alan greenspan : the critical role of education in the nation ’ s economy remarks by mr alan greenspan, chairman of the board of governors of the us federal reserve system, at the greater omaha chamber of commerce 2004 annual meeting, omaha, 20 february 2004. * * * the united states economy has long been characterized by a strong tradition of entrepreneurial spirit among our business people, a high level of skill among our workers, and an openness by firms and workers alike to intense competition within and beyond our borders. those attributes have given us a standard of living unparalleled for so large a population - and one that has risen steadily over the history of our nation. but with that bounty has also come the inevitable stresses and anxieties that accompany economic advance. one concern that has persisted for some time is the fear that we are irreversibly losing manufacturing jobs because of businesses ’ efforts to extract rapid gains in production efficiencies and to cut labor costs by tapping the lower - wage economies of asia and latin america. more recently, similar concerns have arisen about the possibility that an increasing number of our better - paying white - collar jobs will be lost to outsourcing, especially to india and china. many of these jobs are in the service sector, and they were previously perceived as secure and largely free from the international competition long faced in the manufacturing sector. there is a palpable unease that businesses and jobs are being drained from the united states, with potentially adverse long - run implications for unemployment and the standard of living of the average american. the issue is both important and sensitive, dealing as it does with the longer - term wealth of our nation and with the immediate welfare of so many individuals and communities. in the debate that has ensued, a large gulf is often perceived between the arguments of economists, who almost always point to the considerable benefits offered over the long term by exposure to free and open trade, and the obvious stress felt by those caught on the downside of turbulence created by that exposure. it is crucial that this gulf be bridged. as history clearly shows, our economy is best served by full and vigorous engagement in the global economy. consequently, we need to increase our efforts to ensure that as many of our citizens as possible have the opportunity to capture the benefits that flow from that engagement. for reasons that i shall elucidate shortly, one critical element in creating those opportunities is to provide rigorous education and ongoing training to all members of our society

could ultimately unbalance the world financial system. the recent experience in asia underscores the importance of financially sound domestic banking and other associated financial institutions. while the current turmoil has significant interaction with the international financial system, the recent crises would arguably have been better contained if long - maturity property loans had not accentuated the usual mismatch between maturities of assets and liabilities of domestic financial systems that were far from robust to begin with. our unlamented savings and loan crises come to mind. these are trying days for economic policymakers in asia. they must fend off domestic pressures that seek disengagement from the world trading and financial system. the authorities in these countries are working hard, in some cases with substantial assistance from the imf, the world bank, and the asian development bank, to stabilize their financial systems and economies. the financial disturbances that have afflicted a number of currencies in asia do not at this point, as i indicated earlier, threaten prosperity in this country, but we need to work closely with their leaders and the international financial community to assure that their situations stabilize. it is in the interest of the united states and other nations around the world to encourage appropriate policy adjustments, and where required, provide temporary financial assistance.