The technological advance that has had the greatest effect on life in this country is Anatocism, in other words, the theory of compound interest. Versions of this statement have been attributed to Albert Einstein, one of the widely acknowledged greatest minds in history. Whether or not this statement was actually authored by Albert Einstein is a matter of some debate.
Regardless, the fact that such a statement could be attributed to Albert Einstein, and widely accepted as truth, is a testament to the power of compounding interest. Compound interest has affected nearly every person in the world and is likely the major motivation for those with money to lend that currency to those who did not have it, providing the lenders such an advantage, that it was viewed as Usury and is tightly regulated by many governments.
Technology Essay Example
Another perspective one needs to consider regarding the power of compound interest and how it has been a driving factor in our lives is pointed out by John Maynard Keynes who postulated that the absence of inventions between the prehistoric age and the comparatively modern times was truly remarkable. He then went on to say “The modern age opened… with the accumulation of capital… the power of accumulation by compound interest, which seems to have been sleeping for many generations, was re-born and renewed its strength.
And the power of compound interest over two hundred years is such as to stagger the imagination. ” 1963 It is easy to see that without the influx of the capital that was created largely from the principle of compound interest as previously mentioned, that many of the inventions society has benefited from would have been stifled. Without the access to large amounts of capital and relative prosperity afforded by that capital many of the inventions that society enjoys at this time may have waited a long time to surface for public enjoyment
We have reviewed briefly some of the opinions regarding compound interest and the immense effect it has had on society. It is the authors conviction that compound interest has touched the lives of every American in many profound ways that have not been fully understood or realized by most. This powerful idea is truly the work of genius; whether it originated from Albert Einstein or not.