Pareto principle: the results are not always a mirror of our efforts

The 19th century was a period of illumination, regarding the discoveries that followed in the 20th century. One of the most important rules in economy, but also in the daily life, is the Pareto principle. An Italian economist from the 19th century, Vilfredo Pareto, established that 80% of the fortunes are in the possession of 20% of the population. Since then, the ratio 80/20 has become famous and the direct observation proved that it applies in most cases. It also has been proved that 80% of the results are obtained with 20% of effort.

Vilfredo Federico Damaso Pareto was born at Paris on the 15th on Julie, 1848, and he died on the 19th of August, 1923. He was an Italian sociologist, economist and engineer. His father was also an Italian engineer, expulsed on politic reasons, and his mother was French. In 1858 the entire family moved again on the Italian ground, at Torino.

Pareto Principle is also called the curve of the distribution of the incomings. This concept is an extrapolation made by Pareto of the fact that nut just the number of persons with a medium incoming is much bigger than the number of persons with a really big or really little incoming, but also of the fact that as the average value of the incomings increases, the number of those who receive an incoming decreases, so in general is almost the same in all countries and in all times.