Speaking of financial crises and how they can expose weak companies and weak countries, Warren Buffett once famously quipped that \u201conly when the tide goes out do you find out who is not wearing a bathing suit.\u201d\u009d So true. But what\u2019s really unnerving is that America appears to be one of those countries that has been swimming buck naked \u201d\u201d in more ways than one.<\/p>\n
Credit bubbles are like the tide. They can cover up a lot of rot. In our case, the excess consumer demand and jobs created by our credit and housing bubbles have masked not only our weaknesses in manufacturing and other economic fundamentals, but something worse: how far we have fallen behind in K-12 education and how much it is now costing us. That is the conclusion I drew from a new study by the consulting firm McKinsey, entitled \u201cThe Economic Impact of the Achievement Gap in America\u2019s Schools.\u201d\u009d<\/p>\n
Just a quick review: In the 1950s and 1960s, the U.S. dominated the world in K-12 education. We also dominated economically. In the 1970s and 1980s, we still had a lead, albeit smaller, in educating our population through secondary school, and America continued to lead the world economically, albeit with other big economies, like China, closing in. Today, we have fallen behind in both per capita high school graduates and their quality. Consequences to follow.<\/p>\n