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While Government Spending on Education Increased 60% Over Past 50 Years, At
Margin, Government Spent More on Healthcare...

USA Total Government Healthcare vs. Education Spending as % of GDP, 1960 – 2008

8%

6%
6.0%

Spending as % of GDP
4%
3.7%

2%
— Total Government (Federal + State + Local) Spending on Health Care
— Total Government (Federal + State + Local) Spending on Education

0%
1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008

Note: Total government spending on healthcare includes Medicare, Medicaid and other programs and total government
spending on education includes spending on pre-primary through tertiary education programs. Source: Dept. of
Education, Dept. of Health & Human Services.
KP
CB www.kpcb.com
USA Inc. | What Might a Turnaround Expert Consider? 379

Despite Increased Government Spending, USA Education is Falling Behind –
Math / Science Tests Scores Well Below OECD Average
& Getting Worse Though Self Confidence Rising

USA Ranking Out of 30-34* OECD Countries
in PISA (Program for International Student Assessment for 15-Year Olds)
2000 / 2003 / 2006 / 2009

2000 2003 2006 2009 2000-2009
Trend

Mathematics 18 23 25 25 ↓ ↓

Science 14 19 21 17 ↓

Reading 16 15 --** 14 ↑

Self
Confidence¹ 2 1 1 -- ↑

Note: *30 OECD countries participated in 2000 / 2003 PISA, 34 OECD countries participated in 2006 / 2009 PISA. 1) Confidence is the self-perceived efficacy in
learning abilities (for year 2000); mathematical problem solving abilities (for year 2003) and scientific problem solving abilities (for year 2006). USA tied in
confidence ranking with Canada, Hungary, Slovakia, Switzerland and Liechtenstein in 2003 and tied with Poland and Canada in 2006. **2006 reading scores for
USA were rendered invalid because of a printing error in questionnaire instructions. Source: OECD.
KP
CB www.kpcb.com
USA Inc. | What Might a Turnaround Expert Consider? 380

HOUSE_OVERSIGHT_021031