Pareto, Vilfredo

Pareto, Vilfredo

Bio: (1848-1923) Italian sociologist and economist. Vilfredo Pareto studied mathematics and engineering at the University of Turin. Pareto's academic work in sociology and economics began in 1893, when he became chair of the Department of Political Economy at the University of Lausanne, and taught at the same university for the next twenty years. He developed his theoretical system which he applied to the study of society and economics. The teachings of Niccolò Machiavelli and Gaetano Mosca influenced Pareto's sociology the most, while his economic thought was most influenced by the teachings of Leon Walras.

                                Logoexperimental Method

The study of natural sciences influenced Pareto to take the position that in the study of society and economy, it is necessary to apply the methods of natural sciences, above all the approach he called the "logicoexperimental method". The research of the society should be based on experience and observations, while the general rules are reached by the inductive method - by starting from specific cases and expanding on them we can reach generalizations. No hypothesis should be accepted a priori but should be constantly tested. The best way to study society, and achieve increasing precision in doing so, is by applying a mathematical method and classifying social phenomena. Pareto believed that sociology and economics should be ethically neutral sciences, therefore, used only to describe the real state of affairs, but not to give moral assessments or instructions.

                                   Residues and Derivations

Pareto's book that is most important for his teachings in sociology is The Mind and Society (1935, in Italian 1916). The basis of Pareto's sociological approach is the initial assumption that the most important area of ​​social life, which should be studied first, is the area of ​​human action. Human actions are the most important sociological data. To classify human action, he introduces a division into, what he called, "residues" and "derivations". Residues represent the real reasons or motives for human behavior. Residues form the real basis of human action, while, on the other hand, derivations are only a justification and rationalization for some behavior. Pareto singled out fifty different residues and classified them into six classes:

1) residues of combination,

2) residues of the persistence of aggregates,

3) residues of the manifestation of sentiments through over tacts, (the need to express feelings through activities),

4) residues in regard to sociability,

5 ) residues of the integrity of the individual, or the need for an individual to integrate with his or her own social environment,

6) sexual residues.

The residues of the combination lead to social change, while the residues of the persistence of aggregates lead to the maintenance of the stability of society. Pareto considers both of these classes of residues to be central to sociology. Change and stability are always present in every society, only the relative strength of the influence of these two factors is changing. The first class of residue is the combination of different things without the use of logic. Only later do we give logical explanations for these actions. The most obvious example of combining is magic and superstition, where two unrelated things are presented as magically connected - for example, a rooster that is crowing at midnight is taken as an omen of death.

The second class of residues are aggregates that have become so stable over time that they are very difficult to change. The best example of such residues are customs. Fourth-class residues serve to enable a person to accept and apply behaviors that characterize his or her group or society. The aim is to standardize the model of behavior, while at the same time expressing fear of innovation. The remnants of the fifth class are aimed at opposing any change in the previously established balance in society. These residues focus on behavior that society considers unjust or immoral. The relative prevalence and influence that any class of residue varies from society to society, but all classes of residue are always present, at least to some extent, in every society. The proportions of residues that exist in a society and their proportional distribution within different strata in society, crucially affect the situation in that society.

Derivations arise as an a posteriori attempt to rationalize the residues, an attempt to present the activities as logical. Derivations can take many forms - activities can be justified through religion, morality, authority, law, or ideology. Sometimes derivations are presented as if they came from a practical, rational, and logical process of thinking, but even then, they usually represent ordinary rationalizations, because the explanation was not really scientific, that is, the logical-experimental method. Pareto singles out four classes of derivations:

1) affirmations - a simple statement that is not the product of empirical verification, but is presented as a fact;

2) authority - some claims are presented as true because there is an authority behind them, and behind that authority may be a person, group, tradition, religion, or something else;

3) Accord with sentiment or principles - the tendency to present attitudes as important, because most members of society have them;

4) verbal proof - the use of inadequate terms to make certain attitudes valid or invalid.

Pareto believes that derivations are never the causes of human activities, the residues are always the cause of human activities. However, there are relationships of interdependence between residues and derivatives, as well as relationships between derivations themselves. Some derivations can be disseminated through propaganda (e.g. the press and other media) or through imitation. Although derivations do not directly affect human actions, they affect people's feelings and help create and maintain the moral order of society, and in that respect, they are useful for society.

