{"id":4922,"date":"2010-09-21T06:53:00","date_gmt":"2010-09-21T13:53:00","guid":{"rendered":"https:\/\/staging.opexlearning.com\/resources\/?p=4922"},"modified":"2014-10-07T17:36:40","modified_gmt":"2014-10-07T22:36:40","slug":"pareto-principle-and-the-forbes-billionaire-list","status":"publish","type":"post","link":"https:\/\/staging.opexlearning.com\/resources\/pareto-principle-and-the-forbes-billionaire-list\/4922\/","title":{"rendered":"Forbes Billionaire List Forms a Clear Pareto"},"content":{"rendered":"<div class=\"a296a24fa2fc69ef5487857f02f111e8\" data-index=\"9\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- Single Post readerboard -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:inline-block;width:728px;height:90px\"\r\n     data-ad-client=\"ca-pub-8207522353004717\"\r\n     data-ad-slot=\"1144967431\"><\/ins>\r\n<script>\r\n(adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>The Pareto Principle is often called the 80\/20 rule because it is a visual representation that separates the &#8220;vital few from the trivial many&#8221;. It is a principle that is most often associated with the quality movement (Lean Six Sigma and Joseph Juran), but its roots are found in Economics and the social sciences. Specifically, the Pareto Principle came from Vilfredo Pareto in 1906 and his studies of the distribution of wealth.<\/p>\n<div align=\"center\">\r\n<table border=\"1\" cellpadding=\"5\">\r\n<tbody>\r\n<tr>\r\n<td style=\"text-align: center;\" colspan=\"2\"><strong>Other Articles on the Pareto Principle<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<ul>\r\n\t<li><a title=\"clean energy pareto chart\" href=\"https:\/\/staging.opexlearning.com\/resources\/clean-energy-jobs-pareto\/8780\/\">Pareto Principle in Clean Energy<\/a><\/li>\r\n\t<li><a title=\"sales force effectiveness pareto chart\" href=\"https:\/\/staging.opexlearning.com\/resources\/sales-force-effectiveness-metrics-strategy\/8785\/\">80\/20 in Sales Force Effectiveness<\/a><\/li>\r\n\t<li><a title=\"personal finance pareto chart\" href=\"https:\/\/staging.opexlearning.com\/resources\/personal-finance-the-pareto-principle\/9323\/\">Pareto Chart of Personal Finance<\/a><\/li>\r\n\t<li><a title=\"aquarium filters pareto chart\" href=\"https:\/\/staging.opexlearning.com\/resources\/aquarium-filter-type-pareto\/9443\/\">Pareto Underwater: 80\/20 in Aquarium Filters<\/a><\/li>\r\n\t<li><a title=\"sugar content 80\/20 chart\" href=\"https:\/\/staging.opexlearning.com\/resources\/sugar-content-in-foods-visual-pareto\/10200\/\">Sugar Content Pareto Chart<\/a><\/li>\r\n\t<li><a title=\"pareto on thanksgiving\" href=\"https:\/\/staging.opexlearning.com\/resources\/pareto-thanksgiving-pumpkin-pie\/7280\/\">Thanksgiving Turkey Pareto<\/a><\/li>\r\n\t<li><a title=\"diaper poopy pareto\" href=\"https:\/\/staging.opexlearning.com\/resources\/cost-of-poop-and-diaper-edition\/5742\/\">Daiper Poopy Pareto<\/a><\/li>\r\n\t<li><a title=\"texting by age pareto chart\" href=\"https:\/\/staging.opexlearning.com\/resources\/pareto-text-usage-by-age\/5722\/\">Texting Pareto by Age<\/a><\/li>\r\n\t<li><a title=\"sarah palin pareto on language count\" href=\"https:\/\/staging.opexlearning.com\/resources\/sarah-palin-pareto\/579\/\">Sarah Palin Pareto<\/a><\/li>\r\n\t<li><a title=\"flateto principle, not an 80\/20\" href=\"https:\/\/staging.opexlearning.com\/resources\/the-flateto-principle\/391\/\">Flat as a Pancake Pareto Flateto<\/a><\/li>\r\n<\/ul>\r\n<\/td>\r\n<td>\r\n<ul>\r\n\t<li><a title=\"pareto principle in shopping cart abandonment\" href=\"https:\/\/staging.opexlearning.com\/resources\/reduce-shopping-cart-abandonment\/8555\/\">80\/20 in Shopping Cart Abandonment<\/a><\/li>\r\n\t<li><a title=\"chinese middle class pareto chart\" href=\"https:\/\/staging.opexlearning.com\/resources\/pareto-in-the-wild-the-chinese-middle-class\/8478\/\">Chinese Middle Class Fits a Pareto Distribution<\/a><\/li>\r\n\t<li><a title=\"law and order special victims unit pareto\" href=\"https:\/\/staging.opexlearning.com\/resources\/pareto-law-and-order-special-victims-unit\/8361\/\">Pareto in Special Victims Unit<\/a><\/li>\r\n\t<li><a title=\"black friday 80\/20 chart\" href=\"https:\/\/staging.opexlearning.com\/resources\/foursquare-badges-pareto-black-friday\/7770\/\">Pareto on Black Friday<\/a><\/li>\r\n\t<li><a title=\"water consumption by country 80\/20\" href=\"https:\/\/staging.opexlearning.com\/resources\/pareto-chart-water-usage-by-country\/7762\/\">Water Consumption by Country Pareto Chart<\/a><\/li>\r\n\t<li><a title=\"cyber monday and black friday