As we’ve discussed, America must confront such issues as the fifth wave and the rise of global powers like China, with its mammoth population of cheap workers, its vast hoards of cash, and its urgent agenda for acquiring the resources to make it an economic superpower.
Clearly, if we are to remain the dominant technological and economic power in the world, we have to rethink the way we do business.
What’s at stake is the very standard of living that we’ve fought for decades to achieve. Looking back, we’ve weathered each great challenge, coming out on top every time. But according to an article in Fortune magazine, no challenge we’ve faced has ever been as great as the one now looming ahead. And if we don’t get it right this time, we could enter a period of long, slow economic decline that could trigger a domestic or even global political crisis.
The big question, then, is: Can America still compete? We’ve always done it before, and we’ll do it again. But the game has changed. It’s a global economy without traditional borders. Somebody in India could literally have your job tomorrow.
Fortunately, the U.S. economy is strong. Productivity is at historic highs, and unemployment is low. Everything points in the right direction. Everything, except one thing: For the first time in 14 years, average compensation for the American worker fell last year, despite all those positive indicators forecasting that it should have risen. And prominent economists say that foreign workers are the reason — and will be for years to come.
The problem is that the U.S. is trailing behind other countries in the number of highly skilled workers it is producing. China will award 3.3 million college degrees this year. Another 3.1 million will graduate in India. Meanwhile, the U.S. will award just 1.3 million.
In the process, China will create more than 600,000 engineering graduates, while India will add another 350,000. At home, we’ll hand engineering degrees to only 70,000 young people.
The combined populations of India and China are about seven times that of the U.S. But, they’re producing over 13 times as many engineers; that’s twice as many per capita.
Economic development throughout the world has been driven by science and technology. So, the key to maintaining...
