US No Longer Technology King

Makkonnen

The Quizatz Haderach
BGOL Investor
US 'no longer technology king'
The US has lost its position as the world's primary engine of technology innovation, according to a report by the World Economic Forum.

The US is now ranked seventh in the body's league table measuring the impact of technology on the development of nations.

A deterioration of the political and regulatory environment in the US prompted the fall, the report said.

The top spot went for the first time to Denmark, followed by Sweden.

Innovation

Countries were judged on technological advancements in general business, the infrastructure available and the extent to which government policy creates a framework necessary for economic development and increased competitiveness.

The Networked Readiness Index, the sixth of its kind published by the World Economic Forum with Insead, the Paris-based business school, scrutinised progress in 122 economies worldwide.

Despite losing its top position, the US still maintained a strong focus on innovation, driven by one of the world's best tertiary education systems and its high degree of co-operation with industry, the report said.


NETWORKED READINESS INDEX RANKINGS 2006 (2005)
1: Denmark (3)
2: Sweden (8)
3: Singapore (2)
4: Finland (5)
5: Switzerland (9)
6: Netherlands (12)
7: US (1)
8: Iceland (4)
9: UK (10)
10: Norway (13)
Source: WEF

The country's efficient market environment, conducive to the availability of venture capital, and the sophistication of financial markets, was also given recognition.

Nordic crown

Denmark is now regarded as the world leader in technological innovation and application, with its Nordic neighbours Sweden, Finland and Norway claiming second, fourth and 10th place respectively.

"Denmark, in particular, has benefited from the very effective government e-leadership, reflected in early liberalisation of the telecommunications sector, a first-rate regulatory environment and large availability of e-government services," said Irene Mia, senior economist at World Economic Forum.

European countries to make the top 20 included Switzerland in fifth place, the Netherlands, one of the most improved in sixth, the UK (nine), Germany (16), Austria (17) and Estonia (20).

While countries from Asia and the Pacific continued to progress, the powerhouse economies of China and India both showed a downward trend.

India was four positions down on last year to 44th, suffering from weak infrastructure and a very low level of individual usage of personal computers and the internet.

China was knocked to 59th place, nine positions down, with information technology uptake in Chinese firms lagging.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/6502725.stm

Published: 2007/03/28 15:57:02 GMT
 

QueEx

Rising Star
Super Moderator
BBC said:
"political and regulatory environment .... the extent to which government policy creates a framework necessary for economic development and increased competitiveness."
I'd like to know more in this area. What is the difference in the regulatory climate
in Denmark and the other UK countries vs. the U.S.? Anybody with insight ???

QueEx
 

muckraker10021

Superstar *****
BGOL Investor
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Peeps, The deeducation of America’s youth began in 1980 with the arrival of the Reagan republicans.

For the first time since the new deal Roosevelt administration, Roosevelt was elected President in November 1932, federal education spending, grants & loans WERE NOT increased; they were DRASTICALLY cut. The seeds of America’s current education gap dilemma were planted in the 1980’s.

The 1960’s-1970’s people powered, mass protest and pushback against the Vietnam War and the anti-apartheid movement (mislabeled as civil-rights) convinced the RepubliKlan elites that there was “The Crisis of Democracy”.

The remedy according to the RepubliKlan elites, was to diminish democracy and education.

The “The Crisis of Democracy” is the title of the blueprint written by Harvard professor Samuel Huntington written in 1976. Huntington’s agenda became the template for the New Right RepubliKlan politics ushered in by Ronald Reagan.

