[Congressional Record (Bound Edition), Volume 145 (1999), Part 2]
[House]
[Page 2881]
[From the U.S. Government Publishing Office, www.gpo.gov]




                 COMPOUND INTEREST AND SOCIAL SECURITY

  (Mr. SCHAFFER asked and was given permission to address the House for 
1 minute and to revise and extend his remarks.)
  Mr. SCHAFFER. Mr. Speaker, I would like to talk about something we 
will never hear the White House talk about: compound interest.
  Compound interest is a simple concept. It makes people rich. In fact, 
compound interest is such a powerful force that Einstein once called it 
the most powerful force in the universe.
  Money invested and then reinvested grows. And the more it grows, the 
faster it grows, and at increased rates. Money out of our paychecks 
goes to the Social Security Trust Fund and does not grow. It is spent. 
It is not a real trust fund. Now, money invested in stocks, bonds, 
mutual funds and other investment securities does grow.
  Can anyone on the other side of the aisle tell me why the aging of 
America and the coming retirement of the baby boomers is a crisis for 
Social Security but not a problem for private sector retirement 
systems? It could be, as the Church Lady says, Satan. Or it could be 
simply a matter of compound interest and no principal.

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