March 17, 2011

Day 23: Do you know the 80-20 Rule of the world's inequality?

More than 100 years ago, the Italian economist Vilfredo Pareto created a mathematical formula to describe the unequal distribution of wealth in his country, observing that 20 percent of the people owned 80 percent of the wealth.

Let's use maths TODAY to analyse/REALISE how inequal the world's economic system still is.

On the distribution of wealth and resources on planet earth, 20% of the population (or 1/5) controls 80% of the resources. Nowadays poverty is even bigger because the population has increased. The inequal ratio remains...

Now looking at the business side of things we have:

20% of the FTSE 100 (the 100 most highly capitalised UK companies listed on the London Stock Exchange) represent about 80% of the market capitalisation.

20 percent of your activities produce 80 percent of your financial rewards

In 80 percent of one's activity, you will probably enjoy youself in 20 percent

20 percent of employees are responsible for 80 percent of a company’s output

20 percent of customers are responsible for 80 percent of the revenues

One likely spends a large chunk of the money on few things (such as rent, mortgage payments and food).

Do you think this is fair? If you are reading this you are probably part of the 20% about to become part of the 80%, as the economic world crisis escalates.
- Are you willing to keep this human unsustainable system or do you stand for a change? We already feel (in our bodies!*) that this situation is not fair at all.
Until when are we willing to participate in such a win-lose game? In the end, the product of a positive and a negative is negative.

Looking at this situation, I would say that we definitely only use 20% of our brains and we are thus responsible for 80% of the world's problems.

Can you now see how a 'single' major change in the economic system (with the equality equation) will definitely change the majority of people's lives? By the way, if you think that things will change for the worst, you are already obcessed by the win-lose game played so far. Once we start living for the best of everyone, a 'worst' situation won't simply be accepted! We cannot understimate ourselves anymore. We are much better than what we belief/accept ourselves to be.

Let us allow ourselves, as Humanity, to really innovate by stopping the 80-20 rule and bring 1+1=2 equation where each one of us is considered.

* soon I will write a blog post where one will see how the lack of money is responsible many diseases and mental hilnesses accross the world, both in the so-called rich and poor countries. For now, one can ask oneself: if I had more money, would I eat the same food I eat now? If I had money, would I continue drinking so much until I become violent? If I had money, would I think constantly about money? If I had enough money for my children, would I still get angry at myself and at the world? ...


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