In “The Crisis of Democracy” Huntington says –

Huntington blames - "the multifaceted crisis of American capitalist democracy" in the era of civil rights and Vietnam "on the democratization that took place in the 1960s"

Huntington says that - "One of the most problematic sources of this democratic surge is increased black political activity. Before 1960 blacks participated less in politics because their education level was low. After 1960 however, they participated above this benchmark" [suggesting that collective political action was no longer constrained by Jim Crow education]. "Consciousness-driven politics is a dangerous thing" for Huntington precisely because it challenges traditional authority relations and patterns of deference

Huntington says that - "education except for white males should be diminished"

Huntington says that - "Marginal social groups, like blacks, are now becoming full participants in the political system …[and are] overloading the political system with demands which undermine the capitalist system authority”

Peeps I could go on for 10,000 words, but if you’re really interested do the research. Get a copy of Huntington’s “The Crisis of Democracy” .

The irony is that the RepubliKlan plan to fix, their perceived ‘Crisis of Democracy’ and “diminish education” and restore order (white-supremacy) has resulted in the United States falling behind other nations educationally.

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Is the United States’ Technological Prowess at Risk?</font>
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From : Report of the National Intelligence Council’s 2020 Project
Based on consultations with nongovernmental experts around the world

to read the entire report use the link below</b>

http://www.cio.com/archive/041505/policy_NIC_report.pdf
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US investment in basic research and the innovative application of technology has directly contributed to US leadership in economic and military power during the post-
World War II era. Americans, for example, invented and commercialized the semiconductor, the personal computer, and the Internet with other countries following the US lead.<font color="#FF0000">a</font> While the United States is still the present leader, there are signs this
leadership is at risk.

The number of US engineering graduates peaked in 1985 and is presently down 20 percent from that level; the percentage of US undergraduates taking engineering is the
second lowest of all developed countries. China graduates approximately three times as many engineering students as the United States. However, post-9/11 security concerns have made it harder to attract incoming foreign students and, in some cases, foreign nationals available to work for US firms.<font color="#FF0000">b</font> Non-US universities—for which a US visa is not required—are attempting to exploit the situation and bolster their strength.

Privately funded industrial research and development—which accounts for 60 percent of the US total—while up this year, suffered three previous years of decline.<font color="#FF0000">c</font> Further, major multinational corporations are establishing corporate “research centers” outside of the United States.

While these signs are ominous, the integrating character of globalization and the inherent strengths of the US economic system preclude a quick judgment of an
impending US technological demise. By recent assessments, the United States is still the most competitive society in the world among major economies.<font color="#FF0000">d</font> In a globalized world where information is rapidly shared—including cross-border sharing done internally by multinational corporations—the creator of new science or technology may not necessarily be the beneficiary in the marketplace.

<b>NOTES</b>
a -“Is America Losing Its Edge? Innovation in a Globalized World.” Adam Segal, Foreign Affairs, November
December 2004; New York, NY p.2.

b -“Observations on S&T Trends and Their Potential Impact on Our Future.” William Wulf (President, National
Academy of Engineering). Paper submitted to the Center for Strategic and International Studies (CSIS) in support
of the National Intelligence Council 2020 Study, Summer 2004.

c -“Is America Losing Its Edge?,” p.3.

d -Global Competitiveness Report 2004-2005, World Economic Forum, http://www.weforum.org. October 2004.

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Bill Gates Pushes for Better Schools</font>
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by NANCY ZUCKERBROD | Associated Press | March 7th 2007 </b>

http://apnews.myway.com/article/20070307/D8NNISPG2.html

WASHINGTON — Microsoft Chairman Bill Gates told Congress on Wednesday that overhauls of the nation's schools and immigration laws are urgently needed to keep jobs from going overseas. "The U.S. cannot maintain its economic leadership unless our work force consists of people who have the knowledge and skills needed to drive innovation," Gates told the Senate committee that oversees labor and education issues.

Gates, whose charitable foundation has given away more than $3 billion since 1999 for educational programs and scholarships, noted that about 30 percent of U.S. ninth-graders fail to graduate on time. "As a nation, we should start with this goal: Every child in the United States graduating from high school," he said.

Gates also challenged lawmakers to push for higher educational standards and to make more challenging coursework available to students. A federal study released last month showed about a third of high schoolers fail to take a standard-level curriculum, which is defined as including at least four credits of English and three credits each of social studies, math and science.

