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The Peter Principle Proven
Actuarial Review ^ | Volume 24, No. 3 / August 1997

Posted on 07/20/2002 8:42:02 AM PDT by PeterPrinciple

The Peter Principle Proven

In case you've ever wondered why ignorance rises to the executive level, here is a simple explanation that is also a mathematical proof:

Knowledge is Power.

Time is Money.

And, as every actuary (with some physics training) knows:

Work

---------- = Power

Time

So, if Knowledge = Power and Time = Money

then through simple substitutions,

Work

---------- = Knowledge

Money

Solving for Money, we get:

Work

-------------- = Money

Knowledge

Thus, If Work is held constant as a positive number (no matter how small!) Money approaches infinity as Knowledge approaches zero.

What this means is:

All else being equal, the less you know, the more you make


TOPICS: Business/Economy; Culture/Society
KEYWORDS: peterprinciple
Does this explain Enron, WorldCom etc?????
1 posted on 07/20/2002 8:42:02 AM PDT by PeterPrinciple
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