No attribution was provided, and anonymous advertising copy writers have applied the “eight wonder” label to a wide variety of objects and ideas for more than two hundred years. QI has found no substantive evidence that Albert Einstein, Baron Rothschild, or John D. Rockefeller employed the saying. A. Michael Lipper, president of Lipper Analytical Securities Corp., quotes Albert Einstein’s remark that “The eighth wonder of the world is compound interest.” If you can invest at a sure 7 percent return, your money will double in 10 years. If you are patient, and stick with your investments over time, you will almost always come out ahead. Upon closer inspection, it’s apparent Gates had merely rephrased Einstein’s above-mentioned insight. After all, Gates’ so-called law merely dusts off Nature’s age-old law of growth.
Why Einstein Called Compound Interest a Superpower
It doesn’t change the fact that compound interest should be on the mind of anyone looking to build wealth over time. He might have; the sentiment matches what seems to be this particular genius’s sense of humor. Many homeowners who have struggled to meet their mortgages month after month, only to find after years of making payments that most of their money has gone to cover interest charges, have felt like cursing whoever came up with the concept of compound interest.
- Would Einstein feel the same way now, with a college education costing several multiples more than it did in his time, even after taking inflation into account?
- Fans are invested in their heroes; to admit their guru isn’t perfect is to admit they wasted time, money, and energy.
- But it is not particularly easy for one to climb up out of the working class—especially if he is handicapped by the possession of ideals and illusions.
- Upon closer inspection, it’s apparent Gates had merely rephrased Einstein’s above-mentioned insight.
- Stack Exchange network consists of 183 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers.
Did Albert Einstein declare compound interest to be ‘the most powerful force in the universe’?
For Einstein, advanced education is not job training, but training to perform at high levels in any situation, job or otherwise. This agrees with my view on education, with its worth being measured in more than just financial return on investment. Would Einstein feel the same way now, with a college education costing several multiples more than it did in his time, even after taking inflation into account? He clearly sees the importance of cognitive ability and education for growing human capital, which has a positive effect on options for long-term wealth. Despite his initial problems with the regimented style of school, Einstein strongly valued the cognitive skills he gained from his later studies.
Albert Einstein – Compound interest
He cited a good college education with providing the type of cognitive skills that allows people to think for themselves and imagine possibilities that have never been imagined. “The value of a college education is not the learning of many facts but the training of the mind to think,” Einstein was quoted in the New York Times in 1921. In 1916 a character in an advertisement in a California newspaper called “compound interest” the “greatest invention the world has ever produced”.
One question I was asked at practically every stop was, “What’s the greatest invention of all time? ” I finally worked up an acceptable answer to this one, one I hoped would preserve my goal of presenting positive, optimistic views of science. In conclusion, this article presents a snapshot of current research. The label “eight wonder” was applied to compound interest in an advertisement for a bank in 1925.
The Great Importance of People Who Don’t Belong
Because no idea is original, perhaps the “genius” simply removes the letter ‘K’ — from what people Knew yesterday — and repackages it as new today. Albert Einstein definitely leaned towards the socialist end of the economic spectrum, but he always emphasized the important of individual freedom, democracy, and personal liberty. He was not a fan of communism in what is overhead Russia, nor was he a supporter of German fascism or nationalism. The United States was politically the best environment for him, particularly with his belief that art and science relied on the availability and encouragement of individualism. There is no question that Einstein enjoyed the personal freedom to succeed in the United States afforded by the country’s capitalist underpinnings.
While it’s true that Albert the systemic implications of bail Einstein did not utter the phrase “uninterrupted compounding interest is the eighth wonder of the world,” I’m certain he would have commended the individual who did. To discover how you can establish a system of uninterrupted compounding interest machines or infinite family banks, click here to embark on your journey. Compound interest has essentially tripled (x2.65) your investment (principal). However, Albert Einstein certainly had an opinion on the matter. Being thankful for these opportunities is certainly one reason not to throw it away by making bad decisions with money.
“Ahh, so compound interest is almost like an invisible force?” he asked. What we can appreciate from Einstein’s philosophy is that society is as important as the individual, and individuals, particularly those who are successful, accounting equation can help society to a greater extent without sacrificing their success. Also, regulations free from corruption help guide capitalism so that opportunities are available for more citizens. But it is not particularly easy for one to climb up out of the working class—especially if he is handicapped by the possession of ideals and illusions. I lived on a ranch in California, and I was hard put to find the ladder whereby to climb. I early inquired the rate of interest on invested money, and worried my child’s brain into an understanding of the virtues and excellencies of that remarkable invention of man, compound interest.