Gates also called on lawmakers to give more resources and attention to improving the teaching of math and science _ knowledge essential to many of today's jobs. <span style="background-color: #FFFF00"><b>Another recent federal study found 40 percent of high school seniors failed to perform at the basic level on a national math test. On a national science test, half of 12th-graders didn't show basic skills.</b></span>

"We simply cannot sustain an economy based on innovation unless our citizens are educated in math, science and engineering," Gates said. Legislation moving through the Senate, backed by Democratic and Republican leaders, seeks to get more people to become math and science teachers and would improve training for them. The bill also seeks to get more highly trained teachers in poor schools and would offer grants to states to better align their teaching with what kids should know to succeed at a job or in college.

Gates said the nation's economy depends on keeping the country's borders open to highly skilled workers, especially those with a science or engineering background. Federal law provides 65,000 H1-B visas for scientists, engineers, computer programmers and other professionals every budget year. High-tech and other employers say that's not enough.

"Even though it may not be realistic, I don't think there should be any limit," Gates said, adding that <span style="background-color: #FFFF00"><b>Microsoft hasn't been able to fill approximately 3,000 technical jobs in the United States because of a shortage of skilled workers.</b></span>

Sen. Edward M. Kennedy, D-Mass., chairman of the Committee on Health, Education, Labor and Pensions, said the issue would be addressed when Congress takes up broad immigration reform legislation this session. President Bush has expressed support for raising the visa cap.
Gates _ who is No. 1 on Forbes magazine's list of richest Americans _ also told the committee in response to a question that he opposes repeal of the federal estate tax. Current law will phase out the tax by 2010, but without further action by Congress it will be restored at a 55 percent rate in 2011</font>


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Is America Losing Its Edge?
Innovation in a Globalized World</font>

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<b>by Adam Segal. Nov/Dec 2004</b>

http://www.foreignaffairs.org/20041101facomment83601/adam-segal/is-america-losing-its-edge.html

The United States' global primacy depends in large part on its ability to develop new technologies and industries faster than anyone else. For the last five decades, U.S. scientific innovation and technological entrepreneurship have ensured the country's economic prosperity and military power. It was Americans who invented and commercialized the semiconductor, the personal computer, and the Internet; other countries merely followed the U.S. lead.

Today, however, this technological edge-so long taken for granted-may be slipping, and the most serious challenge is coming from Asia. Through competitive tax policies, increased investment in research and development (R&D), and preferential policies for science and technology (S&T) personnel, Asian governments are improving the quality of their science and ensuring the exploitation of future innovations. The percentage of patents issued to and science journal articles published by scientists in China, Singapore, South Korea, and Taiwan is rising. Indian companies are quickly becoming the second-largest producers of application services in the world, developing, supplying, and managing database and other types of software for clients around the world. South Korea has rapidly eaten away at the U.S. advantage in the manufacture of computer chips and telecommunications software. And even China has made impressive gains in advanced technologies such as lasers, biotechnology, and advanced materials used in semiconductors, aerospace, and many other types of manufacturing.

Although the United States' technical dominance remains solid, the globalization of research and development is exerting considerable pressures on the American system. Indeed, as the United States is learning, globalization cuts both ways: it is both a potent catalyst of U.S. technological innovation and a significant threat to it. The United States will never be able to prevent rivals from developing new technologies; it can remain dominant only by continuing to innovate faster than everyone else. But this won't be easy; to keep its privileged position in the world, the United States must get better at fostering technological entrepreneurship at home.

<b>PENNYWISE</b>

At the moment, it would be premature to declare a crisis in the United States' scientific or technological competitiveness. The United States is still the envy of the world for reasons ranging from its ability to fund basic scientific research to the speed with which its companies commercialize new breakthroughs.

