The U.S. can't slash education funding and think it can compete with China
The trade deficit with China in the current tariff war is overshadowing another important shortfall — our country's education deficit with China.
As the Trump administration threatens American universities, guts crucial research programs, slashes education spending and threatens to kill the Department of Education, Chinese leaders are steaming ahead to improve their vast nation's education standards and outcomes. And China is doing this with a laserlike focus on programs around science, technology, industrial innovation and AI.
Meanwhile, the U.S. Secretary of Education Linda McMahon confused the abbreviation for artificial intelligence with A-1, the popular steak sauce brand. The contrast could not be more stark, and the consequences should worry all of us.
China graduates almost twice as many STEM-oriented Ph.D.s in science and technology programs than the U.S. — an estimated 77,000 versus 40,000 according to the Center for Security and Emerging Technology. But those numbers don't tell the whole story. If you exclude international students from that count, then China outpaces the U.S. 3 to 1.
Their advantage doesn't end with science and technology Ph.D.s. China has also been forging ahead to create stronger undergraduate engineering programs and vocational engineering disciplines to create a massive workforce of factory and innovation, with workers that have mastered specialized hands-on technological, problem solving and math skills.
There is a 2015 video with Apple CEO Tim Cook that has been re-circulating recently that explains why China is so attractive to foreign manufacturers. Here's the newsflash: It's not just about cheap labor. In that interview with former Fortune executive editor Adam Lashinsky at the Fortune Global Forum, Cook spells out why China is so important to Apple's global supply chain for computers, iPads, iPhones and other products. He says, 'The popular conception is that companies come to China because of low labor costs…. but the truth is China stopped being the low labor cost country many years ago. That is not the reason to come to China from a supply point of view. The reason is because of the skill and the quantity of skill in one location and the type of skill it is.'
Cook said in that video that 'the products we do require really advanced tooling and … the tooling skill is very deep here. In the U.S., you could have a meeting of tooling engineers … and I am not sure you could fill the room. In China, you could fill multiple football fields. It is that vocational expertise is very deep, very very deep here, and I give the education system a lot of credit for continuing to push on that even when others were de-emphasizing vocational.'
He said workers there demonstrate an 'intersection of craftsman kind of skill and sophisticated robotics and sort of the computer science world, that intersection that is very rare to find anywhere.'
Trump defends his torrent of tariffs by promising that such economic saber rattling will bring American manufacturing roaring back. However, his team does not seem to have a plan to rebuild a new model of American manufacturing that is based on brains as much as brawn, as well as the ability to keep up with rapid technological and engineering changes that require precise skills and advanced training.
Whether companies are creating washing machines or weather instruments, the manufacturing models that have become so attractive in China (and also increasingly in places like Vietnam and Indonesia) are based on those advanced skills Cook was talking about. That requires prioritizing academics and investing more in education at all levels — pre-K, K-12, vocational programs and higher education. It also requires investing in the government research programs that partner with universities. But Elon Musk's DOGE brigade is enthusiastically ravaging the agencies and departments that support such partnerships.
Trump has been all bark and no long-term strategy. What's sad is that America could continue to be the greatest economic global powerhouse. The ingredients for success are here, but Trump and his team seem hell-bent in destroying the educational and research infrastructure that could insure growth and dominance in the economic sphere. It's like attacking the fuse box with a blow torch and expecting that the lights and the oven and the computers will all keep running.
It just doesn't make sense.
In truth, America's struggles with education predate Trump. Tuition rates have soared to levels that are hard to justify, and almost impossible for most families to finance without steep sacrifice. American students lag behind their international counterparts in several disciplines. A 2019 study conducted by the National Center for Education Statistics found that American 8th graders ranked 16th in math and 14th in science. As the Asia Times put it, our kids 'were outclassed by students from Singapore, Taiwan, Japan, Russia, South Korea, Canada, Dubai and several European countries.'
The Organization for Economic Cooperation and Development's 2018 Program for International Student Assessment found China to rank first — and far ahead of the U.S. — in reading, math and science, but even if we eliminate China's cherry-picked data, the Asia Times reported, 'the US still ranks 34th in math and 15th in science.' It rightly calls that 'an appalling result for a country with the world's best universities.'
Even though China has sometimes presented an overly flattering portrait of its students' academic achievements, the truth remains that the country has put muscle into building a world-class compulsory education program for young people at the lower rungs of the economic ladder. They're no longer primarily plowing the best resources into educating the social elite class at the expense of everyone else.
