The 80/20 Rule

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Duration: 5:00
Source: Stanford ECorner
Author: David Rothkopf, Author
Copyright: Creative Commons: by-nc-nd
Found: Nov 5, 2009

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And power has grown more and more concentrated. Some of you may be familiar with the works of the Italian economist, Wilfredo Pareto, who came up with, at the turn of the century, 80-20 Rule. The 80-20 Rule is wonderful because it applies to everything. It applies to dog racing. 20% of the dogs win 80% of the races. And it applies to rabbit breeding, if any of you championship rabbit breeders, [Laughter] some of you over there are championship rabbit breeders. 20% of the rabbits win 80% of the championship or something like that and it’s reductive. Within the 20-80 Rule, there's another 20-80 Rule. And so there's a growing concentration of power and that works in the world. The top 2,000 companies have 70 million employees. Those employees probably have 300 or 400 million dependents, so the CEOs and boards of those companies have direct influence over the lives of four, 500 million people. There are probably another half a billion people who are suppliers or distributors for those companies. That's a billion people who are influenced by those 2,000 people or the boards and the power structure each of these companies varies. But that's a lot of concentration the power particularly consider than in a planet of 6,000 people, or 6 billion people. I live on my own planet. It's called the 'Planet Superclass' and there are only 6,000 people and I'll take you there. Just bear with me here. But I'm on a planet of 6 billion people. Half of those people live on $2 a day, never heard a dial tone. They're not even in the game. Another billion live on a couple of bucks a day. More than that, poverty or something a little bit better than that; really struggling. There are only a couple of billion people on the planet who have anything like a descent living and they report to 2,000 CEOs or their lives or their health care plans or where they're working or what assets are being allocated to them go those people. And it's a very, very tightly-knit group even beyond tha...
Language: English
Category: Business
Tags: David Rothkopf, Author
Country: United States


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