This year, total U.S. expenditures on R&D are expected to top $290 billion-more than twice the total for Japan, the next biggest spender. In 2002, the U.S. R&D total exceeded that of Canada, France, Germany, Italy, Japan, and the United Kingdom combined (although the United States trailed Finland, Iceland, Japan, South Korea, and Sweden in the ratio of R&D to GDP). And although scholars from other parts of the world may write relatively more science and engineering papers than Americans do, U.S. research continues to be cited the most.

The United States also leads the major global technology markets, holding commanding market shares in aerospace, scientific instruments, computers and office machinery, and communications instruments. U.S. information and communications technology producers lead almost every sector. And for the last two decades, U.S. firms have been the top providers of high-technology services, accounting for about one-third of the world's total.

These strengths, however, should not obscure the existence of new threats to the long-term health of science and innovation in the United States. A record $422 billion budget deficit, for example, may undermine future government support for R&D. Recent shifts in federal spending will leave basic research-that driven by scientific curiosity rather than specific commercial applications-underfunded, depriving the economy of the building blocks of future innovation. Although federal expenditures on R&D are expected to reach $132 billion in fiscal year 2005 and $137.5 billion in 2009, new spending will be concentrated in the fields of defense, homeland security, and the space program. Funding for all other R&D programs, meanwhile, will remain flat this year and decline in real terms over the next five years.

In July, Congress approved a record-breaking $70.3 billion for R&D for the Defense Department in 2005, a 7.1 percent increase from last year and more than the Pentagon had asked for (in fact, the department's top brass had asked to cut R&D spending). Such largesse makes it likely that the Pentagon will be able to continue innovation in the near term. Its longer-term prospects, however, are more worrying. According to five-year projections by the American Association for the Advancement of Science, the Defense Department will focus more and more on weapons development while neglecting basic and applied research.

Privately funded industrial R&D, meanwhile-which accounts for over 60 percent of the U.S. total-is also starting to slip as a result of the current economic slowdown. Private industry cut R&D spending by 1.7 percent in 2001, 4.5 percent in 2002, and 0.7 percent in 2003. This year, R&D spending is expected to increase-but by less than one percent, which is less than the inflation rate. Furthermore, with less than 10 percent of its R&D spending dedicated to basic research, industry will not be able to fill in the gaps created by the government's shift of funding to defense and homeland security-related research.

These funding decreases may be exacerbated by a coming labor shortage. The number of Americans pursuing advanced degrees in the sciences and engineering is declining, and university science and engineering programs are growing more dependent on foreign-born talent. Thirty-eight percent of the nation's scientists and engineers with doctorates were born outside the country. And of the Ph.D.'s in science and engineering awarded to foreign students in the United States from 1985 to 2000, more than half went to students from China, India, South Korea, and Taiwan.

Such dependence on foreign talent could become a critical weakness for the United States in the future, especially as foreign applications to U.S. science and engineering graduate programs decline. With booming economies and improving educational opportunities in their countries, staying at home is an increasingly attractive option for Chinese and Indian scientists. In addition, visa restrictions put in place after the terrorist attacks of September 11, 2001, have created new barriers for foreign students trying to enter the United States. Surveys conducted by the Association of American Universities, the American Council on Education, and other education groups have blamed repetitive security checks, inefficient visa-renewal processes, and a lack of transparency for significant drops in applications to U.S. graduate programs this year.

<b>ENGINEERING ECOSYSTEMS</b>

The real test for the United States' future will be whether it can maintain and improve its environment for innovation. For the last 30 years, U.S. companies have led in the invention of new products while Asian firms have played a secondary role, lowering the costs to manufacture U.S. inventions. But Asian firms have begun to challenge that division of labor and are no longer content simply to follow.