Kishore Mahbubani, the Singapore-based scholar and author of several books on Asia, including 'Has China Won?,' argues that the economic standoff between the U.S. and China will be won and lost in the heartland of both countries and that education is the thing that will make the biggest difference.
'At the end of the day, the outcome of the geopolitical contest between the US and China will not be determined by which society is doing a better job at taking care of its bottom 50 percent and by which society's kids can read, write and count,' Mahbubani argued in the Asia Times.
When you poll voters about what matters to them, they always put education high on the list, but our spending and strategic priorities as a nation don't reflect that. The education stories that break into the news cycle are more often about school shootings, book bans, restrictions on transgender athletes and debates over critical race theory.
Instead of building America's world-class education system, President Trump spends his time picking fights with universities or threatening to withhold funding from schools that allegedly teach concepts like white privilege or have what he considers to be 'illegal DEI programs.' We have an administration that acts like America's educational infrastructure is more of a whipping post than a whopping piston of growth.
A country that wants to stay ahead of or even keep up with China doesn't treat its advanced education system with this kind of disdain and scorn.
This article was originally published on MSNBC.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Upturn
7 minutes ago
- Business Upturn
ROSEN, LEADING INVESTOR COUNSEL, Encourages Reddit, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action
NEW YORK, June 21, 2025 (GLOBE NEWSWIRE) — WHY: Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers of securities of Reddit, Inc. (NYSE: RDDT) between October 29, 2024 and May 20, 2025, both dates inclusive (the 'Class Period'). A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 18, 2025. SO WHAT: If you purchased Reddit securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. WHAT TO DO NEXT: To join the Reddit class action, go to or call Phillip Kim, Esq. at 866-767-3653 or email [email protected] for more information. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 18, 2025. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers. DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and misleading statements and/or failed to disclose that: (1) changes in Google Search's algorithm and features like AI Overview were causing users to stop their query on Google search; (2) these algorithm changes were materially different than prior instances of reduced traffic to the Reddit website; (3) defendants were aware that the increase in the query term 'Reddit' on search engines was because users were getting the sought after answer from Google Search without having to go to Reddit, and not because they intended to visit Reddit; (4) this zero-click search reality was dramatically reducing traffic to Reddit in a manner Reddit was unable to overcome in the short term; and (5) defendants, therefore, lacked a reasonable basis for its outlook on user rates and advertising revenues. When the true details entered the market, the lawsuit claims that investors suffered damages. To join the Reddit class action, go to or call Phillip Kim, Esq. at 866-767-3653 or email [email protected] for more information. No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. Follow us for updates on LinkedIn: on Twitter: or on Facebook: Attorney Advertising. Prior results do not guarantee a similar outcome. ——————————- Contact Information: Laurence Rosen, Esq. Phillip Kim, Esq. The Rosen Law Firm, P.A. 275 Madison Avenue, 40th Floor New York, NY 10016 Tel: (212) 686-1060 Toll Free: (866) 767-3653 Fax: (212) 202-3827 [email protected]
CNBC
10 minutes ago
- CNBC
The Israel-Iran conflict and the other big thing that drove the stock market this week
It's been a tense and dynamic week for the world at large. The market action on Wall Street over the past four sessions was been anything but that. For the week, the S & P 500 lost 0.15%, the tech-heavy Nasdaq ticked up 0.21%, and the Dow Jones Industrial Average was basically flat, up a mere 0.02%. Beneath the surface, though, there was plenty of news for investors to digest. Here's a closer look at the biggest market themes during the holiday-shortened trading week. 1. Geopolitics: The major news story was — and still is — the intensifying war between Israel and Iran. The big question on everyone's mind is whether the U.S. will get involved. As of Friday, reports indicate that while President Donald Trump is actively reviewing options to attack Iran, nothing has been authorized. The White House has said Trump he will make a decision in the "next two weeks". As a result of the Israel-Iran conflict, investors spent the week keeping an extra close eye on the movement in safe-haven assets like gold and the dollar, as well as risk assets such as oil. Gold prices pulled back this week after their initial spike last Friday, which is when Israel's first attack on Iranian nuclear infrastructure jolted markets. The U.S. dollar index , meanwhile, strengthened this week but still remains near multiyear lows. Oil rose again for the week, with international benchmark Brent crude climbing nearly 4%. For those looking to gauge