Thank you for a well written and clear analysis of the problems facing the American people. I am in agreement with many of your views. What is needed however are solutions to these problems. Yes education is bad but how do you make substantial improvements? Yes the national debt is bad but how do you change the direction? Yes the housing situation is bad but how do you change that direction?
In sddition to some of the suggestions made by John Shanton I would add a few here:
We have no compelling need to dominate the world with about 900 military bases in dozens of countries. Phase them out over the next few years.
Remove the troops ( 100% ) from Iraq within two months.
Stop all Federal subsidies for private companies.
Replace the Income Tax with a consumption tax.
Etc.
Rich
]]>Dominic,
You raised an important and valid point. It requires some more discussion to clarify this issue. First, it is true that it is very difficult for a standardized test to predict a student’s future creativity and innovation. However, the ability to apply what students have learned to solve practical problems is relevant to global competitiveness, and that is something that the PISA tests try to measure. Of course one can still argue whether students can be trained to do better even in that kind of tests. So I don’t think one can draw a definitive conclusion. But let’s look at several other related phenomena.
One is the International Physics and Math Olympiad, which is an extremely difficult test for the very best high school students in physics and math. These are definitely tests that don’t just ask you to regurgitate what you have learned, but they test your ability to use what you have learned to analyze and solve very complex and difficult problems. For the 2008 International Physics Olympiad (the latest one that I can find the complete results), each country sent five representatives. Here are the results. The five Chinese representatives placed 1, 2, 3, 20, and 39. The five U.S. representatives placed 33, 35, 36, 45, and 48. For the 2008 International Math Olympiad, each country sent six representatives. Here are the results. The six Chinese representatives placed 1, 6, 10, 17, 41, and 47. The six U.S. representatives placed 2, 34, 45, 51, 55, and 72.
The second one is the number of international patent applications. The U.S. still files the most number of international patents, but other countries are catching up rapidly. For example, in 2010, the U.S. filed 44,855 applications, followed by Japan with 32,156 applications, Germany with 17,171 applications, and China with 3,942 applications. Although there is still a very large gap between the U.S. and China, the U.S.’ 2010 filing was down 1.7% from 2009, but China’s 2010 filing was up 56.2% from 2009! Among companies, in 2010 the Japanese company Panasonic kept its top spot filing 2,154 patent applications. The Chinese telecommunications equipment manufacturer ZTE was second filing 1,863 applications, and the Chinese telecommunications solutions provider Huawei was fourth filing 1,528 applications. The top American company was Qualcomm in third place filing 1,677 applications. I think the trend is clear that China is rapidly closing the gap in international patent applications.
The third one is the long dominance of Japanese and German automobile and electronic manufacturers, with Korea also becoming a strong competitor.
The fourth phenomenon is the large percentage of graduate students in science and engineering in American universities who are foreign students. For example, in 2006 (the year I can easily find the relevant statistics), the foreign student population earned approximately 36.2% of the doctorate degrees in the sciences and approximately 63.6% of the doctorate degrees in engineering. If this phenomenon continues, the U.S. will be heavily dependent on foreign students on its research and development. Furthermore, as other countries become more developed, many of these graduate school graduates will return to their native countries to work, instead of staying in the U.S. and becoming part of the U.S.’s technological work force.
Therefore, it is reasonable to conclude that other countries have either advanced beyond the U.S. or closing the gap of competitiveness with the U.S. in the sense that they will be able to compete by producing high quality and new products, while doing it at a lower cost. Regarding your comment that most of the innovative technological advances in the last 30 years still originated in the U.S., I just want to point out that it takes more time to catch up in the area of major innovations and breakthroughs. For example, the 15 year old students taking the PISA tests will take at least another 10-15 years before they reach their major productivity years. Let’s wait and see.
Thanks for your valuable comments.
Don
]]>Many thanks for your thoughtful summary on the future of the US
economy. I just would like to add a couple of concerns:
1. The national debt is not limited to the debt at the federal
level. At this time, nearly all 50 states and a significant
number of local townships are technically insolvent.
Fortunately, the values and fate of foreign holdings on the
debt/stocks of semi-government agencies (e.g., Freddic/Fennie)
do not need to be included as national debt.
2. In terms of competitiveness, the US is facing yet another big
problem: the deteriorating infrastructures (e.g., bridges,
sewage systems, water supplies, electricity grids, highways,
dams, airports, levies) which need hundreds of billions, if
not trillions of dollars to repair/maintain.
Just another perspectives to the big picture.
Lyndon Pan
]]>Very interesting and thoughtful article. I agree with most of your observations but just want to make a comment on the international standardized test. Standardized tests, no matter how well they are designed, at best test students’ ability to learn and remember, but not their creativity and certainly not their ability to innovate. The educational systems in Asian countries (like Taiwan and Singapore) are structured for their students to achieve good scores in standardized tests, but not to invent. Taiwan and Singapore leaders (political, academic and others) are concerned that while their students have pretty high scores in PISA test, their countries produce few world class scientists, not to mention companies like Google, Apple, Facebook, or Microsoft. More and more people now believe that over-emphasize of standardized tests won’t produce students that can innovate and invent, only students that know how to take tests.
Dominic
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