With an urgency not seen in decades, policy leaders concerned about America's global competitiveness and widening income gaps within U.S. society are propelling issues of academic and workforce preparation to the forefront of the nation's education policy debates. Worried that current expectations and structure are ill suited to the 21st century politicians, scholars, and business executives are pushing to ground educational standards far more closely in the knowledge and skills needed to succeed in the new economy. To that end they are arguing for closer connection between K-12 and postsecondary education, on the assumption that decent-paying jobs with opportunities for advancement will require at least some education beyond high school as well as lifelong learning to adjust to a fluid labor market. On one side of the debate are those who believe that fundamental shifts in the economy, brought about largely by technology, are creating a premium for knowledge and skills. Students must be prepared to take advantage of those new opportunities, they warn, or risk joining the ranks of the working poor. On the other side are economists who see a more gradual rise in skill requirements and no shortage of college-educated workers over the next decade. They question the extent to which education offers a solution to the United States' broader economic problems. Meanwhile, large disagreements remain about how best to redesign secondary and postsecondary institutions to meet the shifting demands. (Contains 3 graphs.)