The conventional wisdom by establishment figures on America's decline/future prospects is that education is "the answer." If only the education system could be strengthened the economy would be stronger. It is quickly becoming more of an article of religious faith than economic analysis.
This one to one correlation between educational achievement and economic prosperity is total nonsense. America did not prosper due to an exceptionally good education system and is not declining because of an exceptionally bad education system.
It is undeniable that America, by global standards, has poor education outcomes. Though it's important to note that these surveys largely discount private education outcomes and that a holistic view, while important, disqualifies elite standards (which parity those around the world). So America has a poor public education system compared to its peers in the developed world... so what?
The average U.S worker, presumably a product of this education system, has INCREASED PRODUCTIVITY as education standards have declined which has caused greater not less strains on the labor market. So education increases productivity which decreases employment, therefore "education leads to higher employment rates" is not only incorrect its contradictory.
America has not lost its manufacturing base due to education. In fact, if there is any connection visible between education and industrial jobs, poor education systems and poorly educated people seem to attract manufacturing jobs. Those bread and butter jobs that used to make Americans prosperous and now have launched China out of poverty to thesecond richest nation in the world do not require extensive education. Some of those jobs don't even require literacy.
America was never the light of the world regarding education. It was often derided by its European peers as a "nation of shopkeepers" who were too focused on business matters to cultivate themselves through higher learning. A country that had no respect for intellectuals, worshiped money and was materialistic - possibly best and most famously expressed by President Coolidge "The chief business of the American people is business." Many still see America this way and not without reason.
The industrial might of America was not built with advanced education or by people with advanced educations. Beyond the current examples of Bill Gates, Steve Jobs and Mark Zuckerberg (college dropouts all), is the system instituted to create the modern American industrial economy. This system, known as the American System, was based on public investments in infrastructure and protecting key industries (aka Protectionism). While it was an enlightened idea, national education standards had nothing to do with it.
The American view was not an educational arms race but planning a system that favored American industry.
What are the results? The American System created an industrial giant, Neoliberalism has created crippling unemployment and wealth inequality.
Of course, lots of educated people have opportunities in the Neoliberal system, especially those in the FIRE (finance, insurance, real estate) sector. Those people get to use their advanced education to scheme on manipulating markets and racketeering their way to freedom when the house of cards falls down. Despite the amusement of Lloyd Blankfein at congressional hearings (being lightly interrogated by the politicians he has bought) the Neoliberal system gets an F.
In terms of economics, education is not an end but a means to an end. If America wants to return to prosperity it needs to stop obsessing over its international educational rankings and start contemplating how it can reimpose control over its economic destiny.