Education and the Economy.

This paper deals with the relationship between education and the decline in economic growth in the United States. Through lower costs, newly developed technology, and foreign capital, third world countries have developed competitive industrial capacities which intensify competition in markets the United States once dominated. Several high tech areas in America that have lost their competitive position are mentioned: steel, automobilies, and textiles. The nation's educational system was one of the significant contributors to the economic success of the United States in the first half of the 20th century. Both quality of the work force and the ability to produce scientific and technological development are highly, perhaps totally, dependent on education, and particularly training in math and science. Edward Denison, of the Brookings Institution, is cited as one of the pioneers in the research to identify and estimate the role of education in United States economic growth. Learning is seen as not simply preparation for work, but as a permanent part of work and adulthood and key to growth of enterprises and the national economy. Educators and other public policymakers face a challenge to understand and react to the current economic conditions and the resulting impact on the public education system. Appended are 13 references. (SI)