This shift has resulted in part from a change in the way U.S. companies work. During the 1980s and 1990s, U.S. technology producers started collaborating more with colleagues around the world. Private industry found that R&D had become too costly and risky for a single lab at a large company to undertake alone. Instead, cutting-edge companies began to cooperate with a wide network of other firms, universities, and industry-government consortia to develop new products. Such activity flourished in places such as Silicon Valley, the Route 128 corridor in Boston, and in Austin, Texas-hothouses of innovation where scientists, venture capitalists, and technology managers meet and share information. The result has been a shift in the locus of innovation from individual corporate labs to networks of technology firms, capital markets, and research universities.

Cheaper communications technologies have also allowed U.S. companies to operate more globally, dividing production into discrete functions, contracting out to producers in different countries, and transferring technological know-how to foreign partners. Contrary to conventional wisdom, not just labor-intensive manufacturing is being moved offshore; Microsoft, Intel, Bell Labs, Motorola, and other firms increasingly perform advanced research abroad.

The attraction of emerging technology clusters in places such as Shanghai, China, Bangalore, India, and Hsinchu, Taiwan, was at first based on their cheap labor supply. But as local technology companies have developed, new research institutes have been founded, and scientists and engineers from such countries have returned home after training and working in the United States, these hubs have started supporting innovation of their own. Craig Barrett of Intel has said that the Chinese are now "capable of doing any engineering, any software job, any managerial job that people in the United States are capable of." And Microsoft has reportedly contracted with the Indian companies Infosys and Satyam not only to do simple software coding, but also to provide highly skilled software architects.

No longer content to dominate labor-intensive manufacturing, Asian governments are also actively promoting technological innovation. Japan and South Korea each currently spend 3 percent of GDP on R&D (compared to 2.7 percent in the United States) and Beijing is trying to reach an R&D spending target of 1.5 percent of GDP in 2005 (up from 0.6 percent in 1996). Asian countries are also trying to take the lead in three areas that are likely to generate the next wave of innovation: biotechnology, nanotechnology, and information technology. Governments have increased their support for all three areas, and Asia now spends as much as the United States and Europe combined on nanotechnology. South Korea, China, and Japan have all established national offices to coordinate research and are spending significant private and public resources on new developments.

In addition to increasing science and R&D budgets, China, India, South Korea, and Taiwan are shifting from top-down, state-directed technology policies to more flexible, market-oriented approaches that foster innovation and entrepreneurship. Regional governments are using tax, education, and fiscal policies to create clusters of domestic start-ups. They are encouraging students, scientists, and technology managers to return from Silicon Valley to set up their own companies in Shanghai or Bangalore. And by offering tax holidays as well as priority access to water, land, and electricity, they are attracting high-tech companies from the United States, Europe, and Japan.

All of these changes in Asia highlight one of the paradoxical outcomes of globalization: geography has become both less and more important to innovation. Technology firms can now locate anywhere. Production that was once tied to a specific place can be picked up and moved to other parts of the world. But to remain competitive, technology companies need knowledge-and information-rich regions; firms are likely to be drawn to technology hubs that provide the concentration of ideas, talent, and capital needed for future innovation. Globalization has therefore not eliminated geography as a concern, but rather increased the leverage of those regions that can successfully assemble the components of innovation.

<b>RAPID RESPONSE</b>

Before rushing to address these challenges, Washington should understand the limits of the data used to describe S&T trends. Predictions of labor shortages in the sciences have been frequently wrong before, graduate school enrollment can change from year to year, and other data can counterbalance bad news. Although the number of Ph.D. students coming to the United States has dropped, for example, the proportion of those choosing to remain after their studies has increased substantially. Moreover, a bachelor's degree may now be more relevant to innovation than before, and the number of American students getting such degrees in science and engineering has increased over the last decade.

Policymakers should therefore be careful not to focus too much on any particular statistic. Dollars spent on R&D or research papers published are easy to measure, but innovation involves many other factors. The speed at which new technologies such as broadband are adopted and diffused, the flexibility of labor markets, and the ease with which new companies can enter and exit technology markets all affect the ability of innovators to flourish in a particular economy-yet such factors usually fall outside the parameters of traditional S&T policy.

