This document contains the text of testimony presented at a congressional hearing examining education's role in economic competitiveness. Senator James M. Jefford's opening statement is followed by testimony given by representatives of the following agencies and organizations: TRW, Inc., Circuit City Stores, Inc., McGraw-Hill, Inc., Drew University, U.S. Bureau of the Census, University of Southern California, Cornell University, and Knowledge Network for All Americans. Also included is a paper titled "Improving Education: How Large Are the Benefits? How Can It Be Done Efficiently?" (Bishop), and a paper titled "Improving National Economic Competitiveness through Educational Investment" (Lloyd). Charts summarizing the following are contained in the testimony: average annual federal taxes by family for 1991; change in median family income by education; education loan debt; employment by major economic sector from 1800 to 1993; the growing gap between individuals based on mastery of the skills required for economic competitiveness; distribution of available capital stocks in the U.S. business economy; components fueling domestic economic growth in the United States from 1929 to 1990; and shifts in federal budget priorities from 1993 to 1995. (MN)