The CSIS Strengthening of America Commission, First Report.

Although the United States has the largest economy in the world, it has vulnerabilities. The growth rate of productivity has slowed. The U.S. net national savings rate is at an all-time low. The nation's educational system is performing well below the best international levels. A disenchanted electorate views federal institutions with increasing cynicism and mistrust. The Strengthening of America Commission proposes a specific blueprint for action to get the nation's fiscal house in order that combines budget deficit reduction with the replacement of the current tax code by a progressive consumption-based tax. The commission recommends three principal initiatives to support a human resources investment strategy: a new system of national standards at the secondary school level; expanded programs of training and apprenticeships for students who enter the work force directly after secondary school and expanded work force training programs; and a comprehensive effort to promote school readiness in young children. The commission also recommends that the government provide an economic environment that helps strengthen the U.S. industrial base. To help break the gridlock in government, the commission recommends structural reforms within the executive and legislative branches. (Appendixes include the following: meeting agendas; staff and working group lists; 128-item bibliography divided into sections concerning capital formation, fiscal policy, human resources, manufacturing and technology, and making Washington work; and separate opinions of commission members.) (YLB)