The Pareto Principle highlights the unequal relationship between inputs and outputs and serves as a reminder that the relationship between them is not balanced.
The Pareto distribution, also known as the 80-20 distribution, characterizes the unequal distribution of resources and creative production.
Hierarchies in society are primarily based on competence rather than power, emphasizing the role of personal effort, improvement, and ethical behavior in maintaining a tenable position within a hierarchy.
Deep dives
The Pareto Principle and Inequality
The episode explores the concept of the Pareto principle, which states that 80% of consequences come from 20% of causes. This principle highlights the unequal relationship between inputs and outputs and serves as a reminder that the relationship between them is not balanced. Known by various names such as the 80-20 rule or the Matthew principle, it is used to demonstrate the complex issue of inequality and that there is no simple answer to address it.
The Perito Distribution and Unequal Distribution of Resources
The Perito distribution, also known as the 80-20 distribution, characterizes the unequal distribution of resources and creative production. It is observed in various domains such as book sales, wealth distribution, and even in trading games like Monopoly. This distribution pattern shows that a small proportion of people end up with the majority of resources, while the majority of people have very little. It acts as a natural law and is independent of the governmental system in place. The distribution of resources can be challenging to address due to the nature of this distribution.
Hierarchy Based on Skill and Competence
The episode challenges the notion that hierarchical systems are solely based on power and oppression. It argues that hierarchies in society are primarily based on competence rather than power, highlighting the importance of skill, intelligence, and conscientiousness. Deterioration and corruption may occur, but the fundamental function of a hierarchy is rooted in recognizing and valuing individuals' skills and contributions. The episode emphasizes the role of personal effort, improvement, and ethical behavior in maintaining a tenable position within a hierarchy.
The Complexity of Inequality
Inequality is a deeply rooted problem that cannot be solely blamed on capitalism. Even in paleolithic gravesites, there was a notable unequal distribution of wealth. The concentration of resources and success follows an exponential curve, with a small number of individuals accumulating most of the value or achievement. While capitalism may have its flaws, it has also been effective in generating wealth and reducing extreme deprivation. Attempting to completely eliminate inequality poses challenges, and some approaches can lead to disastrous outcomes, as seen in Venezuela.
The Power of the Individual
The potential for individuals to make a positive impact is remarkable. By facing darkness and tragedy head-on, human beings can find the strength and resilience within themselves to overcome. Taking responsibility for one's own actions, seeking truth, and striving for a meaningful life are crucial components. Embracing the complexity of hierarchies and understanding the importance of ethics allows for the creation of sustainable and productive societies. By valuing ourselves as conscious beings with inherent worth, we can tap into our capacity to confront and transform potential into something good.
In this episode, we investigate the principle set forth by Vilfredo Pareto (an Economist born in 1848) which specifies that 80% of consequences come from 20% of the causes, asserting an unequal relationship between inputs and outputs. This principle serves as a general reminder that the relationship between inputs and outputs is not balanced. The Pareto Principle is also known as the Pareto Rule, the 80/20 Rule, or the Matthew Principle.
Jordan often uses the principle to demonstrate the harsh reality that inequality is not a simple issue, and therefore has no simple answer.
Sections:
[1:20] - 2017 Maps of Meaning 01 (Context and Background)
[10:45] - 2017 Personality 13 Existentialism via Solzhenitsyn and the Gulag
[17:01] - Biblical Series VIII The Phenomenology of the Divine
[21:34] - 12 Rules for Life Tour - Melbourne, Australia.
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