Arts United States. Congress. Senate. Committee on Labo.

Education's impact on economic competitiveness : hearing before the Subcommittee on Education, Arts, and Humanities of the Committee on Labor and Human Resources, United States Senate, One Hundred Fourth Congress, first session ... February 2, 1995 online

. (page 1 of 15)
Online LibraryArts United States. Congress. Senate. Committee on LaboEducation's impact on economic competitiveness : hearing before the Subcommittee on Education, Arts, and Humanities of the Committee on Labor and Human Resources, United States Senate, One Hundred Fourth Congress, first session ... February 2, 1995 → online text (page 1 of 15)
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S. Hrg. 104-23

EDUCATION'S IMPACT ON ECONOMIC
COMPETITIVfNE^;;;



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PAPR
HEARINCT"

BEFORE THE

SUBCOMMITTEE ON
EDUCATION, ARTS AND HUMANITIES

OF THE

COMMITTEE ON

LABOR AND HUMAN RESOURCES

UNITED STATES SENATE

ONE HUNDRED FOURTH CONGRESS

FIRST SESSION

ON
EXAMINING EDUCATION'S IMPACT ON ECONOMIC COMPETITIVENESS



FEBRUARY 2, 1995



Printed for the use of the Committee on Labor and Human Resources



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U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : iSSS



For sale by the U.S. Government Printing Office
Superintendent of Documents, Congressional Sales Office, Washington, DC 20402
ISBN 0-16-047120-6



S. Hrg. 104-23

EDUCATION'S IMPACT ON ECONOMIC
COMPETTnVENE^





PAPR_
HEARlNCr^

BEFORE THE

SUBCOMMITTEE ON
EDUCATION, ARTS AND HUMANITIES

OF THE

COMMITTEE ON

LABOR AND HUMAN RESOURCES

UNITED STATES SENATE

ONE HUNDRED FOURTH CONGRESS

FIRST SESSION

ON
EXAMINING EDUCATION'S IMPACT ON ECONOMIC COMPETITIVENESS



FEBRUARY 2, 1995



Printed for the use of the Committee on Labor and Human Resources






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8



2000



HETMU 5 YEmOHLY

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U.S. GOVERNMENT PRINTipTG OFFICE
WASHINGTON : 1995



For sale by the U.S. Government Printing Office
Su[)erintendent of Documents, Congressional Sales Office, Washington, DC 20402
ISBN 0-16-047120-6



COMMITTEE ON IJ^BOR AND HUMAN RESOURCES

NANCY LANDON KASSEBAUM, Kansas, Chairman
JAMES M. JEFFORDS, Vermont EDWARD M. KENNEDY, Massachusette

DAN COATS, Indiana CLAIBORNE PELL, Rhode Island

JUDD GREGG, New Hampshire CHRISTOPHER J. DODD, Connecticut

BILL FRIST, Tennessee PAUL SIMON, Illinois

MIKE DeWINE, Ohio TOM HARKIN, Iowa

JOHN ASHCROFT, Missouri BARBARA A. MIKULSKI, Maryland

SPENCER ABRAHAM, Michigan PAUL WELLSTONE. Minnesota

SLADE GORTON, Washington

Susan K. Hattan, Sta/T Director
Nick Littlefield, Minority Staff Director and Chief Counsel



Subcommittee on Education, Arts and Humanities

JAMES M. JEFFORDS, Vermont, Chairman
NANCY LANDON KASSEBAUM, Kansas CLAIBORNE PELL, Rhode Island

DAN COATS, Indiana EDWARD M. KENNEDY, Massachusetts

JUDD GREGG, New Hampshire CHRISTOPHER J. DODD, Connecticut

BILL FRIST, Tennessee PAUL SIMON, Illinois

MIKE DeWINE, Ohio TOM HARKIN, Iowa

JOHN ASHCROFT, Missouri BARBARA A. MIKULSKI, Maryland

SPENCER ABRAHAM, Michigan PAUL WELLSTONE, Minnesota

SLADE GORTON, Washington

Pamela K. Devitt, Staff Director
David V. Evans, Minority Staff Director



(ID



CONTENTS



STATEMENTS
Thursday, February 2, 1995

Page

Jeffords, Hon. James M., a Senator from the State of Vermont, opening

statement 1

Gorman, Joseph T., chairman and chief executive officer, TRW, Inc., Cleve-
land, OH; and Alan L. Wurtzel, vice chairman and former chief executive

officer. Circuit City Stores, Inc., Washington, DC b

Prepared statements of:

Mr. Gorman 8

Mr. Wurtzel 14

Dodd, Hon. Christopher J., a U.S. Senator from the State of Connecticut,

prepared statement 23

Dionne, Joseph L., chairman and chief executive officer, McGraw-Hill, Inc.,
New York, NY; and Hon. Thomas H. Kean, president. Drew Universitv,

Madison, NJ '.. 26

Prepared statements of:

