The Pareto Principle, also called the 80/20 principle is an interesting observation. Google defines it as "In economics. The original observation was in connection with population and wealth. Pareto noticed that 80% of Italy's land was owned by 20% of the population. He then carried out surveys on a variety of other countries and found to his surprise that a similar distribution applied." It essentially states that, for numerous events, roughly 80% of the results come from 20% of the causes. In 1906, an economist named Vilfredo Pareto noticed that 80% of the land in italy was owned by only 20% of the population and he began to wonder why. 80% of the world's income come from the 20% of the worlds richest people. This is an accurate principle to follow, focus on the 20% of the causes and also improve 80% of the results. This principle has showed up almost everywhere. Majority of the effects comes from the minority of the causes. Pareto’s observation is useful for predicting outcomes and discovering distortions caused by intervention.
