As defined by Carlo Cipolla and probably influenced by Dietrich Bonhoeffer.
1. Always and inevitably everyone underestimates the number of stupid individuals in circulation.
2. The probability that a certain person is stupid is independent of any other characteristic of that person.
3. A stupid person is one who causes losses to another person or a group of people while they gain nothing or may even suffer losses.
4. Non-stupid people always underestimate the damaging power of stupid individuals. In particular, non-stupid people constantly forget that in any time and place and circumstance dealing and/or hanging out with stupid people always turns out to be a costly mistake.
5. Stupid people are the most dangerous type of people.
The most interesting law is number 3 because it leads to four categories of people depending upon how they affect themselves and others.
Intelligent People - Generate gains for themselves and gains for others.
Bandits - Generate gains for themselves and losses for others.
Helpless People - Generate losses for themselves and gains for others.
Stupid People - Generate losses for themselves and losses for others.
Bonhoeffer made the point that stupidity is far more dangerous than malice.
I'm not really that sure about #2. While it's true that anyone can be stupid based upon this definition some characteristics may mitigate the possibility.
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