A big portion of president Obama’s stimulus bill for the US economy is reserved for education. So is this good news for everyone working in education? In the new plan, education gets about $150 billion in new spending, including $79 billion for state education aid and billions more for (much needed) school modernization.
I personally think this is a important signal that the government is sending out: it emphasizes the shift of the U.S. economy from “tangibles” to “intangibles”:
The tangible sector includes industries producing or distributing physical goods (e.g. construction, manufacturing, retailing, and transportation). These industries are in free-fall, with massive and repeated job cuts, because of a global oversupply of manufacturing capacity and weakness in demand for goods such as cars and electronics.
On the other hand the intangible sector, led by health care and education, is expanding, even in the current crisis. In a knowledge-based economy, there’s still demand for more education, there’s still demand for better health, and there’s still demand for new and better ideas.
Let’s hope this renewed focus on education is permanent though. I’m keen to hear your views on this subject!