Price's Law - it's terrifying
15 September, 2020 - 2 min read
I recently learned about Price's Law while watching one of Jordan Peterson's lectures - and its terrifying.
Price's Law states that 50% of productivity comes from the square root of the number of people contributing.
Eg: If you have 10 developers working on a product, the square root of 10 is 3. Therefor only 3 of those developers are producing half of the results.
If you have 100,000 employees only 100 people are producing half of the results...
TERRIFYING - how do businesses even exist?
It also explains the 1% of successful people in each field, writers, musician's, entrepreneur's etc.
When expressed on a graph the bottom 50% of people are identified at the 0 marker... that's terrifying when you think of unemployment numbers.
This more than anything else I've seen show's why it's important to do what you're good at in life. The deck is already stacked against us without making things harder on ourselves.
With this in mind, I never want to start a company that employs people. I'd rather become a solo or co founder and use technology to my advantage instead of relying on human output. Sounds harsh, and maybe I'll change my mind later. But for now. I've got to figure out if there is anyway I can use this to my advantage...
More to come...