This document contains two essays: "Toward a High-Wage, High-Productivity Service Sector" by Lester Thurow; and "Service Sector Wages, Productivity and Job Creation in the U.S. and Other Countries" by Louise Waldstein. The first essay analyzes the recent and currrent U.S. economy under headings called Growth Nodes, Falling…

This paper asserts that the reason so many high school graduates are functionally illiterate may be that the form of economic organization in the United States does not sufficiently value or make use of intelligence. The paper reviews studies that report both the decline in general knowledge of high school graduates and the promotion of programs…

By embracing education as an economic development tool, policy makers adopt a new economic metaphor--a new way of understanding how the economy works and identifying determinants of development. Development policy has shifted focus, from providing incentives for the accumulation of physical capital to emphasizing investments in human capital. Most…