Throughout U.S. history, Americans have pivoted between whether the central priority of public education should be to create skilled workers for the economy, or to educate young people for responsible citizenship. Both goals are important, of course, but with the recent rise of a global economy, the emphasis has shifted away from preparing citizens and toward serving the needs of the marketplace. New evidence suggests that American democracy is under severe strain. This report proceeds in four parts. The first part articulates the ways in which the founders believed that public education was critical to protecting the republic from demagogues. The second part discusses the tilt toward market values and away from democratic norms in recent years in both the courses children are taught directly and the way educators model (or do not model) democratic practices in schooling. The third part outlines the considerable costs of failing to emphasize democratic values and embrace democratic practices. And the last part makes public policy recommendations for restoring the right balance in schools at the state, local and federal levels. Throughout the report, the authors seek to synthesize the practical experiences of one of the authors (Janey), who served as superintendent of public schools in Rochester, New York (1995-2002), Washington, D.C. (2004-2007), and Newark, New Jersey (2008-2011), and the scholarly work of one of the authors (Kahlenberg), who has researched and written about school integration and is the biographer of teacher union leader Albert Shanker. The following three cases studies are included at the end of the report: (1) Case Study: Rochester. Case study to Richard D. Kahlenberg and Clifford B. Janey, "Putting Democracy Back Into Education" (2) Case Study: Washington D.C. Case study to Richard D. Kahlenberg and Clifford B. Janey, "Putting Democracy Back Into Education"; and (3) Case Study: Newark, New Jersey. Case study to Richard D. Kahlenberg and Clifford B. Janey, "Putting Democracy Back Into Education."