Buy WILLisms

XML Feed

Featured Entries

The Babe Theory Of Political Movements.
Mar. 21, 2005 11:50 AM

Iran's Sham Election In Houston.
June 20, 2005 5:36 AM

Yes, Kanye, Bush Does Care.
Oct. 31, 2005 12:41 AM

Health Care vs. Wealth Care.
Nov. 23, 2005 3:28 PM

Americans Voting With Their Feet.
Nov. 30, 2005 1:33 PM

Idea Majorities Matter.
May 12, 2006 6:15 PM

Twilight Zone Economics.
Oct. 17, 2006 12:30 AM

The "Shrinking" Middle Class.
Dec. 13, 2006 1:01 PM

From Ashes, GOP Opportunities.
Dec. 18, 2006 6:37 PM

Battle Between Entitlements & Pork.
Dec. 21, 2006 12:31 PM

Let Economic Freedom Reign.
Dec. 22, 2006 10:22 PM

Biggest Health Care Moment In Decades.
July 25, 2007 4:32 PM

Unions Antithetical to Liberty.
May 28, 2008 11:12 PM

Right To Work States Rock.
June 9, 2008 12:25 PM



Blogroll Me!



July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005
April 2005
March 2005
February 2005
January 2005
December 2004

Social Security Reform Thursday.
March 13, 2008

Caption Contest: Enter Today!
Due: July 29, 2008

The Carnival Of Classiness.
Mar. 14, 2006

Quotational Therapy: Obama.
Apr. 4, 2008

Mainstream Melee: Wolfowitz.
May 19, 2007

Pundit Roundtable: Leaks.
July 9, 2006

A WILLisms.com(ic), by Ken McCracken
July 14, 2006


Powered by Movable Type 3.17
Site Design by Sekimori

WILLisms.com June 2008 Book of the Month (certified classy):

The WILLisms.com Gift Shop: Support This Site


This Week's Carnival of Revolutions: carnivalbutton.gif

Carnival Home Base: homebase.gif


« Reform Thursday: Week Seven, Bonus Graphic: Ryan-Sununu's Solvency. | WILLisms.com | The Latest On Terri Schiavo. »

Compound Interest, The Rule Of 72, & Albert Einstein.

Do personal retirement accounts achieve solvency?

Yes (see here and here).

Is that the only reason to support them?

Absolutely not.

Personal accounts would also provide a better benefit for younger workers and create an ownership society in which lower and middle income earners could keep more of what they earn and ultimately pass it on to their survivors.

Personal accounts would tap the raw power of what Albert Einstein admired as one of the most powerful forces in the universe, compound interest and the rule of 72 (in which you divide 72 by the interest rate to see how many years it will take to double your money, so a 6% rate of interest would double your money in 12 years).


As WILLisms.com noted before, even AARP urges its members to harness the power of compound interest, on a page titled "Count on Compound Interest." AARP explains to its members:

Many years ago, someone asked Albert Einstein what he thought was the human race's greatest invention. His reply?

"Compound interest."

Compound interest is a powerful tool for building wealth and financial security. Over time, it can make your money grow dramatically.

"Fatherflot" at the left-wing blog dailykos.com tries to debunk Einstein's often-cited awe of compound interest, following a casual aside on the subject in a speech delivered by Treasury Secretary John Snow.

"Fatherflot" and the other kos people, however, can't seem to come up with any contrary evidence on whether Einstein actually admired the forces at play in compound interest, nor on whether compound interest is really so great.

WILLisms.com will go ahead and assume that even if Einstein did not claim that compound interest is one of the greatest forces in the universe, the idea behind his comments remains solid.

The rule of 72 is one reason why personal accounts are so attractive for younger workers, and a reason why it is so imperative that we act soon to reform Social Security. Each day the system remains in its current form is a day younger workers are being robbed of compound interest.

It's time to put compound interest to work for Social Security and for American workers.

Posted by Will Franklin · 17 March 2005 11:50 AM


I agree compound interest is one of the greatest inventions ever! It is ridiculous how social security really does rob us all of that luxury. Now, How do we get the Dems. to see that? I think that the Donkey is a good symbol for the democratic Party,because they all seem to be a bunch of jackasses! If you will pardon the expression?

Posted by: ZSA zsa at March 17, 2005 02:31 PM