pareto\" href=\"https:\/\/staging.opexlearning.com\/resources\/cyber-monday-black-friday\/7376\/\">Cyber Monday versus Black Friday Pareto<\/a><\/li>\r\n\t<li><a title=\"hamburger pareto\" href=\"https:\/\/staging.opexlearning.com\/resources\/money-spent-on-hamburgers\/5736\/\">Hamburgers 80\/20<\/a><\/li>\r\n\t<li><a title=\"80\/20 forbes billionaire list\" href=\"https:\/\/staging.opexlearning.com\/resources\/pareto-principle-and-the-forbes-billionaire-list\/4922\/\">Forbes Billionaire List 80\/20<\/a><\/li>\r\n\t<li><a title=\"snoop dogg 80\/20 foshizzle homie\" href=\"https:\/\/staging.opexlearning.com\/resources\/snoop-dogg-the-business-geek-foshiznit\/488\/\">Snoop Dogg Pareto Foshizzle<\/a><\/li>\r\n\t<li><a title=\"nps pareto of defects\" href=\"https:\/\/staging.opexlearning.com\/resources\/nps-customer-feedback-loop-lean-thinking\/10563\/\">Net Promoter Score Pareto<\/a><\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n<br>\n<p>In his discovery, he concluded that 80% of the land in Italy was owned by 20% of the population. Generalizing more broadly, 80% of the wealth in the world is owned by 20% of the population.<\/p>\n<p>Fast forward from 1906 to 2010. Has anything changed?<\/p>\n<p>Forbes Magazine publishes its annual Billionaire list <sup class='footnote'><a href='#fn-4922-1' id='fnref-4922-1' onclick='return fdfootnote_show(4922)'>1<\/a><\/sup>. The Billionaire Infographic below shows very nicely the Pareto Principle in practice, where the billionaires are stratified by country. You see that the majority are found in the USA.<\/p>\n<p><strong>Question: In what other contexts have you seen the Pareto Principle be applied?<br \/>\n<\/strong><\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4923 aligncenter\" title=\"billionaires-of-the-world\" src=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2010\/09\/billionaires-of-the-world.jpg\" alt=\"\" width=\"520\" height=\"520\" srcset=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2010\/09\/billionaires-of-the-world.jpg 1100w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2010\/09\/billionaires-of-the-world-300x300.jpg 300w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2010\/09\/billionaires-of-the-world-100x100.jpg 100w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2010\/09\/billionaires-of-the-world-600x600.jpg 600w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2010\/09\/billionaires-of-the-world-150x150.jpg 150w, https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2010\/09\/billionaires-of-the-world-1024x1024.jpg 1024w\" sizes=\"(max-width: 520px) 100vw, 520px\" \/><\/p>\n<p style=\"text-align: center;\"><object width=\"520\" height=\"415\" classid=\"clsid:d27cdb6e-ae6d-11cf-96b8-444553540000\" codebase=\"http:\/\/download.macromedia.com\/pub\/shockwave\/cabs\/flash\/swflash.cab#version=6,0,40,0\"><param name=\"allowFullScreen\" value=\"true\" \/><param name=\"allowscriptaccess\" value=\"always\" \/><param name=\"src\" value=\"http:\/\/www.youtube.com\/v\/HwTSnkBWaHM?fs=1&amp;hl=en_US&amp;rel=0&amp;color1=0x2b405b&amp;color2=0x6b8ab6\" \/><param name=\"allowfullscreen\" value=\"true\" \/><embed type=\"application\/x-shockwave-flash\" width=\"520\" height=\"415\" src=\"http:\/\/www.youtube.com\/v\/HwTSnkBWaHM?fs=1&amp;hl=en_US&amp;rel=0&amp;color1=0x2b405b&amp;color2=0x6b8ab6\" allowscriptaccess=\"always\" allowfullscreen=\"allowfullscreen\" \/><\/object><\/p>\n<div class='footnotes' id='footnotes-4922'>\n<div class='footnotedivider'><\/div>\n<ol>\n<li id='fn-4922-1'> infographic courtesy of http:\/\/www.sizzledtech.com\/wp-content\/uploads\/2010\/08\/billionaires-of-the-world.jpg <span class='footnotereverse'><a href='#fnref-4922-1'>&#8617;<\/a><\/span><\/li>\n<\/ol>\n<\/div>\n<!--CusAds0-->\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>The Pareto Principle is often called the 80\/20 rule because it is a visual representation that separates the &#8220;vital few from the trivial many&#8221;. It is a principle that is most often associated with the quality movement (Lean Six Sigma and Joseph Juran), but its roots are found in Economics and the social sciences. Specifically, [&hellip;]<\/p>\n","protected":false},"author":12327,"featured_media":11145,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[64],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Forbes Billionaire List Forms a Rich Looking Pareto<\/title>\n<meta name=\"description\" content=\"Forbes billionaire list shows a clear 80\/20 when it comes to income distribution.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, 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