what the market thinks will happen with Iran, look to oil. The commodity is currently acting as something of proxy on the odds of the conflict intensifying and America directly entering the fray. 2. Fed updates: The other big theme of the week centered on the health of the U.S. economy in the lead up to Wednesday afternoon, when we got the Federal Reserve's latest interest rate decision and revised economic projections. Ultimately, the Fed kept its benchmark lending rate unchanged on Wednesday following its two-day policy meeting. The decision followed lackluster updates on the state of the consumer and the housing market , along with lower-than-expected inflation readings the week prior. As we outlined earlier this week , the Fed is in a tough spot when it comes to abiding by its dual mandate of ensuring price stability and low unemployment. The state of play requires nuance. On the one hand, there is evidence in support of rate cuts, namely some cracks in the consumer — even if the consumer has remained largely and impressively resilient — and the Fed's own updated outlook for lower real GDP growth and higher unemployment this year. On the other hand, the Fed is now expecting higher inflation this year than it did in March, which would support the need for higher interest rates. Given these dueling dynamics and the uncertainty around tariff impacts, the central bank's decision to keep interest rates steady makes sense. While the Fed certainly doesn't want to wait too long and make the same mistake we saw coming out of the Covid-19 pandemic, we must acknowledge that the causes of a potential rebound in inflation are different this time around. Tariffs will likely push up prices, but that may be a one-time increase, as opposed to the sustained inflation we saw exiting the pandemic, which was driven by massive supply chain disruptions and shifts in consumer behavior. As a result, we believe the apparent bias to be more worried about the job market and overall economic growth — and therefore cut rates later this year — makes sense, too. Indeed, the Fed's updated projections still pencil in two rate cuts in 2025, the same as in March despite the aforementioned revisions to its inflation and growth outlook. Fed Governor Christopher Waller made the case Friday that the cuts should start as early as July, arguing that the inflation risk posed by tariffs is not significant and ensuring resiliency in the labor market should be a higher priority. Waller's argument is basically that it's better to move now than wait for a jump in unemployment. Our biggest focus at the Club is staying nimble, given the highly volatile nature of geopolitics at the moment. No doubt, rate decisions are important to think about, but they're only one small part of the investing puzzle to navigate each day. For this reason, we continue to focus more on individual company fundamentals and industry trends rather than higher-level dynamics, important as they are to shaping our worldview. Cybersecurity stocks are one example that we highlighted this week. Another example would be the news we got from Club names Meta Platforms and Amazon this week on their artificial intelligence efforts. We think the implications that AI will have on the cost structures, revenue opportunities and efficiency gains should weigh far more heavily in the minds' of long-term investors than whether the Fed will cut in July or September. (Jim Cramer's Charitable Trust is long META, AMZN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
New York Times
10 minutes ago
- New York Times
B-2 bombers head across the Pacific and Trump is scheduled to return to the White House as he considers strike on Iran.
Multiple U.S. Air Force B-2 bombers appeared to be airborne and heading west from the United States across the Pacific, and President Trump is scheduled to return to the White House late on Saturday afternoon from New Jersey as he deliberates about whether to join Israel's efforts to destroy Iran's nuclear sites. Air traffic control communications indicated that several B-2 aircraft — the planes that could be equipped to carry the 30,000-pound bunker-buster bombs that Mr. Trump is considering deploying against Iran's underground nuclear facilities in Fordo — had taken off from Whiteman Air Force Base in Missouri. Some flight trackers said on social media that the destination of the aircraft is Guam, the U.S. territory, which has several military installations, although that could not be independently confirmed. The bombers appeared to be accompanied by refueling tankers for portions of the journey, the flight tracking data showed. Moving planes does not mean a final decision has been made about whether to strike. It is not unusual to shift military assets into position to provide options to the president and military commanders even if they are not ultimately deployed. The White House schedule for the weekend said that Mr. Trump would return from his golf club in Bedminster, N.J., and would meet with his national security team at 6 p.m. on Saturday and again on Sunday. Mr. Trump typically spends both weekend days out of town at one of his properties. A White House spokeswoman declined to comment. Mr. Trump has made clear he is weighing whether to have the U.S. join Israel's effort to curtail Iran's ability to acquire a nuclear weapon, a line he has drawn repeatedly over the years. Want all of The Times? Subscribe.