The double-edged phenomenon of globalization, which can both strengthen U.S. technology companies and threaten the innovation system, makes the task of supporting innovation through policy much more difficult. Proximity to consumers gives firms a better sense of potential new markets and allows them to rapidly respond to changing customer demands. Yet a move overseas, although it might seem good for shareholders, could also destabilize the complex interactions between firms and universities that drive technological discovery in the United States. Removing any one element from a technology cluster can diminish its ability to generate new ideas. Send manufacturing jobs to Asia and you risk exporting important components of your innovation infrastructure.

The United States cannot and should not prevent the emergence of new technology clusters in Asia. Instead, it should prepare to develop and absorb new technologies as they emerge elsewhere. The ability to make good use of diverse ideas and systems remains one of the United States' most important comparative advantages, and U.S. companies must make sure that good ideas, no matter where they are developed, are brought to market in the United States first.

U.S. private industry may want to follow the example of the nation's armed forces. Washington's military dominance no longer depends on it denying others access to critical technologies. Many of the sensors that the U.S. military now uses to detect ships or aircraft beyond visual range or to provide targeting information are off-the-shelf items produced by companies around the world. Unable to prevent the spread of these technologies to potential enemies, the United States has maintained its military superiority by making sure it is better than any other country at using such tools, integrating sensor input, and creating sensor networks. In the commercial sphere, U.S. firms should similarly strive to maintain their advantage by adopting and integrating new technologies more rapidly than their competitors.

Maintaining such speed will require that U.S. companies have a presence in Asian markets to track, develop, and invest in the most promising new ideas. Washington must continue to pressure its trading partners-especially Beijing-to meet the terms of current trade agreements and allow such access. The United States must also promote voluntary and open technology standards. In March 2004, the Bush administration protested regulations requiring all wireless imports to China to contain data-encryption technology produced only by Chinese companies. Beijing has since withdrawn the regulations, but given China's interest in developing new technology standards, the United States should watch for future attempts of a similar nature.

At home, Washington should not strive to identify the next big thing. Rather, policymakers should ensure that the United States remains the most dynamic innovation system. Funding for science and education must be maintained. Although it might be tempting to shrink the budget deficit by reducing discretionary funding for the sciences, this would weaken one of the pillars of the country's future economic and technological health. Money for basic research, especially in the physical sciences and engineering, and support for the National Science Foundation should therefore be maintained at current levels or increased.

Of equal importance, policymakers must also reinforce the United States' entrepreneurial climate, its greatest asset. The building blocks of American innovation-flexible capital and labor markets, transparent government regulation, and a business environment that rewards risk-need to be strengthened. Making the R&D tax credit permanent and expanding it to include more types of collaborative research, for example, would help provide incentives for innovation in as many technological sectors as possible.

With innovative capacity rapidly spreading across the Pacific, the United States cannot simply assume that it will remain the epicenter of scientific research and technological innovation. Instead, it should meet the challenge from Asia head-on. The United States must actively engage with new centers of innovation and prepare itself to integrate rapidly and build on new ideas emerging in China, India, and South Korea. Above all, it must not assume that future innovation will occur automatically. Only through renewed attention to science funding, educational reform, the health of labor and capital markets, and the vitality of the business environment can the United States maintain its edge-and the most innovative economy in the world.</font>
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muckraker10021

Superstar *****
BGOL Investor
muckraker10021 said:
Peeps, The deeducation of America’s youth began in 1980 with the arrival of the Reagan republicans.

For the first time since the new deal Roosevelt administration, Roosevelt was elected President in November 1932, federal education spending, grants & loans WERE NOT increased; they were DRASTICALLY cut. The seeds of America’s current education gap dilemma were planted in the 1980’s.


