Education –
Education is a key component underpinning the national security of the United States (US). It drives the economy, sharpens the nation’s competitive edge in science, technology, and innovation, develops the minds of people of all ages, raises the poor out of poverty, and is the great social equalizer. The US is a recognized global leader in education, and higher education is the fuel for prosperity and security. As college costs rise, students are increasingly ill-prepared for postsecondary courses, and employers are less able to find qualified employees, some may ask whether the fuel is running out. As the nation and its new administration look to secure opportunities and economic prosperity for its populace, it is appropriate to assess the current higher education landscape, evaluate the market drivers, and look for ways to improve the possibilities for future generations. According to the Organization for Economic Cooperation and Development, the US spent $11,700 per full-time equivalent (FTE) student in 2012, which was 31 percent higher than the average of other countries. At the postsecondary level, the US spent 2.8 percent of Gross Domestic Product (GDP), which was higher than the average (1.5 percent) and higher than that of any other country. If one includes education spending across all levels (elementary, secondary, and postsecondary), spending grows to 6.4 percent of GDP.
Education has historically given all Americans—rich and poor, black and white—opportunity. It has allowed individuals to achieve their dreams, and it has fueled the continued innovation, growth, prosperity, and security of this nation.
Higher education provides opportunity by bringing students together in an environment that stimulates learning and enhances cognitive and non-cognitive factors that lead to improved livelihoods. At the same time, institutions of higher learning serve other constituents, including employers, faculty, governments, and others, with an interest in building and applying knowledge. As economic platforms, these institutions have numerous disconnects in the market to include information failures and misaligned incentives. Through effective platforms, enabled people, and improved processes, an increased national investment in higher education will address these market failures to increase opportunities, improve prosperity, and enhance national security. This paper examines the higher education industry in its current form, the market failures and corrective actions taken to date, and suggests changes that will improve the overall market condition. Lastly, the paper provides in-depth essays on the higher education shortfalls and proposed solutions.
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