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Vilfredo Pareto: Society
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Though Fascist rule in Italy came to an end with the military victory of the Anglo-Americans in 1945, Pareto's influence was not seriously touched by that mighty upheaval. Today, new editions of his works and new books about his view of society continue to appear. That his ideas endured the catastrophe of the war virtually without damage, and that they are still discussed among and debated by serious thinkers, is suggestive of their universality and timelessness.
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In 1937, Dr. Juran conceptualized the Pareto principle, which millions of managers rely on to help separate the "vital few" from the "useful many" in their activities. This is commonly referred to as the 20-80 principle. In 2003, the American Society for Quality is proposing renaming the Pareto Principle the "Juran Principle." Its universal application makes it one of the most useful concepts and tools of modern-day management.
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Published as a slim volume near the end of Pareto's life, The Transformation of Democracy originally appeared in 1920 as a series of essays published in an Italian scholarly periodical, Revista di Milano. In this work, Pareto recapitulates many of his theories in a more concise form, placing particular emphasis on what he believes are the consequences of allowing a money-elite to dominate society. The title of this work comes from Pareto's observation that European democracies in the 1920s were more and more being transformed into plutocracies. The deception and corruption associated with plutocratic rule would eventually produce a reaction... and lead to the system's downfall. In Pareto's words,
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In a famous 1900 Rivista article, Pareto suddenly changed direction. Heretofore a radical democrat, Pareto now decided to declare himself an anti-democrat. The disturbances of the 1890s in Italy and France led Pareto to realize that, far from restoring true democracy, meritocracy and promoting social welfare, the radical movements were really just seeking to replace one élite with another élite, the privileges and structures of power remaining intact. The struggle was not for a good society, but a squabble among élites over whom exactly was to going to govern. And the ideals and theories they claimed to fight for? Just propaganda, Pareto declared, the way upwardly-mobile folks incite the helpless, hopeless mob to take to the streets on their behalf.
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