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Pareto principle and unfair advantage

It is a very good sentiment to believed world is fair and equally balanced. But unfortunately it is not. There are no 50:50 balances in this world. So, does that mean there is no balance? There is a balance, which I think is a skewed balance. A balance which enables the equilibrium to take place.

One of the universally accepted theories that point to this contradictions Pareto's theory also called as Law of vital few. This law states that 80% of the effects come from 20% of causes. This skews the risk or rewards more on a certain set of population that others. The world is thus unequal. For example, 20% of population lives in luxury, essentially implies that 80% of population does not have access to that luxury. 80% of internet traffic is represented by top 20% of websites and so on.

20% of people make money in market. Some estimates state an even lower number. This implies there are large numbers of people who do not make money in markets.

The point this post tries to make is: if you are part of elite few and you know that, then it essentially means there are 80% of population who are not like you. For example, if you are blogging on financial issue, 80% of blogs are not on financial issues. It is a very crude method but gives you the magnanimity of the tasks that we undertake when we make a major change.

Assuming you are on top of your class, the premium 20%, and you add your value by taking some more courses, you become 20% of the initial 20% in that area. That may or may not give you the advantage you desire but it will definitely set you apart when votes are counted in.

Remember to be in the premium half always. Trying to be so gets you one level inside already.

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