǫᴜᴇɴᴄᴇs ᴄᴏᴍᴇ ғʀᴏᴍ 20% ᴏғ ᴛʜᴇ ᴄᴀᴜsᴇs, ᴀssᴇʀᴛɪɴɢ ᴀɴ ᴜɴᴇǫᴜᴀʟ ʀᴇʟᴀᴛɪᴏɴsʜɪᴘ ʙᴇᴛᴡᴇᴇɴ ɪɴᴘᴜᴛs ᴀɴᴅ ᴏᴜᴛᴘᴜᴛs. ᴛʜɪs ᴘʀɪɴᴄɪᴘʟᴇ sᴇʀᴠᴇs ᴀs ᴀ ɢᴇɴᴇʀᴀʟ ʀᴇᴍɪɴᴅᴇʀ ᴛʜᴀᴛ ᴛʜᴇ ʀᴇʟᴀᴛɪᴏɴsʜɪᴘ ʙᴇᴛᴡᴇᴇɴ ɪɴᴘᴜᴛs ᴀɴᴅ ᴏᴜᴛᴘᴜᴛs ɪs ɴᴏᴛ ʙᴀʟᴀɴᴄᴇᴅ.
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ᴀɴsᴡᴇʀ ➪
☞︎ The Pareto Principle states that 80% of consequences come from 20% of the causes.
☞︎ The principle, which was derived from the imbalance of land ownership in Italy, is commonly used to illustrate the notion that not things are equal, and the minority owns the majority.
☞︎ Unlike other principles, the Pareto Principle is merely an observation, not law. Although broadly applied, it does not apply to every scenario.
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