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Stepping On The Dream </font>
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....Back in the 1970s, before college became essential to securing a middle-class lifestyle, our government did a great job of helping students pay for school. Students from modest economic backgrounds received almost free tuition through Pell grants, and middle-class households could still afford to pay for their kids' college....At the state level, per-pupil spending for higher education is at a 25-year low....</b></font>

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<img src="http://graphics8.nytimes.com/images/2005/09/19/opinion/tsherbertstill.162.jpg"><br>
<b>by BOB HERBERT<br>
Published: March 22, 2007</b>

http://select.nytimes.com/gst/abstr...orials and Op-Ed/Op-Ed/Columnists/Bob Herbert

One of the weirder things at work these days is the fact that we're making it more difficult for American youngsters to afford college at a time when a college education is a virtual prerequisite for establishing and maintaining a middle-class standard of living.

Young men and women are leaving college with debt loads that would break the back of a mule. Families in many cases are taking out second mortgages, loading up credit cards and raiding 401(k)s to supplement the students' first wave of debt, the ubiquitous college loan.

At the same time, many thousands of well-qualified young men and women are being shut out of college, denied the benefits and satisfactions of higher education, because they can't meet the ever-escalating costs.

You want a recipe for making the U.S. less competitive over the next few decades? This is it.

Traditionally, one of the sweetest periods in the lives of many college graduates has been the time immediately after leaving school, when they could relax and take the measure of the newly emerging adult world. It was a time, perhaps, to travel, or to sample intriguing employment opportunities, even if they didn't pay particularly well. Debt was not usually the overriding concern of the young graduate.

That has changed. Along with their degree, most graduates leave college now with a loan obligation that will hover over them for years, maybe decades. Student loans have decisively overtaken grants as the primary form of financial aid for undergraduates.

Two-thirds of all graduates now leave college with some form of debt. The average amount is close to $20,000. Some owe many times that.

Tamara Draut, in her book, ''Strapped: Why America's 20- and 30-Somethings Can't Get Ahead,'' tells us:

''Back in the 1970s, before college became essential to securing a middle-class lifestyle, our government did a great job of helping students pay for school. Students from modest economic backgrounds received almost free tuition through Pell grants, and middle-class households could still afford to pay for their kids' college.''

Since then, tuition at public and private universities has soared while government support for higher education, other than student loan programs, has diminished.

This is a wonderful example of extreme stupidity. America will pony up a trillion or two for a president who goes to war on a whim, but can't find the money to adequately educate its young. History has shown that these kinds of destructive trade-offs are early clues to a society in decline.

At the state level, per-pupil spending for higher education is at a 25-year low, even as government officials and corporate leaders keep pounding out the message that a college degree is the key to a successful future.

Ms. Draut, director of the Economic Opportunity Program at Demos, a public policy group in New York, got to the heart of the matter in her recent testimony before a U.S. Senate committee looking into higher education costs.

''The fundamental problem,'' she said, ''is rooted in the reality that our government no longer really helps people pay for college -- it helps them go into debt for college. The question we need to be asking is not, 'How much student loan debt is reasonable?' but, 'What is the best way to help students afford college?' ''

The kids who graduate with enormous debt burdens -- $40,000, $80,000, $100,000 or more -- face a range of uncomfortable and even debilitating consequences, the first of which is the persistent anxiety over how their loans are to be repaid.

I've spoken recently with a number of law students who have already decided to go into corporate practice because their first choice -- public interest law -- would not pay enough to cover their loans. Many students have turned their backs on teaching for the same reason.

At that stage of life, you shouldn't have to choose between a job you would love and one that you would take simply because it would pay the bills. Talk about stepping on a dream.

There are also plenty of cases of students who have postponed marriage or buying a home or having children because of their college loan obligations.

And then there are those who never see a graduation day. There's no way of telling what talents have been squandered, or what great benefits to society have been lost, because bright students who were unable to afford the costs have been forced to leave college, or never went to college at all.

In a nation as rich as ours, it should be easy to pay for college. For some reason, we find it easier to pay for wars.
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