The Limits of Free Markets

Let me say to start this off, I am in no way “anti capitalist” or anything of the like. I am, in fact, a pretty avid supporter of the free market approach to economics. However, I recently remembered a remarkable Idea, which made me contemplate the limits of free markets, the Pareto Principle.

The Pareto distribution or more popularly known as the 80/20 rule states that in any given system 80 percent of the outcome is generated by 20 percent of the causes. That is common knowledge in the business world, suggesting that the rule is especially true in corporate…