I seem to be developing a knack for posting absurd information. Thankfully, Craig allows me the opportunity to post such things on the board.
Ok, random information of the day...
The Pareto Principle (80/20 rule) is a key concept in my life as I'm always looking for the critical 20% of inputs that drive 80% of the outcomes in just about everything. So, as I'm looking over the 2010 U.S. federal budget today figuring out how I'd balance it if I were king for 4 years, I started crunching a few numbers.
There are 32 federal budget departments/categories between mandatory and discretionary spending.
20% of 32 = 6.4
Add up the expenditures of the top 6 departments and what do you get?
$2820 Billion
What are the total expenditures of all 32 departments?
$3552 Billion
The top 20% of all federal departments account for 79.39% of all expenditures. So, you want to balance the budget? Focus your efforts on these 6 departments.
Pareto's Priciple (80/20) is everywhere! Yes, even the federal budget.
Moderator: Global Moderator
Re: Pareto's Priciple (80/20) is everywhere! Yes, even the federal budget.
Unfortunately, you're probably talking about defense, social security, medicare, and unemployment insurance making up a big piece of that.
I'm for cutting all of them, but they're all pretty sacred... especially as our demographics age.
I'm for cutting all of them, but they're all pretty sacred... especially as our demographics age.
"Men did not make the earth. It is the value of the improvements only, and not the earth itself, that is individual property. Every proprietor owes to the community a ground rent for the land which he holds."
- Thomas Paine
- Thomas Paine
Re: Pareto's Priciple (80/20) is everywhere! Yes, even the federal budget.
Hmmmm... I really like the logic here. I too like the 80/20 rule. I would go so far as to eliminate the bottom 80% of all federal departments. It's not like we even had those departments 100 years ago, and I'm sure we could do without them if we had to.Wonk wrote: I seem to be developing a knack for posting absurd information. Thankfully, Craig allows me the opportunity to post such things on the board.
Ok, random information of the day...
The Pareto Principle (80/20 rule) is a key concept in my life as I'm always looking for the critical 20% of inputs that drive 80% of the outcomes in just about everything. So, as I'm looking over the 2010 U.S. federal budget today figuring out how I'd balance it if I were king for 4 years, I started crunching a few numbers.
There are 32 federal budget departments/categories between mandatory and discretionary spending.
20% of 32 = 6.4
Add up the expenditures of the top 6 departments and what do you get?
$2820 Billion
What are the total expenditures of all 32 departments?
$3552 Billion
The top 20% of all federal departments account for 79.39% of all expenditures. So, you want to balance the budget? Focus your efforts on these 6 departments.
"Machines are gonna fail...and the system's gonna fail"