Sunday, 31 May 2009

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 / Time = Power

So, if Knowledge = Power and Time = Money, then through simple substitutions,

Work / Money = Knowledge

Solving for Money, we get:

Work / Knowledge = Money

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.

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