Putting the 80/20 rule to the test

A favorite of productivity hackers, the Pareto Principle, aka the 80/20 rule, has taken on a life of its own since it was first observed by an Italian economist over a century ago. The concept states that a small number of causes generates a large number of outcomes. Today on the show, the origins of the Pareto Principle, why marketing and business-types love it, and whether it holds up under scrutiny. For sponsor-free episodes of The Indicator from Planet Money, subscribe to Planet Money+ via Apple Podcasts or at plus.npr.org. Music by Drop Electric. Find us: TikTok, Instagram, Facebook, Newsletter. Learn more about sponsor message choices: podcastchoices.com/adchoicesNPR Privacy Policy

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A little show about big ideas. From the people who make Planet Money, The Indicator helps you make sense of what's happening today. It's a quick hit of insight into work, business, the economy, and everything else. Listen weekday afternoons.Try Planet Money+! a new way to support the show you love, get a sponsor-free feed of the podcast, *and* get access to bonus content. You'll also get access to The Indicator and Planet Money Summer School, both without interruptions. sign up at plus.npr.org/planetmoney