                                 Logical and Illogical Behavior

In the further development of his theory, Pareto introduces the difference between logical and illogical (nonlogical) behavior. He believes that the relationship between residuals and derivatives in a particular activity can show whether that activity is logical or illogical. If an activity leads to success in realizing our residues, then that activity is logical, regardless of what derivatives we use to rationalize that behavior. If we justify an activity by some derivation, but we do not achieve success in achieving the residue, then such activity is illogical. People who completely direct their behavior following some derivation, act illogically because they are not able to change their behavior and harmonize it with real external circumstances. Pareto believes that politicians and other social leaders should justify their views with derivations, in order to gain the support of the people, but in their activities, they should act only pragmatically, regardless of derivations, to achieve the goals set by the residues.

                                  Circulation of the Elite

Pareto justifies such hypocrisy in behavior with his theory of the elite. Like other theorists of the elite, Pareto divides every society into two separate strata - the elite that should lead the masses and the masses that should obediently follow the leadership of the elite. He believes that the elites that lead always exist, even when society seems completely democratic, or when mass revolutions take place. In both cases, the elites who direct political and social actions events are at the forefront of creating social order, or at the forefront of change. However, relations between the elite and the masses are never static. There are always several parallel processes that change this dynamic.

The first type of process is what Pareto calls the "circulation of elite." In the circulation of elites, we can single out two sub-processes. The first refers to individuals who fall out of the elite, because they lack personal qualities, while, at the same time, some members of the masses, also because of personal qualities, join the elite. The second sub-process occurs when the self-isolation of the elite occurs (the first sub-process is stopped), because, in that case, inferior individuals accumulate in one elite or ruling class, and superior individuals accumulate in the subordinate class, and, finally, there is a complete change of ruling class, with another, who then becomes the new elite. Paret's famous quote describing this shift is that "history is the graveyard of aristocracy."

Another type of dynamic within the elite are divisions and conflicts that occur within the elite itself. In cases where such conflicts are pronounced, the subordinate classes can derive some benefit for themselves. The next type of change within the elite is related to what means (force or cunning), and in what proportions, the elite uses to maintain its elite position. In that sense, Pareto refers to the division that Niccolò Machiavelli introduced between "lions" and "foxes" as different types of leaders. Lions use only force to stay in power, while foxes use cunning to trick the masses into following them. The application of either of these two strategies depends on many circumstances, so neither has a permanent primacy over the other. When one elite becomes conservative and applies only one type of leadership, and when that type of leadership ceases to be effective, then that elite is replaced by another.

This new elite came to power because it used the type of leadership, force, or cunning, that was more appropriate to the circumstances. The last type of dynamics within the elite is the division into "speculators" and "rentiers". There is a difference in the way of earning between these two groups. Speculators are trying to find new ways to make money, so their economic success depends on talent, hard work, and cunning. Renters are those whose income is constant and stable, while the source of income is not important. Rentiers can be the owners of the land from which they receive rent, or they can receive interest on money deposited in a bank, or they have a stable service for which they receive a salary. The first class of residues predominates in speculators, while the second class of residues predominates in rentiers. Both types of economic activity of the elite are needed in one society because every society needs stability, but also innovations and combinations introduced by speculators.

                                     Economic Teachings

In economics, Pareto was a follower of his teacher Leon Valras, and Pareto's most important original contributions to this science are: the theory of economic optimum, classification of capital into three types (immovable, movable, and humane), theory of the influence of personal tastes on consumption, and research on the causes of economic cycles (ups and downs of the economy). Pareto's scientific views were shaped by his conservative and cynical views of society. He was skeptical about the possibility and usefulness of any real social progress. He believed that patriarchy was a natural and universal order among civilized nations, and he believed that women were biologically destined to be fickle and promiscuous.

Main works

Cours d'économie politique, 2 vols. (1896, 1897);

Un' applicazione di teorie sociologiche (1900);

Les systèmes socialistes, 2 vols. (1902, 1903);

Manuale di economia politica con una introduzione alla scienza sociale (1906);

Il mito virtuista e la letteratura immorale (1911);

Trattato di sociologia generale (1916);

Fatti e teorie (1920);

Trasformazione della democrazia (1921).

Works translated into English:

The Rise and Fall of Elites: An Application of Theoretical Sociology (1991, in Italian 1900);

Manual of Political Economy: A Critical and Variorum Edition (2020, in Italian 1906);

The Mind and Society (1935, in Italian 1916); 

The Transformation of Democracy (1984, in Italian 1921);

Sociological Writings (1966).

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