The Pareto principle with yin yang
October 1st, 2022
80% of the result comes from 20% of the effort
80% of the result comes from 20% of the effort

The Pareto Principle was suggested by Vilfredo Pareto (1848-1923) when he discovered that 80% of wealth own by 20% of people in Italy. It is an interesting theory and nowadays it applies to a lot of fields.

When I saw the visualization of Pareto Principles, a Chinese philosophical concept that describes how forces affect each other in a balanced manner popped up in my mind.

Yin and yang
Yin and yang

Usually, when we quote Yin and Yang, it is used to describe how the duality of things exists and leads to the mindset of moderate. However, we do not understand the dot on opposite sides with different colors. Here, we try to conjecture the correspondence with Pareto Principle. Why the black dot exists in the white area and its intention? That is a question we rarely ask.

If we apply two theory together, some rule comes:

  • A small part of the whole object dominates the outcome

  • Things have duality and influence each other

Back to the black dot, what if the black dot is the key to deciding the outlook of the white side when we combine that two theories together since the Pareto Principle, which small part dominates the outcome?

Let us elaborate more on wealth distribution, the Pareto Principle describes the phenomenon but does not explain why this happens and its source.

When we apply Yin and Yang to wealth, we know that wealth has two sides, inner and outer. Inner wealth usually means the status of mental state, like feeling secure, and joyful. For outer, mean fame and physical asset people owns.

Also in the culture of Chinese, people believed that there are two types of good deeds. The visible and invisible ones, each of them has different returns but not does for intentionally. In that say, we can define white as visible.

The large white part of Yin and Yang when describing wealth would be the evident wealth in our life as in the example above, and we know the black dot would be the key factor of manifesting outer wealth. There are four parts of Yin and Yang for wealth:

  • Big Visible wealth (+ +) Effect

  • Small Invisible wealth (- - ) Cause

  • Big Invisible wealth(+ -) Quantitative change

  • Small visible wealth(- +) Qualitative change

Let us use another concept to merge them

As above, so below
As above, so below

If we take planting as an example:

  • First, you plant a good intention seed (Cause)

  • Root would grow from time to time, but still invisible (Quantitative change)

  • Suddenly, the visible stem breaks the soil (Qualitative change)

  • Eventually, it grows into a tree and provides fruit (Effect)

That is a concept we do not yet fully understand how it works, but finding similarities between and connecting the dots are interesting. Moreover, you can start applying this combined rule to how a thing happens.

Have fun.

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