Mr. Dionne 29

Mr. Kean 37

Pell, Hon. Claiborne, a U.S. Senator from the State of Rhode Island, opening

statement 39

Kominski, Robert, Assistant Chief for Social and Demographic Statistics,
U.S. Bureau of the Census, Washington, DC; Morton Owen Schapiro, dean.
College of Letters, Arts and Sciences, University of Southern California,
Los Angeles, CA; John H. Bishop, associate professor, Cornell University,
Ithaca, NY; and Kent Lloyd, chairman and cnief executive officer. Knowl-
edge Network for All Americans, Arlington, VA 47

Prepared statements of:

Mr. Kominski 49

Joint statement of Mr. McPherson and Mr. Schapiro 51

Mr. Bishop 57

Mr. Lloyd 93

ADDITIONAL MATERIAL

Charts:

Average annual Federal taxes by family, 1991 2

Change in median family income by education 3

Education loan* debt 3

Employment by major economic sector: 1800 to 1993 88

An American catastrophe: the growing gap 89

Distribution of available capital stocks: U.S. domestic business economy .. 90

Components fiieling U.S. domestic economic growth, 1929 to 1990 91

Shifts in Federal budget priorities: 1993 to 1995 ." 92

(in)



EDUCATION'S IMPACT ON ECONOMIC
COMPETITIVENESS



THURSDAY, FEBRUARY 2, 1995

U.S. Senate,
Subcommittee on Education, Arts and Humanities, of
THE Committee on Labor and Human Resources,

Washington, DC.
The subcommittee met, pursuant to notice, at 9:30 a.m., in room
SD-430, Dirksen Senate Office Building, Senator James F. Jeffords
(chairman of the subcommittee) presiding.

Present: Senators Jeffords, DeWine, Gorton, Pell, and Kennedy.

Opening Statement of Senator Jeffords

Senator Jeffords. The Senate Subcommittee on Education, Arts
and Humanities will come to order.

Good morning. I would like to welcome everyone to the first
meeting of the U.S. Senate Subcommittee on Education, Arts and
Humanities in this, our 104th Congress.

I am very excited to serve as Chairman. I have waited 20 vears
for this moment, and after having been a ranking member of sub-
committees and committees for some 20 years, I finally have an op-
portunity to hold a hearing myself, and I am deeply honored to
serve in this capacity.

It is no surprise that I plan to conduct the subcommittee's busi-
ness in the same bipartisan spirit that marked the tenure of Sen-
ator Pell, who will be here a little later, and my predecessor Sen-
ator Stafford. Senator Pell has been a driving force in this sub-
committee, and we are indebted to him for his years of very hard
work.

This hearing will kick off a series of hearings that I intend to
hold throughout the year to discuss the importance of education to
the overall success of our citizens and the Nation.

Education has always been one of my top priorities, but I think
it must be everyone's priority if we are to maintain the United
States as the world's foremost economic power. ,

My intention for this hearing is to highlight the relationship be-
tween education and the country's current and future economic and
global competitiveness. This issue is a high priority for me because
education is fundamental to increasing the supply of highly skilled
workers for a country intent on competing aggressively in an in-
creasingly competitive global economy.

Americans understand intuitively that investing in education is
the key to our future success and the best possible national invest-

(1)



ment that we can make in our country. The evidence is clear.
Countries which spend more on education per pupil enjoy higher
per capita levels of income.

Economists such as Eric Hanushak, who testified before this sub-
committee in the last Congress, estimated the return to investment
in college education at over 30 percent in the 1980's. And some in-
stitutions, such as Motorola University, report corporate savings of
$30 to $35 per hour with respect to investment in training. That
is a 3,000 to 3,500 percent rate of return.

Here is a chart which explains why education is so critical for
the future success of our country. It shows that college graduates
pay at least twice as much as everyone else in Federal taxes each
year. And the same can be true of highly skilled workers. Thus, the
more skilled we become, the more people who can earn the kind of
income that we want to see earned, the better able we are as a na-
tion to take care of our resource needs. This chart suggests that a
more highly educated work force is key if we are going to balance
the budget without raising taxes. It is a crucial factor for increas-
ing the level of Federal resource.

[The chart referred to follows:]



Average Annual Federal Taxes by Family, 1991



$9,000

$8,000

$7,000

$6,000

I $5,000
Q

5; $4,000

$3,000

$2,000

$1,000

$0



$8,292



$1,277



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8th Erads




12 HIgtitchODt 1 3 Yean

(No Olploraa) EraduaK ol Colege

Education of Head of household



4

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1 3 4 5 6 7 8 9 10 11 12 13 14 15

Online LibraryArts United States. Congress. Senate. Committee on LaboEducation's impact on economic competitiveness : hearing before the Subcommittee on Education, Arts, and Humanities of the Committee on Labor and Human Resources, United States Senate, One Hundred Fourth Congress, first session ... February 2, 1995 → online text (page 1 of 15)